Virtus Investment Partners (VRTS) AI Stock Analysis

• Market Cap: $1.17B
• Dividend Yield: 5.06%
• Average Volume (3M): 45.36K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.14
• Revenue Growth: 0.63%
• EPS Growth: 1.46%
• Country: US
• Employees: 805
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management
• EPS (TTM): 5.73
• Shares Outstanding: 6,911,164
• 10 Day Avg. Volume: 45,251
• 30 Day Avg. Volume: 45,364
• PEG Ratio: 3.08
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -315.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $167.75
• Price Target Upside: 0.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $187.00 ▲( 12.00% Upside)

Virtus Investment Partners' overall stock score is bolstered by its strong valuation and prudent earnings call highlights, including EPS growth and strategic share buybacks. Despite high leverage and declining revenue growth, the company’s short-term technical indicators and ETF performance provide a balanced outlook.

Positive Factors

Capital Allocation

Virtus repurchased ~$15M shares and increased an investment in an affiliate for ~$29M, demonstrating strong capital allocation.

Earnings

Raising 4Q24e Adj EPS by +0.5% to $8.04 from $8.00 on better non-comp expenses and reduced NCI.

Product Development

New products are in the pipeline with optimism around ETFs, including an actively managed mid-cap equities ETF and a private credit CLO ETF.

Negative Factors

Net Outflow

The company experienced ~$1.7B of net outflow in Q3, primarily from Open-end funds and Institutional Accounts.

Virtus Investment Partners Business Overview & Revenue Model

Company Description

Virtus Investment Partners, Inc. is a publicly owned investment manager. The firm primarily provides its services to individual and institutional clients. It launches separate client focused equity and fixed income portfolios. The firm launches equity, fixed income, and balanced mutual funds for its clients. It invests in the public equity, fixed income, and real estate markets. The firm also invests in exchange traded funds. It employs a multi manager approach for its products. The firm employs quantitative analysis to make its investments. It benchmarks the performance of its portfolios against the S&P 500 Index. The firm conducts in-house research to make its investments. Virtus Investment Partners, Inc. was founded in 1988 and is based in Hartford, Connecticut.

How the Company Makes Money

Virtus Investment Partners generates revenue primarily through management fees, which are calculated as a percentage of assets under management (AUM). These fees vary based on the type of investment product and the specific strategy employed. In addition to management fees, Virtus earns performance fees on certain investment products if specific performance targets are met. The company's revenue is significantly influenced by the performance of the financial markets, as fluctuations in market conditions can impact the value of AUM. Virtus also benefits from strategic partnerships with its affiliated managers and unaffiliated subadvisers, which enhance its product offerings and distribution capabilities. These collaborations help Virtus attract and retain clients, ultimately contributing to its revenue growth.

Virtus Investment Partners Financial Statement Overview

Summary

Virtus Investment Partners shows strong revenue growth and good profitability, but struggles with cash flow management. The balance sheet is healthy with no debt, which is a positive indicator of financial stability. However, cash flow issues suggest a need for improvement to support ongoing operations.

Income Statement

Virtus Investment Partners has shown consistent revenue growth with a notable increase from $841 million in 2023 to $906 million in 2024. The gross profit margin is strong at 100%, indicating efficient cost management. However, the net profit margin decreased slightly from 15.5% in 2023 to 13.4% in 2024, suggesting increased expenses or lower pricing power. The EBIT and EBITDA margins are stable, reflecting solid operational efficiency.

Balance Sheet

The company's balance sheet is robust with a debt-to-equity ratio of zero, indicating no debt burden. The equity ratio is approximately 22.5%, which shows moderate leverage but suggests potential for financial stability. Return on Equity (ROE) decreased from 15.1% in 2023 to 13.6% in 2024, which could indicate challenges in generating higher returns for shareholders.

Cash Flow

Operating cash flow has decreased significantly from $237 million in 2023 to $1.75 million in 2024. Free cash flow has also seen a similar decline. The operating cash flow to net income ratio and free cash flow to net income ratio are low, suggesting cash generation issues despite profitability. There is a need to improve cash flow management to support ongoing operations and investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
902.82M	841.49M	881.72M	974.67M	603.23M
	Gross Profit
906.95M	436.74M	510.46M	616.44M	335.93M
	EBIT
182.49M	151.48M	321.12M	325.49M	257.21M
	EBITDA
182.49M	433.77M	321.51M	474.08M	300.08M
	Net Income Common Stockholders
121.75M	130.62M	117.54M	208.13M	119.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
265.89M	340.33M	338.20M	378.90M	333.49M
	Total Assets
3.99B	3.68B	3.95B	3.93B	3.47B
	Total Debt
2.47B	2.18B	2.34B	2.30B	2.39B
	Net Debt
2.07B	1.84B	2.00B	1.92B	2.06B
	Total Liabilities
2.99B	2.71B	3.02B	2.96B	2.63B
	Stockholders Equity
897.49M	863.93M	817.00M	828.30M	711.14M
Cash Flow		Free Cash Flow
1.75M	228.34M	126.09M	659.89M	-227.15M
	Operating Cash Flow
1.75M	237.16M	132.67M	665.73M	-226.10M
	Investing Cash Flow
-16.95M	-129.73M	-27.47M	-175.03M	8.68M
	Financing Cash Flow
74.95M	-356.11M	-102.06M	-244.40M	235.33M

Virtus Investment Partners Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 166.96
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRTS, the sentiment is Negative. The current price of 166.96 is above the 20-day moving average (MA) of 165.45, above the 50-day MA of 162.92, and below the 200-day MA of 195.04, indicating a neutral trend. The MACD of 4.21 indicates Negative momentum. The RSI at 54.00 is Neutral, neither overbought nor oversold. The STOCH value of 43.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRTS.

Virtus Investment Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PX	73 Outperform	$1.25B	72.85	5.24%	1.25%	18.92%	―
WT	73 Outperform	$1.39B	28.15	10.77%	1.26%	20.66%	-47.25%
GSBD	71 Outperform	$1.29B	25.43	3.27%	15.20%	-28.04%	-69.52%
VRTS	71 Outperform	$1.17B	10.03	13.66%	5.06%	0.63%	1.46%
NMFC	65 Neutral	$1.14B	10.66	8.11%	12.07%	-3.55%	-20.43%
AMTD	64 Neutral	$1.12B	1.42	11.11%	―	―	―
Sector *	64 Neutral	$12.66B	9.79	7.67%	17015.07%	12.23%	-6.06%

Virtus Investment Partners Corporate Events

Virtus Investment Partners Holds Annual Shareholder Meeting

On May 14, 2025, Virtus Investment Partners held its annual meeting of shareholders where several key proposals were voted on. Shareholders elected directors to serve until the 2026 Annual Meeting, ratified Deloitte & Touche LLP as the independent accounting firm for the fiscal year ending December 31, 2025, and approved executive compensation on an advisory basis. These decisions reflect the company’s ongoing governance practices and commitment to maintaining its operational and financial integrity.

The most recent analyst rating on (VRTS) stock is a Buy with a $264.00 price target. To see the full list of analyst forecasts on Virtus Investment Partners stock, see the VRTS Stock Forecast page.