VIRTU FINANCIAL INC-CLASS A (VIRT)
US9282541013 - Common Stock
Taking everything into account, VIRT scores 3 out of 10 in our fundamental rating. VIRT was compared to 210 industry peers in the Capital Markets industry. VIRT has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
In the past year VIRT had a positive cash flow from operations.
VIRT had positive earnings in 4 of the past 5 years.
VIRT had a positive operating cash flow in each of the past 5 years.
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.
The Return On Equity of VIRT (11.13%) is comparable to the rest of the industry.
The Return On Invested Capital of VIRT (2.14%) is worse than 74.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VIRT is below the industry average of 8.34%.
| 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.
VIRT's Profit Margin has declined in the last couple of years.
VIRT has a Operating Margin of 14.20%. This is in the lower half of the industry: VIRT underperforms 66.83% of its industry peers.
VIRT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 51.32%, VIRT is in line with its industry, outperforming 49.52% of the companies in the same 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.
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 -0.18, 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.
VIRT has a debt to FCF ratio of 26.35. This is a negative value and a sign of low solvency as VIRT would need 26.35 years to pay back of all of its debts.
VIRT has a Debt to FCF ratio (26.35) which is in line with its industry peers.
A Debt/Equity ratio of 9.11 is on the high side and indicates that VIRT has dependencies on debt financing.
With a Debt to Equity ratio value of 9.11, VIRT is not doing good in the industry: 89.90% of the companies in the same industry are doing better.
| 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.
With a Current ratio value of 0.17, VIRT is not doing good in the industry: 89.90% of the companies in the same industry are doing better.
A Quick Ratio of 0.17 indicates that VIRT may have some problems paying its short term obligations.
With a Quick ratio value of 0.17, VIRT is not doing good in the industry: 89.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
The earnings per share for VIRT have decreased strongly by -38.59% in the last year.
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.
VIRT shows a decrease in Revenue. In the last year, the revenue decreased by -3.02%.
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.
Based on estimates for the next years, VIRT will show a small growth in Revenue. The Revenue will grow by 0.11% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
VIRT is valuated correctly with a Price/Earnings ratio of 12.24.
The rest of the industry has a similar Price/Earnings ratio as VIRT.
When comparing the Price/Earnings ratio of VIRT to the average of the S&P500 Index (25.20), we can say VIRT is valued rather cheaply.
The Price/Forward Earnings ratio is 10.51, which indicates a very decent valuation of VIRT.
Based on the Price/Forward Earnings ratio, VIRT is valued a bit cheaper than the industry average as 65.38% of the companies are valued more expensively.
VIRT is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 10.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VIRT indicates a somewhat cheap valuation: VIRT is cheaper than 75.96% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VIRT indicates a somewhat cheap valuation: VIRT is cheaper than 77.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.52 | ||
| EV/EBITDA | 12.82 |
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)0.75
PEG (5Y)N/A
EPS Next 2Y14.95%
EPS Next 3Y11.6%
5. Dividend
5.1 Amount
VIRT has a Yearly Dividend Yield of 4.40%, which is a nice return.
Compared to an average industry Dividend Yield of 7.77, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
5.2 History
The dividend of VIRT decreases each year by -18.61%.
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)-18.61%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
VIRT pays out 70.85% of its income as dividend. This is not a sustainable payout ratio.
DP70.85%
EPS Next 2Y14.95%
EPS Next 3Y11.6%
VIRTU FINANCIAL INC-CLASS A
NASDAQ:VIRT (4/25/2024, 7:23:47 PM)
After market: 22.4 0 (0%)22.4
+0.56 (+2.56%)
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 Cap3.54B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
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)
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Min EPS beat(4)
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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)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 12.24 | ||
| Fwd PE | 10.51 | ||
| 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)0.75
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