NasdaqGS:VRTU

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Executive Summary

Virtusa Corporation provides digital engineering and information technology (IT) outsourcing services primarily in North America, Europe, and Asia. More Details


Snowflake Analysis

Adequate balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: VRTU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.4%

VRTU

-1.5%

US IT

-0.4%

US Market


1 Year Return

39.7%

VRTU

27.4%

US IT

18.3%

US Market

Return vs Industry: VRTU exceeded the US IT industry which returned 27.4% over the past year.

Return vs Market: VRTU exceeded the US Market which returned 18.3% over the past year.


Shareholder returns

VRTUIndustryMarket
7 Day0.4%-1.5%-0.4%
30 Day4.0%5.1%6.6%
90 Day48.4%6.7%8.6%
1 Year39.7%39.7%28.7%27.4%21.0%18.3%
3 Year31.6%31.6%89.7%82.3%42.1%32.7%
5 Year-12.2%-12.2%152.2%132.1%85.6%64.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

39.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VRTU ($50.45) is trading above our estimate of fair value ($39.2)

Significantly Below Fair Value: VRTU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VRTU is poor value based on its PE Ratio (39.2x) compared to the US IT industry average (32.2x).

PE vs Market: VRTU is poor value based on its PE Ratio (39.2x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: VRTU is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: VRTU's PB Ratio (3.8x) is in line with the US IT industry average.


Next Steps

Future Growth

How is Virtusa forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

33.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRTU's forecast earnings growth (33.7% per year) is above the savings rate (2.2%).

Earnings vs Market: VRTU's earnings (33.7% per year) are forecast to grow faster than the US market (22.1% per year).

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

Revenue vs Market: VRTU's revenue (7.7% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: VRTU's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VRTU's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has Virtusa performed over the past 5 years?

-11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRTU has high quality earnings.

Growing Profit Margin: VRTU's current net profit margins (3%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: VRTU's earnings have declined by 11.8% per year over the past 5 years.

Accelerating Growth: VRTU's earnings growth over the past year (61%) exceeds its 5-year average (-11.8% per year).

Earnings vs Industry: VRTU earnings growth over the past year (61%) exceeded the IT industry 8.1%.


Return on Equity

High ROE: VRTU's Return on Equity (8.5%) is considered low.


Next Steps

Financial Health

How is Virtusa's financial position?


Financial Position Analysis

Short Term Liabilities: VRTU's short term assets ($624.5M) exceed its short term liabilities ($235.3M).

Long Term Liabilities: VRTU's short term assets ($624.5M) exceed its long term liabilities ($517.7M).


Debt to Equity History and Analysis

Debt Level: VRTU's debt to equity ratio (87.6%) is considered high.

Reducing Debt: Insufficient data to determine if VRTU's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: VRTU's debt is well covered by operating cash flow (29.9%).

Interest Coverage: VRTU's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Virtusa current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate VRTU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VRTU's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VRTU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VRTU's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VRTU's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

9.4yrs

Average management tenure


CEO

Kris Canekeratne (54 yo)

20.75yrs

Tenure

US$8,235,743

Compensation

Mr. Krishan Aruna Canekeratne, also known as Kris, serves as an Advisor at Brewer Lane Ventures since June 2020. He is a Co-Founder of Virtusa Corporation and has been its Chief Executive Officer since 200 ...


CEO Compensation Analysis

Compensation vs Market: Kris's total compensation ($USD8.24M) is above average for companies of similar size in the US market ($USD4.43M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Krishan Canekeratne
Co-Founder20.75yrsUS$8.24m1.92%
$ 29.4m
Samir Dhir
President & Head of Americas3.17yrsUS$2.49m0.28%
$ 4.3m
Anuranjan Kalia
Executive VP12yrsUS$2.45m0.41%
$ 6.2m
Roger Modder
Executive VP9.42yrsUS$2.26m0.68%
$ 10.3m
Thomas Holler
Executive VP & Chief Strategy Officer19.75yrsUS$2.02m0.13%
$ 2.0m
John Gillis
Co-Founder & Executive VP24.75yrsno datano data
Paul Tutun
Executive VP & General Counselno datano datano data
Kirsten Paragona
Global Head of Media Relationsno datano datano data
Sundararajan Narayanan
Executive VP & Chief People Officer4.17yrsno data0.26%
$ 3.9m
Jim Francis
Senior Officerno datano datano data
Stuart Chandler
Head of Global BPM & Senior VP4.92yrsno datano data
Ashish Devalekar
Managing Director of Europe & the Middle East0.42yrno datano data

9.4yrs

Average Tenure

55yo

Average Age

Experienced Management: VRTU's management team is seasoned and experienced (9.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Krishan Canekeratne
Co-Founder20.75yrsUS$8.24m1.92%
$ 29.4m
Izhar Armony
Independent Director16.5yrsUS$199.97k0.056%
$ 850.0k
Joseph Doody
Independent Director3.67yrsUS$199.97k0.050%
$ 759.1k
Deborah Hopkins
Independent Director2.08yrsUS$199.97k0.011%
$ 172.3k
Rowland Moriarty
Lead Independent Directorno dataUS$239.97k0.54%
$ 8.2m
Vikram Pandit
Independent Director3.42yrsUS$206.52k0.029%
$ 436.4k
Patricia Morrison
Independent Directorno datano datano data
Al-Noor Gulamali Abdulla Ramji
Independent Director9.67yrsUS$199.97k0.052%
$ 790.9k
Abidali Neemuchwala
Additional Independent Director0.33yrno data0.0012%
$ 18.3k
William O'Brien
Independent Director11.92yrsUS$214.97k0.052%
$ 790.9k
Barry Nearhos
Independent Director4.58yrsUS$221.97k0.046%
$ 708.7k

4.6yrs

Average Tenure

63yo

Average Age

Experienced Board: VRTU's board of directors are considered experienced (4.6 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

Virtusa Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Virtusa Corporation
  • Ticker: VRTU
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$1.529b
  • Shares outstanding: 30.31m
  • Website: https://www.virtusa.com

Number of Employees


Location

  • Virtusa Corporation
  • 132 Turnpike Road
  • Suite 300
  • Southborough
  • Massachusetts
  • 1772
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRTUNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2007
EG1DB (Deutsche Boerse AG)YesCommon StockDEEURAug 2007

Biography

Virtusa Corporation provides digital engineering and information technology (IT) outsourcing services primarily in North America, Europe, and Asia. The company offers business and IT consulting services, i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 00:12
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.