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Vinci Partners Investments (VINP)
NASDAQ:VINP
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Vinci Partners Investments
(NASDAQ:VINP)
Rating:66Neutral
Price Target:
$11.00
▲(12.59%Upside)
Positive Factors
Cross-Selling Opportunities
There are positive cross-selling opportunities from a complementary client base in terms of product and region, leveraging both companies’ regional distribution capabilities.
Market Position
The combination puts the company in an attractive position as one of the largest alternative asset managers in Latin America, with a presence in seven countries and expansion of its LP base by almost 3x.
Valuation
Valuation is attractive especially on a P/FRE basis, as Vinci's FRE is expected to grow at a similar pace to US peers.
Negative Factors
FRE Margin
While the combination should lead to a lower FRE margin, there are opportunities for margin expansion as the company combines its operations, merging back offices and eliminating duplicate roles.
Vinci Partners Investments (VINP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$608.41M
Dividend Yield6.14%
Average Volume (3M)48.67K
Price to Earnings (P/E)24.1
Beta (1Y)0.71
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees244
SectorFinancial
Sector Strength81
IndustryAsset Management
Share Statistics
EPS (TTM)0.18
Shares Outstanding48,778,420
10 Day Avg. Volume69,738
30 Day Avg. Volume48,666
Financial Highlights & Ratios
PEG Ratio2.38
Price to Book (P/B)1.92
Price to Sales (P/S)0.00
P/FCF Ratio23.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.50Price Target Upside38.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Vinci Partners Investments Business Overview & Revenue Model
Company DescriptionVinci Partners Investments (VINP) is a leading alternative investment platform based in Brazil. The company operates across a diverse range of sectors including private equity, real estate, infrastructure, credit, and public equities. Vinci Partners provides investment management services and offers a comprehensive suite of financial products designed to meet the needs of institutional and individual investors. With a focus on delivering strong returns and sustainable growth, VINP leverages its deep market expertise and strategic insight to capitalize on opportunities within the Brazilian and global markets.
How the Company Makes MoneyVinci Partners Investments generates revenue primarily through management fees and performance-based incentives associated with the assets they manage across various investment funds. The company earns management fees as a percentage of the total assets under management (AUM), providing a steady income stream. Additionally, Vinci Partners may earn performance fees which are contingent upon the investment funds achieving certain benchmarks or returns above a predefined threshold. The firm's diversified strategy across multiple asset classes allows it to mitigate risks and capitalize on market opportunities, further enhancing its revenue potential. Strategic partnerships and joint ventures within its sectors also play a significant role in expanding its investment reach and securing lucrative deals that contribute to overall earnings.
Vinci Partners Investments Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: -1.51%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflects strong performance in fundraising, earnings growth, and strategic integration, positioning Vinci Compass well for future opportunities, especially in Latin America. However, challenges such as FX impacts, net outflows in IP&S, and weak corporate advisory revenue pose concerns.Q1-2025 Updates
Positive Updates
Record Fundraising in First Quarter
Vinci Compass delivered strong fundraising results with BRL1.1 billion in capital subscriptions during the first quarter of 2025, marking the most active first quarter in recent years.
Growth in Fee-Related Earnings
Fee-related earnings totaled BRL66 million in the first quarter, up 22% year-over-year. Adjusted distributable earnings reached BRL62 million or BRL0.98 per share, up 26% and 6% year-over-year.
Successful Integration and Expansion
The company has made significant progress in integrating platforms after the combination of Vinci and Compass, accelerating value creation and laying a strong foundation for sustainable growth.
Strong Investor Interest in Latin America
Growing investor interest in geographically diversified portfolios, especially in Latin America, which is seen as a stable region with no significant regional conflicts, poised to attract important inflows.
Positive Outlook in Equity and Real Assets Segments
Opportunities in Latin American equities and the real assets segment, with a focus on renewable energy and infrastructure projects, are expected to drive growth.
Negative Updates
Impact of Exchange Rate Fluctuations
The appreciation of the Brazilian real negatively impacted reported AUM, with a decrease of 7% quarter over quarter due to FX effects.
Net Outflows in Global IP&S Segment
Net outflows affected the global IP&S segment, primarily due to capital returns and net flows in other sub-strategies.
Weak Corporate Advisory Performance
The corporate advisory segment had a weak quarter, with no material revenue recorded, affecting the firm's ability to dilute operating costs.
Company Guidance
In the first quarter of 2025, Vinci Compass reported strong financial performance and strategic progress following the successful merger with Compass. The company achieved fee-related earnings of BRL65.7 million, or BRL1.04 per share, and adjusted distributable earnings of BRL62.3 million, or BRL0.98 per share. A quarterly dividend of BRL0.15 per common share was declared, payable on June 10th. Despite typical first-quarter seasonality, the firm raised BRL1.1 billion in capital subscriptions, marking its most active first quarter in recent years. Key highlights included the second closing of their private credit fund in Peru, raising over BRL600 million, and successful fundraising activities for their opportunistic credit and agribusiness funds. The company also reported a 22% year-over-year increase in fee-related earnings to BRL66 million and a 26% increase in adjusted distributable earnings. Vinci Compass continues to focus on strategic growth in its credit segment and anticipates a supportive interest rate environment in Brazil, with potential rate cuts expected later in the year.Vinci Partners Investments Financial Statement Overview
Summary
Vinci Partners Investments exhibits robust financial performance with significant revenue growth and strong gross profit margins, although net profit margins have decreased. The balance sheet is stable with a solid equity position despite increased leverage. Cash flows are healthy, supporting operational and strategic initiatives.Income Statement
Vinci Partners Investments shows a strong financial performance with a significant revenue growth rate of 32.2% from 2023 to 2024. The gross profit margin remains robust at 100%, indicating efficient cost management. However, the net profit margin decreased to 19.7% due to a notable decline in net income. Despite this, EBIT and EBITDA margins remain healthy, supporting profitability.82
Very Positive
Balance Sheet
The company's balance sheet reflects a strong equity position with an equity ratio of 54.2% in 2024. The debt-to-equity ratio increased to 0.5, suggesting higher leverage, but remains manageable. Return on equity decreased to 6.1% due to lower net income, impacting profitability slightly. Overall, the balance sheet is stable with a sound equity base.75
Positive
Cash Flow
Vinci Partners Investments demonstrates a solid cash flow position with a consistent operating cash flow to net income ratio of 1.77. The free cash flow grew by 7.3% from 2023 to 2024, indicating strong cash generation capabilities. However, the free cash flow to net income ratio is slightly lower at 1.61, showing room for improvement in converting earnings to cash flow.78
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 665.10M | 564.78M | 502.27M | 493.44M | 348.72M |
| Gross Profit | 453.51M | 399.28M | 358.73M | 339.41M | 274.35M |
| EBITDA | 260.82M | 210.61M | 302.77M | 284.14M | 238.24M |
| Net Income | 118.20M | 220.61M | 219.42M | 208.62M | 170.20M |
Balance Sheet | |||||
| Total Assets | 3.59B | 2.30B | 1.77B | 1.65B | 328.52M |
| Cash, Cash Equivalents and Short-Term Investments | 1.75B | 1.83B | 1.38B | 1.48B | 91.70M |
| Total Debt | 981.00M | 689.90M | 261.50M | 85.54M | 106.20M |
| Total Liabilities | 1.64B | 918.95M | 391.41M | 232.13M | 309.29M |
| Stockholders Equity | 1.94B | 1.38B | 1.37B | 1.41B | 19.22M |
Cash Flow | |||||
| Free Cash Flow | 190.45M | 177.44M | 111.42M | 285.60M | 193.31M |
| Operating Cash Flow | 209.77M | 214.18M | 117.90M | 288.69M | 195.33M |
| Investing Cash Flow | -232.13M | 138.03M | 131.84M | -1.32B | 75.31M |
| Financing Cash Flow | -429.23M | 175.02M | -215.51M | 1.05B | -193.55M |
Vinci Partners Investments Technical Analysis
Negative
9.77
Price Trends
9.64
Negative
9.66
Negative
9.71
Negative
Market Momentum
0.02
Negative
49.92
Neutral
51.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VINP, the sentiment is Negative. The current price of 9.77 is above the 20-day moving average (MA) of 9.58, above the 50-day MA of 9.64, and above the 200-day MA of 9.71, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 49.92 is Neutral, neither overbought nor oversold. The STOCH value of 51.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VINP.
Vinci Partners Investments Risk Analysis
Vinci Partners Investments disclosed 107 risk factors in its most recent earnings report. Vinci Partners Investments reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Until the completion or termination of the Compass Transaction, we and Compass are prohibited from entering into certain transactions and taking certain actions that might otherwise be beneficial to us, Compass and/or our respective shareholders. Q4, 2023
2.
Failure to complete the Compass Transaction could negatively impact our stock price and our future business and financial results. Q4, 2023
3.
The market price for our Class A common shares following the completion of the Compass Transaction may be affected by factors different from, or in addition to, those that historically have affected or currently affect the market prices of our Class A common shares. Q4, 2023
Vinci Partners Investments Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $745.40M | 4.10 | 4.76% | 10.11% | -18.39% | -33.85% | |
70 Outperform | $745.40M | 4.10 | 4.76% | 10.11% | -18.39% | -33.85% | |
67 Neutral | $16.89B | 11.79 | 9.73% | 3.75% | 11.97% | -8.33% | |
66 Neutral | $608.41M | 24.11 | 7.67% | 6.14% | ― | ― | |
66 Neutral | $923.86M | 6.52 | 17.56% | 14.28% | 46.14% | 34.91% | |
66 Neutral | $923.86M | 6.52 | 17.56% | 14.28% | 46.14% | 34.91% | |
61 Neutral | $727.55M | 8.89 | 12.10% | 10.39% | 2.31% | -15.06% | |
61 Neutral | $522.94M | 10.55 | 6.70% | 11.72% | 12.83% | -13.29% | |
58 Neutral | $657.34M | ― | -5.45% | 14.81% | 8.24% | -207.60% |
* Financial Sector Average
Performance Comparison
VINP
Vinci Partners Investments
9.62
-0.74
-7.14%
FDUS
Fidus Investment
20.86
3.25
18.46%
NOAH
Noah Holdings
11.34
4.21
59.05%
NOAH
Noah Holdings
11.34
4.21
59.05%
TCPC
BlackRock TCP Capital
7.73
-1.49
-16.16%
CCAP
Crescent Capital BDC
14.11
-3.21
-18.53%
TRIN
Trinity Capital
14.17
2.02
16.63%
TRIN
Trinity Capital
14.17
2.02
16.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.