VOYA FINANCIAL INC (VOYA) Stock Fundamental Analysis
NYSE:VOYA - New York Stock Exchange, Inc. - US9290891004 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to VOYA. VOYA was compared to 101 industry peers in the Financial Services industry. While VOYA is still in line with the averages on profitability rating, there are concerns on its financial health. VOYA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
VOYA had positive earnings in the past year.
In the past year VOYA had a positive cash flow from operations.
Of the past 5 years VOYA 4 years were profitable.
In the past 5 years VOYA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of VOYA (0.38%) is worse than 70.30% of its industry peers.
VOYA has a better Return On Equity (15.63%) than 73.27% of its industry peers.
VOYA has a Return On Invested Capital of 0.54%. This is in the lower half of the industry: VOYA underperforms 68.32% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VOYA is significantly below the industry average of 11.85%.
The last Return On Invested Capital (0.54%) for VOYA is above the 3 year average (0.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.38% | ||
| ROE | 15.63% | ||
| ROIC | 0.54% |
ROA(3y)0.36%
ROA(5y)0.43%
ROE(3y)14.61%
ROE(5y)13.35%
ROIC(3y)0.48%
ROIC(5y)0.62%
1.3 Margins
VOYA's Profit Margin of 7.78% is in line compared to the rest of the industry. VOYA outperforms 41.58% of its industry peers.
In the last couple of years the Profit Margin of VOYA has declined.
VOYA has a Operating Margin of 13.90%. This is comparable to the rest of the industry: VOYA outperforms 46.53% of its industry peers.
VOYA's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.9% | ||
| PM (TTM) | 7.78% | ||
| GM | N/A |
OM growth 3Y-42.03%
OM growth 5Y4.28%
PM growth 3Y-46%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, VOYA has less shares outstanding
VOYA has less shares outstanding than it did 5 years ago.
VOYA has a worse debt/assets ratio than last year.
2.2 Solvency
VOYA has a debt to FCF ratio of 1.86. This is a very positive value and a sign of high solvency as it would only need 1.86 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.86, VOYA is in the better half of the industry, outperforming 76.24% of the companies in the same industry.
VOYA has a Debt/Equity ratio of 0.53. This is a neutral value indicating VOYA is somewhat dependend on debt financing.
VOYA's Debt to Equity ratio of 0.53 is in line compared to the rest of the industry. VOYA outperforms 57.43% of its industry peers.
Although VOYA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.86 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
VOYA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.82%.
VOYA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.08% yearly.
VOYA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.55%.
Measured over the past years, VOYA shows a small growth in Revenue. The Revenue has been growing by 1.31% on average per year.
EPS 1Y (TTM)-1.82%
EPS 3Y-3.34%
EPS 5Y11.08%
EPS Q2Q%-14.11%
Revenue 1Y (TTM)9.55%
Revenue growth 3Y23.9%
Revenue growth 5Y1.31%
Sales Q2Q%10.5%
3.2 Future
VOYA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.63% yearly.
The Revenue is expected to grow by 3.77% on average over the next years.
EPS Next Y5.28%
EPS Next 2Y14.77%
EPS Next 3Y15.71%
EPS Next 5Y15.63%
Revenue Next Year4.51%
Revenue Next 2Y4.8%
Revenue Next 3Y3.07%
Revenue Next 5Y3.77%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
VOYA is valuated reasonably with a Price/Earnings ratio of 8.08.
Based on the Price/Earnings ratio, VOYA is valued cheaper than 81.19% of the companies in the same industry.
VOYA is valuated cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
VOYA is valuated cheaply with a Price/Forward Earnings ratio of 7.67.
Based on the Price/Forward Earnings ratio, VOYA is valued a bit cheaper than the industry average as 75.25% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VOYA to the average of the S&P500 Index (20.86), we can say VOYA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, VOYA is valued cheaply inside the industry as 94.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.37 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
VOYA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VOYA's earnings are expected to grow with 15.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.53
PEG (5Y)0.73
EPS Next 2Y14.77%
EPS Next 3Y15.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.05%, VOYA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.91, VOYA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, VOYA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
5.2 History
The dividend of VOYA is nicely growing with an annual growth rate of 33.28%!
VOYA has paid a dividend for at least 10 years, which is a reliable track record.
VOYA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)33.28%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
VOYA pays out 33.87% of its income as dividend. This is a sustainable payout ratio.
VOYA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.87%
EPS Next 2Y14.77%
EPS Next 3Y15.71%
61.08
+2.08 (+3.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners101.39%
Inst Owner Change4.44%
Ins Owners0.18%
Ins Owner Change4.49%
Market Cap5.88B
Analysts72.63
Price Target75.07 (22.9%)
Short Float %1.58%
Short Ratio1.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
Yearly Dividend2.14
Dividend Growth(5Y)33.28%
DP33.87%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.41%
Min EPS beat(2)1.8%
Max EPS beat(2)65.03%
EPS beat(4)4
Avg EPS beat(4)19.66%
Min EPS beat(4)1.8%
Max EPS beat(4)65.03%
EPS beat(8)5
Avg EPS beat(8)9.32%
EPS beat(12)9
Avg EPS beat(12)22.45%
EPS beat(16)13
Avg EPS beat(16)27.21%
Revenue beat(2)2
Avg Revenue beat(2)3.82%
Min Revenue beat(2)3.11%
Max Revenue beat(2)4.52%
Revenue beat(4)4
Avg Revenue beat(4)6.5%
Min Revenue beat(4)3.11%
Max Revenue beat(4)11.83%
Revenue beat(8)5
Avg Revenue beat(8)3.11%
Revenue beat(12)6
Avg Revenue beat(12)0.2%
Revenue beat(16)9
Avg Revenue beat(16)-8.36%
PT rev (1m)-9.84%
PT rev (3m)-13.96%
EPS NQ rev (1m)-4.88%
EPS NQ rev (3m)-24.92%
EPS NY rev (1m)-4.58%
EPS NY rev (3m)-17.33%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)-2.61%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 7.67 | ||
| P/S | 0.73 | ||
| P/FCF | 4.37 | ||
| P/OCF | 4.37 | ||
| P/B | 1.47 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.56
EY12.38%
EPS(NY)7.96
Fwd EY13.03%
FCF(TTM)13.98
FCFY22.89%
OCF(TTM)13.98
OCFY22.89%
SpS83.67
BVpS41.63
TBVpS25.21
PEG (NY)1.53
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.38% | ||
| ROE | 15.63% | ||
| ROCE | 0.68% | ||
| ROIC | 0.54% | ||
| ROICexc | 0.55% | ||
| ROICexgc | 1.8% | ||
| OM | 13.9% | ||
| PM (TTM) | 7.78% | ||
| GM | N/A | ||
| FCFM | 16.71% |
ROA(3y)0.36%
ROA(5y)0.43%
ROE(3y)14.61%
ROE(5y)13.35%
ROIC(3y)0.48%
ROIC(5y)0.62%
ROICexc(3y)0.49%
ROICexc(5y)0.63%
ROICexgc(3y)1.48%
ROICexgc(5y)1.8%
ROCE(3y)0.61%
ROCE(5y)0.79%
ROICexcg growth 3Y-23.1%
ROICexcg growth 5Y15.38%
ROICexc growth 3Y-27.07%
ROICexc growth 5Y6.38%
OM growth 3Y-42.03%
OM growth 5Y4.28%
PM growth 3Y-46%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.86 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 10.86 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 214.86% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)259.4%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.82%
EPS 3Y-3.34%
EPS 5Y11.08%
EPS Q2Q%-14.11%
EPS Next Y5.28%
EPS Next 2Y14.77%
EPS Next 3Y15.71%
EPS Next 5Y15.63%
Revenue 1Y (TTM)9.55%
Revenue growth 3Y23.9%
Revenue growth 5Y1.31%
Sales Q2Q%10.5%
Revenue Next Year4.51%
Revenue Next 2Y4.8%
Revenue Next 3Y3.07%
Revenue Next 5Y3.77%
EBIT growth 1Y-0.8%
EBIT growth 3Y-28.18%
EBIT growth 5Y5.65%
EBIT Next Year7.72%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-17.89%
FCF growth 3Y293.94%
FCF growth 5Y0.53%
OCF growth 1Y-17.89%
OCF growth 3Y293.94%
OCF growth 5Y0.53%