NasdaqGS:VCTR

Stock Analysis Report

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Executive Summary

Victory Capital Holdings, Inc., together with its subsidiaries, operates as an independent investment management company in the United States.


Snowflake Analysis

Very undervalued with proven track record.


Similar Companies

Share Price & News

How has Victory Capital Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VCTR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.3%

VCTR

-0.8%

US Capital Markets

1.3%

US Market


1 Year Return

9.1%

VCTR

4.6%

US Capital Markets

14.9%

US Market

Return vs Industry: VCTR exceeded the US Capital Markets industry which returned 2.9% over the past year.

Return vs Market: VCTR underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

VCTRIndustryMarket
7 Day-6.3%-0.8%1.3%
30 Day0.9%2.4%4.7%
90 Day23.5%13.7%17.1%
1 Year10.3%9.1%6.7%4.6%17.3%14.9%
3 Yearn/a20.5%13.3%38.9%29.9%
5 Yearn/a52.6%38.0%71.3%52.8%

Price Volatility Vs. Market

How volatile is Victory Capital Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Victory Capital Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VCTR ($17.75) is trading below our estimate of fair value ($68.64)

Significantly Below Fair Value: VCTR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VCTR is good value based on its PE Ratio (8.9x) compared to the US Capital Markets industry average (27.1x).

PE vs Market: VCTR is good value based on its PE Ratio (8.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: VCTR is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: VCTR is good value based on its PB Ratio (2.1x) compared to the US Capital Markets industry average (9x).


Next Steps

Future Growth

How is Victory Capital Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VCTR's forecast earnings growth (12.2% per year) is above the savings rate (2.2%).

Earnings vs Market: VCTR's earnings (12.2% per year) are forecast to grow slower than the US market (22.2% per year).

High Growth Earnings: VCTR's earnings are forecast to grow, but not significantly.

Revenue vs Market: VCTR's revenue (1.4% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: VCTR's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VCTR's Return on Equity is forecast to be high in 3 years time (28.3%)


Next Steps

Past Performance

How has Victory Capital Holdings performed over the past 5 years?

60.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VCTR has a large one-off loss of $60.4M impacting its March 31 2020 financial results.

Growing Profit Margin: VCTR's current net profit margins (18.5%) are higher than last year (17.1%).


Past Earnings Growth Analysis

Earnings Trend: VCTR's earnings have grown significantly by 60.8% per year over the past 5 years.

Accelerating Growth: VCTR's earnings growth over the past year (99.7%) exceeds its 5-year average (60.8% per year).

Earnings vs Industry: VCTR earnings growth over the past year (99.7%) exceeded the Capital Markets industry 16.6%.


Return on Equity

High ROE: Whilst VCTR's Return on Equity (23.25%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Victory Capital Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: VCTR's short term assets ($136.5M) exceed its short term liabilities ($119.0M).

Long Term Liabilities: VCTR's short term assets ($136.5M) do not cover its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: VCTR's debt to equity ratio (154%) is considered high.

Reducing Debt: Insufficient data to determine if VCTR's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: VCTR's debt is well covered by operating cash flow (29.2%).

Interest Coverage: VCTR's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Victory Capital Holdings's current dividend yield, its reliability and sustainability?

1.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VCTR's dividend (1.13%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: VCTR's dividend (1.13%) is low compared to the top 25% of dividend payers in the US market (4.51%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether VCTR's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if VCTR's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.5%), VCTR's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VCTR's dividends in 3 years are forecast to be thoroughly covered by earnings (5.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

David Brown (47 yo)

7yrs

Tenure

US$9,717,466

Compensation

Mr. David Craig Brown has been Chief Executive Officer of Victory Capital Holdings, Inc. since August 2013 and Chairman of Board since April 2014. Mr. Brown serves as Chairman and Chief Executive Officer o ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD9.72M) is above average for companies of similar size in the US market ($USD4.67M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Brown
CEO & Chairman7yrsUS$9.72m2.59%
$ 31.2m
Michael Policarpo
President1.42yrsUS$4.79m1.22%
$ 14.7m
Kelly Cliff
President of Investment Franchises4.75yrsUS$2.42m0.71%
$ 8.6m
Matthew Dennis
Chief of Staff & Director of Investor Relations1.58yrsno datano data
Nina Gupta
Chief Legal Officer4.08yrsno data0.17%
$ 2.1m
David Friedman
Head of Strategy & Corporate Projects1.58yrsno datano data

2.8yrs

Average Tenure

47yo

Average Age

Experienced Management: VCTR's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Brown
CEO & Chairman7yrsUS$9.72m2.59%
$ 31.2m
Alan Rappaport
Independent Director7yrsUS$125.00k0.63%
$ 7.6m
James Hawkes
Independent Director7yrsUS$125.00k1.67%
$ 20.1m
Robert Hurst
Independent Director3.83yrsno data0.0045%
$ 54.7k
Richard DeMartini
Independent Director7yrsno datano data
Milton Berlinski
Independent Director7yrsno data0.70%
$ 8.4m
Karin Hirtler-Garvey
Independent Director5.83yrsUS$125.00k0.071%
$ 861.6k
Lawrence Davanzo
Independent Director5.83yrsUS$125.00k0.45%
$ 5.4m
Alex Binderow
Independent Director7yrsno datano data

7.0yrs

Average Tenure

67yo

Average Age

Experienced Board: VCTR's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: VCTR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Victory Capital Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Victory Capital Holdings, Inc.
  • Ticker: VCTR
  • Exchange: NasdaqGS
  • Founded: 2013
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$1.205b
  • Shares outstanding: 67.90m
  • Website: https://www.vcm.com

Number of Employees


Location

  • Victory Capital Holdings, Inc.
  • 15935 La Cantera Parkway
  • San Antonio
  • Texas
  • 78256
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VCTRNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDFeb 2018
3PKDB (Deutsche Boerse AG)YesClass A Common StockDEEURFeb 2018

Biography

Victory Capital Holdings, Inc., together with its subsidiaries, operates as an independent investment management company in the United States. It offers investment advisory, fund administration, and distri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 00:47
End of Day Share Price2020/07/31 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.