Victory Capital Holdings (VCTR) AI Stock Analysis

• Market Cap: $4.41B
• Dividend Yield: 2.87%
• Average Volume (3M): 677.53K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.22
• Revenue Growth: 19.81%
• EPS Growth: 12.83%
• Country: US
• Employees: 460
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.57
• Shares Outstanding: 66,783,380
• 10 Day Avg. Volume: 922,319
• 30 Day Avg. Volume: 677,534
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 5.07
• Enterprise Value/Gross Profit: 8.09
• Enterprise Value/Ebitda: 9.78
• 1Y Price Target: $75.00
• Price Target Upside: 14.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: $73.00 ▲(11.72% Upside)

Victory Capital Holdings' strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. The company's robust revenue growth and strategic achievements outweigh the bearish technical indicators and challenges in cash flow management. The reasonable valuation and attractive dividend yield further support the stock's appeal.

Positive Factors

Revenue Growth

The robust revenue growth indicates effective business expansion and strong demand for its investment products, supporting long-term profitability.

Strategic Acquisitions

The acquisition of Amundi U.S. business diversifies Victory Capital's offerings and scales its operations, strengthening its competitive position in asset management.

Improved Leverage Management

Improved leverage management enhances financial stability, providing greater flexibility for future investments and growth opportunities.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow growth may limit the company's ability to fund new projects and return capital to shareholders, impacting long-term growth.

Operational Margin Pressure

Pressure on operational margins suggests challenges in maintaining cost efficiency, which could affect profitability if not addressed.

Net Asset Outflows

Continued net asset outflows indicate potential challenges in retaining client investments, which could impact future revenue and growth.

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 charged on the assets under management (AUM) across its investment products. These fees are typically a percentage of the AUM and can vary based on the type of investment strategy offered. Additionally, the company earns performance fees when investment strategies exceed certain performance benchmarks, thus incentivizing strong investment returns. Another key revenue stream is the provision of advisory services and solutions to institutional clients, which may also be accompanied by consulting fees. Victory Capital's growth has been bolstered by strategic acquisitions and partnerships that expand its investment capabilities and client base, enabling it to enhance its earnings potential.

Victory Capital Holdings Financial Statement Overview

Summary

Victory Capital Holdings demonstrates strong revenue growth and profitability, supported by improved leverage management. However, the decline in free cash flow growth and slight pressure on operational margins may pose challenges. Overall, the company is financially healthy with room for improvement in cash flow management.

Income Statement

Victory Capital Holdings shows strong revenue growth with a 15.17% increase in TTM, indicating robust business expansion. The gross profit margin of 62.62% and net profit margin of 30.63% reflect efficient cost management and profitability. However, the slight decline in EBIT and EBITDA margins compared to the previous year suggests some pressure on operational efficiency.

Balance Sheet

The company has improved its financial stability with a reduced debt-to-equity ratio of 0.41 in TTM, down from 0.86 in the previous year, indicating better leverage management. The return on equity of 21.43% is strong, showcasing effective use of equity to generate profits. However, the equity ratio is not provided, which limits a full assessment of asset financing.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth by 24.61% in TTM, which could impact future investment capabilities. The operating cash flow to net income ratio of 1.63 indicates good cash generation relative to net income, but the decrease in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	893.48M	821.03M	854.80M	890.26M	775.35M
Gross Profit	647.07M	529.77M	455.97M	455.50M	479.05M	402.51M
EBITDA	535.24M	477.97M	394.32M	413.59M	412.45M	360.56M
Net Income	316.48M	288.86M	213.16M	275.51M	278.39M	212.52M
Balance Sheet
Total Assets	4.25B	2.55B	2.54B	2.54B	2.58B	1.73B
Cash, Cash Equivalents and Short-Term Investments	107.87M	126.73M	123.55M	38.17M	69.53M	22.74M
Total Debt	1.01B	963.86M	1.00B	985.51M	1.13B	769.01M
Total Liabilities	1.78B	1.43B	1.49B	1.48B	1.65B	1.02B
Stockholders Equity	2.47B	1.12B	1.05B	1.07B	929.93M	707.54M
Cash Flow
Free Cash Flow	263.87M	338.70M	325.12M	329.97M	363.52M	242.56M
Operating Cash Flow	266.91M	339.98M	330.29M	335.21M	376.20M	250.62M
Investing Cash Flow	75.65M	-3.98M	-7.84M	-6.32M	-556.59M	-12.34M
Financing Cash Flow	-354.15M	-332.76M	-237.13M	-360.19M	227.22M	-252.70M

Victory Capital Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 65.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 65.34 is below the 20-day moving average (MA) of 68.91, below the 50-day MA of 69.28, and above the 200-day MA of 63.38, indicating a neutral trend. The MACD of -0.97 indicates Positive momentum. The RSI at 37.06 is Neutral, neither overbought nor oversold. The STOCH value of 8.04 is Positive, 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
FHI	78 Outperform	3.99B	11.43	23.22%	2.52%	5.92%	54.93%
AB	76 Outperform	4.19B	11.28	―	8.88%	―	16.78%
AMG	74 Outperform	6.74B	17.85	15.29%	0.02%	-5.87%	-21.51%
VCTR	71 Outperform	$4.41B	16.31	15.59%	2.87%	19.81%	12.83%
CNS	71 Outperform	3.40B	21.18	30.67%	3.69%	12.95%	23.72%
APAM	67 Neutral	3.57B	12.00	64.76%	8.15%	9.98%	12.97%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Victory Capital Holdings Corporate Events

Victory Capital Reports Stable AUM for July 2025

On August 11, 2025, Victory Capital Holdings reported its total assets under management (AUM) as of July 31, 2025, amounting to $299.8 billion, with total client assets reaching $302.9 billion. The announcement highlights the company’s stable asset management performance, with slight increases in various asset classes compared to the previous month, indicating a steady market position and potential positive implications for stakeholders.

Victory Capital Holdings Reports Q2 AUM and Client Assets

On July 10, 2025, Victory Capital Holdings reported its total assets under management (AUM) as $298.6 billion and total client assets as $301.6 billion as of June 30, 2025. Despite a decrease in long-term AUM net flows by $660 million for the second quarter, the company showed growth in various asset classes and regions. Victory Capital plans to release its second-quarter financial results on August 7, 2025, followed by a conference call on August 8 to discuss the outcomes.

Victory Capital Holdings Reports May 2025 AUM Figures

On June 10, 2025, Victory Capital Holdings reported its total assets under management (AUM) as $289.4 billion and total client assets as $293.1 billion as of May 31, 2025. The company also highlighted the successful integration of the Pioneer Investment business, which is expected to maintain a consolidated fee rate realization of 46 to 47 basis points starting in the second quarter, with no anticipated impact on EBITDA or EBITDA margin due to accounting changes. The issuance of 5.4 million shares of preferred stock to Amundi S.A. on May 23, 2025, increased the total number of fully diluted shares to approximately 88.3 million.