Volta Finance (VTA) AI Stock Analysis

• Market Cap: €244.36M
• Dividend Yield: 9.21%
• Average Volume (3M): 18.36K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.33
• Revenue Growth: -42.89%
• EPS Growth: -21.25%
• Country: NL
• Employees: 1,005
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.79
• Shares Outstanding: 36,580,580
• 10 Day Avg. Volume: 20,380
• 30 Day Avg. Volume: 18,363
• PEG Ratio: 0.06
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 3.35
• P/FCF Ratio: 3.72
• 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

• Rating: 79 Outperform
• Price Target: ―

Volta Finance shows strong financial performance with impressive margins and a robust balance sheet, making it a financially stable company. The valuation is attractive due to a low P/E ratio and high dividend yield, appealing to value and income investors. However, the technical analysis presents mixed signals, suggesting caution in the short term. Despite these concerns, the overall outlook is positive, driven by financial strength and valuation appeal.

Volta Finance Business Overview & Revenue Model

Company Description

Volta Finance (VTA) is a closed-ended investment company incorporated in Guernsey. It focuses on delivering long-term, high-yield returns to its investors by investing in a diversified portfolio of structured finance assets. The company's primary sectors include collateralized loan obligations (CLOs), synthetic corporate credit, cash corporate credit, and asset-backed securities.

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

Volta Finance exhibits strong financial health with impressive revenue and profit margins, alongside a robust balance sheet characterized by high equity and zero debt. The company's cash flow is healthy, though historical volatility and fluctuations pose potential risks. Continued focus on stabilizing cash flow and sustaining revenue growth will be critical for maintaining financial excellence.

Income Statement

Volta Finance demonstrated strong financial performance with a substantial increase in revenue from €28.2 million in 2023 to €46.3 million in 2024, a growth rate of 64.12%. The gross profit margin is high at 77.98% and a net profit margin of 97.15% indicates effective cost management. EBIT margin is also strong at 97.15%, showcasing operational efficiency. However, past volatility in revenue growth rates and negative revenue in some years suggest potential risks in income consistency.

Balance Sheet

The company's balance sheet is robust with a remarkable equity ratio of 92.03% and no total debt reported in 2024, indicating financial stability and low leverage risk. The return on equity is strong at 17.23%, reflecting effective utilization of shareholders' funds. Consistent growth in stockholders' equity over the years further strengthens the financial position.

Cash Flow

Volta Finance shows solid cash flow performance with a healthy free cash flow of €51.2 million in 2024, growing from €42.7 million in 2023, a growth rate of 19.78%. The operating cash flow to net income ratio of 1.14 indicates efficient cash generation relative to net income. However, fluctuations in past cash flow figures suggest potential variability in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.78M	56.74M	44.14M	41.67M	77.89M	-61.65M
Gross Profit	9.02M	46.29M	38.45M	-5.32M	90.13M	-63.02M
EBITDA	52.17M	46.38M	18.11M	0.00	0.00	0.00
Net Income	48.25M	44.97M	26.97M	-17.85M	76.78M	-63.02M
Balance Sheet
Total Assets	287.91M	283.42M	254.51M	242.91M	282.59M	214.19M
Cash, Cash Equivalents and Short-Term Investments	24.88M	28.16M	245.91M	231.21M	18.22M	9.73M
Total Debt	0.00	1.15M	3.07M	410.66K	0.00	0.00
Total Liabilities	8.93M	22.56M	18.53M	15.26M	16.25M	5.99M
Stockholders Equity	278.98M	260.85M	235.98M	227.65M	266.33M	208.20M
Cash Flow
Free Cash Flow	45.03M	51.20M	42.72M	28.66M	34.81M	-2.36M
Operating Cash Flow	45.03M	51.20M	42.72M	28.66M	34.81M	-2.36M
Investing Cash Flow	-23.74M	-25.50M	-18.28M	-9.24M	-7.66M	54.83M
Financing Cash Flow	-21.22M	-20.12M	-18.65M	-20.85M	-18.66M	-57.23M

Volta Finance Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:VTA, the sentiment is Positive. The current price of 6.64 is below the 20-day moving average (MA) of 6.74, below the 50-day MA of 6.76, and above the 200-day MA of 6.29, indicating a bullish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 52.13 is Neutral, neither overbought nor oversold. The STOCH value of 68.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:VTA.

Volta Finance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VTA	79 Outperform	€244.36M	6.94	13.24%	9.21%	-42.89%	-21.25%
FLOW	72 Outperform	$1.11B	5.97	24.83%	1.73%	37.22%	162.92%
TFG	71 Outperform	$2.64B	2.29	21.90%	2.88%	328.05%	412.44%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NAI	65 Neutral	€37.80M	43.14	2.51%	3.69%	82.26%	―