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Voya Financial (VOYA)
NYSE:VOYA

Voya Financial (VOYA) AI Stock Analysis

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Voya Financial

(NYSE:VOYA)

Rating:67Neutral
Price Target:
$71.00
â–¼(-2.39%Downside)
Voya Financial's strong revenue growth and strategic earnings guidance are positive. However, concerns over cash flow variability, macroeconomic uncertainty, and lower-than-expected investment income slightly dampen the overall outlook.
Positive Factors
Earnings Accretion
Improvements in the Health Solutions segment, resumption of buybacks, and earnings accretion from the OneAmerica integration are expected to drive the long-term thesis.
Strategic Initiatives
Strategic initiatives in 2025 are anticipated to help Voya meaningfully rebound from 2024 and establish an attractive growth profile in 2026 and beyond.
Turnaround Strategy
Management provided a sensible turnaround strategy that gives confidence in Voya's long-term growth profile.
Negative Factors
EPS Growth
There is an anticipation of slower earnings per share growth through 2026 due to debt issues and integration costs.
Medical Stop-Loss Product
The company has faced material losses from its medical stop-loss product, which could affect future financial performance.
Stock Downgrade
The stock has been downgraded to 'Underperform' due to what appears to be a 'reset' year for the company.

Voya Financial (VOYA) vs. SPDR S&P 500 ETF (SPY)

Voya Financial Business Overview & Revenue Model

Company DescriptionVoya Financial, Inc. is a premier American financial services company that operates in the sectors of retirement, investment management, and employee benefits. The company is committed to helping individuals and organizations achieve financial wellness, offering a range of products and services that include retirement plans, investment management, and insurance solutions. Voya serves a diverse clientele, including individual investors, employers, and institutions, with a focus on providing innovative and customer-centric solutions.
How the Company Makes MoneyVoya Financial makes money primarily through its three core business segments: Retirement, Investment Management, and Employee Benefits. In the Retirement segment, the company earns revenue from fees associated with managing defined contribution plans, such as 401(k) plans, IRAs, and other retirement savings products. The Investment Management segment generates income through management fees from institutional and retail clients, offering a range of investment products, including mutual funds and separately managed accounts. Additionally, Voya's Employee Benefits segment provides group life, disability, and stop-loss insurance products, which generate revenue through premium collections. The company also benefits from strategic partnerships and collaborations that enhance its product offerings and expand its market reach, contributing to its overall earnings.

Voya Financial Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 21.58%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call reflected strong performance in core businesses, with significant growth in net flows and improved financial metrics. However, challenges in alternative income, macroeconomic uncertainty, and increased reserves in the Voluntary business present notable concerns. The sentiment is balanced due to both positive commercial momentum and cautious outlook amid market volatility.
Q1-2025 Updates
Positive Updates
Strong Performance Across Businesses
Voya Financial delivered strong commercial results in Wealth Solutions and Investment Management, with defined contributions organic net flows of approximately $30 billion and $60 billion of assets added from the OneAmerica acquisition. Investment Management generated net cash flows of $7.7 billion, representing 2.5% organic growth.
Improved Financial Results
Voya reported $2 of adjusted operating earnings per share in the first quarter, a 13% increase over the prior year. Cash generation was approximately $200 million, exceeding the 90% target.
Wealth Solutions Growth
Wealth Solutions generated $207 million of adjusted operating earnings, reflecting 11% growth year-over-year, driven by higher fee-based revenues and organic growth in participant and AUM balances.
Investment Management Success
Investment Management reported $41 million in adjusted operating earnings with strong net inflows across various strategies, including private equity fund launches and demand for fixed income and private credit strategies.
Strong Balance Sheet and Capital Position
Voya ended the quarter with excess capital of approximately $150 million and an RBC ratio of 385%, with plans to further strengthen excess capital in the second quarter.
Negative Updates
Challenges in Alternative Income
Alternative income was $0.15 below long-term expectations at an annualized return of approximately 5%, with expectations of below long-term returns continuing into the second quarter due to the macro environment.
Volatility in Stop Loss and Group Life
Stop Loss experience showed early improvement, but the environment remains complex. Group Life saw elevated claims in January, which normalized in subsequent months.
Macro Environment Uncertainty
The economic environment is described as mixed and volatile, leading to a cautious approach. Equity markets are expected to affect second-quarter AUM balances and revenues.
Voluntary Business Reserve Increase
Reserves were increased in the Voluntary business due to economic uncertainty and potential impact on utilization, affecting the expected loss ratio.
Company Guidance
During Voya Financial's First Quarter 2025 Earnings Conference Call, the company provided key guidance metrics, underscoring its strong performance and strategic direction. Voya reported $2 of adjusted operating earnings per share, reflecting a 13% increase over the previous year. The Wealth Solutions segment achieved $207 million in adjusted operating earnings, marking an 11% year-over-year growth, with $30 billion in net inflows and an additional $60 billion in assets from the OneAmerica acquisition. Investment Management saw net cash flows of $7.7 billion, translating to 2.5% organic growth, with diverse contributions from institutional and retail channels. Health Solutions reported adjusted operating earnings of $46 million, aided by favorable Stop Loss reserve developments and a positive outlook for future loss ratios. The company also emphasized its robust balance sheet, ending the quarter with $150 million in excess capital and an RBC ratio of 385%, while generating approximately $200 million in cash, exceeding its 90% target. Additionally, Voya highlighted its strategic investments in retail wealth capabilities and leave management, aligning with its long-term growth objectives.

Voya Financial Financial Statement Overview

Summary
Voya Financial demonstrates strong revenue growth and improved operational efficiency. The balance sheet shows a reduction in leverage and solid equity positioning, but cash flow metrics are concerning due to data unavailability and previous variability.
Income Statement
72
Positive
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.
Balance Sheet
65
Positive
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.
Cash Flow
55
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.99B7.89B7.35B5.90B3.63B7.65B
Gross Profit5.85B7.89B7.35B5.90B3.63B7.39B
EBITDA368.00M1.10B991.00M629.00M3.02B584.00M
Net Income572.00M667.00M625.00M510.00M2.37B-206.00M
Balance Sheet
Total Assets163.95B153.00B157.09B146.61B171.26B180.31B
Cash, Cash Equivalents and Short-Term Investments27.14B25.70B937.00M2.52B2.94B45.40B
Total Debt3.13B3.60B3.43B3.47B3.48B3.83B
Total Liabilities157.59B157.88B151.03B141.53B161.44B169.00B
Stockholders Equity4.38B4.00B4.19B3.35B8.25B10.11B
Cash Flow
Free Cash Flow501.00M911.00M1.64B1.35B22.00M1.21B
Operating Cash Flow501.00M911.00M1.64B1.35B22.00M1.21B
Investing Cash Flow-978.00M-141.00M2.53B-1.95B-327.00M-2.46B
Financing Cash Flow-74.00M-759.00M-4.06B28.00M-265.00M1.70B

Voya Financial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price72.74
Price Trends
50DMA
66.75
Positive
100DMA
66.18
Positive
200DMA
70.44
Positive
Market Momentum
MACD
1.76
Negative
RSI
67.98
Neutral
STOCH
81.99
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VOYA, the sentiment is Positive. The current price of 72.74 is above the 20-day moving average (MA) of 69.31, above the 50-day MA of 66.75, and above the 200-day MA of 70.44, indicating a bullish trend. The MACD of 1.76 indicates Negative momentum. The RSI at 67.98 is Neutral, neither overbought nor oversold. The STOCH value of 81.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
MTMTG
79
Outperform
$6.51B9.1215.12%1.90%4.64%15.36%
75
Outperform
$5.20B23.347.48%1.77%13.37%-35.09%
JXJXN
69
Neutral
$6.29B85.791.24%3.64%3.55%8.91%
67
Neutral
$6.97B13.6613.40%2.48%5.34%-25.43%
SLSLM
66
Neutral
$7.22B12.3927.60%1.51%-0.70%-12.72%
64
Neutral
$6.48B11.457.19%225.06%23.75%4.96%
62
Neutral
$5.17B15.379.32%1.20%23.79%121.61%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VOYA
Voya Financial
72.74
3.68
5.33%
MTG
MGIC Investment
27.25
6.04
28.48%
SIGI
Selective Insurance Group
85.96
-5.62
-6.14%
SLM
SLM
33.75
13.37
65.60%
PFSI
PennyMac Financial
100.57
9.03
9.86%
JXN
Jackson Financial Incorporation
88.91
14.67
19.76%

Voya Financial Corporate Events

Financial Disclosures
Voya Financial Reveals Q2 2025 Investment Income Estimate
Neutral
Jul 8, 2025

Voya Financial has disclosed its alternative investment income for the second quarter of 2025, estimating it to be between $45 million and $55 million pre-tax, which is slightly above or below its long-term expectations. The company cautions that these preliminary results, which include investment income from its general account and investment capital returns, are subject to change as they have not yet completed their financial closing procedures, nor have they been audited by Ernst & Young LLP.

The most recent analyst rating on (VOYA) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on Voya Financial stock, see the VOYA Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Voya Financial Elects Directors at Annual Meeting
Neutral
May 22, 2025

On May 22, 2025, Voya Financial held its Annual Meeting of Stockholders, where twelve directors were elected to serve a one-year term, and the compensation for named executive officers was approved. Additionally, the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year 2025 was ratified, indicating continued confidence in the company’s financial oversight.

The most recent analyst rating on (VOYA) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on Voya Financial stock, see the VOYA Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Voya Financial Completes $600M P-Caps Issuance
Positive
May 21, 2025

On May 21, 2025, Voya Financial, Inc. completed a significant financial transaction involving the issuance and sale of Pre-Capitalized Trust Securities (P-Caps) worth $600 million. This transaction, conducted through a private placement, provides Voya with a new source of contingent liquidity for general corporate purposes. The P-Caps, which are redeemable by May 15, 2035, offer an annual distribution rate of 6.012% and are available only to qualified institutional buyers. The arrangement includes a facility agreement allowing Voya to issue Senior Notes to the Trust in exchange for eligible assets, with various conditions and rights for redemption and repurchase. This move is expected to strengthen Voya’s financial flexibility and operational strategy.

The most recent analyst rating on (VOYA) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on Voya Financial stock, see the VOYA Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Voya Financial Reports Q1 2025 Earnings and Growth
Neutral
May 6, 2025

On May 6, 2025, Voya Financial reported its first-quarter 2025 financial results, highlighting a net income of $139 million and after-tax adjusted operating earnings of $195 million. The results were driven by the acquisition of OneAmerica Financial’s retirement plan business, positive capital markets, and disciplined spending. Despite a decrease in net income compared to the previous year due to the absence of prior investment gains and higher expenses, Voya showed growth in adjusted operating earnings. The company returned $43 million to shareholders and invested $200 million in strategic growth, maintaining a strong balance sheet and capital generation. Voya’s Wealth Solutions segment saw a significant increase in earnings and client assets, while Health Solutions faced challenges with declining revenues and margins. Investment Management experienced growth in fee-based revenues and net inflows, contributing to an improved operating margin.

Financial Disclosures
Voya Financial Reports $345 Billion in Managed Assets
Neutral
Apr 23, 2025

Voya Financial disclosed that as of March 31, 2025, its Investment Management segment managed assets totaling $345 billion. This includes a diverse portfolio of asset types and client categories, with significant holdings in equity and fixed income assets. The announcement provides stakeholders with an early insight into the company’s financial performance ahead of its scheduled quarterly earnings release.

Financial Disclosures
Voya Financial Reports Lower Than Expected Q1 Investment Income
Negative
Apr 9, 2025

Voya Financial announced preliminary results for the first quarter of 2025, revealing alternative investment income below long-term expectations, estimated at $24 million – $34 million pre-tax. The company cautions that these preliminary figures are subject to change and have not been audited, urging investors to exercise caution in relying on this information.

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.Date of analysis: Jun 07, 2025