NasdaqGS:VCTR

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 12.1% below its fair value

Earnings are forecast to grow 40.81% per year

Earnings have grown 63.8% per year over the past 5 years

Risk Analysis

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Exceptional growth potential and good value.


Similar Companies

BlackRock

NYSE:BLK

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.8%

VCTR

1.9%

US Capital Markets

1.2%

US Market


1 Year Return

96.6%

VCTR

19.2%

US Capital Markets

24.2%

US Market

Return vs Industry: VCTR exceeded the US Capital Markets industry which returned 21.7% over the past year.

Return vs Market: VCTR exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

VCTRIndustryMarket
7 Day-2.8%1.9%1.2%
30 Day1.9%3.9%3.5%
90 Day34.0%14.3%11.7%
1 Year97.7%96.6%21.6%19.2%26.9%24.2%
3 Yearn/a48.8%40.4%53.0%43.2%
5 Yearn/a95.9%77.7%75.3%56.0%

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?

12.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VCTR ($21.96) is trading below our estimate of fair value ($24.97)

Significantly Below Fair Value: VCTR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VCTR is good value based on its PE Ratio (21.6x) compared to the Capital Markets industry average (36.1x).

PE vs Market: VCTR is poor value based on its PE Ratio (21.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: VCTR is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: VCTR is good value based on its PB Ratio (2.9x) compared to the US Capital Markets industry average (6.6x).


Next Steps

Future Growth

How is Victory Capital Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

40.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VCTR's forecast earnings growth (40.8% per year) is above the savings rate (1.7%).

Earnings vs Market: VCTR's earnings (40.8% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VCTR's revenue (21.7% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: VCTR's revenue (21.7% per year) is forecast to grow faster 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 (32.4%)


Next Steps

Past Performance

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

63.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VCTR has a large one-off loss of $42.2M impacting its September 30 2019 financial results.

Growing Profit Margin: VCTR's current net profit margins (14.1%) are lower than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: VCTR's earnings have grown significantly by 63.8% per year over the past 5 years.

Accelerating Growth: VCTR's earnings growth over the past year (12.8%) is below its 5-year average (63.8% per year).

Earnings vs Industry: VCTR earnings growth over the past year (12.8%) underperformed the Capital Markets industry 20.6%.


Return on Equity

High ROE: VCTR's Return on Equity (13.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Victory Capital Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: VCTR has a low level of unsold assets or inventory.

Debt Coverage by Assets: VCTR's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: VCTR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if VCTR has a sufficient allowance for bad loans.

Low Risk Liabilities: VCTR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if VCTR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: VCTR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if VCTR has an appropriate level of bad loans.


Next Steps

Dividend

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

0.94%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: VCTR's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: VCTR's dividend (0.91%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 (4.9%), 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 (5.2% payout ratio).


Next Steps

Management

What is the CEO of Victory Capital Holdings's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

David Brown (45yo)

6.4yrs

Tenure

US$11,995,413

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 ($USD12.00M) is above average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.3yrs

Average Tenure

45yo

Average Age

Experienced Management: VCTR's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

66yo

Average Age

Experienced Board: VCTR's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$89,28419 Aug 19
James Hawkes
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,692
Max PriceUS$15.80

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.1%.


Management Team

  • Kelly Cliff (49yo)

    President of Investment Franchises

    • Tenure: 4.2yrs
    • Compensation: US$5.58m
  • Mike Policarpo (44yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$6.33m
  • David Brown (45yo)

    CEO & Chairman

    • Tenure: 6.4yrs
    • Compensation: US$12.00m
  • David Friedman (55yo)

    Head of Strategy & Corporate Projects

    • Tenure: 1yrs
  • Matthew Dennis

    Director of Investor Relations

    • Tenure: 1yrs
  • Nina Gupta (44yo)

    Chief Legal Officer & Secretary

    • Tenure: 3.5yrs

Board Members

  • Alan Rappaport (66yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$125.00k
  • Jim Hawkes (77yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$125.00k
  • Bob Hurst (73yo)

    Independent Director

    • Tenure: 3.3yrs
  • Rich DeMartini (67yo)

    Independent Director

    • Tenure: 6.4yrs
  • Milton Berlinski (63yo)

    Independent Director

    • Tenure: 6.4yrs
  • Karin Hirtler-Garvey (62yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$125.00k
  • Larry Davanzo (66yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$125.00k
  • David Brown (45yo)

    CEO & Chairman

    • Tenure: 6.4yrs
    • Compensation: US$12.00m
  • Alex Binderow

    Independent Director

    • Tenure: 6.4yrs

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$1.443b
  • Shares outstanding: 67.57m
  • Website: https://www.vcm.com

Number of Employees


Location

  • Victory Capital Holdings, Inc.
  • 4900 Tiedeman Road
  • 4th Floor
  • Brooklyn
  • Ohio
  • 44144
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VCTRNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDFeb 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 distribution services through broker-dealers, retirement platforms, and registered investment advisor networks. As of December 31, 2018, its franchises and solutions platform managed a set of 71 investment strategies for a range of institutional and retail clients. The company was founded in 2013 and is headquartered in Brooklyn, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/21 01:18
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.