Virtus Investment Partners (VRTS) AI Stock Analysis

• Market Cap: $1.39B
• Dividend Yield: 4.48%
• Average Volume (3M): 126.02K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.15
• 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: 207,690
• 30 Day Avg. Volume: 126,020
• PEG Ratio: -0.29
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.22
• Enterprise Value/Market Cap: 2.46
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 7.23
• Enterprise Value/Ebitda: 2.21
• 1Y Price Target: $172.50
• Price Target Upside: -14.06% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: $223.00 ▲(11.11%Upside)

Virtus Investment Partners receives a strong overall score due to its solid valuation and technical indicators. While financial performance shows profitability, attention is needed on revenue growth and leverage. The earnings call provides a balanced view with both positive highlights and challenges.

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 makes money primarily through management fees charged on the assets it manages on behalf of its clients. These fees are typically a percentage of the assets under management (AUM) and are charged on an ongoing basis. The company also earns performance fees, which are based on exceeding certain benchmarks or achieving specific investment performance targets. Additionally, Virtus generates revenue through distribution fees and shareholder servicing fees related to its mutual fund products. Significant partnerships with sub-advisors and investment specialists enhance its product offerings and contribute to its overall revenue generation.

Virtus Investment Partners Financial Statement Overview

Summary

Virtus Investment Partners exhibits strong profitability margins with a solid EBIT and EBITDA margin. However, the declining revenue growth rate and significant leverage, typical for the industry, require careful management to maintain financial stability.

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	900.74M	902.82M	841.49M	881.72M	974.67M	603.23M
Gross Profit	472.08M	470.23M	436.74M	510.46M	616.44M	335.93M
EBITDA	386.24M	182.49M	433.77M	321.51M	388.66M	300.08M
Net Income	120.53M	121.75M	130.62M	117.54M	208.13M	79.96M
Balance Sheet
Total Assets	3.69B	3.99B	3.68B	3.95B	3.93B	3.47B
Cash, Cash Equivalents and Short-Term Investments	218.85M	399.58M	340.33M	338.20M	585.54M	333.49M
Total Debt	2.34B	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	893.72M	897.49M	863.93M	817.02M	828.30M	711.14M
Cash Flow
Free Cash Flow	25.86M	-3.82M	228.34M	126.09M	659.89M	-227.15M
Operating Cash Flow	32.50M	1.75M	237.16M	132.67M	665.73M	-226.10M
Investing Cash Flow	-17.48M	-16.95M	-129.73M	-27.47M	-175.03M	8.68M
Financing Cash Flow	-43.37M	74.95M	-356.11M	-102.06M	-244.40M	235.33M

Virtus Investment Partners Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 200.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 200.71 is above the 20-day moving average (MA) of 178.12, above the 50-day MA of 170.35, and above the 200-day MA of 192.33, indicating a bullish trend. The MACD of 5.37 indicates Negative momentum. The RSI at 76.86 is Negative, neither overbought nor oversold. The STOCH value of 85.14 is Negative, 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
VRTS	73 Outperform	$1.39B	11.91	13.66%	4.48%	0.63%	1.46%
WT	71 Outperform	$1.69B	34.12	10.77%	0.98%	20.66%	-47.25%
GSBD	71 Outperform	$1.35B	26.61	3.27%	16.70%	-28.04%	-69.52%
AMTD	68 Neutral	$1.13B	1.41	11.11%	―	―	―
Sector *	67 Neutral	$16.84B	11.72	9.71%	3.76%	11.61%	-9.60%
NMFC	65 Neutral	$1.15B	10.73	8.11%	12.05%	-3.55%	-20.43%
PX	61 Neutral	$1.18B	68.29	5.24%	1.43%	18.92%	―

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.

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.

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.