VIRTUS INVESTMENT PARTNERS (VRTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VRTS - US92828Q1094 - Common Stock
166.25 USD
-2.81 (-1.66%)
166.25 USD
0 (0%)
Taking everything into account, VRTS scores 4 out of 10 in our fundamental rating. VRTS was compared to 237 industry peers in the Capital Markets industry. VRTS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. VRTS has a bad growth rate and is valued cheaply. VRTS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- VRTS had positive earnings in the past year.
- VRTS had a positive operating cash flow in the past year.
- VRTS had positive earnings in each of the past 5 years.
- Of the past 5 years VRTS 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of VRTS (3.49%) is comparable to the rest of the industry.
- VRTS's Return On Equity of 14.83% is fine compared to the rest of the industry. VRTS outperforms 77.22% of its industry peers.
- VRTS's Return On Invested Capital of 3.65% is in line compared to the rest of the industry. VRTS outperforms 51.48% of its industry peers.
- VRTS had an Average Return On Invested Capital over the past 3 years of 3.76%. This is below the industry average of 7.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.49% | ||
| ROE | 14.83% | ||
| ROIC | 3.65% |
ROA(3y)3.19%
ROA(5y)3.43%
ROE(3y)14.36%
ROE(5y)15.89%
ROIC(3y)3.76%
ROIC(5y)4.34%
1.3 Margins
- VRTS has a Profit Margin of 15.51%. This is comparable to the rest of the industry: VRTS outperforms 47.68% of its industry peers.
- VRTS's Profit Margin has declined in the last couple of years.
- VRTS has a Operating Margin of 20.37%. This is comparable to the rest of the industry: VRTS outperforms 46.84% of its industry peers.
- VRTS's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.37% | ||
| PM (TTM) | 15.51% | ||
| GM | N/A |
OM growth 3Y-17.09%
OM growth 5Y-2.7%
PM growth 3Y-14.2%
PM growth 5Y-2.84%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- VRTS has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for VRTS has been increased compared to 5 years ago.
- The debt/assets ratio for VRTS is higher compared to a year ago.
2.2 Solvency
- VRTS has an Altman-Z score of 0.83. This is a bad value and indicates that VRTS is not financially healthy and even has some risk of bankruptcy.
- VRTS has a Altman-Z score (0.83) which is in line with its industry peers.
- VRTS has a debt to FCF ratio of 34.80. This is a negative value and a sign of low solvency as VRTS would need 34.80 years to pay back of all of its debts.
- VRTS has a Debt to FCF ratio (34.80) which is comparable to the rest of the industry.
- VRTS has a Debt/Equity ratio of 2.64. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 2.64, VRTS is doing worse than 80.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | 34.8 | ||
| Altman-Z | 0.83 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 2.47 indicates that VRTS has no problem at all paying its short term obligations.
- VRTS has a better Current ratio (2.47) than 78.90% of its industry peers.
- VRTS has a Quick Ratio of 2.47. This indicates that VRTS is financially healthy and has no problem in meeting its short term obligations.
- With a decent Quick ratio value of 2.47, VRTS is doing good in the industry, outperforming 78.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.81% over the past year.
- Measured over the past years, VRTS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.37% on average per year.
- The Revenue has decreased by -1.09% in the past year.
- The Revenue has been growing by 10.00% on average over the past years. This is quite good.
EPS 1Y (TTM)4.81%
EPS 3Y-9.8%
EPS 5Y12.37%
EPS Q2Q%-3.32%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y-2.52%
Revenue growth 5Y10%
Sales Q2Q%-4.11%
3.2 Future
- The Earnings Per Share is expected to grow by 2.85% on average over the next years.
- The Revenue is expected to decrease by -1.19% on average over the next years.
EPS Next Y-2.53%
EPS Next 2Y-1.15%
EPS Next 3Y2.85%
EPS Next 5YN/A
Revenue Next Year-5.12%
Revenue Next 2Y-3.16%
Revenue Next 3Y-1.19%
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 decreasing.
- 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
- Based on the Price/Earnings ratio of 6.35, the valuation of VRTS can be described as very cheap.
- Based on the Price/Earnings ratio, VRTS is valued cheaper than 85.23% of the companies in the same industry.
- VRTS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- Based on the Price/Forward Earnings ratio of 6.45, the valuation of VRTS can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of VRTS indicates a rather cheap valuation: VRTS is cheaper than 91.14% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. VRTS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.35 | ||
| Fwd PE | 6.45 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRTS indicates a rather cheap valuation: VRTS is cheaper than 83.97% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, VRTS is valued a bit cheaper than 67.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.13 | ||
| EV/EBITDA | 13.12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y-1.15%
EPS Next 3Y2.85%
5. Dividend
5.1 Amount
- VRTS has a Yearly Dividend Yield of 5.67%, which is a nice return.
- Compared to an average industry Dividend Yield of 5.87, VRTS pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, VRTS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.67% |
5.2 History
- The dividend of VRTS is nicely growing with an annual growth rate of 17.66%!
- VRTS has been paying a dividend for at least 10 years, so it has a reliable track record.
- VRTS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)17.66%
Div Incr Years7
Div Non Decr Years10
5.3 Sustainability
- 47.12% of the earnings are spent on dividend by VRTS. This is a bit on the high side, but may be sustainable.
- The dividend of VRTS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP47.12%
EPS Next 2Y-1.15%
EPS Next 3Y2.85%
VIRTUS INVESTMENT PARTNERS / VRTS FAQ
Can you provide the ChartMill fundamental rating for VIRTUS INVESTMENT PARTNERS?
ChartMill assigns a fundamental rating of 4 / 10 to VRTS.
Can you provide the valuation status for VIRTUS INVESTMENT PARTNERS?
ChartMill assigns a valuation rating of 7 / 10 to VIRTUS INVESTMENT PARTNERS (VRTS). This can be considered as Undervalued.
What is the profitability of VRTS stock?
VIRTUS INVESTMENT PARTNERS (VRTS) has a profitability rating of 3 / 10.
Can you provide the financial health for VRTS stock?
The financial health rating of VIRTUS INVESTMENT PARTNERS (VRTS) is 4 / 10.
How sustainable is the dividend of VIRTUS INVESTMENT PARTNERS (VRTS) stock?
The dividend rating of VIRTUS INVESTMENT PARTNERS (VRTS) is 8 / 10 and the dividend payout ratio is 47.12%.