Virtu Financial (VIRT) AI Stock Analysis

• Market Cap: $5.39B
• Dividend Yield: 2.72%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.30
• Revenue Growth: 25.12%
• EPS Growth: 122.80%
• Country: US
• Employees: 969
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 1.53
• Shares Outstanding: 84,577,650
• 10 Day Avg. Volume: 1,260,941
• 30 Day Avg. Volume: 1,074,237
• PEG Ratio: 0.10
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 5.73
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 2.19
• Enterprise Value/Gross Profit: 3.54
• Enterprise Value/Ebitda: 4.29
• 1Y Price Target: $46.63
• Price Target Upside: 32.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 78 Outperform
• Price Target: $47.00 ▲(33.37% Upside)

Virtu Financial's strong financial performance and strategic growth initiatives are the most significant factors driving its stock score. The company's robust profitability, efficient cash flow management, and low valuation make it an attractive investment. While the leadership transition introduces some uncertainty, the positive sentiment around the new CEO and ongoing strategic initiatives mitigate these concerns.

Positive Factors

Strong Financial Performance

Record trading income reflects Virtu's ability to capitalize on market volatility and strategic growth initiatives, ensuring robust financial health.

Growth in Digital Assets and ETFs

Expansion in digital assets and ETFs positions Virtu well in growing markets, enhancing its competitive edge and long-term revenue potential.

Leadership Transition

The appointment of Aaron Simons as CEO, with his extensive tech and trading experience, is expected to strengthen Virtu's strategic direction and market positioning.

Negative Factors

Inconsistent Revenue Growth

Volatile revenue growth suggests instability in revenue generation, which could impact long-term financial planning and investor confidence.

Challenges in Overnight Trading Expansion

Slow institutional uptake in overnight trading could limit growth opportunities and affect Virtu's ability to diversify revenue streams.

Low Equity Ratio

A low equity ratio indicates potential vulnerability to market fluctuations, which could impact Virtu's financial stability and leverage capacity.

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 generates revenue primarily through its market-making activities, where it earns profits from the bid-ask spread when buying and selling securities. This involves providing liquidity by continuously quoting prices for various financial instruments, allowing other market participants to transact. The company also earns revenues from trading activities, including proprietary trading, where it trades its own capital to capture market opportunities. Additionally, Virtu benefits from transaction fees and commissions on trades executed on exchanges and other trading platforms. Significant partnerships with exchanges and trading venues enhance its trading capabilities, while robust technology infrastructure allows for high-frequency trading, optimizing profit margins.

Virtu Financial Financial Statement Overview

Summary

Virtu Financial demonstrates strong financial health with excellent profitability, efficient cash flow management, and moderate leverage. While revenue growth has been inconsistent, the company maintains high margins and robust cash flows, positioning it well within the capital markets industry.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.38B	2.88B	2.29B	2.36B	2.81B	3.24B
Gross Profit	2.09B	1.77B	1.39B	1.35B	1.69B	2.09B
EBITDA	1.72B	1.39B	1.05B	1.01B	1.35B	1.74B
Net Income	404.88M	276.42M	142.04M	265.03M	476.88M	649.20M
Balance Sheet
Total Assets	19.28B	15.36B	14.47B	10.58B	10.32B	9.97B
Cash, Cash Equivalents and Short-Term Investments	752.10M	872.51M	820.44M	981.58M	1.07B	889.56M
Total Debt	8.94B	5.71B	6.93B	3.73B	3.60B	3.43B
Total Liabilities	17.65B	13.87B	13.06B	8.93B	8.46B	8.11B
Stockholders Equity	1.41B	1.25B	1.20B	1.34B	1.55B	1.47B
Cash Flow
Free Cash Flow	484.65M	544.68M	454.00M	679.60M	1.15B	1.03B
Operating Cash Flow	503.58M	598.99M	491.78M	706.80M	1.17B	1.06B
Investing Cash Flow	-36.78M	-61.85M	-94.48M	-29.53M	-87.35M	-2.56M
Financing Cash Flow	-482.70M	-469.56M	-585.03M	-735.75M	-957.86M	-839.92M

Virtu Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIRT, the sentiment is Negative. The current price of 35.24 is below the 20-day moving average (MA) of 37.64, below the 50-day MA of 40.62, and below the 200-day MA of 38.93, indicating a bearish trend. The MACD of -1.77 indicates Positive momentum. The RSI at 24.42 is Positive, neither overbought nor oversold. The STOCH value of 14.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VIRT.

Virtu Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MC	80 Outperform	5.87B	29.61	38.39%	3.51%	42.85%	1398.33%
VIRT	78 Outperform	$5.39B	7.95	28.75%	2.72%	25.12%	122.80%
PIPR	73 Outperform	6.23B	30.61	14.75%	1.60%	10.46%	50.47%
SNEX	69 Neutral	4.66B	16.19	15.26%	―	53.19%	23.89%
MKTX	67 Neutral	6.69B	30.14	16.08%	1.69%	8.30%	-14.39%
PJT	64 Neutral	6.34B	31.78	95.78%	0.55%	18.40%	54.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Virtu Financial Corporate Events

Virtu Financial Announces New CEO Appointment

On July 30, 2025, Virtu Financial announced that Aaron Simons, the current Chief Technology Officer, will be appointed as the new Chief Executive Officer effective August 1, 2025, succeeding Douglas A. Cifu. Mr. Cifu will transition to a consultant role until the end of the year to ensure a smooth transition. This leadership change is part of Virtu’s long-term planning and reflects the company’s confidence in Mr. Simons’ leadership and vision to continue building on the company’s momentum and strategic direction. Mr. Simons, who has been with Virtu since 2008, brings extensive experience in technology and trading, which is expected to benefit Virtu’s operations and market positioning.