NasdaqGS:VCTR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$2.1b

Last Updated

2021/06/25 06:04 UTC

Data Sources

Company Financials +

Executive Summary

Victory Capital Holdings, Inc., together with its subsidiaries, operates as an asset management company worldwide. More Details


Snowflake Analysis

Very undervalued with outstanding 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: VCTR's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

4.0%

VCTR

1.3%

US Capital Markets

1.3%

US Market


1 Year Return

93.3%

VCTR

56.6%

US Capital Markets

42.4%

US Market

Return vs Industry: VCTR exceeded the US Capital Markets industry which returned 59.1% over the past year.

Return vs Market: VCTR exceeded the US Market which returned 42.6% over the past year.


Shareholder returns

VCTRIndustryMarket
7 Day4.0%1.3%1.3%
30 Day5.8%2.6%2.8%
90 Day20.2%11.0%7.2%
1 Year96.1%93.3%60.0%56.6%44.7%42.4%
3 Year203.5%196.0%72.4%59.9%64.6%54.4%
5 Yearn/a187.3%152.7%126.8%101.3%

Long-Term 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?

20.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VCTR ($31.04) is trading below our estimate of fair value ($39.25)

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 (9.5x) compared to the US Capital Markets industry average (15x).

PE vs Market: VCTR is good value based on its PE Ratio (9.5x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: VCTR is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: VCTR is good value based on its PB Ratio (2.8x) compared to the US Capital Markets industry average (65.9x).


Future Growth

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

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VCTR's forecast earnings growth (22.6% per year) is above the savings rate (2%).

Earnings vs Market: VCTR's earnings (22.6% per year) are forecast to grow faster than the US market (15.7% per year).

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

Revenue vs Market: VCTR's revenue (4.8% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: VCTR's revenue (4.8% 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 (37.3%)


Past Performance

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

61.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VCTR has high quality earnings.

Growing Profit Margin: VCTR's current net profit margins (28.1%) are higher than last year (18.5%).


Past Earnings Growth Analysis

Earnings Trend: VCTR's earnings have grown significantly by 61.5% per year over the past 5 years.

Accelerating Growth: VCTR's earnings growth over the past year (63.2%) exceeds its 5-year average (61.5% per year).

Earnings vs Industry: VCTR earnings growth over the past year (63.2%) exceeded the Capital Markets industry 48.4%.


Return on Equity

High ROE: VCTR's Return on Equity (28.8%) is considered high.


Financial Health

How is Victory Capital Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: VCTR's short term assets ($133.3M) do not cover its short term liabilities ($186.3M).

Long Term Liabilities: VCTR's short term assets ($133.3M) do not cover its long term liabilities ($798.0M).


Debt to Equity History and Analysis

Debt Level: VCTR's debt to equity ratio (94.4%) is considered high.

Reducing Debt: VCTR's debt to equity ratio has reduced from 125.9% to 94.4% over the past 5 years.

Debt Coverage: VCTR's debt is well covered by operating cash flow (38.5%).

Interest Coverage: VCTR's interest payments on its debt are well covered by EBIT (13.9x coverage).


Balance Sheet


Dividend

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

1.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VCTR's dividend (1.55%) is higher than the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: VCTR's dividend (1.55%) is low compared to the top 25% of dividend payers in the US market (3.46%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, VCTR has been paying a dividend for less than 10 years.

Growing Dividend: VCTR's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.3%), 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 (11.3% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

David Brown (47 yo)

7.83yrs

Tenure

US$9,950,394

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 ($USD9.95M) is above average for companies of similar size in the US market ($USD3.69M).

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


Leadership Team

Experienced Management: VCTR's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: VCTR's board of directors are considered experienced (7.8 years average tenure).


Ownership

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


Insider Trading Volume

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


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$2.124b
  • Shares outstanding: 67.81m
  • Website: https://www.vcm.com

Number of Employees


Location

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

Listings


Biography

Victory Capital Holdings, Inc., together with its subsidiaries, operates as an asset management company worldwide. It offers investment management, fund administration, fund compliance, fund transfer agent...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/25 06:04
End of Day Share Price2021/06/24 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.