NasdaqGS:VIRT

Stock Analysis Report

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Executive Summary

Virtu Financial, Inc., together with its subsidiaries, provides market making and liquidity services through its proprietary, multi-asset, and multi-currency technology platform to the financial markets worldwide. More Details


Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Virtu Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VIRT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: VIRT's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

1.0%

VIRT

3.5%

US Capital Markets

2.1%

US Market


1 Year Return

39.7%

VIRT

11.5%

US Capital Markets

19.8%

US Market

Return vs Industry: VIRT exceeded the US Capital Markets industry which returned 11.4% over the past year.

Return vs Market: VIRT exceeded the US Market which returned 19.7% over the past year.


Shareholder returns

VIRTIndustryMarket
7 Day1.0%3.5%2.1%
30 Day1.4%13.2%8.1%
90 Day-8.6%9.5%6.0%
1 Year46.5%39.7%14.3%11.5%22.5%19.8%
3 Year57.1%39.7%30.2%20.2%46.5%36.8%
5 Year30.7%3.7%87.2%64.0%96.9%75.3%

Long-Term Price Volatility Vs. Market

How volatile is Virtu Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Virtu Financial undervalued compared to its fair value and its price relative to the market?

32.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VIRT ($22.77) is trading below our estimate of fair value ($33.82)

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


Price To Earnings Ratio

PE vs Industry: VIRT is good value based on its PE Ratio (5.4x) compared to the US Capital Markets industry average (23.1x).

PE vs Market: VIRT is good value based on its PE Ratio (5.4x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: VIRT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: VIRT is good value based on its PB Ratio (2x) compared to the US Capital Markets industry average (4.7x).


Next Steps

Future Growth

How is Virtu Financial forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-38.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VIRT's earnings are forecast to decline over the next 3 years (-38.3% per year).

Earnings vs Market: VIRT's earnings are forecast to decline over the next 3 years (-38.3% per year).

High Growth Earnings: VIRT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: VIRT's revenue is expected to decline over the next 3 years (-25.5% per year).

High Growth Revenue: VIRT's revenue is forecast to decline over the next 3 years (-25.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VIRT's Return on Equity is forecast to be high in 3 years time (24.9%)


Next Steps

Past Performance

How has Virtu Financial performed over the past 5 years?

43.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VIRT has high quality earnings.

Growing Profit Margin: VIRT's current net profit margins (19.3%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: VIRT's earnings have grown significantly by 43.2% per year over the past 5 years.

Accelerating Growth: VIRT's earnings growth over the past year (1294.5%) exceeds its 5-year average (43.2% per year).

Earnings vs Industry: VIRT earnings growth over the past year (1294.5%) exceeded the Capital Markets industry 3%.


Return on Equity

High ROE: Whilst VIRT's Return on Equity (49.47%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Virtu Financial's financial position?


Financial Position Analysis

Short Term Liabilities: VIRT's short term assets ($7.0B) exceed its short term liabilities ($5.7B).

Long Term Liabilities: VIRT's short term assets ($7.0B) exceed its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: VIRT's debt to equity ratio (163.1%) is considered high.

Reducing Debt: VIRT's debt to equity ratio has reduced from 251.6% to 163.1% over the past 5 years.

Debt Coverage: VIRT's debt is well covered by operating cash flow (33.9%).

Interest Coverage: Insufficient data to determine if VIRT's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Virtu Financial current dividend yield, its reliability and sustainability?

4.22%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: VIRT's dividend (4.22%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: VIRT's dividend (4.22%) is in the top 25% of dividend payers in the US market (4.05%)


Stability and Growth of Payments

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

Growing Dividend: VIRT has only been paying a dividend for 5 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.9%), VIRT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VIRT's dividends in 3 years are forecast to be well covered by earnings (40.7% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Doug Cifu (55 yo)

7yrs

Tenure

US$4,598,172

Compensation

Mr. Douglas A. Cifu, J.D., also known as Doug, served as Chief Executive Officer and Director of Virtu ITG Holdings LLC (formerly, Investment Technology Group Inc.) since March 1, 2019. Mr. Cifu serves as ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD4.60M) is about average for companies of similar size in the US market ($USD5.15M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Cifu
CEO & Director7yrsUS$4.60m0.32%
$ 14.1m
Joseph Molluso
Co-President & Co-COO0.50yrUS$1.63m0.097%
$ 4.3m
Brett Fairclough
Co-President & Co-COO0.50yrUS$2.12m0.099%
$ 4.4m
Vincent Viola
Founder & Chairman Emeritus3.33yrsno data0%
$ 0
Stephen Cavoli
Executive VP & Global Head of Execution Services1.83yrsUS$1.70m0.063%
$ 2.8m
Sean Galvin
Chief Financial Officer0.25yrno datano data
Aaron Simons
Executive VP & CTO0.83yrno datano data
Deborah Belevan
Senior Vice President of Investor Relations & Communications0.83yrno datano data
Justin Waldie
Senior VPno datano datano data
Brian Palmer
Global Head of Developmentno datano datano data
Marc Rosenthal
Executive Vice President of Strategy & Corporate Development1.17yrsno datano data
Akiko Imai
Global Head of New Sales0.42yrno datano data

0.8yrs

Average Tenure

52.5yo

Average Age

Experienced Management: VIRT's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Douglas Cifu
CEO & Director7yrsUS$4.60m0.32%
$ 14.1m
Vincent Viola
Founder & Chairman Emeritus3.33yrsno data0%
$ 0
Glenn Hutchins
Independent Director3.33yrsUS$230.00k0.015%
$ 651.1k
Virginia Gambale
Independent Director0.83yrno data0.0030%
$ 132.6k
Robert Greifeld
Independent Chairman of the Board3.33yrsUS$375.00k0.015%
$ 651.1k
John Sandner
Independent Director5.58yrsUS$230.63k0.026%
$ 1.1m
Joseph Grano
Independent Director3.08yrsUS$220.00k0.0082%
$ 363.0k
William Cruger
Independent Director5.58yrsUS$235.00k0.026%
$ 1.1m
Christopher Quick
Independent Director4.58yrsUS$227.50k0.021%
$ 907.1k
John Nixon
Independent Director5.5yrsUS$230.63k0.025%
$ 1.1m
David Urban
Independent Director1.92yrsUS$210.00k0.0074%
$ 327.8k
Michael Viola
Director4.58yrsUS$217.50k0.072%
$ 3.2m

4.0yrs

Average Tenure

63yo

Average Age

Experienced Board: VIRT's board of directors are considered experienced (4 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Virtu Financial, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Virtu Financial, Inc.
  • Ticker: VIRT
  • Exchange: NasdaqGS
  • Founded: 2008
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Implied Market Cap: US$4.405b
  • Market Cap: US$2.799b
  • Shares outstanding: 193.48m
  • Website: https://www.virtu.com

Number of Employees


Location

  • Virtu Financial, Inc.
  • One Liberty Plaza
  • 165 Broadway
  • New York
  • New York
  • 10006
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VIRTNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDApr 2015
0VFDB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2015
VIRT *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNApr 2015

Biography

Virtu Financial, Inc., together with its subsidiaries, provides market making and liquidity services through its proprietary, multi-asset, and multi-currency technology platform to the financial markets wo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 00:30
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
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.