Virtu Financial, Inc. Fundamental Analysis (NYSE: VIRT)
Virtu Financial, Inc. Fundamental Analysis (NYSE: VIRT)
Virtu Financial, Inc. (NYSE: VIRT) shows strong financial fundamentals with a PE ratio of 6.99, profit margin of 16.78%, and ROE of 41.25%. The company generates $4.0B in annual revenue with strong year-over-year growth of 26.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze VIRT's fundamental strength across five key dimensions:
Efficiency Score
WeakVIRT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVIRT trades at attractive valuation levels.
Growth Score
ExcellentVIRT delivers strong and consistent growth momentum.
Financial Health Score
ModerateVIRT shows balanced financial health with some risks.
Profitability Score
ExcellentVIRT achieves industry-leading margins.
Key Financial Metrics
Is VIRT Expensive or Cheap?
P/E Ratio
VIRT trades at 6.99 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VIRT's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values Virtu Financial, Inc. at 2.57 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.99 times EBITDA. This is generally considered low.
How Well Does VIRT Make Money?
Net Profit Margin
For every $100 in sales, Virtu Financial, Inc. keeps $16.78 as profit after all expenses.
Operating Margin
Core operations generate 38.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $41.25 in profit for every $100 of shareholder equity.
ROA
Virtu Financial, Inc. generates $2.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Virtu Financial, Inc. produces operating cash flow of $461.71M, showing steady but balanced cash generation.
Free Cash Flow
Virtu Financial, Inc. produces free cash flow of $402.48M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.69 in free cash annually.
FCF Yield
VIRT converts 3.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.41
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.33
vs 25 benchmark
How VIRT Stacks Against Its Sector Peers
| Metric | VIRT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.99 | 21.17 | Better (Cheaper) |
| ROE | 41.25% | 668.00% | Weak |
| Net Margin | 16.78% | 876.00% | Weak |
| Debt/Equity | 1.41 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.11 | 905.28 | Neutral |
| ROA | 2.49% | 4787782.00% | Weak |
VIRT outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Virtu Financial, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
60.12%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
3.03%
Industry Style: Value, Dividend, Cyclical
GrowingFCF CAGR
-30.22%
Industry Style: Value, Dividend, Cyclical
Declining