Virtusa Corporation provides digital engineering and information technology (IT) outsourcing services primarily in North America, Europe, and Asia. More Details
Adequate balance sheet with proven track record.
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.
7 Day Return
1 Year Return
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.
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
1 day ago | Simply Wall StRead This Before Buying Virtusa Corporation (NASDAQ:VRTU) Shares
1 week ago | Simply Wall StThe Virtusa (NASDAQ:VRTU) Share Price Is Up 41% And Shareholders Are Holding On
3 weeks ago | Simply Wall StVirtusa Corporation's (NASDAQ:VRTU) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue?
Is Virtusa undervalued compared to its fair value and its price relative to the market?
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.
How is Virtusa forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
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%).
How has Virtusa performed over the past 5 years?
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.
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 ($517.7M).
Debt to Equity History and Analysis
Debt Level: VRTU's debt to equity ratio (87.6%) is considered high.
Reducing Debt: Insufficient data to determine if VRTU's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: VRTU's debt is well covered by operating cash flow (29.9%).
Interest Coverage: VRTU's interest payments on its debt are well covered by EBIT (4.1x coverage).
What is Virtusa current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate VRTU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate VRTU's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if VRTU's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if VRTU's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of VRTU's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Kris Canekeratne (54 yo)
Mr. Krishan Aruna Canekeratne, also known as Kris, serves as an Advisor at Brewer Lane Ventures since June 2020. He is a Co-Founder of Virtusa Corporation and has been its Chief Executive Officer since 200 ...
CEO Compensation Analysis
Compensation vs Market: Kris's total compensation ($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.
|President & Head of Americas||3.17yrs||US$2.49m||0.28% |
|Executive VP||12yrs||US$2.45m||0.41% |
|Executive VP||9.42yrs||US$2.26m||0.68% |
|Executive VP & Chief Strategy Officer||19.75yrs||US$2.02m||0.13% |
|Co-Founder & Executive VP||24.75yrs||no data||no data|
|Executive VP & General Counsel||no data||no data||no data|
|Global Head of Media Relations||no data||no data||no data|
|Executive VP & Chief People Officer||4.17yrs||no data||0.26% |
|Senior Officer||no data||no data||no data|
|Head of Global BPM & Senior VP||4.92yrs||no data||no data|
|Managing Director of Europe & the Middle East||0.42yr||no data||no data|
Experienced Management: VRTU's management team is seasoned and experienced (9.4 years average tenure).
|Independent Director||16.5yrs||US$199.97k||0.056% |
|Independent Director||3.67yrs||US$199.97k||0.050% |
|Independent Director||2.08yrs||US$199.97k||0.011% |
|Lead Independent Director||no data||US$239.97k||0.54% |
|Independent Director||3.42yrs||US$206.52k||0.029% |
|Independent Director||no data||no data||no data|
|Independent Director||9.67yrs||US$199.97k||0.052% |
|Additional Independent Director||0.33yr||no data||0.0012% |
|Independent Director||11.92yrs||US$214.97k||0.052% |
|Independent Director||4.58yrs||US$221.97k||0.046% |
Experienced Board: VRTU's board of directors are considered experienced (4.6 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Virtusa Corporation's company bio, employee growth, exchange listings and data sources
- 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
- Virtusa Corporation
- 132 Turnpike Road
- Suite 300
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|VRTU||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Aug 2007|
|EG1||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Aug 2007|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/25 00:12|
|End of Day Share Price||2020/10/23 00:00|
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.