Virtus Investment Partners (VRTS) AI Stock Analysis

• Market Cap: $1.31B
• Dividend Yield: 4.57%
• Average Volume (3M): 75.67K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 1.16
• Revenue Growth: 0.66%
• EPS Growth: 36.96%
• Country: US
• Employees: 805
• Sector: Financial
• Sector Strength: 71
• Industry: Asset Management
• EPS (TTM): 6.25
• Shares Outstanding: 6,748,088
• 10 Day Avg. Volume: 93,687
• 30 Day Avg. Volume: 75,673
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 1.65
• Enterprise Value/Gross Profit: 3.14
• Enterprise Value/Ebitda: 3.25
• 1Y Price Target: $203.25
• Price Target Upside: 3.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: $219.00 ▲(11.18% Upside)

Virtus Investment Partners scores well due to its strong valuation metrics and solid technical indicators. Financial performance is robust, with strong profitability and cash flow management, though high leverage remains a concern. The earnings call provided mixed signals, with positive operational metrics but challenges in equity strategy outflows.

Positive Factors

Earnings

Raising 3Q25e Adj EPS by +5.6% to $7.35 due to better interest and dividend income.

Stock Valuation

Price target increased by 2% reflecting anticipated positive performance.

Negative Factors

Expenses

Lower management fees and higher expenses present challenges.

Management Fees

'26e Adj. EPS is expected to decrease by 0.7% due to softer management fees.

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 strong profitability margins with a solid EBIT and EBITDA margin. However, declining revenue growth and high leverage pose risks, requiring attention to revenue growth and leverage management.

Income Statement

Virtus Investment Partners demonstrates a stable income statement with a TTM gross profit margin of 52.4% and a net profit margin of 13.4%. Despite a slight decline in revenue from the previous year, the company maintains a solid EBIT margin of 20.7% and an EBITDA margin of 42.9%. However, the declining revenue growth rate is a concern, indicating potential challenges in expanding top-line performance.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 2.62, indicating significant leverage, which is common in the asset management industry but poses risks if not managed well. The equity ratio is stable at 24.3%, and the return on equity stands at 13.5%, showing effective use of shareholder funds. However, the relatively high leverage could affect financial stability in adverse market conditions.

Cash Flow

Cash flow analysis shows a commendable free cash flow growth rate, recovering from negative figures in previous years to a positive $25.9 million TTM. The operating cash flow to net income ratio of 0.27 suggests room for improvement in converting income to cash. The free cash flow to net income ratio is favorable at 0.21, indicating a positive trajectory in cash flow generation.

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: Positive
• Last Price: 196.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRTS, the sentiment is Positive. The current price of 196.97 is above the 20-day moving average (MA) of 196.04, above the 50-day MA of 196.29, and above the 200-day MA of 187.83, indicating a bullish trend. The MACD of 0.80 indicates Positive momentum. The RSI at 51.63 is Neutral, neither overbought nor oversold. The STOCH value of 42.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VRTS.

Virtus Investment Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WT	79 Outperform	$1.98B	34.69	11.22%	0.88%	15.43%	-19.63%
VRTS	73 Outperform	$1.31B	9.44	16.46%	4.57%	0.66%	36.96%
GSBD	71 Outperform	$1.31B	9.22	9.36%	15.28%	-55.16%	47.09%
AMTD	71 Outperform	$1.12B	1.45	11.11%	―	―	―
PX	70 Neutral	$1.32B	96.16	4.20%	1.18%	15.60%	445.23%
Sector *	68 Neutral	$17.78B	11.94	9.89%	3.74%	9.69%	1.17%
NMFC	65 Neutral	$1.13B	14.03	6.18%	12.41%	39.05%	-32.62%

Virtus Investment Partners Corporate Events

Virtus Investment Partners Director Susan Fleming to Retire

On June 27, 2025, Susan S. Fleming announced her decision to retire from her role as a director at Virtus Investment Partners, effective at the end of her term in May 2026. Dr. Fleming has served as a director since the company’s inception as an independent public entity in 2009, and her departure marks the end of a significant tenure, during which she held key positions such as Chairperson of the Governance Committee and member of the Audit Committee.