VIRTU FINANCIAL INC-CLASS A (VIRT)
US9282541013 - Common Stock
VIRT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 210 industry peers in the Capital Markets industry. Both the profitability and financial health of VIRT have multiple concerns. VIRT has a valuation in line with the averages, but it does not seem to be growing.
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 4 of the past 5 years.
Each year in the past 5 years VIRT had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.93%, VIRT is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
VIRT has a Return On Equity (11.13%) which is comparable to the rest of the industry.
The Return On Invested Capital of VIRT (2.14%) is worse than 74.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VIRT is significantly below the industry average of 10.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 11.13% | ||
| ROIC | 2.14% |
ROA(3y)2.61%
ROA(5y)2.71%
ROE(3y)20.02%
ROE(5y)19.31%
ROIC(3y)5.45%
ROIC(5y)N/A
1.3 Margins
VIRT has a worse Profit Margin (5.84%) than 70.67% of its industry peers.
In the last couple of years the Profit Margin of VIRT has declined.
The Operating Margin of VIRT (14.20%) is worse than 66.83% of its industry peers.
VIRT's Operating Margin has declined in the last couple of years.
The Gross Margin of VIRT (51.32%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of VIRT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.2% | ||
| PM (TTM) | 5.84% | ||
| GM | 51.32% |
OM growth 3Y-30.88%
OM growth 5Y-18.01%
PM growth 3Y-33.11%
PM growth 5Y-17.33%
GM growth 3Y-9.4%
GM growth 5Y-6.37%
2. Health
2.1 Basic Checks
The number of shares outstanding for VIRT has been reduced compared to 1 year ago.
Compared to 5 years ago, VIRT has less shares outstanding
Compared to 1 year ago, VIRT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.18, we must say that VIRT is in the distress zone and has some risk of bankruptcy.
VIRT's Altman-Z score of -0.18 is on the low side compared to the rest of the industry. VIRT is outperformed by 85.58% of its industry peers.
The Debt to FCF ratio of VIRT is 26.35, which is on the high side as it means it would take VIRT, 26.35 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 26.35, VIRT perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
VIRT has a Debt/Equity ratio of 9.11. This is a high value indicating a heavy dependency on external financing.
VIRT has a worse Debt to Equity ratio (9.11) than 89.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.11 | ||
| Debt/FCF | 26.35 | ||
| Altman-Z | -0.18 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
VIRT has a Current Ratio of 0.17. 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 0.17, VIRT is doing worse than 90.38% of the companies in the same industry.
VIRT has a Quick Ratio of 0.17. 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 0.17, VIRT is doing worse than 85.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
VIRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.59%.
Measured over the past years, VIRT shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.36% on average per year.
The Revenue has decreased by -3.02% in the past year.
Measured over the past years, VIRT shows a small growth in Revenue. The Revenue has been growing by 4.07% on average per year.
EPS 1Y (TTM)-38.59%
EPS 3Y-31.8%
EPS 5Y-1.36%
EPS growth Q2Q-27.03%
Revenue 1Y (TTM)-3.02%
Revenue growth 3Y-10.87%
Revenue growth 5Y4.07%
Revenue growth Q2Q7.67%
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 11.60% on average per year.
The Revenue is expected to grow by 0.11% on average over the next years.
EPS Next Y16.41%
EPS Next 2Y14.95%
EPS Next 3Y11.6%
EPS Next 5YN/A
Revenue Next Year1.9%
Revenue Next 2Y3.66%
Revenue Next 3Y0.11%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 12.02 indicates a correct valuation of VIRT.
Compared to the rest of the industry, the Price/Earnings ratio of VIRT indicates a somewhat cheap valuation: VIRT is cheaper than 62.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.55. VIRT is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.32, the valuation of VIRT can be described as reasonable.
66.35% 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 20.92, VIRT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.02 | ||
| Fwd PE | 10.32 |
4.2 Price Multiples
75.96% of the companies in the same industry are more expensive than VIRT, based on the Enterprise Value to EBITDA ratio.
VIRT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VIRT is cheaper than 77.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.36 | ||
| EV/EBITDA | 12.58 |
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)0.73
PEG (5Y)N/A
EPS Next 2Y14.95%
EPS Next 3Y11.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.44%, VIRT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.21, VIRT has a dividend in line with its industry peers.
VIRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
5.2 History
The dividend of VIRT decreases each year by -18.61%.
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)-18.61%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
70.85% of the earnings are spent on dividend by VIRT. This is not a sustainable payout ratio.
DP70.85%
EPS Next 2Y14.95%
EPS Next 3Y11.6%
VIRTU FINANCIAL INC-CLASS A
NASDAQ:VIRT (5/1/2024, 3:15:00 PM)
After market: 21.99 0 (0%)21.99
+0.29 (+1.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.02 | ||
| Fwd PE | 10.32 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 11.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.2% | ||
| PM (TTM) | 5.84% | ||
| GM | 51.32% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.11 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-38.59%
EPS 3Y-31.8%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.02%
Revenue growth 3Y-10.87%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y