Victory Capital Holdings (VCTR) AI Stock Analysis

• Market Cap: $4.18B
• Dividend Yield: 2.65%
• Average Volume (3M): 284.84K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.17
• Revenue Growth: 6.53%
• EPS Growth: 36.51%
• Country: US
• Employees: 460
• Sector: Financial
• Sector Strength: 79
• Industry: Asset Management
• EPS (TTM): 1.36
• Shares Outstanding: 67,236,290
• 10 Day Avg. Volume: 240,915
• 30 Day Avg. Volume: 284,841
• 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: 1.21
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 9.17
• Enterprise Value/Ebitda: 2.73
• 1Y Price Target: $71.14
• Price Target Upside: 14.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 81 Outperform
• Price Target: $72.00 ▲(15.70%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.

Future Earnings

The projected decline in adjusted earnings per share for the upcoming years indicates potential challenges for Victory Capital Holdings.

Market Volatility

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. (VCTR) is a diversified global asset management firm headquartered in San Antonio, Texas. The company provides a range of investment management solutions to institutions, intermediaries, and individuals. Victory Capital operates a multi-boutique model, which includes a collection of specialized investment managers, each with its own investment approach and expertise. The firm offers products across a variety of asset classes, including equities, fixed income, and alternative investments.

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
	EBIT
435.31M	427.51M	328.46M	399.11M	373.85M	314.71M
	EBITDA
474.27M	477.97M	394.32M	413.59M	427.23M	360.56M
	Net Income Common Stockholders
332.00M	288.86M	213.16M	275.51M	278.39M	212.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
37.13M	126.73M	123.55M	64.97M	69.53M	22.74M
	Total Assets
1.73B	2.55B	2.54B	2.54B	2.58B	1.73B
	Total Debt
888.65M	963.86M	989.27M	985.51M	1.13B	769.01M
	Net Debt
851.52M	837.13M	865.72M	947.34M	1.06B	746.26M
	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: 62.23
• 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 VCTR, the sentiment is Positive. The current price of 62.23 is below the 20-day moving average (MA) of 62.54, above the 50-day MA of 59.01, and above the 200-day MA of 60.19, indicating a neutral trend. The MACD of 0.90 indicates Positive momentum. The RSI at 53.44 is Neutral, neither overbought nor oversold. The STOCH value of 57.51 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	$4.18B	13.84	26.57%	2.65%	6.53%	36.51%
FHI	80 Outperform	$3.35B	11.91	24.98%	3.02%	2.32%	1.08%
AB	76 Outperform	$4.44B	10.82	20.69%	8.18%	―	53.17%
APAM	76 Outperform	$3.28B	11.47	69.81%	7.37%	7.18%	10.17%
AMG	74 Outperform	$5.21B	14.38	12.81%	0.02%	-6.37%	-28.43%
CNS	69 Neutral	$3.95B	25.33	35.42%	3.14%	10.26%	19.56%
Sector *	64 Neutral	$12.83B	9.78	7.78%	16985.64%	12.26%	-7.81%

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.

Victory Capital Completes Strategic Acquisition of Amundi US

On April 1, 2025, Victory Capital Holdings completed its acquisition of Amundi US, marking a significant strategic partnership with Amundi SA. This transaction includes 15-year reciprocal global distribution agreements, which are expected to globalize Victory Capital’s business and enhance its market reach. As part of the transaction, Victory Capital issued 17.6 million shares to Amundi, making Amundi a strategic shareholder with a 21.2% equity stake, expected to increase to 26.1% after post-closing adjustments. The integration is anticipated to generate $110 million in net expense synergies, with $50 million already achieved. Additionally, two Amundi appointees joined Victory Capital’s Board of Directors, replacing a retiring director, Bob Hurst.