Virtus Investment Partners (VRTS) AI Stock Analysis

• Market Cap: $1.20B
• Dividend Yield: 5.07%
• Average Volume (3M): 87.46K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.10
• Revenue Growth: -3.07%
• EPS Growth: 18.00%
• Country: US
• Employees: 805
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 6.69
• Shares Outstanding: 6,748,088
• 10 Day Avg. Volume: 86,791
• 30 Day Avg. Volume: 87,460
• PEG Ratio: -2.79
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 1.73
• P/FCF Ratio: -408.51
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 1.96
• Enterprise Value/Gross Profit: 3.74
• Enterprise Value/Ebitda: 3.87
• 1Y Price Target: $172.50
• Price Target Upside: 3.68% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 66 Neutral
• Price Target: $192.00 ▲(15.40% Upside)

Virtus Investment Partners' overall score reflects solid financial performance and attractive valuation, offset by bearish technical indicators and mixed earnings call results. The company's strong profitability and cash flow management are significant strengths, but high leverage and market challenges pose risks.

Positive Factors

ETF Segment Growth

The significant growth in the ETF segment indicates strong demand and effective market positioning, enhancing long-term revenue potential and diversification.

Improved Free Cash Flow

Improved free cash flow enhances financial flexibility, enabling strategic investments and debt reduction, supporting sustainable growth.

Dividend Increase

Consistent dividend increases reflect strong cash generation and management's commitment to returning value to shareholders, indicating financial health.

Negative Factors

High Leverage

High leverage can strain financial resources and limit strategic flexibility, posing risks to long-term stability and growth.

Net Outflows

Significant net outflows indicate challenges in retaining assets, which can impact revenue growth and highlight competitive pressures.

Negative Revenue Growth

Negative revenue growth suggests potential difficulties in market expansion and client retention, affecting long-term profitability.

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 primarily generates revenue through management fees charged on assets under management (AUM) and performance fees based on the investment performance of its funds. The company earns management fees as a percentage of the AUM across its various investment products, which can vary depending on the fund type and investment strategy. Additionally, Virtus may receive performance fees when certain funds exceed benchmark returns, providing an incentive for strong performance. The firm also benefits from distribution partnerships with financial advisors and platforms, enhancing its reach and potentially increasing AUM. Overall, its revenue model is heavily reliant on the growth of AUM and the performance of its investment offerings.

Virtus Investment Partners Financial Statement Overview

Summary

Virtus Investment Partners shows solid profitability with strong margins and improved free cash flow. However, challenges in revenue growth and high leverage pose risks that require careful management.

Income Statement

Virtus Investment Partners shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a slight decline in revenue growth, but the company maintains strong profitability with a gross profit margin of 52.47% and a net profit margin of 16.36%. The EBIT and EBITDA margins are robust at 43.50% and 50.74%, respectively, indicating efficient operations. However, the negative revenue growth rate suggests potential challenges in revenue generation.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.62, which is a concern as it indicates significant leverage. However, the company has a reasonable return on equity of 16.25%, showing effective use of equity to generate profits. The equity ratio stands at 24.25%, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis shows improvement with a 21.58% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is low at 0.26, indicating potential cash flow challenges. However, the free cash flow to net income ratio is strong at 0.82, suggesting good cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	887.89M	902.82M	841.49M	881.72M	974.67M	603.23M
Gross Profit	465.84M	470.23M	436.74M	510.46M	616.44M	335.93M
EBITDA	450.56M	460.20M	433.77M	321.51M	388.66M	300.08M
Net Income	145.29M	121.75M	130.62M	117.54M	208.13M	79.96M
Balance Sheet
Total Assets	3.70B	3.99B	3.68B	3.95B	3.93B	3.47B
Cash, Cash Equivalents and Short-Term Investments	172.20M	399.58M	340.33M	588.53M	585.54M	333.49M
Total Debt	2.35B	2.47B	2.18B	2.34B	2.30B	2.39B
Total Liabilities	2.67B	2.99B	2.71B	3.02B	2.96B	2.63B
Stockholders Equity	896.40M	897.49M	863.93M	817.02M	828.30M	711.14M
Cash Flow
Free Cash Flow	31.44M	-3.82M	228.34M	126.09M	659.89M	-227.15M
Operating Cash Flow	38.30M	1.75M	237.16M	132.67M	665.73M	-226.10M
Investing Cash Flow	-17.16M	-16.95M	-129.73M	-27.47M	-175.03M	8.68M
Financing Cash Flow	-129.73M	74.95M	-356.11M	-102.06M	-244.40M	235.33M

Virtus Investment Partners Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 166.38
• 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 VRTS, the sentiment is Negative. The current price of 166.38 is below the 20-day moving average (MA) of 186.01, below the 50-day MA of 191.39, and below the 200-day MA of 181.59, indicating a bearish trend. The MACD of -4.81 indicates Positive momentum. The RSI at 27.25 is Positive, neither overbought nor oversold. The STOCH value of 12.70 is Positive, 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
AB	76 Outperform	$4.35B	12.95	19.77%	8.60%	―	-12.92%
FHI	76 Outperform	$3.89B	11.15	32.69%	2.59%	5.92%	54.93%
VINP	76 Outperform	$712.77M	23.24	10.03%	5.40%	53.35%	-24.09%
AMG	74 Outperform	$6.79B	17.98	13.47%	0.02%	-5.87%	-21.51%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
VRTS	66 Neutral	$1.20B	9.11	15.07%	5.07%	-3.07%	18.00%
AAMI	63 Neutral	$1.69B	19.67	―	0.08%	21.14%	42.83%

Virtus Investment Partners Corporate Events

Virtus Investment Partners Enters New Credit Agreement

On September 26, 2025, Virtus Investment Partners, Inc. entered into a new credit agreement with Morgan Stanley Senior Funding, Inc. and other lenders, replacing its previous credit agreement from September 28, 2021. The new agreement includes a $400 million term loan with a seven-year term and a $250 million revolving credit facility with a five-year term. This move allows the company to refinance its existing term loan and support general corporate purposes, potentially enhancing its financial flexibility and operational capabilities.

The most recent analyst rating on (VRTS) stock is a Hold with a $210.00 price target. To see the full list of analyst forecasts on Virtus Investment Partners stock, see the VRTS Stock Forecast page.

Virtus Investment Partners’ Earnings Call Highlights Growth and Challenges

The latest earnings call from Virtus Investment Partners presented a generally positive outlook, despite some challenges. The company reported growth in assets under management, strong ETF performance, improved operating margins, and strategic share repurchases. However, it faced issues with net outflows in equity strategies and a decline in sales compared to the previous quarter. Overall, the sentiment was optimistic due to the company’s strategic positioning and long-term investment performance.