VIRTUS INVESTMENT PARTNERS (VRTS)
US92828Q1094 - Common Stock
Taking everything into account, VRTS scores 4 out of 10 in our fundamental rating. VRTS was compared to 212 industry peers in the Capital Markets industry. Both the profitability and financial health of VRTS have multiple concerns. VRTS may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Each year in the past 5 years VRTS has been profitable.
The reported operating cash flow has been mixed in the past 5 years: VRTS reported negative operating cash flow in multiple years.
1.2 Ratios
VRTS has a Return On Assets (3.55%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 15.12%, VRTS is in the better half of the industry, outperforming 72.38% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.10%, VRTS is doing worse than 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VRTS is below the industry average of 8.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 15.12% | ||
| ROIC | 3.1% |
ROA(3y)3.94%
ROA(5y)3.37%
ROE(3y)18.21%
ROE(5y)15.76%
ROIC(3y)4.66%
ROIC(5y)3.99%
1.3 Margins
VRTS has a Profit Margin of 15.45%. This is comparable to the rest of the industry: VRTS outperforms 44.76% of its industry peers.
VRTS's Profit Margin has improved in the last couple of years.
The Operating Margin of VRTS (17.37%) is worse than 64.29% of its industry peers.
VRTS's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.37% | ||
| PM (TTM) | 15.45% | ||
| GM | N/A |
OM growth 3Y-10.09%
OM growth 5Y-3.26%
PM growth 3Y5.29%
PM growth 5Y4.9%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, VRTS has less shares outstanding
Compared to 5 years ago, VRTS has more shares outstanding
The debt/assets ratio for VRTS has remained at the same level 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 has a Altman-Z score (0.84) which is comparable to the rest of the industry.
VRTS has a debt to FCF ratio of 9.53. This is a negative value and a sign of low solvency as VRTS would need 9.53 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.53, VRTS perfoms like the industry average, outperforming 47.14% of the companies in the same industry.
A Debt/Equity ratio of 2.52 is on the high side and indicates that VRTS has dependencies on debt financing.
With a Debt to Equity ratio value of 2.52, VRTS is not doing good in the industry: 80.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | 9.53 | ||
| Altman-Z | 0.84 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.38 indicates that VRTS should not have too much problems paying its short term obligations.
VRTS's Current ratio of 1.38 is in line compared to the rest of the industry. VRTS outperforms 56.67% of its industry peers.
A Quick Ratio of 1.38 indicates that VRTS should not have too much problems paying its short term obligations.
VRTS has a Quick ratio of 1.38. This is comparable to the rest of the industry: VRTS outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
VRTS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.32%.
The Earnings Per Share has been growing by 12.35% 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 4.52%.
VRTS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.89% yearly.
EPS 1Y (TTM)5.32%
EPS 3Y10.66%
EPS 5Y12.35%
EPS growth Q2Q28.81%
Revenue 1Y (TTM)4.52%
Revenue growth 3Y11.86%
Revenue growth 5Y8.89%
Revenue growth Q2Q13.19%
3.2 Future
VRTS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.96% yearly.
The Revenue is expected to grow by 4.18% on average over the next years.
EPS Next Y25.2%
EPS Next 2Y16.68%
EPS Next 3Y10.96%
EPS Next 5YN/A
Revenue Next Year8.71%
Revenue Next 2Y6.06%
Revenue Next 3Y4.18%
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 stable.
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 10.24, the valuation of VRTS can be described as reasonable.
Based on the Price/Earnings ratio, VRTS is valued a bit cheaper than the industry average as 69.52% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VRTS to the average of the S&P500 Index (28.67), we can say VRTS is valued rather cheaply.
VRTS is valuated cheaply with a Price/Forward Earnings ratio of 7.93.
83.33% of the companies in the same industry are more expensive than VRTS, based on the Price/Forward Earnings ratio.
VRTS is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 7.93 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRTS indicates a somewhat cheap valuation: VRTS is cheaper than 76.19% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRTS indicates a somewhat cheap valuation: VRTS is cheaper than 74.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.4 | ||
| EV/EBITDA | 15.49 |
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)0.41
PEG (5Y)0.83
EPS Next 2Y16.68%
EPS Next 3Y10.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.23%, VRTS has a reasonable but not impressive dividend return.
VRTS's Dividend Yield is comparable with the industry average which is at 7.04.
VRTS's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
5.2 History
The dividend of VRTS is nicely growing with an annual growth rate of 37.19%!
VRTS has paid a dividend for at least 10 years, which is a reliable track record.
VRTS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)37.19%
Div Incr Years6
Div Non Decr Years9
5.3 Sustainability
VRTS pays out 39.85% of its income as dividend. This is a sustainable payout ratio.
VRTS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.85%
EPS Next 2Y16.68%
EPS Next 3Y10.96%
VIRTUS INVESTMENT PARTNERS
NYSE:VRTS (5/21/2024, 12:25:51 PM)
237.1
+3.74 (+1.6%)
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 Cap1.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
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 | 10.24 | ||
| Fwd PE | 7.93 | ||
| 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)0.41
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 15.12% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.37% | ||
| PM (TTM) | 15.45% | ||
| GM | N/A | ||
| 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 Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 | ||
| 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)5.32%
EPS 3Y10.66%
EPS 5Y
EPS growth Q2Q
EPS Next Y25.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.52%
Revenue growth 3Y11.86%
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