Volta Finance (VTA) AI Stock Analysis

• Market Cap: €226.07M
• Dividend Yield: 9.16%
• Average Volume (3M): 18.17K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.38
• Revenue Growth: -42.89%
• EPS Growth: -21.25%
• Country: NL
• Employees: 1,005
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.18
• Shares Outstanding: 36,580,580
• 10 Day Avg. Volume: 17,877
• 30 Day Avg. Volume: 18,167
• PEG Ratio: -0.33
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 8.46
• P/FCF Ratio: 5.17
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.3
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: €7.00 ▲(5.42% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven primarily by strong financial quality (notably a very low-leverage balance sheet and solid recent profitability/cash flow) and attractive valuation (low P/E and high dividend yield). These positives are partially offset by weak technical momentum (below major moving averages with negative MACD and low RSI/Stoch), suggesting near-term price pressure.

Positive Factors

Conservative balance sheet

Very low leverage reduces refinancing and interest-rate risk, giving the firm flexibility to hold or reposition CLO and structured-credit assets through cycles. A conservative balance sheet supports the company's ability to sustain distributions and act on opportunistic purchases over months.

Strong cash generation

Consistently positive operating and free cash flow over 2021–2025 indicates reliable cash realization from investment income. Strong cash generation supports recurring distributions, funds reinvestment into structured-credit positions, and provides a buffer against mark-to-market swings during credit volatility.

Niche structured-credit access

Specialized closed-ended structure focused on CLOs gives public investors access to securitized credit while allowing managers to capture residual cash flows. The niche focus and vehicle structure are durable competitive strengths and allow concentrated exposure to higher-yield tranches in stable cycles.

Negative Factors

Earnings and revenue volatility

Material revenue and earnings volatility — including a sharp drop in 2025 and a loss year in 2022 — reflects mark-to-market swings on investment holdings. This volatility undermines predictability of income and makes distribution sustainability dependent on credit-cycle timing and valuation moves.

Credit-market dependency

Returns are structurally tied to credit-market conditions (spreads, defaults, rates, volatility). Such external dependency limits management’s control, increasing the risk of prolonged underperformance in stressed credit environments and reducing the reliability of long-term earnings generation.

Inconsistent cash-flow coverage

Historical cash-flow inconsistency — negative operating/free cash flow in 2020 and a 0.0 cash-flow coverage reading in 2025 — signals lapses in cash resilience. This raises the risk that payouts or opportunistic investments may be constrained during adverse credit conditions or funding stress.

Volta Finance Business Overview & Revenue Model

Company Description

Volta Finance Limited is a closed-ended fixed income mutual fund launched and managed by AXA Investment Managers Paris S.A. The fund invests in the fixed income markets of Europe and the United States. It primarily invests in corporate credits, sovereign and quasi-sovereign debt, residential mortgage loans, CDOs, ABS, leveraged loans, automobile loans, and debt interests in infrastructure assets. Volta Finance Limited was formed in December 2006 and is domiciled in the Guernsey, Channel Islands.

How the Company Makes Money

Volta Finance makes money primarily through the income generated from its diversified portfolio of structured finance assets. The company invests in instruments such as CLOs, where it earns returns from the underlying pool of loans. Revenues are generated from interest payments, capital gains, and any appreciation in the value of its asset holdings. Additionally, Volta Finance benefits from strategic partnerships with asset managers and financial institutions, which help in the effective management and optimization of its investment portfolio. These partnerships and the company's expertise in structured finance allow it to optimize its earnings potential by actively managing the credit risk and market conditions associated with its investments.

Volta Finance Financial Statement Overview

Summary

Strong overall financial profile supported by a very conservative balance sheet (minimal debt) and solid recent profitability and cash generation. The main drawback is earnings/revenue volatility across years, including prior loss/negative periods, which reduces predictability.

Income Statement

Profitability is strong in most recent years, with very high margins and solid returns driven by investment income dynamics. However, revenue is volatile (sharp drop in 2025 vs 2024 after prior growth), and historical results show large swings including a loss year (2022) and unusual negative/erratic revenue in 2020—typical of mark-to-market/investment-driven reporting but still a key stability risk. Overall: strong earnings power lately, but lower consistency and predictability.

Balance Sheet

Balance sheet is very conservatively positioned with minimal to zero debt across periods and a very low debt-to-equity profile, limiting refinancing and interest-rate risk. Equity and assets are large and generally stable, and recent return on equity is healthy (mid-teens in 2024 and low-teens in 2025). Main watch-out is that performance (and thus equity growth) can fluctuate with market conditions, as seen in prior negative return on equity years.

Cash Flow

Cash generation is strong: operating cash flow and free cash flow are consistently positive from 2021–2025 and generally track reported earnings closely, suggesting good cash realization in recent years. Free cash flow growth remains positive in 2025, though modest. The key weakness is volatility historically (negative operating and free cash flow in 2020) and an inconsistent cash-flow-coverage figure (including a 0.0 reading in 2025), which reduces confidence in trend stability based on the provided data.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	29.39M	56.74M	44.14M	41.67M	77.89M
Gross Profit	21.81M	46.29M	38.45M	-5.32M	90.13M
EBITDA	33.66M	46.38M	18.11M	0.00	0.00
Net Income	35.41M	44.97M	26.97M	-17.85M	76.78M
Balance Sheet
Total Assets	286.55M	283.42M	254.51M	242.91M	282.59M
Cash, Cash Equivalents and Short-Term Investments	42.45M	28.16M	245.91M	231.21M	18.22M
Total Debt	0.00	1.15M	3.07M	410.66K	0.00
Total Liabilities	12.40M	22.56M	18.53M	15.26M	16.25M
Stockholders Equity	274.15M	260.85M	235.98M	227.65M	266.33M
Cash Flow
Free Cash Flow	48.16M	51.20M	42.72M	28.66M	34.81M
Operating Cash Flow	48.16M	51.20M	42.72M	28.66M	34.81M
Investing Cash Flow	-11.73M	-25.50M	-18.28M	-9.24M	-7.66M
Financing Cash Flow	-22.13M	-20.12M	-18.65M	-20.85M	-18.66M

Volta Finance Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:VTA, the sentiment is Negative. The current price of 6.64 is above the 20-day moving average (MA) of 6.40, above the 50-day MA of 6.54, and above the 200-day MA of 6.47, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 30.17 is Neutral, neither overbought nor oversold. The STOCH value of 13.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:VTA.

Volta Finance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VTA	75 Outperform	€226.07M	6.32	13.24%	9.16%	-42.89%	-21.25%
TFG	73 Outperform	$1.21B	1.79	21.90%	3.22%	328.05%	412.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NAI	66 Neutral	€35.17M	41.25	2.51%	3.66%	82.26%	―
FLOW	60 Neutral	€1.16B	8.79	24.83%	1.83%	37.22%	162.92%