Victory Capital Holdings, Inc. Fundamental Analysis (NASDAQ: VCTR)
Victory Capital Holdings, Inc. Fundamental Analysis (NASDAQ: VCTR)
Victory Capital Holdings, Inc. (NASDAQ: VCTR) shows strong financial fundamentals with a PE ratio of 21.06, profit margin of 29.56%, and ROE of 19.29%. The company generates $1.6B in annual revenue with strong year-over-year growth of 46.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 91.8/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze VCTR's fundamental strength across five key dimensions:
Efficiency Score
ExcellentVCTR demonstrates superior asset utilization.
Valuation Score
ExcellentVCTR trades at attractive valuation levels.
Growth Score
ModerateVCTR shows steady but slowing expansion.
Financial Health Score
ExcellentVCTR maintains a strong and stable balance sheet.
Profitability Score
ExcellentVCTR achieves industry-leading margins.
Key Financial Metrics
Is VCTR Expensive or Cheap?
P/E Ratio
VCTR trades at 21.06 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VCTR's PEG of 0.63 indicates potential undervaluation.
Price to Book
The market values Victory Capital Holdings, Inc. at 3.03 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.44 times EBITDA. This is generally considered low.
How Well Does VCTR Make Money?
Net Profit Margin
For every $100 in sales, Victory Capital Holdings, Inc. keeps $29.56 as profit after all expenses.
Operating Margin
Core operations generate 47.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.29 in profit for every $100 of shareholder equity.
ROA
Victory Capital Holdings, Inc. generates $11.04 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Victory Capital Holdings, Inc. generates strong operating cash flow of $570.45M, reflecting robust business health.
Free Cash Flow
Victory Capital Holdings, Inc. generates strong free cash flow of $566.67M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.06 in free cash annually.
FCF Yield
VCTR converts 7.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How VCTR Stacks Against Its Sector Peers
| Metric | VCTR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.06 | 21.03 | Neutral |
| ROE | 19.29% | 647.00% | Weak |
| Net Margin | 29.56% | -1591.00% (disorted) | Strong |
| Debt/Equity | 0.43 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 1.65 | 912.43 | Neutral |
| ROA | 11.04% | -579.00% (disorted) | Strong |
VCTR outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Victory Capital Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
74.30%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
60.70%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-0.74%
Industry Style: Value, Dividend, Cyclical
Declining