NasdaqGS:VIRT

Stock Analysis Report

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.

Snowflake

Fundamentals

High growth potential and fair value.


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


Market Performance


7 Day Return

1.0%

VIRT

2.7%

US Capital Markets

1.8%

US Market


1 Year Return

-25.9%

VIRT

1.9%

US Capital Markets

7.3%

US Market

Return vs Industry: VIRT underperformed the US Capital Markets industry which returned 1.9% over the past year.

Return vs Market: VIRT underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

VIRTIndustryMarket
7 Day1.0%2.7%1.8%
30 Day-16.5%-4.0%-0.7%
90 Day-23.3%-2.5%0.06%
1 Year-22.7%-25.9%4.2%1.9%9.7%7.3%
3 Year43.8%24.4%50.9%42.5%46.3%36.9%
5 Yearn/a77.0%60.7%64.5%46.5%

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?

36.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: VIRT ($16.86) is trading above our estimate of fair value ($14.52)

Significantly Undervalued: VIRT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VIRT is good value based on its PE Ratio (36.4x) compared to the Capital Markets industry average (39.4x).

PE vs Market: VIRT is poor value based on its PE Ratio (36.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


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 (6.5x).


Next Steps

Future Growth

How is Virtu Financial forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

79.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VIRT's forecast earnings growth (79.4% per year) is above the savings rate (2.7%).

Earnings vs Market: VIRT's earnings (79.4% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: VIRT's revenue (8.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: VIRT's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

12.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VIRT's earnings have grown by 12.9% per year over the past 5 years.

Accelerating Growth: VIRT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VIRT had negative earnings growth (-74%) over the past year, making it difficult to compare to the Capital Markets industry average (31.4%).


Return on Equity

High ROE: VIRT's Return on Equity (7%) is considered low.


Return on Assets

ROA vs Industry: VIRT's Return on Assets is below or equal to the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate VIRT's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Virtu Financial'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: VIRT has a low level of unsold assets or inventory.

Debt Coverage by Assets: VIRT's debt is covered by short term assets (assets are 2.030270x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

5.69%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%1.5%markettop25%3.7%industryaverage2.1%forecastin3Years5.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VIRT's dividend (5.69%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: VIRT's dividend (5.69%) is in the top 25% of dividend payers in the US market (3.72%)

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 4 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (207.2%), VIRT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VIRT's dividends in 3 years are forecast to be covered by earnings (56.4% payout ratio).


Next Steps

Management

What is the CEO of Virtu Financial's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Doug Cifu (54yo)

5.9yrs

Tenure

US$8,769,607

Compensation

Mr. Douglas A. Cifu, 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 the Ch ...


CEO Compensation Analysis

Compensation vs. Market: Doug's total compensation ($USD8.77M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

0.8yrs

Average Tenure

54yo

Average Age

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


Board Age and Tenure

3.5yrs

Average Tenure

62yo

Average Age

Experienced Board: VIRT's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$185,79104 Sep 19
Douglas Cifu
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares10,000
Max PriceUS$18.58
SellUS$176,10024 May 19
Stephen Cavoli
EntityIndividual
Role
Senior Key Executive
Executive VP and Head of Execution Services
Shares7,500
Max PriceUS$23.48
SellUS$3,343,05613 Feb 19
Douglas Cifu
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares127,088
Max PriceUS$26.50

Ownership Breakdown


Management Team

  • Doug Cifu (54yo)

    CEO & Director

    • Tenure: 5.9yrs
    • Compensation: US$8.77m
  • Vinnie Viola (63yo)

    Founder & Chairman Emeritus

    • Tenure: 2.3yrs
  • Kevin O'Connor

    Head of Analytics and Workflow Solutions

    • Tenure: 0.8yrs
  • Marc Rosenthal

    Executive Vice President of Strategy & Corporate Development

    • Tenure: 0.08yrs
  • Brian Palmer

    Global Head of Development

    • Tenure: 0yrs
  • Stephen Cavoli (50yo)

    Executive VP and Head of Execution Services

    • Tenure: 0.8yrs
    • Compensation: US$1.20m
  • Andrew Smith

    SVP, Head of Investor Relations & Corporate Strategy

    • Tenure: 4.5yrs
  • Justin Waldie

    Senior VP

    • Tenure: 0yrs
  • Brett Fairclough

    COO & Global Head of Business Development

    • Tenure: 0.08yrs
  • Henry Kim

    Chief Accounting Officer

    • Tenure: 0.08yrs

Board Members

  • Glenn Hutchins (63yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$230.00k
  • Bob Greifeld (61yo)

    Independent Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: US$375.00k
  • Jack Sandner (78yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$230.63k
  • Joe Grano (71yo)

    Director

    • Tenure: 2yrs
    • Compensation: US$220.00k
  • Bill Cruger (61yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$235.00k
  • Doug Cifu (54yo)

    CEO & Director

    • Tenure: 5.9yrs
    • Compensation: US$8.77m
  • ChrisC Quick (61yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$227.50k
  • Vinnie Viola (63yo)

    Founder & Chairman Emeritus

    • Tenure: 2.3yrs
  • John Nixon (64yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$230.63k
  • Michael Viola (32yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$217.50k

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$3.158b
  • Market Cap: US$1.979b
  • Shares outstanding: 190.61m
  • 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

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 Analysis2019/10/18 00:36
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.