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Voya Financial (VOYA)
NYSE:VOYA
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Voya Financial
(NYSE:VOYA)
64Neutral
Positive Factors
Asset Growth
Total client assets grew 21% driven by $60bn in assets acquired from OneAmerica, positive capital markets, and large mandate wins.
Long-term Growth Strategy
Management provided a sensible turnaround strategy that gives conviction in Voya's long-term growth profile.
Negative Factors
Earnings Forecast
2025 earnings per share are likely to be lower than expectations.
Stock Performance
The stock has been downgraded to 'Underperform' due to what appears to be a 'reset' year for the company.
Voya Financial (VOYA) vs. S&P 500 (SPY)
Market Cap
$5.80B
Dividend Yield2.9%
Average Volume (3M)1.06M
Price to Earnings (P/E)9.8
Beta (1Y)0.95
Revenue Growth3.54%
EPS Growth-25.45%
CountryUS
Employees10,000
SectorFinancial
Sector Strength83
IndustryFinancial - Conglomerates
Share Statistics
EPS (TTM)2.00
Shares Outstanding96,210,950
10 Day Avg. Volume966,847
30 Day Avg. Volume1,057,340
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.14
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.54
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$74.30Price Target Upside13.07% 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 shows strong revenue growth and improved operational efficiency. The balance sheet reflects a reduction in leverage and solid equity positioning, but cash flow metrics highlight potential concerns due to data unavailability and previous variability. Continued focus on enhancing profitability and cash flow stability will be crucial for sustained financial health.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.―
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
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.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 8.05B | 7.35B | 5.90B | 3.25B | 7.39B | Gross Profit |
| 8.05B | 7.35B | 5.90B | 3.25B | 7.39B | EBIT |
| 4.97B | 729.00M | 716.00M | 1.45B | -549.00M | EBITDA |
| 0.00 | 991.00M | 629.00M | 3.02B | 584.00M | Net Income Common Stockholders |
| 667.00M | 625.00M | 510.00M | 2.37B | 370.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 237.00M | 937.00M | 2.52B | 2.94B | 46.33B | Total Assets |
| 6.59B | 157.09B | 147.65B | 171.26B | 180.31B | Total Debt |
| 2.45B | 3.43B | 2.23B | 2.60B | 3.04B | Net Debt |
| 2.23B | 2.31B | 1.32B | 1.19B | 1.54B | Total Liabilities |
| 2.59B | 151.03B | 141.53B | 161.44B | 169.00B | Stockholders Equity |
| 4.00B | 4.19B | 4.47B | 8.25B | 10.24B |
| Cash Flow | Free Cash Flow | |||
| 911.00M | 1.64B | 1.35B | 556.00M | 1.21B | Operating Cash Flow |
| 911.00M | 1.64B | 1.35B | 72.00M | 1.21B | Investing Cash Flow |
| -141.00M | 2.53B | -1.95B | -327.00M | -2.46B | Financing Cash Flow |
| -759.00M | -4.06B | 28.00M | -265.00M | 1.70B |
Voya Financial Technical Analysis
Positive
65.71
Price Trends
63.76
Positive
66.74
Positive
70.93
Negative
Market Momentum
0.18
Negative
64.73
Neutral
80.69
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 65.71 is above the 20-day moving average (MA) of 59.06, above the 50-day MA of 63.76, and below the 200-day MA of 70.93, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 64.73 is Neutral, neither overbought nor oversold. The STOCH value of 80.69 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.18B | 8.66 | 15.12% | 1.94% | 4.64% | 15.36% | |
74 Outperform | $5.41B | 24.21 | 7.48% | 1.64% | 13.37% | -35.09% | |
69 Neutral | $5.90B | 6.92 | 9.49% | 3.55% | 3.55% | 8.91% | |
66 Neutral | $6.55B | 11.23 | 27.60% | 1.54% | -0.70% | -12.72% | |
64 Neutral | $12.51B | 9.81 | 7.92% | 16985.69% | 12.67% | -5.98% | |
64 Neutral | $5.80B | 9.82 | 13.40% | 2.90% | 3.54% | -25.45% | |
62 Neutral | $4.95B | 14.98 | 9.32% | 1.15% | 23.79% | 121.61% |
* Financial Sector Average
Performance Comparison
VOYA
Voya Financial
66.90
-4.83
-6.73%
MTG
MGIC Investment
26.20
5.36
25.72%
SIGI
Selective Insurance Group
89.70
-7.18
-7.41%
SLM
SLM
31.52
10.01
46.54%
PFSI
PennyMac Financial
97.68
5.03
5.43%
JXN
Jackson Financial Incorporation
83.07
7.11
9.36%
Voya Financial Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 9.08%|
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 Corporate Events
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.
Spark’s Take on VOYA Stock
According to Spark, TipRanks’ AI Analyst, VOYA is a Neutral.
Voya Financial’s overall stock score of 67 reflects its strong financial performance, characterized by revenue growth and efficient operations. While valuation metrics are favorable, technical indicators suggest bearish trends, warranting caution. The earnings call highlighted growth in key areas, but challenges in Health Solutions and lower prepayment income expectations are notable risks. Recent corporate events further underscore the mixed outlook, with strategic acquisitions offering potential upside.
To see Spark’s full report on VOYA stock, click here.
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.
Spark’s Take on VOYA Stock
According to Spark, TipRanks’ AI Analyst, VOYA is a Neutral.
Voya Financial’s overall stock score of 67 reflects its strong financial performance, characterized by revenue growth and efficient operations. While valuation metrics are favorable, technical indicators suggest bearish trends, warranting caution. The earnings call highlighted growth in key areas, but challenges in Health Solutions and lower prepayment income expectations are notable risks. Recent corporate events further underscore the mixed outlook, with strategic acquisitions offering potential upside.
To see Spark’s full report on VOYA stock, click here.
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.
Spark’s Take on VOYA Stock
According to Spark, TipRanks’ AI Analyst, VOYA is a Neutral.
Voya Financial’s stock score is supported by strong revenue growth and strategic earnings call highlights. However, technical indicators suggest caution due to bearish trends. Valuation remains fair, providing a buffer against operational challenges, particularly in cash flow management and sector-specific pressures.
To see Spark’s full report on VOYA stock, click here.
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.