Virtus Investment Partners (VRTS) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: 5.66%
• Average Volume (3M): 63.19K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.99
• 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: 6,754,405
• 10 Day Avg. Volume: 56,095
• 30 Day Avg. Volume: 63,191
• 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: 1.31
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 3.10
• Enterprise Value/Ebitda: 3.37
• 1Y Price Target: $176.00
• Price Target Upside: 8.78% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $177.00 ▲(9.40% Upside)

Virtus Investment Partners demonstrates strong valuation metrics and strategic corporate actions, which are offset by technical weaknesses and financial risks. The company's high dividend yield and low P/E ratio are attractive, but challenges in revenue growth and leverage need addressing.

Positive Factors

ETF Segment Growth

The significant growth in the ETF segment indicates strong market demand and effective product strategy, supporting long-term revenue potential.

Cash Flow Improvement

Improved cash flow enhances liquidity and financial flexibility, enabling strategic investments and debt management.

Dividend Increase

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

Negative Factors

High Leverage

High leverage can increase financial risk and limit the company's ability to invest in growth opportunities.

Net Outflows

Persistent net outflows indicate challenges in retaining client assets, which can pressure revenue and profitability.

Declining Revenue Growth

Declining revenue growth suggests potential difficulties in market competitiveness and client acquisition.

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 charged based on the assets under management (AUM) in its investment products. These fees are typically a percentage of the AUM and vary depending on the type and performance of the funds. Additionally, the company earns performance fees on certain investment products that exceed specified benchmarks. Another revenue stream includes distribution fees and commissions from sales of its mutual funds and ETFs. Strategic partnerships with investment managers enhance its product offerings and can lead to increased AUM, further driving revenue. Overall, the combination of management and performance fees, along with distribution revenues, forms the core of Virtus's financial performance.

Virtus Investment Partners Financial Statement Overview

Summary

Virtus Investment Partners demonstrates solid profitability with strong margins and improved free cash flow. However, challenges include negative revenue growth and high leverage, which pose risks that need 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	873.90M	902.82M	841.49M	881.72M	974.67M	603.23M
Gross Profit	461.77M	470.23M	436.74M	510.46M	616.44M	335.93M
EBITDA	424.71M	460.20M	433.77M	325.85M	474.08M	300.08M
Net Income	136.24M	121.75M	130.62M	117.54M	208.13M	79.96M
Balance Sheet
Total Assets	3.91B	3.99B	3.68B	3.95B	3.93B	3.47B
Cash, Cash Equivalents and Short-Term Investments	461.33M	399.58M	340.33M	588.53M	585.54M	333.49M
Total Debt	2.52B	2.47B	2.25B	2.34B	2.30B	2.39B
Total Liabilities	2.88B	2.99B	2.71B	3.02B	2.96B	2.63B
Stockholders Equity	918.70M	897.49M	863.93M	817.02M	828.30M	711.14M
Cash Flow
Free Cash Flow	69.57M	-3.82M	228.34M	126.09M	659.89M	-227.15M
Operating Cash Flow	77.44M	1.75M	237.16M	132.67M	665.73M	-226.10M
Investing Cash Flow	-17.56M	-16.95M	-129.73M	-27.47M	-175.03M	8.68M
Financing Cash Flow	90.21M	74.95M	-356.11M	-102.06M	-244.40M	235.33M

Virtus Investment Partners Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 161.79
• 50DMA: Negative
• 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 Neutral. The current price of 161.79 is above the 20-day moving average (MA) of 159.92, below the 50-day MA of 170.40, and below the 200-day MA of 174.59, indicating a neutral trend. The MACD of -2.55 indicates Negative momentum. The RSI at 48.70 is Neutral, neither overbought nor oversold. The STOCH value of 74.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VRTS.

Virtus Investment Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMG	77 Outperform	$7.68B	16.68	15.95%	0.02%	1.08%	8.24%
AB	76 Outperform	$3.89B	14.10	19.77%	8.11%	―	-12.92%
FHI	75 Outperform	$3.94B	10.64	32.06%	2.62%	9.32%	53.51%
VINP	73 Outperform	$767.79M	25.13	10.40%	4.94%	81.45%	-26.75%
VRTS	69 Neutral	$1.09B	8.30	15.07%	5.66%	-3.07%	18.00%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AAMI	65 Neutral	$1.67B	19.74	7024.00%	0.09%	21.53%	42.18%

Virtus Investment Partners Corporate Events

Virtus Investment Partners Acquires Keystone National Group

On December 5, 2025, Virtus Investment Partners announced an agreement to acquire a majority interest in Keystone National Group, an investment manager specializing in asset-backed private credit. This acquisition, expected to close in the first quarter of 2026, will expand Virtus’ offerings into private markets, enhancing its capabilities with Keystone’s differentiated asset-backed lending strategies. The transaction, valued at $200 million with potential additional payments, is anticipated to be accretive to earnings in 2026 and will allow Keystone to maintain its investment autonomy and brand identity while leveraging Virtus’ extensive distribution network.

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.