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VIRT

Virtu FinancialNasdaqGS:VIRT Stock Report

Market Cap

US$4.5b

7D

0.2%

1Y

4.4%

Updated

27 Sep, 2021

Data

Company Financials +
VIRT fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance3/6
Financial Health4/6
Dividends4/6

VIRT Overview

Virtu Financial, Inc., financial services company, provides execution services and data, analytics, and connectivity products to clients worldwide.

Virtu Financial Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Virtu Financial
Historical stock prices
Current Share PriceUS$24.38
52 Week HighUS$21.03
52 Week LowUS$32.35
Beta-0.31
1 Month Change-6.34%
3 Month Change-12.37%
1 Year Change4.37%
3 Year Change21.11%
5 Year Change63.41%
Change since IPO9.92%

Recent News & Updates

Shareholder Returns

VIRTUS Capital MarketsUS Market
7D0.2%3.6%2.0%
1Y4.4%63.3%32.8%

Return vs Industry: VIRT underperformed the US Capital Markets industry which returned 63.3% over the past year.

Return vs Market: VIRT underperformed the US Market which returned 32.8% over the past year.

Price Volatility

Is VIRT's price volatile compared to industry and market?
VIRT volatility
VIRT Beta-0.31
Industry Beta1.19
Market Beta1

Stable Share Price: VIRT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: VIRT's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2008976Doug Cifuhttps://www.virtu.com

Virtu Financial, Inc., financial services company, provides execution services and data, analytics, and connectivity products to clients worldwide. Its product suite includes offerings in execution, liquidity sourcing, analytics and broker-neutral, and multi-dealer platforms in workflow technology. The company’s solutions enable clients to trade on various venues across countries and in multiple asset classes, including global equities, ETFs, foreign exchange, futures, fixed income, and other commodities.

Virtu Financial Fundamentals Summary

How do Virtu Financial's earnings and revenue compare to its market cap?
VIRT fundamental statistics
Market CapUS$4.54b
Earnings (TTM)US$516.60m
Revenue (TTM)US$2.63b

8.8x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VIRT income statement (TTM)
RevenueUS$2.63b
Cost of RevenueUS$1.11b
Gross ProfitUS$1.52b
ExpensesUS$1.00b
EarningsUS$516.60m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.76
Gross Margin57.73%
Net Profit Margin19.64%
Debt/Equity Ratio180.1%

How did VIRT perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

23%

Payout Ratio

Valuation

Is Virtu Financial 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: VIRT ($24.38) is trading below our estimate of fair value ($59.66)

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 (8.8x) compared to the US Capital Markets industry average (15.5x).

PE vs Market: VIRT is good value based on its PE Ratio (8.8x) compared to the US market (18.1x).


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 (2.9x) compared to the US Capital Markets industry average (61.3x).


Future Growth

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

-13.4%

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 (-13.4% per year).

Earnings vs Market: VIRT's earnings are forecast to decline over the next 3 years (-13.4% 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 (-15.2% per year).

High Growth Revenue: VIRT's revenue is forecast to decline over the next 3 years (-15.2% 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 (22.2%)


Past Performance

How has Virtu Financial performed over the past 5 years?

54.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VIRT has high quality earnings.

Growing Profit Margin: VIRT's current net profit margins (19.6%) are higher than last year (16.2%).


Past Earnings Growth Analysis

Earnings Trend: VIRT's earnings have grown significantly by 54.2% per year over the past 5 years.

Accelerating Growth: VIRT's earnings growth over the past year (33.7%) is below its 5-year average (54.2% per year).

Earnings vs Industry: VIRT earnings growth over the past year (33.7%) underperformed the Capital Markets industry 78.6%.


Return on Equity

High ROE: Whilst VIRT's Return on Equity (47.61%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Virtu Financial's financial position?


Financial Position Analysis

Short Term Liabilities: VIRT's short term assets ($8.0B) exceed its short term liabilities ($6.6B).

Long Term Liabilities: VIRT's short term assets ($8.0B) exceed its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: VIRT's debt to equity ratio (180.1%) is considered high.

Reducing Debt: VIRT's debt to equity ratio has reduced from 276.4% to 180.1% over the past 5 years.

Debt Coverage: VIRT's debt is well covered by operating cash flow (26.5%).

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


Balance Sheet


Dividend

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

3.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VIRT's dividend (3.94%) is higher than the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: VIRT's dividend (3.94%) is in the top 25% of dividend payers in the US market (3.57%)


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 6 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.6%), 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 (35.2% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Doug Cifu (56 yo)

7.83yrs

Tenure

US$12,263,795

Compensation

Mr. Douglas A. Cifu, J.D., also known as Doug, serves as Vice Chairman, Partner & Alternate Governor at Florida Panthers Hockey Club, Ltd. He has been the Chief Executive Officer of Virtu Financial, Inc. s...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD12.26M) is above average for companies of similar size in the US market ($USD5.22M).

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


Leadership Team

Experienced Management: VIRT's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: VIRT's board of directors are considered experienced (4.2 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 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$4.541b
  • Market Cap: US$2.862b
  • Shares outstanding: 187.27m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 23:05
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
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.