VIRTU FINANCIAL INC-CLASS A (VIRT) Stock Fundamental Analysis
NYSE:VIRT - US9282541013 - Common Stock
41.92 USD
-0.47 (-1.11%)
41.92 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to VIRT. VIRT was compared to 239 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 may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year VIRT was profitable.
VIRT had a positive operating cash flow in the past year.
VIRT had positive earnings in each of the past 5 years.
VIRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.71%, VIRT is in line with its industry, outperforming 42.68% of the companies in the same industry.
The Return On Equity of VIRT (22.90%) is better than 89.96% of its industry peers.
VIRT has a Return On Invested Capital (3.71%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for VIRT 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
VIRT has a Profit Margin (9.77%) which is comparable to the rest of the industry.
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 46.03% of the companies in the same industry.
VIRT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 53.61%, VIRT is in the better half of the industry, outperforming 62.34% of the companies in the same industry.
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
Compared to 1 year ago, VIRT has less shares outstanding
VIRT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, VIRT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.10, we must say that VIRT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.10, VIRT is not doing good in the industry: 71.55% of the companies in the same industry are doing better.
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.
Looking at the Debt to FCF ratio, with a value of 15.02, VIRT is in line with its industry, outperforming 51.88% of the companies in the same industry.
A Debt/Equity ratio of 10.90 is on the high side and indicates that VIRT has dependencies on debt financing.
The Debt to Equity ratio of VIRT (10.90) is worse than 89.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.9 | ||
| Debt/FCF | 15.02 | ||
| Altman-Z | 0.1 |
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 85.36% of its industry peers.
VIRT has a Quick 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 Quick ratio, with a value of 0.26, VIRT is doing worse than 84.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 107.36% over the past year.
Measured over the past years, VIRT shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.36% on average per year.
VIRT shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.45%.
The Revenue has been growing by 13.65% on average over the past years. This is quite good.
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
Based on estimates for the next years, VIRT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.90% on average per year.
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 Year29.44%
Revenue Next 2Y11.66%
Revenue Next 3Y7.19%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
VIRT is valuated reasonably with a Price/Earnings ratio of 8.75.
Based on the Price/Earnings ratio, VIRT is valued cheaper than 81.17% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.13, VIRT is valued rather cheaply.
The Price/Forward Earnings ratio is 9.00, which indicates a very decent valuation of VIRT.
Based on the Price/Forward Earnings ratio, VIRT is valued cheaper than 82.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VIRT to the average of the S&P500 Index (22.76), we can say VIRT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIRT is valued cheaper than 84.52% of the companies in the same industry.
80.75% of the companies in the same industry are more expensive than VIRT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.74 | ||
| EV/EBITDA | 12.99 |
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)0.21
PEG (5Y)0.3
EPS Next 2Y14.57%
EPS Next 3Y11.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.26%, VIRT has a reasonable but not impressive dividend return.
VIRT's Dividend Yield is comparable with the industry average which is at 7.91.
VIRT's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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
VIRT pays out 29.33% of its income as dividend. This is a sustainable payout ratio.
DP29.33%
EPS Next 2Y14.57%
EPS Next 3Y11.9%
41.92
-0.47 (-1.11%)
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 Cap6.41B
Analysts75.71
Price Target48.23 (15.05%)
Short Float %3.18%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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)3.36%
PT rev (3m)12.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.2%
EPS NY rev (1m)13.3%
EPS NY rev (3m)14.07%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-2.56%
Revenue NY rev (1m)10.03%
Revenue NY rev (3m)5.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 9 | ||
| P/S | 2.09 | ||
| P/FCF | 6.74 | ||
| P/OCF | 6.35 | ||
| P/B | 4.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.99 |
EPS(TTM)4.79
EY11.43%
EPS(NY)4.66
Fwd EY11.12%
FCF(TTM)6.22
FCFY14.84%
OCF(TTM)6.6
OCFY15.75%
SpS20.1
BVpS8.57
TBVpS-0.19
PEG (NY)0.21
PEG (5Y)0.3
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 | 0.1 |
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 Year29.44%
Revenue Next 2Y11.66%
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%