Virtu Financial (VIRT) AI Stock Analysis

• Market Cap: $6.35B
• Dividend Yield: 2.33%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.45
• Revenue Growth: 26.02%
• EPS Growth: 142.79%
• Country: US
• Employees: 969
• Sector: Financial
• Sector Strength: 88
• Industry: Financial - Capital Markets
• EPS (TTM): 3.47
• Shares Outstanding: 85,911,650
• 10 Day Avg. Volume: 1,227,218
• 30 Day Avg. Volume: 1,123,903
• PEG Ratio: 0.08
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.57
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $40.00
• Price Target Upside: -2.82% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

Virtu Financial's overall score reflects its strong financial performance, with high profitability and cash flow efficiency being significant strengths. Technical indicators and valuation metrics suggest a stable outlook with reasonable growth potential. The positive earnings call and strategic corporate event further reinforce the company's robust market position, although attention to revenue growth consistency and equity levels is advisable.

Positive Factors

Earnings

The adjusted EPS for 2Q25 was raised by 15% due to higher ANTI and execution services revenue.

M&A Integration

Virtu's Execution Services business has become a successful exemplar of M&A integration and synergy generation with acquisitions enhancing their tech platforms and analytic tools.

Negative Factors

Operating Expenses

Higher market making revenues are partially offset by higher operating expenses for Virtu Financial Inc.

Virtu Financial Business Overview & Revenue Model

Company Description

Virtu Financial, Inc., a financial services company, provides data, analytics, and connectivity products to clients worldwide. The company operates in two segments, Market Making and Execution Services. Its product suite includes offerings in execution, liquidity sourcing, analytics and broker-neutral, and multi-dealer platforms in workflow technology. The company's solutions enable clients to trade on various venues across countries and in multiple asset classes, including global equities, ETFs, foreign exchange, futures, fixed income, cryptocurrencies, and other commodities. Its analytics platform provides a range of pre- and post-trade services, data products, and compliance tools for clients to invest, trade, and manage risk across markets. Virtu Financial, Inc. was founded in 2008 and is headquartered in New York, New York.

How the Company Makes Money

Virtu Financial makes money primarily through market making and execution services. As a market maker, Virtu provides liquidity to the financial markets by continuously buying and selling securities, profiting from the bid-ask spread. The firm uses sophisticated algorithms to execute high-frequency trades, capturing small price discrepancies across different markets and asset classes. Additionally, Virtu earns revenue through commissions and fees from its execution services, where it acts as an intermediary for institutional clients, helping them execute large orders with minimal market impact. The company may also engage in proprietary trading, leveraging its technology and market insights to generate additional returns. Key partnerships with major financial institutions and exchanges further enhance its capabilities and access to liquidity, contributing to its earnings.

Virtu Financial Financial Statement Overview

Summary

Virtu Financial demonstrates strong financial health with excellent profitability, efficient cash flow management, and moderate leverage. High profit margins and robust cash flows position it well within the industry. However, inconsistent revenue growth and low equity ratio require attention.

Income Statement

Virtu Financial's income statement reveals strong profitability with a gross profit margin of 81.34% and a net profit margin of 27.95% for the TTM, indicating efficient cost management and healthy earnings. The EBIT and EBITDA margins are also robust at 30.74% and 69.74%, respectively. However, revenue growth has been volatile, showing a TTM growth rate of 0.77% after a decline the previous year, suggesting some instability in revenue generation.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.21, indicating a conservative leverage approach. The return on equity is impressive at 51.89% for the TTM, highlighting efficient use of equity. The equity ratio stands at 8.90%, slightly low, suggesting a risk of over-leverage in case of fluctuating market conditions. Overall, the balance sheet is stable but with potential vulnerability due to low equity support.

Cash Flow

Cash flow analysis shows strong operational performance with an operating cash flow to net income ratio of 1.25, indicating good cash generation relative to earnings. The free cash flow has grown significantly, with a TTM free cash flow of $986.52 million, up from $544.68 million the previous year, reflecting robust cash management. The free cash flow to net income ratio is 1.22, suggesting efficient conversion of profits into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.88B	2.29B	2.01B	2.58B	2.94B
	Gross Profit
1.77B	1.39B	2.01B	2.58B	2.94B
	EBIT
1.32B	967.72M	567.85M	1.03B	1.35B
	EBITDA
1.39B	1.05B	699.06M	1.17B	1.49B
	Net Income Common Stockholders
276.42M	142.04M	265.03M	476.88M	649.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
872.51M	820.44M	981.58M	1.07B	889.56M
	Total Assets
15.36B	14.47B	10.58B	10.32B	9.97B
	Total Debt
5.71B	1.73B	1.80B	1.61B	1.64B
	Net Debt
4.84B	906.77M	814.37M	533.67M	749.72M
	Total Liabilities
13.87B	13.06B	1.80B	1.61B	1.64B
	Stockholders Equity
1.25B	1.20B	1.34B	1.55B	1.47B
Cash Flow		Free Cash Flow
544.68M	454.00M	679.60M	1.15B	1.03B
	Operating Cash Flow
598.99M	491.78M	706.80M	1.17B	1.06B
	Investing Cash Flow
-61.85M	-94.48M	-29.53M	-87.35M	-2.56M
	Financing Cash Flow
-469.56M	-585.03M	-735.75M	-957.86M	-839.92M

Virtu Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.16
• 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 VIRT, the sentiment is Positive. The current price of 41.16 is above the 20-day moving average (MA) of 37.71, above the 50-day MA of 37.11, and above the 200-day MA of 34.10, indicating a bullish trend. The MACD of 0.77 indicates Negative momentum. The RSI at 63.08 is Neutral, neither overbought nor oversold. The STOCH value of 75.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VIRT.

Virtu Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIRT	81 Outperform	$6.35B	11.87	23.87%	2.33%	26.02%	142.79%
MKTX	78 Outperform	$8.40B	31.01	20.45%	1.32%	9.06%	6.10%
SCHW	77 Outperform	$154.96B	25.27	14.12%	1.23%	2.32%	37.66%
TW	77 Outperform	$33.54B	60.84	9.14%	0.30%	28.86%	29.26%
IBKR	73 Outperform	$72.41B	24.74	19.26%	0.55%	15.28%	23.59%
SNEX	70 Outperform	$4.47B	16.65	16.40%	―	60.57%	17.39%
Sector *	64 Neutral	$12.64B	9.74	8.05%	17044.60%	12.66%	-4.62%

Virtu Financial Corporate Events

Virtu Financial Extends Executive Employment Agreements

On February 26, 2025, Virtu Financial Operating LLC, a subsidiary of Virtu Financial, Inc., amended the employment agreements of two key executives, Joseph Molluso and Stephen Cavoli, extending their terms to February 28, 2028. This move ensures continuity in leadership, potentially strengthening the company’s market position and operational stability.