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Voya Financial (VOYA)
NYSE:VOYA
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Voya Financial
(NYSE:VOYA)64Neutral
Positive Factors
Earnings Performance
Wealth Solutions: Earnings of $220 million after adjustments, vs. consensus of $201 million. The strong performance was driven by fee-based revenue and higher alternative investment income.
Strategic Initiatives
Management provided a sensible turnaround strategy that gives conviction in Voya's long-term growth profile.
Negative Factors
Health Segment Challenges
In recent quarters, the company has been facing some challenges around the Health segment, specifically the medical stop loss business.
Voya Financial (VOYA) vs. S&P 500 (SPY)
Market Cap
$6.90B
Dividend Yield2.44%
Average Volume (3M)988.50K
Price to Earnings (P/E)11.7
Beta (1Y)0.93
Revenue Growth9.55%
EPS Growth10.22%
CountryUS
Employees9,000
SectorFinancial
Sector Strength93
IndustryDiversified Financial Services
Share Statistics
EPS (TTM)6.12
Shares Outstanding95,526,276
10 Day Avg. Volume830,802
30 Day Avg. Volume988,500
Financial Highlights & Ratios
PEG Ratio1.15
Price to Book (P/B)N/A
Price to Sales (P/S)0.86
Price to Cash Flow (P/CF)21.80
P/FCF Ratio7.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$81.80Price Target Upside17.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Voya Financial Business Overview & Revenue Model
Company DescriptionVoya Financial, Inc. is a prominent American financial services company that operates in the sectors of retirement, investment management, and employee benefits. Headquartered in New York City, Voya provides a range of financial products and services including retirement savings plans, investment management, and various insurance products designed to meet the needs of both individual and institutional clients. With a strong emphasis on helping Americans plan, invest, and protect their savings, Voya is committed to delivering comprehensive solutions that enhance financial security.
How the Company Makes MoneyVoya Financial generates revenue primarily through its three main business segments: Retirement, Investment Management, and Employee Benefits. In the Retirement segment, Voya offers a variety of retirement savings products and services, including 401(k) plans, Individual Retirement Accounts (IRAs), and 403(b) plans, earning money through management fees, administrative fees, and other ancillary services. The Investment Management segment involves managing assets for institutional and retail clients, with revenue derived from advisory fees based on assets under management. The Employee Benefits segment offers group life insurance, disability income insurance, and stop-loss insurance, generating income through premiums. Additionally, Voya's earnings are supported by strategic partnerships with businesses and institutions, enhancing its distribution capabilities and market reach.
Voya Financial Financial Statement Overview
Summary
Voya Financial demonstrates strong revenue growth and improved operational efficiency, particularly in the income statement metrics. The balance sheet shows a reduction in leverage and a solid equity base. However, cash flow metrics reveal potential concerns due to data unavailability and previous variability, highlighting the need for stable cash flow generation.Income Statement
Voya Financial shows strong improvements in revenue, with a notable revenue growth rate of 9.53% from 2023 to 2024. The gross profit margin remains high at 100%, indicating efficient cost management. However, the net profit margin has seen a slight improvement to 9.21% in 2024 from 8.51% in 2023, suggesting room for enhancing profitability further. EBIT margin significantly improved to 61.70% in 2024, indicating better operational efficiency.72
Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 0.61, reflecting a reduction in leverage risk. The return on equity (ROE) stands at 18.53% for 2024, showing strong returns on shareholder investments despite a decline from previous years. The equity ratio is at 60.72%, indicating a solid equity base relative to total assets.65
Positive
Cash Flow
The cash flow situation shows challenges, with free cash flow data unavailable for 2024. The operating cash flow to net income ratio in previous years indicated variability, and without current data, assessing cash flow health remains difficult. The company needs to ensure stable cash flow generation to support operations and growth.55
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 7.86B | 8.05B | 7.35B | 5.90B | 3.25B | 7.39B | Gross Profit |
| 7.65B | 8.05B | 7.35B | 5.90B | 3.25B | 7.39B | EBIT |
| 526.00M | 4.97B | 729.00M | 716.00M | 1.45B | -549.00M | EBITDA |
| 3.00M | 0.00 | 991.00M | 629.00M | 3.02B | 584.00M | Net Income Common Stockholders |
| 692.00M | 742.00M | 625.00M | 510.00M | 2.37B | 370.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 237.00M | 237.00M | 937.00M | 2.52B | 2.94B | 46.33B | Total Assets |
| 6.59B | 6.59B | 157.09B | 147.65B | 171.26B | 180.31B | Total Debt |
| 2.45B | 2.45B | 3.43B | 2.23B | 2.60B | 3.04B | Net Debt |
| 2.23B | 2.23B | 2.31B | 1.32B | 1.19B | 1.54B | Total Liabilities |
| 2.59B | 2.59B | 151.03B | 141.53B | 161.44B | 169.00B | Stockholders Equity |
| 4.00B | 4.00B | 4.19B | 4.47B | 8.25B | 10.24B |
| Cash Flow | Free Cash Flow | ||||
| 1.59B | 0.00 | 1.64B | 1.35B | 556.00M | 1.21B | Operating Cash Flow |
| 1.63B | 0.00 | 1.64B | 1.35B | 72.00M | 1.21B | Investing Cash Flow |
| 1.34B | 0.00 | 2.53B | -1.95B | -327.00M | -2.46B | Financing Cash Flow |
| -2.34B | -759.00M | -4.06B | 28.00M | -265.00M | 1.70B |
Voya Financial Technical Analysis
Negative
69.54
Price Trends
69.89
Negative
74.49
Negative
72.86
Negative
Market Momentum
>-0.01
Positive
43.22
Neutral
28.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VOYA, the sentiment is Negative. The current price of 69.54 is below the 20-day moving average (MA) of 71.88, below the 50-day MA of 69.89, and below the 200-day MA of 72.86, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.22 is Neutral, neither overbought nor oversold. The STOCH value of 28.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VOYA.
Voya Financial Risk Analysis
Voya Financial disclosed 10 risk factors in its most recent earnings report. Voya Financial reported the most risks in the “Macro & Political” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Voya Financial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $14.55B | 8.70 | 16.23% | 2.00% | 4.03% | 45.42% | |
71 Outperform | $47.38B | 15.77 | -3.30% | 1.89% | -28.56% | 1.14% | |
67 Neutral | $6.11B | 1.95 | 39.61% | 4.75% | 47.95% | ― | |
65 Neutral | $58.71B | 14.50 | 16.13% | 2.54% | 6.10% | 225.22% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% | |
64 Neutral | $6.90B | 11.70 | 16.65% | 2.44% | 9.55% | 10.22% | |
61 Neutral | $40.75B | 15.35 | 9.78% | 4.63% | 34.25% | 11.22% |
* Financial Sector Average
Performance Comparison
VOYA
Voya Financial
69.54
3.80
5.78%
AIG
American International Group
79.85
7.48
10.34%
LNC
Lincoln National
35.88
11.03
44.39%
MET
Metlife
81.56
13.12
19.17%
PRU
Prudential Financial
109.59
5.39
5.17%
UNM
Unum Group
77.91
28.78
58.58%
Voya Financial Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: 2.26% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call reflected strong growth and earnings in Wealth Solutions and Investment Management, with strategic capital returns and investments marked as positive developments. However, challenges in Health Solutions and expectations of lower prepayment income present concerns, balancing the overall sentiment.Highlights
Strong Earnings and Growth in Wealth Solutions
Earnings for Wealth Solutions were up 30% year-over-year, with revenue growth and adjusted operating margin exceeding 2024 full year targets. Wealth Solutions generated $2 billion of defined contribution net flows in 2024.
Investment Management Success
Voya Investment Management's earnings were up 20% year-over-year, and the company achieved an organic growth rate above 4% for 2024, exceeding targets with positive net flows for four consecutive quarters.
Capital Return and Strategic Investments
Returned $800 million of excess capital to shareholders in 2024 through share repurchase and dividends. Closed OneAmerica transaction, adding $60 billion in assets and nearly $4 billion of spread-based assets under management.
Sconset Re Investment
Closed on an anchor equity investment in Sconset Re, providing an attractive investment return and strategic benefits, including growth in the annuities market and strengthening the relationship with Allianz.
Lowlights
Challenges in Health Solutions
The Stop Loss results were in line with expectations, but corrective actions were needed, including rate increases and strengthened underwriting risk selection. Higher loss ratios impacted results, with a reported fourth quarter loss ratio above 95%.
Lower Prepayment Income Expectations
Prepayment income remains below long-term expectations due to the higher interest rate environment, with expectations for continued lower prepayment income in 2025.
Impact of Venerable Outflows
Significant outflows from divested businesses, including $6.8 billion expected in the second half of 2025, impacting asset growth despite positive net flows.
Company Guidance
In the Voya Financial Fourth Quarter 2024 Earnings Conference Call, the company provided guidance indicating strong performance across Wealth Solutions and Investment Management. Wealth Solutions experienced a 30% year-over-year earnings increase, with $2 billion in defined contribution net flows and adjusted operating margins surpassing targets. Investment Management also recorded a 20% increase in earnings and an organic growth rate above 4%, marking its best year for net flows. However, Health Solutions faced challenges with Stop Loss results, which were in line with December's expectations. The company is addressing this through rate increases and improved risk selection, expecting a 5% to 15% improvement in the loss ratio for 2025. Additionally, Voya closed its OneAmerica transaction, adding $60 billion in assets, and plans to return $800 million to shareholders while investing in growth areas like leave management and disability administration. Management anticipates generating approximately $750 million in excess capital in 2025, with a balanced approach to growth investments and capital returns.Voya Financial Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Voya Financial Reports Strong 2024 Results and Acquisition
Positive
Feb 4, 2025
Voya Financial reported strong financial results for the fourth quarter and full year of 2024, with notable growth in Wealth Solutions and Investment Management offset by higher loss ratios in Health Solutions. The company returned $800 million in capital to shareholders and completed the acquisition of OneAmerica Financial’s retirement plan business, which is expected to enhance its industry positioning. Despite challenges in Health Solutions, Voya expects improved profitability in 2025 through core business growth and strategic acquisitions.
Financial Disclosures
Voya Financial Manages $339 Billion in Assets by 2024
Neutral
Jan 29, 2025
As of December 31, 2024, Voya Financial reported that its Investment Management segment managed assets totaling $339 billion. This figure includes various asset types such as equity, fixed income, alternative, and money market assets, with significant portions attributed to both institutional and retail external client assets. This disclosure precedes the company’s upcoming quarterly earnings release and provides insight into the company’s asset allocation and market positioning.
Financial Disclosures
Voya Financial Projects Lower Q4 Investment Income
Negative
Jan 8, 2025
Voya Financial has reported an estimated alternative investment income and prepayment fees for the fourth quarter of 2024, which are approximately $8 million to $16 million below long-term expectations. The preliminary results are subject to final financial closing procedures, and the company advises caution as these figures have not been audited or reviewed by Ernst & Young LLP.
Executive/Board ChangesM&A TransactionsBusiness Operations and Strategy
Voya Financial Faces Leadership Change and Business Challenges
Negative
Dec 9, 2024
Voya Financial announces CEO Robert Grubka’s departure and updates on its Stop Loss business, projecting a higher loss ratio of 90-105% for January 2024 due to increased claims frequency. The company plans to adjust premium rates and focus on profitability for 2025, expecting a 10-20% decline in in-force premiums. It remains committed to returning $800 million to shareholders and focuses excess capital on acquiring OneAmerica’s retirement business.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.