Victory Capital Holdings (VCTR) AI Stock Analysis

• Market Cap: $4.48B
• Dividend Yield: 2.82%
• Average Volume (3M): 635.61K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 1.22
• Revenue Growth: 19.81%
• EPS Growth: 12.83%
• Country: US
• Employees: 460
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.57
• Shares Outstanding: 66,783,380
• 10 Day Avg. Volume: 705,427
• 30 Day Avg. Volume: 635,612
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 5.07
• Enterprise Value/Gross Profit: 8.09
• Enterprise Value/Ebitda: 9.78
• 1Y Price Target: $75.33
• Price Target Upside: 12.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 81 Outperform
• Price Target: $82.00 ▲(22.30% Upside)

Victory Capital Holdings scores well due to strong financial performance and positive technical indicators. The earnings call provided a boost with positive sentiment from asset growth and strategic transactions. Valuation is fair, supporting the overall positive outlook.

Positive Factors

Revenue Growth

The robust revenue growth of 15.17% indicates effective market expansion and strong demand for the company's investment solutions, supporting long-term business sustainability.

Strategic Acquisitions

The acquisition of Amundi U.S. business enhances Victory Capital's diversification and scale, positioning it for sustained growth and competitive advantage in the asset management industry.

Strong Profit Margins

High adjusted EBITDA margin of 50.8% reflects efficient cost management and strong profitability, providing a solid foundation for future investments and shareholder returns.

Negative Factors

Decline in Free Cash Flow

A significant decline in free cash flow growth could limit the company's ability to invest in new opportunities and manage financial obligations, potentially impacting long-term growth.

Net Outflows

Continued net outflows, despite improvements, suggest challenges in retaining client assets, which could affect AUM growth and revenue stability over time.

GAAP Net Income Impact

Acquisition-related costs impacting GAAP net income highlight potential financial strain from integration activities, which may affect profitability in the short to medium term.

Victory Capital Holdings Business Overview & Revenue Model

Company Description

Victory Capital Holdings (VCTR) is a diversified asset management firm headquartered in the United States. The company provides a range of investment strategies and solutions across various asset classes, including equities, fixed income, and alternative investments, catering to both institutional and retail clients. Victory Capital operates through multiple investment franchises, each specializing in distinct investment approaches and philosophies, allowing them to deliver tailored investment solutions to meet the diverse needs of their clients.

How the Company Makes Money

Victory Capital generates revenue primarily through management fees charged on the assets under management (AUM) across its investment products. These fees are typically a percentage of the AUM and can vary based on the type of investment strategy offered. Additionally, the company earns performance fees when investment strategies exceed certain performance benchmarks, thus incentivizing strong investment returns. Another key revenue stream is the provision of advisory services and solutions to institutional clients, which may also be accompanied by consulting fees. Victory Capital's growth has been bolstered by strategic acquisitions and partnerships that expand its investment capabilities and client base, enabling it to enhance its earnings potential.

Victory Capital Holdings Financial Statement Overview

Summary

Victory Capital Holdings demonstrates strong revenue growth and profitability, supported by improved leverage management. However, the decline in free cash flow growth and slight pressure on operational margins may pose challenges. Overall, the company is financially healthy with room for improvement in cash flow management.

Income Statement

Victory Capital Holdings shows strong revenue growth with a 15.17% increase in TTM, indicating robust business expansion. The gross profit margin of 62.62% and net profit margin of 30.63% reflect efficient cost management and profitability. However, the slight decline in EBIT and EBITDA margins compared to the previous year suggests some pressure on operational efficiency.

Balance Sheet

The company has improved its financial stability with a reduced debt-to-equity ratio of 0.41 in TTM, down from 0.86 in the previous year, indicating better leverage management. The return on equity of 21.43% is strong, showcasing effective use of equity to generate profits. However, the equity ratio is not provided, which limits a full assessment of asset financing.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth by 24.61% in TTM, which could impact future investment capabilities. The operating cash flow to net income ratio of 1.63 indicates good cash generation relative to net income, but the decrease in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	893.48M	821.03M	854.80M	890.26M	775.35M
Gross Profit	647.07M	529.77M	455.97M	455.50M	479.05M	402.51M
EBITDA	535.24M	477.97M	394.32M	413.59M	412.45M	360.56M
Net Income	316.48M	288.86M	213.16M	275.51M	278.39M	212.52M
Balance Sheet
Total Assets	4.25B	2.55B	2.54B	2.54B	2.58B	1.73B
Cash, Cash Equivalents and Short-Term Investments	107.87M	126.73M	123.55M	38.17M	69.53M	22.74M
Total Debt	1.01B	963.86M	1.00B	985.51M	1.13B	769.01M
Total Liabilities	1.78B	1.43B	1.49B	1.48B	1.65B	1.02B
Stockholders Equity	2.47B	1.12B	1.05B	1.07B	929.93M	707.54M
Cash Flow
Free Cash Flow	263.87M	338.70M	325.12M	329.97M	363.52M	242.56M
Operating Cash Flow	266.91M	339.98M	330.29M	335.21M	376.20M	250.62M
Investing Cash Flow	75.65M	-3.98M	-7.84M	-6.32M	-556.59M	-12.34M
Financing Cash Flow	-354.15M	-332.76M	-237.13M	-360.19M	227.22M	-252.70M

Victory Capital Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 67.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VCTR, the sentiment is Neutral. The current price of 67.05 is below the 20-day moving average (MA) of 69.92, below the 50-day MA of 69.23, and above the 200-day MA of 63.39, indicating a neutral trend. The MACD of -0.41 indicates Positive momentum. The RSI at 41.41 is Neutral, neither overbought nor oversold. The STOCH value of 14.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VCTR.

Victory Capital Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCTR	81 Outperform	$4.48B	16.96	15.59%	2.82%	19.81%	12.83%
FHI	78 Outperform	4.09B	11.70	23.22%	2.47%	5.92%	54.93%
AB	76 Outperform	4.32B	11.65	0.00%	8.65%	0.00%	16.78%
AMG	74 Outperform	6.90B	18.28	15.29%	0.02%	-5.87%	-21.51%
CNS	71 Outperform	3.50B	21.79	30.67%	3.57%	12.95%	23.72%
APAM	69 Neutral	3.69B	12.41	64.76%	7.81%	9.98%	12.97%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Victory Capital Holdings Corporate Events

Victory Capital Reports Stable AUM for July 2025

On August 11, 2025, Victory Capital Holdings reported its total assets under management (AUM) as of July 31, 2025, amounting to $299.8 billion, with total client assets reaching $302.9 billion. The announcement highlights the company’s stable asset management performance, with slight increases in various asset classes compared to the previous month, indicating a steady market position and potential positive implications for stakeholders.

Victory Capital Holdings Reports Q2 AUM and Client Assets

On July 10, 2025, Victory Capital Holdings reported its total assets under management (AUM) as $298.6 billion and total client assets as $301.6 billion as of June 30, 2025. Despite a decrease in long-term AUM net flows by $660 million for the second quarter, the company showed growth in various asset classes and regions. Victory Capital plans to release its second-quarter financial results on August 7, 2025, followed by a conference call on August 8 to discuss the outcomes.

Victory Capital Holdings Reports May 2025 AUM Figures

On June 10, 2025, Victory Capital Holdings reported its total assets under management (AUM) as $289.4 billion and total client assets as $293.1 billion as of May 31, 2025. The company also highlighted the successful integration of the Pioneer Investment business, which is expected to maintain a consolidated fee rate realization of 46 to 47 basis points starting in the second quarter, with no anticipated impact on EBITDA or EBITDA margin due to accounting changes. The issuance of 5.4 million shares of preferred stock to Amundi S.A. on May 23, 2025, increased the total number of fully diluted shares to approximately 88.3 million.