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Virtus Investment Partners (VRTS)
NYSE:VRTS
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Virtus Investment Partners
(NYSE:VRTS)
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Select Model
Rating:68Neutral
Price Target:
$200.00
▲(8.76% Upside)
Virtus Investment Partners shows strong profitability and cash flow management, with an attractive valuation due to a low P/E ratio and high dividend yield. However, technical indicators suggest a bearish trend, and the earnings call revealed challenges such as net outflows and declining sales, which weigh on the overall score.
Positive Factors
Assets Under Management Growth
The growth in assets under management indicates a positive trend in market performance and client retention, which is crucial for revenue generation through management fees.
Strong Performance in ETFs
The robust growth in ETFs reflects the company's ability to capture market demand for passive investment products, enhancing its competitive position and revenue potential.
Improved Operating Margin
An improved operating margin signifies better cost management and operational efficiency, contributing to sustainable profitability and financial health.
Negative Factors
High Leverage
High leverage can increase financial risk and limit strategic flexibility, potentially impacting long-term stability and investment capacity.
Net Outflows in Equity Strategies
Significant net outflows in equity strategies may indicate challenges in maintaining client confidence and competitive positioning in core offerings.
Decline in Total Sales
A decline in total sales could reflect market challenges or competitive pressures, potentially affecting revenue growth and market share.
Virtus Investment Partners (VRTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.24B
Dividend Yield4.92%
Average Volume (3M)82.93K
Price to Earnings (P/E)8.9
Beta (1Y)1.16
Revenue Growth0.66%
EPS Growth36.96%
CountryUS
Employees805
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)6.25
Shares Outstanding6,748,088
10 Day Avg. Volume76,073
30 Day Avg. Volume82,933
Financial Highlights & Ratios
PEG Ratio-2.79
Price to Book (P/B)1.74
Price to Sales (P/S)1.73
P/FCF Ratio-408.51
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue1.65
Enterprise Value/Gross Profit3.14
Enterprise Value/Ebitda3.25
Forecast
1Y Price Target
$201.00Price Target Upside9.30% Upside
Rating ConsensusHold
Number of Analyst Covering4
Virtus Investment Partners Business Overview & Revenue Model
Company DescriptionVirtus Investment Partners, Inc. is a publicly owned investment manager. The firm primarily provides its services to individual and institutional clients. It launches separate client focused equity and fixed income portfolios. The firm launches equity, fixed income, and balanced mutual funds for its clients. It invests in the public equity, fixed income, and real estate markets. The firm also invests in exchange traded funds. It employs a multi manager approach for its products. The firm employs quantitative analysis to make its investments. It benchmarks the performance of its portfolios against the S&P 500 Index. The firm conducts in-house research to make its investments. Virtus Investment Partners, Inc. was founded in 1988 and is based in Hartford, Connecticut.
How the Company Makes MoneyVirtus Investment Partners primarily generates revenue through management fees charged on assets under management (AUM) and performance fees based on the investment performance of its funds. The company earns management fees as a percentage of the AUM across its various investment products, which can vary depending on the fund type and investment strategy. Additionally, Virtus may receive performance fees when certain funds exceed benchmark returns, providing an incentive for strong performance. The firm also benefits from distribution partnerships with financial advisors and platforms, enhancing its reach and potentially increasing AUM. Overall, its revenue model is heavily reliant on the growth of AUM and the performance of its investment offerings.
Virtus Investment Partners Earnings Call Summary
Earnings Call Date:Jun 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive aspects, including growth in assets under management, a strong performance in ETFs, and improved operational metrics such as the operating margin and share repurchases. However, these were balanced by challenges such as net outflows in equity strategies, a decline in total sales, and a year-over-year decrease in earnings per share.Q2-2025 Updates
Positive Updates
Assets Under Management Growth
Assets under management grew 2% in the second quarter, reaching $171 billion by June 30, 2025, up $4 billion sequentially due to market performance.
Strong Performance in ETFs
ETFs reached $3.7 billion in AUM with an organic growth rate of 74% over the trailing 12 months.
Positive Investment Performance
Over the 10-year period, 74% of equity assets and 69% of fixed income assets beat their benchmark.
Increased Share Repurchases
Highest level of share repurchases in 3 years, totaling $30 million, representing 3% of beginning outstanding shares.
Improved Operating Margin
Operating margin improved to 31.3%, up from 27.6% in the previous quarter.
Negative Updates
Net Outflows in Equity Strategies
Total net outflows for the quarter were $3.9 billion, largely in equity strategies, driven by headwinds in quality-oriented strategies.
Decline in Total Sales
Total sales of $5.6 billion compared with $6.2 billion in the first quarter, showing a modest decline.
Decreased Earnings Per Share Year-Over-Year
Earnings per share as adjusted decreased 4% compared to the more comparable prior-year period.
Company Guidance
During the second quarter of 2025, Virtus Investment Partners experienced a 2% growth in assets under management, reaching $171 billion by June 30, primarily due to a market rebound. The company reported higher earnings per share and an operating margin of 31.3%, up from 27.6% in the first quarter. Despite $3.9 billion in net outflows, mainly from equity strategies, there were positive net flows in ETFs, which grew to $3.7 billion in AUM with a 74% organic growth rate over the trailing 12 months. Virtus continued to focus on expanding its product offerings, launching multiple ETFs and global funds, and increasing the availability of its ETF products. Investment performance was strong, with 74% of equity assets and 69% of fixed income assets outperforming their benchmarks over 10 years. The company also repurchased $30 million in shares, representing 3% of the beginning outstanding shares, and maintained significant liquidity and a modest net debt position.Virtus Investment Partners Financial Statement Overview
Summary
Virtus Investment Partners shows solid profitability with strong margins and improved free cash flow. However, challenges in revenue growth and high leverage pose risks that require careful management.Income Statement
Virtus Investment Partners shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a slight decline in revenue growth, but the company maintains strong profitability with a gross profit margin of 52.47% and a net profit margin of 16.36%. The EBIT and EBITDA margins are robust at 43.50% and 50.74%, respectively, indicating efficient operations. However, the negative revenue growth rate suggests potential challenges in revenue generation.72
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.62, which is a concern as it indicates significant leverage. However, the company has a reasonable return on equity of 16.25%, showing effective use of equity to generate profits. The equity ratio stands at 24.25%, suggesting a moderate level of equity financing relative to total assets.65
Positive
Cash Flow
Cash flow analysis shows improvement with a 21.58% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is low at 0.26, indicating potential cash flow challenges. However, the free cash flow to net income ratio is strong at 0.82, suggesting good cash conversion from profits.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 887.89M | 902.82M | 841.49M | 881.72M | 974.67M | 603.23M |
| Gross Profit | 465.84M | 470.23M | 436.74M | 510.46M | 616.44M | 335.93M |
| EBITDA | 450.56M | 460.20M | 433.77M | 321.51M | 388.66M | 300.08M |
| Net Income | 145.29M | 121.75M | 130.62M | 117.54M | 208.13M | 79.96M |
Balance Sheet | ||||||
| Total Assets | 3.70B | 3.99B | 3.68B | 3.95B | 3.93B | 3.47B |
| Cash, Cash Equivalents and Short-Term Investments | 172.20M | 399.58M | 340.33M | 588.53M | 585.54M | 333.49M |
| Total Debt | 2.35B | 2.47B | 2.18B | 2.34B | 2.30B | 2.39B |
| Total Liabilities | 2.67B | 2.99B | 2.71B | 3.02B | 2.96B | 2.63B |
| Stockholders Equity | 896.40M | 897.49M | 863.93M | 817.02M | 828.30M | 711.14M |
Cash Flow | ||||||
| Free Cash Flow | 31.44M | -3.82M | 228.34M | 126.09M | 659.89M | -227.15M |
| Operating Cash Flow | 38.30M | 1.75M | 237.16M | 132.67M | 665.73M | -226.10M |
| Investing Cash Flow | -17.16M | -16.95M | -129.73M | -27.47M | -175.03M | 8.68M |
| Financing Cash Flow | -129.73M | 74.95M | -356.11M | -102.06M | -244.40M | 235.33M |
Virtus Investment Partners Technical Analysis
Negative
183.89
Price Trends
193.20
Negative
189.83
Negative
182.46
Positive
Market Momentum
-1.79
Positive
41.60
Neutral
31.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRTS, the sentiment is Negative. The current price of 183.89 is below the 20-day moving average (MA) of 189.82, below the 50-day MA of 193.20, and above the 200-day MA of 182.46, indicating a neutral trend. The MACD of -1.79 indicates Positive momentum. The RSI at 41.60 is Neutral, neither overbought nor oversold. The STOCH value of 31.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRTS.
Virtus Investment Partners Risk Analysis
Virtus Investment Partners disclosed 19 risk factors in its most recent earnings report. Virtus Investment Partners reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Virtus Investment Partners Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.39B | 11.82 | 18.55% | 8.62% | ― | 16.78% | |
76 Outperform | $3.97B | 11.38 | 32.69% | 2.52% | 5.92% | 54.93% | |
76 Outperform | $697.59M | 22.87 | 10.03% | 5.47% | 53.35% | -24.09% | |
74 Outperform | $6.64B | 17.60 | 13.47% | 0.02% | -5.87% | -21.51% | |
68 Neutral | $1.24B | 8.91 | 16.46% | 4.92% | 0.66% | 36.96% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $1.64B | 19.08 | 282.39% | 0.09% | 21.14% | 42.83% |
* Financial Sector Average
VRTS
Virtus Investment Partners
183.89
-23.04
-11.13%
AMG
Affiliated Managers
235.60
43.87
22.88%
AB
AllianceBernstein
39.21
4.56
13.16%
FHI
Federated Hermes
51.51
13.88
36.89%
AAMI
Acadian Asset Management
46.35
20.20
77.25%
VINP
Vinci Partners Investments
11.15
1.67
17.62%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.