Virtus Investment Partners (VRTS) AI Stock Analysis

• Market Cap: $1.23B
• Dividend Yield: 4.72%
• Average Volume (3M): 41.83K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 1.57
• Revenue Growth: 5.54%
• EPS Growth: -4.53%
• Country: US
• Employees: 824
• Sector: Financial
• Sector Strength: 77
• Industry: Asset Management Services
• EPS (TTM): 16.90
• Shares Outstanding: 6,967,534
• 10 Day Avg. Volume: 46,294
• 30 Day Avg. Volume: 41,827
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.35
• Price to Cash Flow (P/CF): -3.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $218.00
• Price Target Upside: 26.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

Virtus Investment Partners is moderately attractive, with strong revenue growth and a solid balance sheet. However, cash flow management remains a key challenge. The technical indicators suggest a bearish market sentiment, while the valuation is favorable. The recent earnings call and corporate event indicate both opportunities and challenges ahead, especially in the ETF market.

Positive Factors

Capital Allocation

Virtus repurchased approximately $15 million shares and increased an investment in an affiliate for approximately $29 million, demonstrating strong capital allocation.

Financial Performance

The company announced its seventh straight annual dividend increase and paid down approximately $11 million of debt, improving its leverage ratio to 0.1x EBITDA.

Negative Factors

Net Outflow

The company experienced approximately $1.7 billion of net outflow in Q3, primarily from Open-end funds and Institutional Accounts.

Virtus Investment Partners Business Overview & Revenue Model

Company Description

Virtus Investment Partners, Inc. (VRTS) is a publicly traded asset management company that provides investment management products and services to individual and institutional clients. Based in the United States, Virtus operates through a multi-manager model, offering a diverse range of mutual funds, exchange-traded funds (ETFs), closed-end funds, and separately managed accounts. The company collaborates with affiliated managers and select unaffiliated subadvisers to deliver a broad spectrum of investment strategies across various asset classes, including equities, fixed income, and alternative investments.

How the Company Makes Money

Virtus Investment Partners generates revenue primarily through management fees, which are calculated as a percentage of assets under management (AUM). These fees vary based on the type of investment product and the specific strategy employed. In addition to management fees, Virtus earns performance fees on certain investment products if specific performance targets are met. The company's revenue is significantly influenced by the performance of the financial markets, as fluctuations in market conditions can impact the value of AUM. Virtus also benefits from strategic partnerships with its affiliated managers and unaffiliated subadvisers, which enhance its product offerings and distribution capabilities. These collaborations help Virtus attract and retain clients, ultimately contributing to its revenue growth.

Virtus Investment Partners Financial Statement Overview

Summary

Virtus Investment Partners shows strong revenue growth and good profitability, but struggles with cash flow management. The balance sheet is healthy with no debt, which is a positive indicator of financial stability. However, cash flow issues suggest a need for improvement to support ongoing operations.

Income Statement

Virtus Investment Partners has shown consistent revenue growth with a notable increase from $841 million in 2023 to $906 million in 2024. The gross profit margin is strong at 100%, indicating efficient cost management. However, the net profit margin decreased slightly from 15.5% in 2023 to 13.4% in 2024, suggesting increased expenses or lower pricing power. The EBIT and EBITDA margins are stable, reflecting solid operational efficiency.

Balance Sheet

The company's balance sheet is robust with a debt-to-equity ratio of zero, indicating no debt burden. The equity ratio is approximately 22.5%, which shows moderate leverage but suggests potential for financial stability. Return on Equity (ROE) decreased from 15.1% in 2023 to 13.6% in 2024, which could indicate challenges in generating higher returns for shareholders.

Cash Flow

Operating cash flow has decreased significantly from $237 million in 2023 to $1.75 million in 2024. Free cash flow has also seen a similar decline. The operating cash flow to net income ratio and free cash flow to net income ratio are low, suggesting cash generation issues despite profitability. There is a need to improve cash flow management to support ongoing operations and investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
902.82M	841.49M	881.72M	974.67M	603.23M
	Gross Profit
906.95M	436.74M	510.46M	616.44M	335.93M
	EBIT
182.49M	151.48M	321.12M	325.49M	257.21M
	EBITDA
182.49M	433.77M	321.51M	474.08M	300.08M
	Net Income Common Stockholders
121.75M	130.62M	117.54M	208.13M	119.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
265.89M	340.33M	338.20M	378.90M	333.49M
	Total Assets
3.99B	3.68B	3.95B	3.93B	3.47B
	Total Debt
2.47B	2.18B	2.34B	2.30B	2.39B
	Net Debt
2.07B	1.84B	2.00B	1.92B	2.06B
	Total Liabilities
2.99B	2.71B	3.02B	2.96B	2.63B
	Stockholders Equity
897.49M	863.93M	817.00M	828.30M	711.14M
Cash Flow		Free Cash Flow
1.75M	228.34M	126.09M	659.89M	-227.15M
	Operating Cash Flow
1.75M	237.16M	132.67M	665.73M	-226.10M
	Investing Cash Flow
-16.95M	-129.73M	-27.47M	-175.03M	8.68M
	Financing Cash Flow
74.95M	-356.11M	-102.06M	-244.40M	235.33M

Virtus Investment Partners Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 172.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 172.27 is below the 20-day moving average (MA) of 181.41, below the 50-day MA of 195.97, and below the 200-day MA of 211.47, indicating a bearish trend. The MACD of -5.95 indicates Negative momentum. The RSI at 33.73 is Neutral, neither overbought nor oversold. The STOCH value of 12.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRTS.

Virtus Investment Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JHG	74 Outperform	$5.94B	14.12	8.74%	4.14%	18.85%	7.96%
IVZ	71 Outperform	$6.82B	12.95	5.31%	5.38%	3.97%	―
TROW	70 Outperform	$21.44B	10.52	20.60%	5.15%	9.80%	17.87%
VRTS	69 Neutral	$1.23B	10.42	13.82%	4.72%	5.54%	-4.53%
BEN	66 Neutral	$10.31B	30.09	2.76%	6.37%	9.48%	-65.57%
Sector *	64 Neutral	$13.79B	10.52	9.20%	4.24%	17.25%	-7.60%
AMG	63 Neutral	$4.69B	10.60	14.75%	0.02%	-6.77%	-14.55%

Virtus Investment Partners Corporate Events

Virtus Appoints John Weisenseel to Board of Directors

Virtus Investment Partners has appointed John C. Weisenseel to its Board of Directors and Audit Committee, bringing over 20 years of senior financial leadership experience, including his role as CFO at AllianceBernstein. His extensive expertise in financial management and the asset management industry is expected to support Virtus in its growth and in delivering long-term shareholder value.