VIRTU FINANCIAL INC-CLASS A (VIRT) Stock Fundamental Analysis
NASDAQ:VIRT - Nasdaq - US9282541013 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to VIRT. VIRT was compared to 232 industry peers in the Capital Markets industry. VIRT has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on VIRT.
1. Profitability
1.1 Basic Checks
In the past year VIRT was profitable.
In the past year VIRT had a positive cash flow from operations.
Each year in the past 5 years VIRT has been profitable.
In the past 5 years VIRT always reported a positive cash flow from operatings.
1.2 Ratios
VIRT's Return On Assets of 1.69% is in line compared to the rest of the industry. VIRT outperforms 44.40% of its industry peers.
With an excellent Return On Equity value of 20.73%, VIRT belongs to the best of the industry, outperforming 88.36% of the companies in the same industry.
VIRT has a Return On Invested Capital (3.98%) which is in line with its industry peers.
VIRT had an Average Return On Invested Capital over the past 3 years of 3.64%. This is below the industry average of 7.89%.
The 3 year average ROIC (3.64%) for VIRT is below the current ROIC(3.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 20.73% | ||
| ROIC | 3.98% |
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 9.04%, VIRT is not doing good in the industry: 63.36% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of VIRT has declined.
VIRT has a Operating Margin (22.98%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of VIRT has declined.
The Gross Margin of VIRT (53.74%) is comparable to the rest of the industry.
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 | 22.98% | ||
| PM (TTM) | 9.04% | ||
| GM | 53.74% |
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
Compared to 1 year ago, VIRT has less shares outstanding
VIRT has less shares outstanding than it did 5 years ago.
VIRT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.13, we must say that VIRT is in the distress zone and has some risk of bankruptcy.
VIRT's Altman-Z score of 0.13 is on the low side compared to the rest of the industry. VIRT is outperformed by 74.14% of its industry peers.
VIRT has a debt to FCF ratio of 21.92. This is a negative value and a sign of low solvency as VIRT would need 21.92 years to pay back of all of its debts.
VIRT has a Debt to FCF ratio (21.92) which is comparable to the rest of the industry.
VIRT has a Debt/Equity ratio of 9.53. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 9.53, VIRT is doing worse than 89.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.53 | ||
| Debt/FCF | 21.92 | ||
| Altman-Z | 0.13 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.22 indicates that VIRT may have some problems paying its short term obligations.
The Current ratio of VIRT (0.22) is worse than 87.93% of its industry peers.
VIRT has a Quick Ratio of 0.22. 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's Quick ratio of 0.22 is on the low side compared to the rest of the industry. VIRT is outperformed by 87.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
VIRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 121.08%, which is quite impressive.
VIRT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.36% yearly.
The Revenue has grown by 32.65% in the past year. This is a very strong growth!
The Revenue has been growing by 13.65% on average over the past years. This is quite good.
EPS 1Y (TTM)121.08%
EPS 3Y-8.01%
EPS 5Y29.36%
EPS Q2Q%71.05%
Revenue 1Y (TTM)32.65%
Revenue growth 3Y0.77%
Revenue growth 5Y13.65%
Sales Q2Q%44.57%
3.2 Future
Based on estimates for the next years, VIRT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.38% on average per year.
VIRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.91% yearly.
EPS Next Y24.95%
EPS Next 2Y7.84%
EPS Next 3Y9.38%
EPS Next 5YN/A
Revenue Next Year23.22%
Revenue Next 2Y7.9%
Revenue Next 3Y5.91%
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 decreasing.
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
VIRT is valuated reasonably with a Price/Earnings ratio of 9.85.
Based on the Price/Earnings ratio, VIRT is valued a bit cheaper than the industry average as 71.98% of the companies are valued more expensively.
VIRT is valuated cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.75, which indicates a very decent valuation of VIRT.
71.55% of the companies in the same industry are more expensive than VIRT, based on the Price/Forward Earnings ratio.
VIRT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.85 | ||
| Fwd PE | 9.75 |
4.2 Price Multiples
83.62% of the companies in the same industry are more expensive than VIRT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VIRT is valued a bit cheaper than 71.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.39 | ||
| EV/EBITDA | 12.35 |
4.3 Compensation for Growth
VIRT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.39
PEG (5Y)0.34
EPS Next 2Y7.84%
EPS Next 3Y9.38%
5. Dividend
5.1 Amount
VIRT has a Yearly Dividend Yield of 2.36%.
VIRT's Dividend Yield is comparable with the industry average which is at 8.15.
VIRT's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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
34.23% of the earnings are spent on dividend by VIRT. This is a low number and sustainable payout ratio.
DP34.23%
EPS Next 2Y7.84%
EPS Next 3Y9.38%
40.27
-0.47 (-1.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners89.44%
Inst Owner Change-1.24%
Ins Owners0.73%
Ins Owner Change1.43%
Market Cap6.21B
Analysts77.33
Price Target42.84 (6.38%)
Short Float %3.11%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend0.57
Dividend Growth(5Y)-12.48%
DP34.23%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.34%
Min EPS beat(2)1.69%
Max EPS beat(2)24.99%
EPS beat(4)4
Avg EPS beat(4)25.72%
Min EPS beat(4)1.69%
Max EPS beat(4)41.27%
EPS beat(8)6
Avg EPS beat(8)12.41%
EPS beat(12)9
Avg EPS beat(12)6.84%
EPS beat(16)12
Avg EPS beat(16)11.28%
Revenue beat(2)2
Avg Revenue beat(2)23.55%
Min Revenue beat(2)15.76%
Max Revenue beat(2)31.34%
Revenue beat(4)4
Avg Revenue beat(4)24.68%
Min Revenue beat(4)15.76%
Max Revenue beat(4)31.34%
Revenue beat(8)7
Avg Revenue beat(8)24.01%
Revenue beat(12)11
Avg Revenue beat(12)36.19%
Revenue beat(16)15
Avg Revenue beat(16)45.56%
PT rev (1m)2.44%
PT rev (3m)-2.04%
EPS NQ rev (1m)2.95%
EPS NQ rev (3m)18.93%
EPS NY rev (1m)15.15%
EPS NY rev (3m)16.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.03%
Revenue NY rev (1m)11.42%
Revenue NY rev (3m)12.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.85 | ||
| Fwd PE | 9.75 | ||
| P/S | 2.16 | ||
| P/FCF | 11.39 | ||
| P/OCF | 10.37 | ||
| P/B | 4.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.35 |
EPS(TTM)4.09
EY10.16%
EPS(NY)4.13
Fwd EY10.25%
FCF(TTM)3.53
FCFY8.78%
OCF(TTM)3.88
OCFY9.65%
SpS18.66
BVpS8.13
TBVpS-0.64
PEG (NY)0.39
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 20.73% | ||
| ROCE | 11.24% | ||
| ROIC | 3.98% | ||
| ROICexc | 4.25% | ||
| ROICexgc | 4.91% | ||
| OM | 22.98% | ||
| PM (TTM) | 9.04% | ||
| GM | 53.74% | ||
| FCFM | 18.94% |
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%
ROICexcg growth 3Y-29.05%
ROICexcg 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 Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.53 | ||
| Debt/FCF | 21.92 | ||
| Debt/EBITDA | 15.36 | ||
| Cap/Depr | 46.36% | ||
| Cap/Sales | 1.88% | ||
| Interest Coverage | 1.13 | ||
| Cash Conversion | 77.04% | ||
| Profit Quality | 209.62% | ||
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | 0.13 |
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)121.08%
EPS 3Y-8.01%
EPS 5Y29.36%
EPS Q2Q%71.05%
EPS Next Y24.95%
EPS Next 2Y7.84%
EPS Next 3Y9.38%
EPS Next 5YN/A
Revenue 1Y (TTM)32.65%
Revenue growth 3Y0.77%
Revenue growth 5Y13.65%
Sales Q2Q%44.57%
Revenue Next Year23.22%
Revenue Next 2Y7.9%
Revenue Next 3Y5.91%
Revenue Next 5YN/A
EBIT growth 1Y102.94%
EBIT growth 3Y-13.6%
EBIT growth 5YN/A
EBIT Next Year46.98%
EBIT Next 3Y11.33%
EBIT Next 5YN/A
FCF growth 1Y31.01%
FCF growth 3Y-21.14%
FCF growth 5Y37.47%
OCF growth 1Y21.75%
OCF growth 3Y-20.04%
OCF growth 5Y28.83%