VIRTU FINANCIAL INC-CLASS A (VIRT) Stock Fundamental Analysis
NYSE:VIRT - New York Stock Exchange, Inc. - US9282541013 - Common Stock - Currency: USD
VIRT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 232 industry peers in the Capital Markets industry. There are concerns on the financial health of VIRT while its profitability can be described as average. VIRT may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
VIRT had positive earnings in the past year.
In the past year VIRT had a positive cash flow from operations.
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 1.69%. This is comparable to the rest of the industry: VIRT outperforms 43.97% of its industry peers.
VIRT has a better Return On Equity (20.73%) than 88.36% of its industry peers.
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 7.85%.
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: 63.79% 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.
VIRT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 53.74%, VIRT is in the better half of the industry, outperforming 60.34% of the companies in the same 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
VIRT has an Altman-Z score of 0.14. This is a bad value and indicates that VIRT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.14, VIRT is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
The Debt to FCF ratio of VIRT is 21.92, which is on the high side as it means it would take VIRT, 21.92 years of fcf income to pay off all of its debts.
VIRT has a Debt to FCF ratio (21.92) which is in line with its industry peers.
A Debt/Equity ratio of 9.53 is on the high side and indicates that VIRT has dependencies on debt financing.
With a Debt to Equity ratio value of 9.53, VIRT is not doing good in the industry: 90.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.53 | ||
| Debt/FCF | 21.92 | ||
| Altman-Z | 0.14 |
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.
VIRT's Current ratio of 0.22 is on the low side compared to the rest of the industry. VIRT is outperformed by 88.79% 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 has a Quick ratio of 0.22. This is amonst the worse of the industry: VIRT underperforms 88.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 121.08% over the past year.
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!
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)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 Y24.52%
EPS Next 2Y7.84%
EPS Next 3Y9.38%
EPS Next 5YN/A
Revenue Next Year19.23%
Revenue Next 2Y7.37%
Revenue Next 3Y5.91%
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
With a Price/Earnings ratio of 10.37, the valuation of VIRT can be described as very reasonable.
Based on the Price/Earnings ratio, VIRT is valued a bit cheaper than the industry average as 69.83% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.65. VIRT is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.27 indicates a reasonable valuation of VIRT.
VIRT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VIRT is cheaper than 68.53% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.27. VIRT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 10.27 |
4.2 Price Multiples
83.19% 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 | 12 | ||
| EV/EBITDA | 12.68 |
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)0.42
PEG (5Y)0.35
EPS Next 2Y7.84%
EPS Next 3Y9.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.25%, VIRT has a reasonable but not impressive dividend return.
VIRT's Dividend Yield is comparable with the industry average which is at 8.07.
Compared to an average S&P500 Dividend Yield of 2.44, VIRT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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%
42.41
-0.11 (-0.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners87.98%
Inst Owner Change-1.25%
Ins Owners0.56%
Ins Owner Change1.43%
Market Cap6.54B
Analysts74.67
Price Target42.84 (1.01%)
Short Float %3.23%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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)0%
PT rev (3m)-2.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)15.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.03%
Revenue NY rev (1m)-3.24%
Revenue NY rev (3m)8.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 10.27 | ||
| P/S | 2.27 | ||
| P/FCF | 12 | ||
| P/OCF | 10.92 | ||
| P/B | 5.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.68 |
EPS(TTM)4.09
EY9.64%
EPS(NY)4.13
Fwd EY9.73%
FCF(TTM)3.53
FCFY8.33%
OCF(TTM)3.88
OCFY9.16%
SpS18.66
BVpS8.13
TBVpS-0.64
PEG (NY)0.42
PEG (5Y)0.35
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 | 0.14 |
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 Y24.52%
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 Year19.23%
Revenue Next 2Y7.37%
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%