VIRTU FINANCIAL INC-CLASS A (VIRT) Stock Fundamental Analysis
NYSE:VIRT - New York Stock Exchange, Inc. - US9282541013 - Common Stock - Currency: USD
Taking everything into account, VIRT scores 4 out of 10 in our fundamental rating. VIRT was compared to 237 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. 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.
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
VIRT has a Return On Assets (1.71%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 22.90%, VIRT belongs to the top of the industry, outperforming 91.14% 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 7.83%.
The last Return On Invested Capital (3.71%) for VIRT is above the 3 year average (3.64%), which is a sign of increasing profitability.
| 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's Profit Margin of 9.77% is on the low side compared to the rest of the industry. VIRT is outperformed by 60.34% of its industry peers.
In the last couple of years the Profit Margin of VIRT has declined.
With a Operating Margin value of 24.25%, VIRT perfoms like the industry average, outperforming 45.99% of the companies in the same industry.
In the last couple of years the Operating Margin of VIRT has declined.
With a Gross Margin value of 53.61%, VIRT perfoms like the industry average, outperforming 59.49% 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
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 0.11, we must say that VIRT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VIRT (0.11) is worse than 72.57% 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.
With a Debt to FCF ratio value of 15.02, VIRT perfoms like the industry average, outperforming 50.21% of the companies in the same industry.
VIRT has a Debt/Equity ratio of 10.90. This is a high value indicating a heavy dependency on external financing.
VIRT has a worse Debt to Equity ratio (10.90) than 89.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.9 | ||
| Debt/FCF | 15.02 | ||
| Altman-Z | 0.11 |
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's Current ratio of 0.26 is on the low side compared to the rest of the industry. VIRT is outperformed by 86.92% of its industry peers.
A Quick Ratio of 0.26 indicates that VIRT may have some problems paying its short term obligations.
VIRT's Quick ratio of 0.26 is on the low side compared to the rest of the industry. VIRT is outperformed by 86.92% of its industry peers.
| 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.
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%.
Measured over the past years, VIRT shows a quite strong growth in Revenue. The Revenue has been growing by 13.65% on average per year.
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
VIRT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.90% yearly.
VIRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.35% yearly.
EPS Next Y25.79%
EPS Next 2Y9.14%
EPS Next 3Y8.9%
EPS Next 5YN/A
Revenue Next Year17.64%
Revenue Next 2Y7.34%
Revenue Next 3Y4.35%
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 8.86, the valuation of VIRT can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of VIRT indicates a rather cheap valuation: VIRT is cheaper than 81.01% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.48. VIRT is valued rather cheaply when compared to this.
VIRT is valuated reasonably with a Price/Forward Earnings ratio of 10.04.
72.57% of the companies in the same industry are more expensive than VIRT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, VIRT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.86 | ||
| Fwd PE | 10.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIRT is valued cheaply inside the industry as 83.97% of the companies are valued more expensively.
80.59% 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 | 6.88 | ||
| EV/EBITDA | 13.15 |
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)0.34
PEG (5Y)0.3
EPS Next 2Y9.14%
EPS Next 3Y8.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.26%, VIRT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.18, VIRT is paying slightly less dividend.
VIRT's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| 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.
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 2Y9.14%
EPS Next 3Y8.9%
42.44
-0.01 (-0.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners87.98%
Inst Owner Change-0.38%
Ins Owners0.56%
Ins Owner Change0.83%
Market Cap6.54B
Analysts75.71
Price Target48.23 (13.64%)
Short Float %3.41%
Short Ratio3.3
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)8.93%
PT rev (3m)11.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.95%
EPS NY rev (1m)1.03%
EPS NY rev (3m)15.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-1.33%
Revenue NY rev (3m)6.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.86 | ||
| Fwd PE | 10.04 | ||
| P/S | 2.13 | ||
| P/FCF | 6.88 | ||
| P/OCF | 6.49 | ||
| P/B | 5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.15 |
EPS(TTM)4.79
EY11.29%
EPS(NY)4.23
Fwd EY9.96%
FCF(TTM)6.17
FCFY14.53%
OCF(TTM)6.54
OCFY15.42%
SpS19.92
BVpS8.5
TBVpS-0.19
PEG (NY)0.34
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 | 0.11 |
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 Y25.79%
EPS Next 2Y9.14%
EPS Next 3Y8.9%
EPS Next 5YN/A
Revenue 1Y (TTM)25.45%
Revenue growth 3Y0.77%
Revenue growth 5Y13.65%
Sales Q2Q%33.14%
Revenue Next Year17.64%
Revenue Next 2Y7.34%
Revenue Next 3Y4.35%
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%