VIRTU FINANCIAL INC-CLASS A (VIRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VIRT - US9282541013 - Common Stock
33.84 USD
+0.28 (+0.83%)
33.3 USD
-0.54 (-1.6%)
Taking everything into account, VIRT scores 5 out of 10 in our fundamental rating. VIRT was compared to 238 industry peers in the Capital Markets industry. While VIRT is still in line with the averages on profitability rating, there are concerns on its financial health. VIRT is evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
VIRT had positive earnings in the past year.
VIRT had a positive operating cash flow in the past year.
In the past 5 years VIRT has always been profitable.
In the past 5 years VIRT always reported a positive cash flow from operatings.
1.2 Ratios
VIRT has a Return On Assets of 1.71%. This is comparable to the rest of the industry: VIRT outperforms 43.28% of its industry peers.
With an excellent Return On Equity value of 22.90%, VIRT belongs to the best of the industry, outperforming 90.34% of the companies in the same industry.
The Return On Invested Capital of VIRT (3.71%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for VIRT is below the industry average of 7.00%.
The 3 year average ROIC (3.64%) for VIRT is below the current ROIC(3.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 22.9% | ||
| ROIC | 3.71% |
ROA(3y)1.68%
ROA(5y)3.17%
ROE(3y)16.96%
ROE(5y)24.76%
ROIC(3y)3.64%
ROIC(5y)6.8%
1.3 Margins
With a Profit Margin value of 9.77%, VIRT is not doing good in the industry: 60.92% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of VIRT has declined.
VIRT's Operating Margin of 24.25% is in line compared to the rest of the industry. VIRT outperforms 50.84% of its industry peers.
VIRT's Operating Margin has declined in the last couple of years.
The Gross Margin of VIRT (53.61%) is better than 63.45% of its industry peers.
In the last couple of years the Gross Margin of VIRT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.25% | ||
| PM (TTM) | 9.77% | ||
| GM | 53.61% |
OM growth 3Y-14.26%
OM growth 5YN/A
PM growth 3Y-18.14%
PM growth 5YN/A
GM growth 3Y-6.35%
GM growth 5Y0.8%
2. Health
2.1 Basic Checks
The number of shares outstanding for VIRT has been reduced compared to 1 year ago.
The number of shares outstanding for VIRT has been reduced compared to 5 years ago.
VIRT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.06, we must say that VIRT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.06, VIRT is doing worse than 73.95% of the companies in the same industry.
The Debt to FCF ratio of VIRT is 15.02, which is on the high side as it means it would take VIRT, 15.02 years of fcf income to pay off all of its debts.
VIRT has a Debt to FCF ratio (15.02) which is in line with its industry peers.
A Debt/Equity ratio of 10.90 is on the high side and indicates that VIRT has dependencies on debt financing.
VIRT has a Debt to Equity ratio of 10.90. This is amonst the worse of the industry: VIRT underperforms 89.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.9 | ||
| Debt/FCF | 15.02 | ||
| Altman-Z | 0.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
VIRT has a Current Ratio of 0.26. This is a bad value and indicates that VIRT is not financially healthy enough and could expect problems in meeting its short term obligations.
VIRT has a Current ratio of 0.26. This is amonst the worse of the industry: VIRT underperforms 84.87% of its industry peers.
A Quick Ratio of 0.26 indicates that VIRT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.26, VIRT is doing worse than 84.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
VIRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 87.31%, which is quite impressive.
The Earnings Per Share has been growing by 29.36% on average over the past years. This is a very strong growth
The Revenue has grown by 25.45% in the past year. This is a very strong growth!
VIRT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.65% yearly.
EPS 1Y (TTM)87.31%
EPS 3Y-8.01%
EPS 5Y29.36%
EPS Q2Q%28.05%
Revenue 1Y (TTM)25.45%
Revenue growth 3Y0.77%
Revenue growth 5Y13.65%
Sales Q2Q%5.18%
3.2 Future
VIRT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.10% yearly.
Based on estimates for the next years, VIRT will show a quite strong growth in Revenue. The Revenue will grow by 9.50% on average per year.
EPS Next Y44.87%
EPS Next 2Y14.45%
EPS Next 3Y9.1%
EPS Next 5YN/A
Revenue Next Year32.3%
Revenue Next 2Y13.52%
Revenue Next 3Y9.5%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.74, the valuation of VIRT can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of VIRT indicates a rather cheap valuation: VIRT is cheaper than 86.97% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.39. VIRT is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.28 indicates a rather cheap valuation of VIRT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VIRT indicates a rather cheap valuation: VIRT is cheaper than 86.55% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VIRT to the average of the S&P500 Index (23.84), we can say VIRT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.74 | ||
| Fwd PE | 7.28 |
4.2 Price Multiples
86.97% of the companies in the same industry are more expensive than VIRT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VIRT indicates a rather cheap valuation: VIRT is cheaper than 80.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.44 | ||
| EV/EBITDA | 11.53 |
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.
PEG (NY)0.15
PEG (5Y)0.23
EPS Next 2Y14.45%
EPS Next 3Y9.1%
5. Dividend
5.1 Amount
VIRT has a Yearly Dividend Yield of 2.85%.
Compared to an average industry Dividend Yield of 6.43, VIRT has a dividend in line with its industry peers.
VIRT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
5.2 History
The dividend of VIRT decreases each year by -12.48%.
VIRT has been paying a dividend for at least 10 years, so it has a reliable track record.
As VIRT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-12.48%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
29.33% of the earnings are spent on dividend by VIRT. This is a low number and sustainable payout ratio.
DP29.33%
EPS Next 2Y14.45%
EPS Next 3Y9.1%
33.84
+0.28 (+0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners91.13%
Inst Owner Change1.24%
Ins Owners0.62%
Ins Owner Change-0.84%
Market Cap5.18B
Revenue(TTM)2.88B
Net Income(TTM)300.00M
Analysts76.92
Price Target43.42 (28.31%)
Short Float %4.43%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
Yearly Dividend0.57
Dividend Growth(5Y)-12.48%
DP29.33%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.52%
Min EPS beat(2)6.05%
Max EPS beat(2)24.99%
EPS beat(4)4
Avg EPS beat(4)16.91%
Min EPS beat(4)1.69%
Max EPS beat(4)34.92%
EPS beat(8)6
Avg EPS beat(8)10.22%
EPS beat(12)9
Avg EPS beat(12)7.25%
EPS beat(16)12
Avg EPS beat(16)7.9%
Revenue beat(2)2
Avg Revenue beat(2)28.16%
Min Revenue beat(2)24.97%
Max Revenue beat(2)31.34%
Revenue beat(4)4
Avg Revenue beat(4)24.54%
Min Revenue beat(4)15.76%
Max Revenue beat(4)31.34%
Revenue beat(8)7
Avg Revenue beat(8)16.31%
Revenue beat(12)11
Avg Revenue beat(12)35.08%
Revenue beat(16)15
Avg Revenue beat(16)41.18%
PT rev (1m)-5.13%
PT rev (3m)-9.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)2.32%
EPS NY rev (3m)1.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)3.01%
Revenue NY rev (3m)2.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.74 | ||
| Fwd PE | 7.28 | ||
| P/S | 1.68 | ||
| P/FCF | 5.44 | ||
| P/OCF | 5.13 | ||
| P/B | 3.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.53 |
EPS(TTM)5.02
EY14.83%
EPS(NY)4.65
Fwd EY13.74%
FCF(TTM)6.22
FCFY18.37%
OCF(TTM)6.6
OCFY19.49%
SpS20.08
BVpS8.56
TBVpS-0.19
PEG (NY)0.15
PEG (5Y)0.23
Graham Number31.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 22.9% | ||
| ROCE | 10.96% | ||
| ROIC | 3.71% | ||
| ROICexc | 3.71% | ||
| ROICexgc | 4.04% | ||
| OM | 24.25% | ||
| PM (TTM) | 9.77% | ||
| GM | 53.61% | ||
| FCFM | 30.96% |
ROA(3y)1.68%
ROA(5y)3.17%
ROE(3y)16.96%
ROE(5y)24.76%
ROIC(3y)3.64%
ROIC(5y)6.8%
ROICexc(3y)3.96%
ROICexc(5y)7.58%
ROICexgc(3y)4.77%
ROICexgc(5y)9.78%
ROCE(3y)9.96%
ROCE(5y)15.88%
ROICexgc growth 3Y-29.05%
ROICexgc growth 5YN/A
ROICexc growth 3Y-26.22%
ROICexc growth 5YN/A
OM growth 3Y-14.26%
OM growth 5YN/A
PM growth 3Y-18.14%
PM growth 5YN/A
GM growth 3Y-6.35%
GM growth 5Y0.8%
F-Score8
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.9 | ||
| Debt/FCF | 15.02 | ||
| Debt/EBITDA | 16.86 | ||
| Cap/Depr | 56.98% | ||
| Cap/Sales | 1.89% | ||
| Interest Coverage | 1.29 | ||
| Cash Conversion | 119.15% | ||
| Profit Quality | 317% | ||
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 0.06 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)51.9%
Cap/Depr(5y)48.45%
Cap/Sales(3y)2.65%
Cap/Sales(5y)2.39%
Profit Quality(3y)257.2%
Profit Quality(5y)233.98%
High Growth Momentum
Growth
EPS 1Y (TTM)87.31%
EPS 3Y-8.01%
EPS 5Y29.36%
EPS Q2Q%28.05%
EPS Next Y44.87%
EPS Next 2Y14.45%
EPS Next 3Y9.1%
EPS Next 5YN/A
Revenue 1Y (TTM)25.45%
Revenue growth 3Y0.77%
Revenue growth 5Y13.65%
Sales Q2Q%5.18%
Revenue Next Year32.3%
Revenue Next 2Y13.52%
Revenue Next 3Y9.5%
Revenue Next 5YN/A
EBIT growth 1Y125.19%
EBIT growth 3Y-13.6%
EBIT growth 5YN/A
EBIT Next Year68.85%
EBIT Next 3Y16.6%
EBIT Next 5YN/A
FCF growth 1Y27.5%
FCF growth 3Y-21.14%
FCF growth 5Y37.47%
OCF growth 1Y24.02%
OCF growth 3Y-20.04%
OCF growth 5Y28.83%
VIRTU FINANCIAL INC-CLASS A / VIRT FAQ
What is the ChartMill fundamental rating of VIRTU FINANCIAL INC-CLASS A (VIRT) stock?
ChartMill assigns a fundamental rating of 5 / 10 to VIRT.
Can you provide the valuation status for VIRTU FINANCIAL INC-CLASS A?
ChartMill assigns a valuation rating of 8 / 10 to VIRTU FINANCIAL INC-CLASS A (VIRT). This can be considered as Undervalued.
How profitable is VIRTU FINANCIAL INC-CLASS A (VIRT) stock?
VIRTU FINANCIAL INC-CLASS A (VIRT) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for VIRT stock?
The Price/Earnings (PE) ratio for VIRTU FINANCIAL INC-CLASS A (VIRT) is 6.74 and the Price/Book (PB) ratio is 3.95.
Is the dividend of VIRTU FINANCIAL INC-CLASS A sustainable?
The dividend rating of VIRTU FINANCIAL INC-CLASS A (VIRT) is 5 / 10 and the dividend payout ratio is 29.33%.