Victory Capital Holdings (VCTR) AI Stock Analysis

• Market Cap: $4.35B
• Dividend Yield: 3.03%
• Average Volume (3M): 328.62K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.19
• Revenue Growth: 6.53%
• EPS Growth: 36.51%
• Country: US
• Employees: 460
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management
• EPS (TTM): 1.36
• Shares Outstanding: 67,236,290
• 10 Day Avg. Volume: 458,028
• 30 Day Avg. Volume: 328,615
• PEG Ratio: 0.38
• Price to Book (P/B): 3.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.49
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 9.17
• Enterprise Value/Ebitda: 2.73
• 1Y Price Target: $71.14
• Price Target Upside: 9.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 81 Outperform
• Price Target: $72.00 ▲(11.21%Upside)

Victory Capital Holdings scores highly due to its robust financial performance, efficient operations, and strategic growth initiatives. Positive technical indicators support the upward momentum in the stock price. While valuation is fair, the earnings call highlights strategic achievements that enhance future growth prospects. High leverage remains a risk to monitor.

Positive Factors

Acquisition

Victory Capital Holdings' acquisition of Amundi US is seen as a strategic move to expand international distribution and enhance fixed income capabilities.

Financial Performance

The 1Q25 earnings per share for Victory Capital Holdings increased due to better operating expenses.

Valuation

The price target for Victory Capital Holdings has been raised by 8%.

Negative Factors

Earnings

The earnings per share for Victory Capital Holdings declined by 3.9% due to lower management fees and a higher share count.

Market Conditions

There is a risk if market volatility persists, which could affect financial estimates.

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 Holdings generates revenue primarily through management fees associated with the assets under management (AUM). These fees are typically based on a percentage of the AUM and can vary depending on the type of investment product and client. Additionally, the company may earn performance-based fees, which are contingent on meeting specific investment benchmarks or achieving superior returns. Victory Capital's multi-boutique model allows it to leverage the expertise of its investment teams to attract and retain clients, contributing to the growth of its AUM. The firm also benefits from strategic partnerships and distribution channels that enhance its ability to access diverse markets and expand its client base.

Victory Capital Holdings Financial Statement Overview

Summary

Victory Capital Holdings exhibits a strong financial position with solid profitability, efficient operations, and stable growth. The income statement highlights strong margins and revenue stability, while the balance sheet reflects a sound financial structure with good returns on equity. Cash flow analysis shows excellent cash conversion and liquidity management. However, the company's high leverage is an area to monitor for potential risks.

Income Statement

Victory Capital Holdings shows robust financial performance with strong profitability. The gross profit margin for TTM stands at 61.6% and the net profit margin at 37.0%, indicating efficient cost management and a healthy bottom line. Revenue growth has been moderate, with a 0.42% increase from the previous year, suggesting stability in its revenue streams. EBIT and EBITDA margins are also strong at 48.5% and 52.9% respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet indicates a solid financial structure. The debt-to-equity ratio is 0.84, reflecting a balanced use of debt and equity. Return on equity is impressive at 29.0%, highlighting effective utilization of shareholder funds. The equity ratio is 44.3%, suggesting a stable asset base supported by equity. However, the company carries a significant amount of total debt, which could pose a risk if not managed carefully.

Cash Flow

The company's cash flow position is strong with a healthy free cash flow growth rate of 3.34% over the last year. The operating cash flow to net income ratio is 1.06, indicating strong cash generation relative to reported profits. The free cash flow to net income ratio is 1.05, further emphasizing the firm's ability to convert profits into cash effectively. Overall, the cash flow metrics reflect solid liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	897.22M	893.48M	821.03M	854.80M	890.26M	775.35M
Gross Profit	552.45M	529.77M	455.97M	455.50M	479.05M	402.51M
EBITDA	474.27M	477.97M	394.32M	413.59M	427.23M	360.56M
Net Income	332.00M	288.86M	213.16M	275.51M	278.39M	212.52M
Balance Sheet
Total Assets	1.73B	2.55B	2.54B	2.54B	2.58B	1.73B
Cash, Cash Equivalents and Short-Term Investments	37.13M	126.73M	123.55M	64.97M	69.53M	22.74M
Total Debt	888.65M	963.86M	989.27M	985.51M	1.13B	769.01M
Total Liabilities	1.15B	1.43B	1.49B	1.48B	1.65B	1.02B
Stockholders Equity	581.08M	1.12B	1.05B	1.07B	929.93M	707.54M
Cash Flow
Free Cash Flow	350.02M	338.70M	325.12M	329.97M	363.52M	242.56M
Operating Cash Flow	352.39M	339.98M	330.29M	335.21M	376.20M	250.62M
Investing Cash Flow	-4.75M	-3.98M	-7.84M	-6.32M	-556.59M	-12.34M
Financing Cash Flow	-252.13M	-332.76M	-237.13M	-360.19M	227.22M	-252.70M

Victory Capital Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 64.74
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 64.74 is above the 20-day moving average (MA) of 62.97, above the 50-day MA of 61.33, and above the 200-day MA of 61.06, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 61.39 is Neutral, neither overbought nor oversold. The STOCH value of 78.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VCTR.

Victory Capital Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCTR	81 Outperform	$4.35B	14.40	26.57%	3.03%	6.53%	36.51%
FHI	80 Outperform	$3.58B	12.76	24.98%	3.00%	2.32%	1.08%
APAM	77 Outperform	$3.75B	13.10	69.81%	5.85%	7.18%	10.17%
AMG	76 Outperform	$5.65B	15.59	12.81%	0.02%	-6.37%	-28.43%
AB	76 Outperform	$4.57B	11.13	20.69%	7.76%	―	53.17%
CNS	69 Neutral	$3.97B	25.47	35.42%	3.18%	10.26%	19.56%
Sector *	58 Neutral	$12.53B	5.19	-2.71%	5.24%	5.88%	-56.03%

Victory Capital Holdings Corporate Events

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.

The most recent analyst rating on (VCTR) stock is a Hold with a $49.00 price target. To see the full list of analyst forecasts on Victory Capital Holdings stock, see the VCTR Stock Forecast page.

Victory Capital Expands with $113 Billion Asset Acquisition

On May 9, 2025, Victory Capital Holdings reported its total assets under management as $279.3 billion and total client assets as $282.8 billion as of April 30, 2025. This announcement reflects a significant acquisition of $113 billion in assets during April, indicating a strategic expansion in their asset management portfolio, which could enhance their industry positioning and impact stakeholders positively.

Victory Capital Holds 2025 Annual Stockholders Meeting

Victory Capital Holdings, Inc. conducted its 2025 Annual Meeting of Stockholders on May 7, 2025. During the meeting, shareholders approved the election of Class I Directors, ratified the selection of Deloitte & Touche LLP as the independent auditor for the fiscal year ending December 31, 2025, and supported a non-binding advisory vote on executive compensation, reflecting continued shareholder engagement in corporate governance.