Victory Capital Holdings (VCTR) AI Stock Analysis

• Market Cap: $4.09B
• Dividend Yield: 3.08%
• Average Volume (3M): 407.83K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.11
• Revenue Growth: 33.03%
• EPS Growth: -3.55%
• Country: US
• Employees: 460
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.63
• Shares Outstanding: 64,935,455
• 10 Day Avg. Volume: 393,838
• 30 Day Avg. Volume: 407,829
• PEG Ratio: 0.38
• Price to Book (P/B): 3.77
• Price to Sales (P/S): 4.73
• P/FCF Ratio: 12.49
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 4.50
• Enterprise Value/Gross Profit: 7.35
• Enterprise Value/Ebitda: 10.03
• 1Y Price Target: $72.67
• Price Target Upside: 15.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: $73.00 ▲(16.02% Upside)

Victory Capital Holdings receives a strong overall score due to its robust financial performance and positive earnings call sentiment. The company's strategic initiatives and successful integration of acquisitions further bolster its market position. While technical indicators suggest neutral momentum, the company's valuation remains attractive, supported by a solid dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust business expansion and effective market strategies, supporting long-term financial health.

Cash Generation

Strong cash generation enhances the company's ability to invest in growth opportunities and return capital to shareholders, ensuring financial stability.

Successful Integration

Successful integration of acquisitions with realized synergies strengthens operational efficiency and supports future profitability.

Negative Factors

Net Long-Term Outflows

Net long-term outflows can indicate challenges in retaining clients or competitive pressures, potentially impacting future revenue streams.

Decreased Performance Fees

Reduced performance fees may affect profitability, highlighting potential challenges in achieving benchmark-beating returns.

Gross Profit Margin Decline

A declining gross profit margin suggests rising costs or pricing pressures, which could impact long-term profitability if not addressed.

Victory Capital Holdings Business Overview & Revenue Model

Company Description

Victory Capital Holdings, Inc., together with its subsidiaries, operates as an asset management company worldwide. It offers investment advisory, fund administration, fund compliance, fund transfer agent, and fund distribution services. The company provides specialized investment strategies to institutions, intermediaries, retirement platforms, and individual investors. As of December 31, 2021, its franchises and solutions platform managed a set of 130 investment strategies for a range of institutional and retail clients, and direct investors. The company has strategic alliance with Xavier University of Louisiana. Victory Capital Holdings, Inc. was incorporated in 2013 and is headquartered in San Antonio, Texas.

How the Company Makes Money

Victory Capital generates revenue primarily through management fees and performance fees from its investment products. The company earns management fees based on the assets under management (AUM) across its various investment strategies, which can include mutual funds, separately managed accounts, and institutional investment products. Performance fees are earned when investment returns exceed specified benchmarks, providing an incentive for the firm to maximize client returns. Additionally, Victory Capital may benefit from revenue-sharing agreements with its distribution partners, which could include financial advisors and broker-dealers. The firm's extensive distribution network and partnerships enhance its ability to attract new clients and grow AUM, which is crucial for sustaining its revenue growth.

Victory Capital Holdings Financial Statement Overview

Summary

Victory Capital Holdings demonstrates strong financial performance with robust revenue growth and profitability. The company has improved its leverage position, enhancing financial stability. Cash flow generation is strong, supporting future growth and investment opportunities. However, attention should be paid to maintaining gross profit margins and further improving cash flow efficiency.

Income Statement

Victory Capital Holdings shows strong revenue growth with a 13.18% increase in TTM, indicating robust business expansion. The company maintains a high net profit margin of 34.05% in TTM, reflecting efficient cost management and profitability. However, the gross profit margin has decreased compared to previous years, suggesting rising costs or pricing pressures.

Balance Sheet

The balance sheet is stable with a manageable debt-to-equity ratio of 0.42 in TTM, showing a decrease from previous years, which indicates improved leverage management. Return on equity remains strong at 22.24%, highlighting effective use of equity to generate profits. However, the equity ratio suggests moderate reliance on debt financing.

Cash Flow

Cash flow analysis reveals a significant free cash flow growth of 24.49% in TTM, indicating strong cash generation capabilities. The free cash flow to net income ratio is nearly 1, showing efficient conversion of profits into cash. However, the operating cash flow to net income ratio is not available, which limits a full assessment of cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.16B	893.48M	821.03M	854.80M	890.26M	775.35M
Gross Profit	713.03M	529.77M	455.97M	455.50M	479.05M	402.51M
EBITDA	522.18M	481.37M	394.32M	440.14M	391.80M	328.94M
Net Income	294.19M	288.86M	213.16M	275.51M	278.39M	212.52M
Balance Sheet
Total Assets	4.21B	2.55B	2.54B	2.54B	2.58B	1.73B
Cash, Cash Equivalents and Short-Term Investments	115.74M	126.73M	123.55M	38.17M	69.53M	22.74M
Total Debt	1.02B	963.86M	989.27M	985.51M	1.13B	779.01M
Total Liabilities	1.81B	1.43B	1.49B	1.48B	1.65B	1.02B
Stockholders Equity	2.40B	1.12B	1.05B	1.07B	929.93M	707.54M
Cash Flow
Free Cash Flow	328.51M	338.70M	325.12M	329.97M	363.52M	242.56M
Operating Cash Flow	332.22M	339.98M	330.29M	335.21M	376.20M	250.62M
Investing Cash Flow	75.26M	-3.98M	-7.84M	-6.32M	-556.59M	-12.34M
Financing Cash Flow	-480.21M	-332.76M	-237.13M	-360.19M	227.22M	-252.70M

Victory Capital Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VCTR, the sentiment is Negative. The current price of 62.92 is above the 20-day moving average (MA) of 62.69, below the 50-day MA of 62.98, and above the 200-day MA of 62.89, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 50.17 is Neutral, neither overbought nor oversold. The STOCH value of 44.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VCTR.

Victory Capital Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCTR	80 Outperform	$4.09B	16.05	16.46%	3.08%	33.03%	-3.55%
AB	76 Outperform	$3.58B	12.95	19.77%	8.83%	―	-12.92%
AMG	74 Outperform	$7.85B	17.04	15.95%	0.01%	1.08%	8.24%
APAM	73 Outperform	$3.35B	11.55	62.04%	8.75%	5.46%	2.10%
FHI	72 Outperform	$4.08B	11.01	32.06%	2.53%	9.32%	53.51%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CNS	60 Neutral	$3.18B	19.58	31.53%	3.98%	12.73%	19.01%

Victory Capital Holdings Corporate Events

Victory Capital Reports Growth in November 2025 Assets

On December 10, 2025, Victory Capital Holdings reported its assets under management as of November 30, 2025, totaling $314.8 billion, with total client assets reaching $317.7 billion. This announcement reflects a slight increase in assets from the previous month, indicating steady growth and a strong market position for Victory Capital, which could positively impact stakeholders by demonstrating the firm’s ongoing financial health and stability.

Victory Capital Reports Stable AUM Growth in October

On November 11, 2025, Victory Capital Holdings reported its total assets under management (AUM) as of October 31, 2025, amounting to $313.0 billion, with total client assets reaching $315.8 billion. The report highlights a slight increase in AUM from the previous month, indicating a stable growth trajectory. This announcement underscores Victory Capital’s strong market position and its ability to manage a diverse range of asset classes, benefiting stakeholders by potentially enhancing investment returns and maintaining competitive performance.

Victory Capital Reports Q3 AUM and Net Outflows

On October 9, 2025, Victory Capital Holdings reported its total assets under management (AUM) as $310.6 billion, with total client assets amounting to $313.4 billion as of September 30, 2025. The company experienced long-term AUM net outflows of $244 million for the third quarter. Victory Capital also announced a conference call scheduled for November 7, 2025, to discuss its third-quarter financial results, highlighting its ongoing commitment to transparency and stakeholder engagement.

Victory Capital Holdings Extends Credit Agreement and Refinances Loans

On September 23, 2025, Victory Capital Holdings, Inc. announced the Sixth Amendment to its Credit Agreement, extending the maturity date of its $100 million revolving credit facility to September 23, 2030, while reducing the interest rate margin by 0.25% per annum. Additionally, the company refinanced its existing term loans with new term loans totaling $985 million, set to mature on September 23, 2032, with adjusted interest rates, thereby enhancing its financial flexibility and potentially improving its cost of capital.