Virtu Financial, Inc. (VIRT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Moelis & Co.

Evercore, Inc.

Piper Sandler Cos.

Houlihan Lokey, Inc.

PJT Partners, Inc.

Virtu Financial, Inc.

StoneX Group, Inc.

BGC Group, Inc.

Lazard, Inc.

Jefferies Financial Group, Inc.

Freedom Holding Corp.

Why is Virtu Financial, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 23.43%

Poor long term growth as Operating profit has grown by an annual rate of 0.56%

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 2,208.34 MM
ROCE(HY) Highest at 28.75%
NET SALES(Q) Highest at USD 784.63 MM

With ROE of 24.05%, it has a very attractive valuation with a 6.60 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -5.71%, its profits have risen by 139.3% ; the PEG ratio of the company is 0.2

High Institutional Holdings at 99.35%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Below par performance in long term as well as near term

Along with generating -5.71% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Virtu Financial, Inc. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Virtu Financial, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Virtu Financial, Inc.

-4.46%

1.38

31.14%

S&P 500

12.66%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.42%

EBIT Growth (5y)

0.56%

EBIT to Interest (avg)

8.05

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

15.92%

Dividend Payout Ratio

32.38%

Pledged Shares

Institutional Holding

99.35%

ROCE (avg)

137.40%

ROE (avg)

23.43%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.60

EV to EBIT

9.29

EV to EBITDA

8.20

EV to Capital Employed

14.62

EV to Sales

2.83

PEG Ratio

0.19

Dividend Yield

1.16%

ROCE (Latest)

157.37%

ROE (Latest)

24.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

24What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 2,208.34 MM

ROCE(HY)

Highest at 28.75%

NET SALES(Q)

Highest at USD 784.63 MM

PRE-TAX PROFIT(Q)

Highest at USD 347.03 MM

NET PROFIT(Q)

Highest at USD 141.07 MM

EPS(Q)

Highest at USD 1.65

-3What is not working for the Company

INTEREST(Q)

At USD 34.11 MM has Grown at 19%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 14.55%

Here's what is working for Virtu Financial, Inc.

Operating Cash Flow

Highest at USD 2,208.34 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 784.63 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Pre-Tax Profit

At USD 347.03 MM has Grown at 123.31%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 141.07 MM has Grown at 124.5%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Pre-Tax Profit

Highest at USD 347.03 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 141.07 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 1.65

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Here's what is not working for Virtu Financial, Inc.

Interest

At USD 34.11 MM has Grown at 19%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Dividend Payout Ratio

Lowest at 14.55%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)