VIRTUS INVESTMENT PARTNERS (VRTS) Stock Fundamental Analysis
NYSE:VRTS - New York Stock Exchange, Inc. - US92828Q1094 - Common Stock - Currency: USD
VRTS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 232 industry peers in the Capital Markets industry. VRTS has an average financial health and profitability rating. VRTS has a correct valuation and a medium growth rate. VRTS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year VRTS was profitable.
In the past year VRTS had a positive cash flow from operations.
VRTS had positive earnings in each of the past 5 years.
VRTS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.27%, VRTS perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
VRTS has a Return On Equity of 13.49%. This is in the better half of the industry: VRTS outperforms 73.28% of its industry peers.
VRTS has a Return On Invested Capital (3.88%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for VRTS is below the industry average of 7.85%.
The last Return On Invested Capital (3.88%) for VRTS is above the 3 year average (3.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 13.49% | ||
| ROIC | 3.88% |
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
Looking at the Profit Margin, with a value of 13.35%, VRTS is in line with its industry, outperforming 48.71% of the companies in the same industry.
In the last couple of years the Profit Margin of VRTS has declined.
VRTS has a Operating Margin (20.14%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of VRTS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.14% | ||
| PM (TTM) | 13.35% | ||
| 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.
VRTS has more shares outstanding than it did 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 0.84. This is a bad value and indicates that VRTS is not financially healthy and even has some risk of bankruptcy.
VRTS's Altman-Z score of 0.84 is in line compared to the rest of the industry. VRTS outperforms 46.55% of its industry peers.
The Debt to FCF ratio of VRTS is 87.76, which is on the high side as it means it would take VRTS, 87.76 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 87.76, VRTS perfoms like the industry average, outperforming 40.09% of the companies in the same industry.
A Debt/Equity ratio of 2.54 is on the high side and indicates that VRTS has dependencies on debt financing.
VRTS has a Debt to Equity ratio of 2.54. This is amonst the worse of the industry: VRTS underperforms 81.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.54 | ||
| Debt/FCF | 87.76 | ||
| Altman-Z | 0.84 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
VRTS has a Current Ratio of 2.05. This indicates that VRTS is financially healthy and has no problem in meeting its short term obligations.
VRTS's Current ratio of 2.05 is fine compared to the rest of the industry. VRTS outperforms 68.97% of its industry peers.
VRTS has a Quick Ratio of 2.05. This indicates that VRTS is financially healthy and has no problem in meeting its short term obligations.
VRTS has a Quick ratio of 2.05. This is in the better half of the industry: VRTS outperforms 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.20% over the past year.
The Earnings Per Share has been growing by 12.37% on average over the past years. This is quite good.
VRTS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.84%.
Measured over the past years, VRTS shows a quite strong growth in Revenue. The Revenue has been growing by 10.00% on average per year.
EPS 1Y (TTM)15.2%
EPS 3Y-9.8%
EPS 5Y12.37%
EPS Q2Q%5.91%
Revenue 1Y (TTM)3.84%
Revenue growth 3Y-2.52%
Revenue growth 5Y10%
Sales Q2Q%-1.31%
3.2 Future
Based on estimates for the next years, VRTS will show a small growth in Earnings Per Share. The EPS will grow by 2.14% on average per year.
VRTS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.45% yearly.
EPS Next Y-4%
EPS Next 2Y-0.63%
EPS Next 3Y2.14%
EPS Next 5YN/A
Revenue Next Year-7.27%
Revenue Next 2Y-4%
Revenue Next 3Y-2.45%
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
VRTS is valuated cheaply with a Price/Earnings ratio of 6.56.
VRTS's Price/Earnings ratio is rather cheap when compared to the industry. VRTS is cheaper than 89.22% of the companies in the same industry.
When comparing the Price/Earnings ratio of VRTS to the average of the S&P500 Index (26.34), we can say VRTS is valued rather cheaply.
VRTS is valuated cheaply with a Price/Forward Earnings ratio of 6.72.
92.24% of the companies in the same industry are more expensive than VRTS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.03. VRTS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 6.72 |
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 81.47% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as VRTS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.77 | ||
| EV/EBITDA | 13.44 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y-0.63%
EPS Next 3Y2.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.17%, VRTS is a good candidate for dividend investing.
VRTS's Dividend Yield is comparable with the industry average which is at 8.07.
VRTS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.17% |
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
VRTS pays out 50.06% of its income as dividend. 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.
DP50.06%
EPS Next 2Y-0.63%
EPS Next 3Y2.14%
175
+0.91 (+0.52%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners83.57%
Inst Owner Change1.04%
Ins Owners6.15%
Ins Owner Change3.05%
Market Cap1.21B
Analysts46.67
Price Target171.87 (-1.79%)
Short Float %1.5%
Short Ratio1.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.17% |
Yearly Dividend8.27
Dividend Growth(5Y)17.66%
DP50.06%
Div Incr Years7
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.4%
Min EPS beat(2)-1%
Max EPS beat(2)3.8%
EPS beat(4)1
Avg EPS beat(4)-0.12%
Min EPS beat(4)-3.1%
Max EPS beat(4)3.8%
EPS beat(8)2
Avg EPS beat(8)-1.59%
EPS beat(12)4
Avg EPS beat(12)-1.43%
EPS beat(16)6
Avg EPS beat(16)-0.52%
Revenue beat(2)0
Avg Revenue beat(2)-2.88%
Min Revenue beat(2)-3.81%
Max Revenue beat(2)-1.95%
Revenue beat(4)0
Avg Revenue beat(4)-3.08%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)-1.95%
Revenue beat(8)0
Avg Revenue beat(8)-3.65%
Revenue beat(12)3
Avg Revenue beat(12)0.58%
Revenue beat(16)7
Avg Revenue beat(16)3.89%
PT rev (1m)0%
PT rev (3m)-22.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 6.72 | ||
| P/S | 1.34 | ||
| P/FCF | 46.77 | ||
| P/OCF | 37.21 | ||
| P/B | 1.35 | ||
| P/tB | 9.21 | ||
| EV/EBITDA | 13.44 |
EPS(TTM)26.68
EY15.25%
EPS(NY)26.03
Fwd EY14.87%
FCF(TTM)3.74
FCFY2.14%
OCF(TTM)4.7
OCFY2.69%
SpS130.66
BVpS129.34
TBVpS19.01
PEG (NY)N/A
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 13.49% | ||
| ROCE | 5.2% | ||
| ROIC | 3.88% | ||
| ROICexc | 4.03% | ||
| ROICexgc | 5.22% | ||
| OM | 20.14% | ||
| PM (TTM) | 13.35% | ||
| GM | N/A | ||
| FCFM | 2.86% |
ROA(3y)3.19%
ROA(5y)3.43%
ROE(3y)14.36%
ROE(5y)15.89%
ROIC(3y)3.76%
ROIC(5y)4.34%
ROICexc(3y)10.87%
ROICexc(5y)12.89%
ROICexgc(3y)110.04%
ROICexgc(5y)160.56%
ROCE(3y)5.04%
ROCE(5y)5.81%
ROICexcg growth 3Y-77.85%
ROICexcg growth 5Y3.06%
ROICexc growth 3Y-48.2%
ROICexc growth 5Y2.75%
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
F-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.54 | ||
| Debt/FCF | 87.76 | ||
| Debt/EBITDA | 9.12 | ||
| Cap/Depr | 9.92% | ||
| Cap/Sales | 0.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 13.06% | ||
| Profit Quality | 21.45% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 | ||
| Altman-Z | 0.84 |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)10.41%
Cap/Depr(5y)9.08%
Cap/Sales(3y)0.8%
Cap/Sales(5y)0.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.2%
EPS 3Y-9.8%
EPS 5Y12.37%
EPS Q2Q%5.91%
EPS Next Y-4%
EPS Next 2Y-0.63%
EPS Next 3Y2.14%
EPS Next 5YN/A
Revenue 1Y (TTM)3.84%
Revenue growth 3Y-2.52%
Revenue growth 5Y10%
Sales Q2Q%-1.31%
Revenue Next Year-7.27%
Revenue Next 2Y-4%
Revenue Next 3Y-2.45%
Revenue Next 5YN/A
EBIT growth 1Y20.18%
EBIT growth 3Y-19.18%
EBIT growth 5Y7.03%
EBIT Next Year-4.96%
EBIT Next 3Y-0.99%
EBIT Next 5YN/A
FCF growth 1Y-84.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-81.05%
OCF growth 3Y-86.19%
OCF growth 5YN/A