VIRTU FINANCIAL INC-CLASS A (VIRT) Stock Fundamental Analysis
USA - NYSE:VIRT - US9282541013 - Common Stock
35.47 USD
+0.26 (+0.74%)
35.5 USD
+0.03 (+0.08%)
Taking everything into account, VIRT scores 5 out of 10 in our fundamental rating. VIRT was compared to 236 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
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.
VIRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VIRT has a Return On Assets of 1.71%. This is comparable to the rest of the industry: VIRT outperforms 42.02% of its industry peers.
Looking at the Return On Equity, with a value of 22.90%, VIRT belongs to the top of the industry, outperforming 90.34% of the companies in the same industry.
VIRT has a Return On Invested Capital (3.71%) which is comparable to the rest of the industry.
VIRT had an Average Return On Invested Capital over the past 3 years of 3.64%. This is below the industry average of 7.59%.
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
The Profit Margin of VIRT (9.77%) is worse than 60.08% of its industry peers.
VIRT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 24.25%, VIRT is in line with its industry, outperforming 44.96% of the companies in the same industry.
In the last couple of years the Operating Margin of VIRT has declined.
VIRT has a Gross Margin of 53.61%. This is in the better half of the industry: VIRT outperforms 62.60% of its industry peers.
VIRT's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, VIRT has a worse debt to assets ratio.
2.2 Solvency
VIRT has an Altman-Z score of 0.07. This is a bad value and indicates that VIRT is not financially healthy and even has some risk of bankruptcy.
VIRT has a worse Altman-Z score (0.07) than 73.11% of its industry peers.
VIRT has a debt to FCF ratio of 15.02. This is a negative value and a sign of low solvency as VIRT would need 15.02 years to pay back of all of its debts.
The Debt to FCF ratio of VIRT (15.02) is comparable to the rest of the industry.
VIRT has a Debt/Equity ratio of 10.90. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 10.90, VIRT is not doing good in the industry: 89.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.9 | ||
| Debt/FCF | 15.02 | ||
| Altman-Z | 0.07 |
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.
Looking at the Current ratio, with a value of 0.26, VIRT is doing worse than 84.87% of the companies in the same industry.
A Quick Ratio of 0.26 indicates that VIRT may have some problems paying its short term obligations.
With a Quick ratio value of 0.26, VIRT is not doing good in the industry: 84.45% of the companies in the same industry are doing better.
| 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 107.36%, 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.
VIRT shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.45%.
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)107.36%
EPS 3Y-8.01%
EPS 5Y29.36%
EPS Q2Q%84.34%
Revenue 1Y (TTM)25.45%
Revenue growth 3Y0.77%
Revenue growth 5Y13.65%
Sales Q2Q%33.14%
3.2 Future
The Earnings Per Share is expected to grow by 11.90% on average over the next years. This is quite good.
VIRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.19% yearly.
EPS Next Y42.53%
EPS Next 2Y14.57%
EPS Next 3Y11.9%
EPS Next 5YN/A
Revenue Next Year28.87%
Revenue Next 2Y11.38%
Revenue Next 3Y7.19%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.41 indicates a rather cheap valuation of VIRT.
Based on the Price/Earnings ratio, VIRT is valued cheaply inside the industry as 88.66% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VIRT to the average of the S&P500 Index (27.38), we can say VIRT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.61, the valuation of VIRT can be described as very cheap.
VIRT's Price/Forward Earnings ratio is rather cheap when compared to the industry. VIRT is cheaper than 89.50% of the companies in the same industry.
VIRT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.41 | ||
| Fwd PE | 7.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIRT is valued cheaply inside the industry as 86.13% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VIRT is valued cheaply inside the industry as 81.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.7 | ||
| EV/EBITDA | 11.82 |
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)0.17
PEG (5Y)0.25
EPS Next 2Y14.57%
EPS Next 3Y11.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.73%, VIRT has a reasonable but not impressive dividend return.
VIRT's Dividend Yield is comparable with the industry average which is at 8.21.
VIRT's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
5.2 History
The dividend of VIRT decreases each year by -12.48%.
VIRT has paid a dividend for at least 10 years, which is a reliable track record.
VIRT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 2Y14.57%
EPS Next 3Y11.9%
35.47
+0.26 (+0.74%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners89.07%
Inst Owner Change-0.71%
Ins Owners0.62%
Ins Owner Change0.01%
Market Cap5.42B
Analysts75.71
Price Target47.94 (35.16%)
Short Float %3.55%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
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)-0.6%
PT rev (3m)11.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.2%
EPS NY rev (1m)0%
EPS NY rev (3m)14.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.56%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)8.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.41 | ||
| Fwd PE | 7.61 | ||
| P/S | 1.76 | ||
| P/FCF | 5.7 | ||
| P/OCF | 5.37 | ||
| P/B | 4.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.82 |
EPS(TTM)4.79
EY13.5%
EPS(NY)4.66
Fwd EY13.14%
FCF(TTM)6.22
FCFY17.54%
OCF(TTM)6.6
OCFY18.61%
SpS20.1
BVpS8.57
TBVpS-0.19
PEG (NY)0.17
PEG (5Y)0.25
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%
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 Turnover0.18
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 | 0.07 |
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)107.36%
EPS 3Y-8.01%
EPS 5Y29.36%
EPS Q2Q%84.34%
EPS Next Y42.53%
EPS Next 2Y14.57%
EPS Next 3Y11.9%
EPS Next 5YN/A
Revenue 1Y (TTM)25.45%
Revenue growth 3Y0.77%
Revenue growth 5Y13.65%
Sales Q2Q%33.14%
Revenue Next Year28.87%
Revenue Next 2Y11.38%
Revenue Next 3Y7.19%
Revenue Next 5YN/A
EBIT growth 1Y125.19%
EBIT growth 3Y-13.6%
EBIT growth 5YN/A
EBIT Next Year66.84%
EBIT Next 3Y10.68%
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%