VICTORY CAPITAL HOLDING - A (VCTR) Stock Fundamental Analysis
NASDAQ:VCTR - Nasdaq - US92645B1035 - Common Stock - Currency: USD
Taking everything into account, VCTR scores 7 out of 10 in our fundamental rating. VCTR was compared to 232 industry peers in the Capital Markets industry. VCTR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. VCTR is evaluated to be cheap and growing strongly. This does not happen too often! This makes VCTR very considerable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
VCTR had positive earnings in the past year.
VCTR had a positive operating cash flow in the past year.
VCTR had positive earnings in each of the past 5 years.
Each year in the past 5 years VCTR had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.42%, VCTR belongs to the best of the industry, outperforming 91.38% of the companies in the same industry.
Looking at the Return On Equity, with a value of 25.76%, VCTR belongs to the top of the industry, outperforming 92.67% of the companies in the same industry.
VCTR has a Return On Invested Capital of 14.76%. This is amongst the best in the industry. VCTR outperforms 89.22% of its industry peers.
VCTR had an Average Return On Invested Capital over the past 3 years of 12.95%. This is significantly above the industry average of 7.87%.
The last Return On Invested Capital (14.76%) for VCTR is above the 3 year average (12.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.42% | ||
| ROE | 25.76% | ||
| ROIC | 14.76% |
ROA(3y)10.19%
ROA(5y)10.73%
ROE(3y)23.95%
ROE(5y)26.36%
ROIC(3y)12.95%
ROIC(5y)14.02%
1.3 Margins
With a decent Profit Margin value of 32.88%, VCTR is doing good in the industry, outperforming 75.43% of the companies in the same industry.
VCTR's Profit Margin has improved in the last couple of years.
VCTR has a better Operating Margin (49.13%) than 84.05% of its industry peers.
VCTR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 83.76%, VCTR belongs to the best of the industry, outperforming 87.07% of the companies in the same industry.
In the last couple of years the Gross Margin of VCTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.13% | ||
| PM (TTM) | 32.88% | ||
| GM | 83.76% |
OM growth 3Y1.49%
OM growth 5Y6.28%
PM growth 3Y1.13%
PM growth 5Y16.45%
GM growth 3Y1.4%
GM growth 5Y1.91%
2. Health
2.1 Basic Checks
Compared to 1 year ago, VCTR has about the same amount of shares outstanding.
The number of shares outstanding for VCTR has been reduced compared to 5 years ago.
VCTR has a better debt/assets ratio than last year.
2.2 Solvency
VCTR has an Altman-Z score of 3.16. This indicates that VCTR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.16, VCTR is doing good in the industry, outperforming 77.59% of the companies in the same industry.
The Debt to FCF ratio of VCTR is 2.76, which is a good value as it means it would take VCTR, 2.76 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.76, VCTR belongs to the best of the industry, outperforming 80.17% of the companies in the same industry.
VCTR has a Debt/Equity ratio of 0.84. This is a neutral value indicating VCTR is somewhat dependend on debt financing.
VCTR has a Debt to Equity ratio of 0.84. This is comparable to the rest of the industry: VCTR outperforms 56.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 2.76 | ||
| Altman-Z | 3.16 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.02 indicates that VCTR should not have too much problems paying its short term obligations.
VCTR has a Current ratio of 1.02. This is comparable to the rest of the industry: VCTR outperforms 41.81% of its industry peers.
A Quick Ratio of 1.02 indicates that VCTR should not have too much problems paying its short term obligations.
The Quick ratio of VCTR (1.02) is comparable to the rest of the industry.
The current and quick ratio evaluation for VCTR is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.23% over the past year.
VCTR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.55% yearly.
The Revenue has been growing slightly by 7.38% in the past year.
VCTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.85% yearly.
EPS 1Y (TTM)10.23%
EPS 3Y-0.56%
EPS 5Y12.55%
EPS Q2Q%9.09%
Revenue 1Y (TTM)7.38%
Revenue growth 3Y0.12%
Revenue growth 5Y7.85%
Sales Q2Q%1.73%
3.2 Future
The Earnings Per Share is expected to grow by 18.40% on average over the next years. This is quite good.
VCTR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.12% yearly.
EPS Next Y25.41%
EPS Next 2Y22.14%
EPS Next 3Y18.4%
EPS Next 5YN/A
Revenue Next Year41.4%
Revenue Next 2Y27.83%
Revenue Next 3Y20.12%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.69 indicates a correct valuation of VCTR.
Compared to the rest of the industry, the Price/Earnings ratio of VCTR is on the same level as its industry peers.
VCTR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.32.
VCTR is valuated reasonably with a Price/Forward Earnings ratio of 8.69.
Based on the Price/Forward Earnings ratio, VCTR is valued a bit cheaper than 78.02% of the companies in the same industry.
VCTR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 8.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VCTR is valued cheaply inside the industry as 86.64% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VCTR is valued a bit cheaper than the industry average as 72.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.84 | ||
| EV/EBITDA | 10.47 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of VCTR may justify a higher PE ratio.
A more expensive valuation may be justified as VCTR's earnings are expected to grow with 18.40% in the coming years.
PEG (NY)0.5
PEG (5Y)1.01
EPS Next 2Y22.14%
EPS Next 3Y18.4%
5. Dividend
5.1 Amount
VCTR has a Yearly Dividend Yield of 2.86%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.91, VCTR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, VCTR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
On average, the dividend of VCTR grows each year by 70.54%, which is quite nice.
VCTR has been paying a dividend for over 5 years, so it has already some track record.
As VCTR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)70.54%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
VCTR pays out 36.95% of its income as dividend. This is a sustainable payout ratio.
The dividend of VCTR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP36.95%
EPS Next 2Y22.14%
EPS Next 3Y18.4%
61.56
-0.8 (-1.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners67.12%
Inst Owner Change2.03%
Ins Owners9.33%
Ins Owner Change0.14%
Market Cap4.14B
Analysts76
Price Target73.88 (20.01%)
Short Float %3.73%
Short Ratio6.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend1.58
Dividend Growth(5Y)70.54%
DP36.95%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.69%
Min EPS beat(2)-13.03%
Max EPS beat(2)-4.35%
EPS beat(4)0
Avg EPS beat(4)-9.37%
Min EPS beat(4)-13.03%
Max EPS beat(4)-4.35%
EPS beat(8)1
Avg EPS beat(8)-7.54%
EPS beat(12)2
Avg EPS beat(12)-5.58%
EPS beat(16)5
Avg EPS beat(16)-3.98%
Revenue beat(2)0
Avg Revenue beat(2)-2.48%
Min Revenue beat(2)-3.97%
Max Revenue beat(2)-0.99%
Revenue beat(4)0
Avg Revenue beat(4)-2.04%
Min Revenue beat(4)-3.97%
Max Revenue beat(4)-0.99%
Revenue beat(8)0
Avg Revenue beat(8)-1.62%
Revenue beat(12)0
Avg Revenue beat(12)-1.8%
Revenue beat(16)0
Avg Revenue beat(16)-2.23%
PT rev (1m)4.32%
PT rev (3m)-3.11%
EPS NQ rev (1m)6.55%
EPS NQ rev (3m)3.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)12.24%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)3.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 8.69 | ||
| P/S | 4.61 | ||
| P/FCF | 11.84 | ||
| P/OCF | 11.76 | ||
| P/B | 3.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.47 |
EPS(TTM)4.85
EY7.88%
EPS(NY)7.09
Fwd EY11.51%
FCF(TTM)5.2
FCFY8.45%
OCF(TTM)5.23
OCFY8.5%
SpS13.34
BVpS17.01
TBVpS-16.26
PEG (NY)0.5
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.42% | ||
| ROE | 25.76% | ||
| ROCE | 19.11% | ||
| ROIC | 14.76% | ||
| ROICexc | 15.97% | ||
| ROICexgc | N/A | ||
| OM | 49.13% | ||
| PM (TTM) | 32.88% | ||
| GM | 83.76% | ||
| FCFM | 38.97% |
ROA(3y)10.19%
ROA(5y)10.73%
ROE(3y)23.95%
ROE(5y)26.36%
ROIC(3y)12.95%
ROIC(5y)14.02%
ROICexc(3y)13.54%
ROICexc(5y)14.52%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)16.77%
ROCE(5y)18.16%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y0.57%
ROICexc growth 5Y5.99%
OM growth 3Y1.49%
OM growth 5Y6.28%
PM growth 3Y1.13%
PM growth 5Y16.45%
GM growth 3Y1.4%
GM growth 5Y1.91%
F-Score9
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 2.76 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 7.95% | ||
| Cap/Sales | 0.26% | ||
| Interest Coverage | 5.8 | ||
| Cash Conversion | 74.79% | ||
| Profit Quality | 118.52% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 3.16 |
F-Score9
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)9.54%
Cap/Depr(5y)29.11%
Cap/Sales(3y)0.46%
Cap/Sales(5y)0.77%
Profit Quality(3y)129.83%
Profit Quality(5y)126.84%
High Growth Momentum
Growth
EPS 1Y (TTM)10.23%
EPS 3Y-0.56%
EPS 5Y12.55%
EPS Q2Q%9.09%
EPS Next Y25.41%
EPS Next 2Y22.14%
EPS Next 3Y18.4%
EPS Next 5YN/A
Revenue 1Y (TTM)7.38%
Revenue growth 3Y0.12%
Revenue growth 5Y7.85%
Sales Q2Q%1.73%
Revenue Next Year41.4%
Revenue Next 2Y27.83%
Revenue Next 3Y20.12%
Revenue Next 5YN/A
EBIT growth 1Y24.55%
EBIT growth 3Y1.61%
EBIT growth 5Y14.62%
EBIT Next Year42.69%
EBIT Next 3Y20.44%
EBIT Next 5YN/A
FCF growth 1Y9.16%
FCF growth 3Y-2.33%
FCF growth 5Y8.8%
OCF growth 1Y8.44%
OCF growth 3Y-3.32%
OCF growth 5Y8.38%