Vinci Partners Investments (VINP) AI Stock Analysis

184 Followers

Top Page

Vinci Partners Investments

(NASDAQ:VINP)

76Outperform

Vinci Partners Investments exhibits a strong financial foundation with impressive revenue growth and robust profit margins. The positive technical indicators suggest bullish momentum, while the earnings call highlights significant achievements in fundraising and asset growth. However, the moderate valuation and low dividend yield are less appealing, balancing the overall score to a solid 75.85.

Positive Factors

Company Expansion

The combination puts the company in an attractive position as one of the largest alternative asset managers in Latin America, with a presence in seven countries and expansion of its LP base by almost 3x.

Cross-Selling Opportunities

There are positive cross-selling opportunities from a complementary client base in terms of product and region, leveraging both companies’ regional distribution capabilities.

Valuation and Growth

Valuation is attractive especially on a P/FRE basis, as Vinci's FRE is expected to grow at a similar pace to US peers.

Negative Factors

FRE Margin Concerns

While the combination should lead to a lower FRE margin, there are opportunities for margin expansion as the company combines its operations, merging back offices and eliminating duplicate roles.

Vinci Partners Investments (VINP) vs. S&P 500 (SPY)

Market Cap

$617.52M

Dividend Yield<0.01%

Average Volume (3M)104.45K

Price to Earnings (P/E)24.0

Beta (1Y)0.88

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees244

SectorFinancial

Sector Strength81

IndustryAsset Management

Share Statistics

EPS (TTM)0.41

Shares Outstanding50,399,727

10 Day Avg. Volume105,399

30 Day Avg. Volume104,449

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)8.58

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$15.00

Price Target Upside59.57% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Vinci Partners Investments Business Overview & Revenue Model

Company DescriptionVinci Partners Investments Ltd. operates as an asset management platform in Brazil. Its portfolio of investment products and solutions covers private equity, infrastructures, real estate, credit, public equities, hedge funds, and investment products and solutions to institutional and HNWI clients. The company also offers financial and strategic advisory services, focusing primarily on IPO advisory and mergers and acquisition transactions on the sell side or the buy side to entrepreneurs, corporate management teams, and/or boards of directors. Vinci Partners Investments Ltd. was founded in 2009 and is headquartered in Rio de Janeiro, Brazil.

How the Company Makes MoneyVinci Partners Investments generates revenue through management fees and performance fees from its investment funds. Management fees are typically charged as a percentage of the assets under management (AUM) and provide a steady income stream. Performance fees, on the other hand, are earned when the funds exceed predetermined performance benchmarks, aligning the company's interests with those of its investors. Additionally, Vinci Partners may earn income through advisory services and strategic partnerships that enhance its investment strategies and expand its product offerings.

Vinci Partners Investments Financial Statement Overview

Summary

Vinci Partners Investments demonstrates solid financial health with strong profitability and efficient cash flow management. The company maintains a moderate debt-to-equity ratio and healthy ROE. Cash flow is robust, supporting financial flexibility. However, there is room for improvement in equity financing.

Income Statement

Very Positive

Vinci Partners Investments shows strong profitability with consistent gross profit and net profit margins. The net profit margin is commendable, and the revenue growth rate is stable over the years. EBIT and EBITDA margins indicate efficient operations, sustaining high profitability levels.

Balance Sheet

Positive

The balance sheet reflects a moderate debt-to-equity ratio, suggesting manageable leverage. Return on Equity (ROE) is healthy, indicating effective utilization of equity capital. However, the equity ratio is moderate, implying room for improvement in asset financing through equity.

Cash Flow

Very Positive

Cash flow analysis reveals a robust operating cash flow relative to net income, indicating strong cash generation capabilities. Free cash flow growth is positive, and the company maintains a healthy free cash flow to net income ratio, supporting financial flexibility and potential for reinvestment.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
537.27M	454.42M	408.10M	465.46M	339.89M	296.72M
	Gross Profit
415.35M	399.28M	302.77M	311.43M	265.52M	234.18M
	EBIT
221.25M	202.16M	199.62M	242.46M	215.65M	183.43M
	EBITDA
263.00M	210.61M	182.57M	284.14M	238.24M	200.72M
	Net Income Common Stockholders
170.19M	220.61M	219.42M	208.62M	170.20M	151.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
89.84M	1.83B	1.38B	1.48B	91.70M	89.84M
	Total Assets
311.77M	2.30B	1.77B	1.65B	328.52M	311.77M
	Total Debt
102.89M	689.90M	261.50M	85.54M	106.20M	102.89M
	Net Debt
99.33M	674.01M	231.39M	63.87M	93.10M	99.33M
	Total Liabilities
197.05M	918.95M	391.41M	232.13M	309.29M	197.05M
	Stockholders Equity
108.14M	1.38B	1.37B	1.41B	19.22M	108.14M
Cash Flow		Free Cash Flow
381.67M	177.44M	111.42M	285.60M	193.31M	130.60M
	Operating Cash Flow
415.95M	214.18M	117.90M	288.69M	195.33M	132.34M
	Investing Cash Flow
-137.16M	138.03M	131.84M	-1.32B	75.31M	-39.85M
	Financing Cash Flow
151.85M	175.02M	-215.51M	1.05B	-193.55M	-100.43M

Vinci Partners Investments Technical Analysis

Technical Analysis Sentiment

Negative

Last Price9.40

Price Trends

50DMA

9.92

Negative

100DMA

9.93

Negative

200DMA

10.03

Negative

Market Momentum

MACD

-0.19

Positive

RSI

44.55

Neutral

STOCH

42.62

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VINP, the sentiment is Negative. The current price of 9.4 is below the 20-day moving average (MA) of 9.88, below the 50-day MA of 9.92, and below the 200-day MA of 10.03, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 44.55 is Neutral, neither overbought nor oversold. The STOCH value of 42.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VINP.

Vinci Partners Investments Risk Analysis

Vinci Partners Investments disclosed 107 risk factors in its most recent earnings report. Vinci Partners Investments 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

Vinci Partners Investments Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRIN	80 Outperform	$889.06M	6.73	16.12%	14.42%	48.54%	6.64%
NOAH	76 Outperform	$628.92M	9.28	4.68%	11.91%	-20.10%	176.99%
VINP	76 Outperform	$617.52M	23.96	7.53%	<0.01%	―	―
FDUS	68 Neutral	$631.42M	7.57	12.58%	9.46%	2.31%	-15.06%
Sector *	63 Neutral	$12.75B	9.36	8.64%	84.32%	13.82%	-3.89%
CCAP	63 Neutral	$547.03M	7.43	9.93%	11.38%	12.83%	-13.29%
TCPC	58 Neutral	$557.26M	―	-8.57%	19.39%	8.24%	-207.60%

* Financial Sector Average

Performance Comparison

VINP

Vinci Partners Investments

9.40

-0.14

-1.47%

FDUS

Fidus Investment

18.35

0.79

4.50%

NOAH

Noah Holdings

8.92

-0.50

-5.31%

TCPC

BlackRock TCP Capital

6.69

-1.99

-22.93%

CCAP

Crescent Capital BDC

15.20

-0.06

-0.39%

TRIN

Trinity Capital

14.39

2.09

16.99%

Vinci Partners Investments Earnings Call Summary

Earnings Call Date: Feb 26, 2025 | % Change Since: -4.57% | Next Earnings Date: May 12, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant achievements in fundraising, AUM growth, and successful acquisitions, with strong performance in various segments. However, there were some challenges, including the negative impact of currency fluctuations and non-recurring transaction expenses. Overall, the positive aspects outweighed the negative, indicating a strong performance and optimistic outlook.

Highlights

Strong Fee-Related Earnings Growth

Vinci Compass generated fee-related earnings of R$79 million or R$1.23 per share for the fourth quarter, reflecting a 38% year-over-year increase.

Record Assets Under Management

Vinci Compass ended the year with R$327 billion in total assets under management and advisory, driven by acquisitions and strong organic growth.

Successful Fundraising Activities

The firm raised R$3.4 billion in capital subscriptions over the year, including R$1.4 billion in the fourth quarter alone.

Largest Private Equity Vintage

VCP IV reached R$3.1 billion in total commitments, marking it the largest private equity vintage in Vinci Compass's history.

Exceptional Performance in Argentina

The Argentine fund was a significant contributor to performance-related earnings, driven by the country's economic turnaround.

Strong Performance in Corporate Advisory

Corporate advisory posted R$43 million in advisory fees for the full year, exceeding the annual target by 43%.

Lowlights

Impact of FX Depreciation

The Brazilian real depreciated against the US dollar, leading to a negative impact of approximately R$16 million on adjusted distributable earnings.

Non-Recurring Transaction Expenses

The closing of the Compass combination and the acquisition of Lacan incurred non-operational expenses related to transaction fees.

Company Guidance

During Vinci Compass's fourth quarter and full-year 2024 conference call, the company reported strong financial performance metrics, including fee-related earnings of R$79 million or R$1.23 per share and adjusted distributable earnings of R$73.9 million or R$1.15 per share for Q4 2024. For the full year, fee-related earnings totaled R$148.4 million or R$4.42 per share, while adjusted distributable earnings reached R$239.1 million or R$4.26 per share. A quarterly dividend of $0.15 per share was declared. Vinci Compass ended 2024 with R$327 billion in total assets under management and advisory, driven by strategic acquisitions and organic growth. The company achieved R$3.4 billion in capital subscriptions for the year, including R$1.4 billion in Q4. Notably, the final closing of VCP IV, a private equity fund, reached R$3.1 billion, making it the largest in the firm's history. The company also highlighted a 478% year-over-year increase in performance-related earnings for Q4, totaling R$16.5 million, with significant contributions from Argentina's economic resurgence.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.