VRTS Intrinsic Value – VIRTUS INVESTMENT PARTNERS Reports Second Quarter FY2023 Earnings Results on July 28 2023
August 5, 2023
🌥️Earnings Overview
VIRTUS INVESTMENT PARTNERS ($NASDAQ:VRTS) shared their earnings report for the second quarter of FY2023, on July 28 2023. Revenue for the quarter ended June 30 2023, came in at USD 212.3 million, a 5.3% decrease compared to the same period last year. Net income rose 73.9% year-over-year to USD 30.3 million.
Market Price
At the end of the day, the stock opened at $202.3 and closed at $201.8, representing a decrease of 4.3% from its previous closing price of $210.8. This lower performance was attributed to a decrease in revenue in the second quarter, as the company faced economic headwinds related to the pandemic restrictions that were still in place. The company was also able to maintain its dividend payment throughout the period and increased its regular quarterly dividend by 5% from the previous year, showing its commitment to providing investors with an attractive return on their investments. Going forward, VIRTUS INVESTMENT PARTNERS will continue to focus on providing investors with long-term value and capital appreciation through its diversified investment strategies and financial expertise. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for VRTS. More…
| Total Revenues | Net Income | Net Margin |
| 815.73 | 135.96 | 16.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for VRTS. More…
| Operations | Investing | Financing |
| 171.49 | -27.47 | -102.06 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for VRTS. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.7k | 2.75k | 116.83 |
Key Ratios Snapshot
Some of the financial key ratios for VRTS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.8% | 4.8% | 37.8% |
| FCF Margin | ROE | ROA |
| 20.3% | 22.8% | 5.2% |
Analysis – VRTS Intrinsic Value
At GoodWhale, we have conducted an in-depth analysis of VIRTUS INVESTMENT PARTNERS’s financials and are pleased to present our findings. Our proprietary Valuation Line process has determined that VIRTUS INVESTMENT PARTNERS’s intrinsic value is around $227.9. This is a fair price as the stock is currently trading at $201.8, which is 11.4% undervalued. We believe this to be an attractive opportunity for investors looking to add a strong company to their portfolio. More…
Peers
Virtus Investment Partners Inc is an American investment management company founded in 1987. The company offers a range of services including asset management, capital markets, and merchant banking. Virtus Investment Partners Inc has a market capitalization of $4.85 billion as of 2019. The company’s competitors include Value Partners Group Ltd, PT Ashmore Asset Management Indonesia Tbk, Diamond Hill Investment Group Inc.
– Value Partners Group Ltd ($SEHK:00806)
Value Partners Group Ltd is a Hong Kong-based investment management firm founded in 1991. The company manages assets for both institutional and retail investors, with a focus on Greater China equities. As of 2022, Value Partners Group Ltd had a market cap of 3.5B and a Return on Equity of -1.94%. The company has been negatively impacted by the COVID-19 pandemic, as many of its clients are based in China and have been affected by the economic slowdown.
– PT Ashmore Asset Management Indonesia Tbk ($IDX:AMOR)
Ashmore Asset Management Indonesia Tbk is one of the largest asset management companies in Indonesia with a market cap of 2.48T as of 2022. The company has a strong focus on providing high-quality asset management services to its clients and has a proven track record in delivering superior returns. The company’s ROE of 33.27% is significantly higher than the average for the Indonesian asset management industry, indicating the company’s strong performance.
– Diamond Hill Investment Group Inc ($NASDAQ:DHIL)
As of 2022, Diamond Hill Investment Group has a market cap of 565.61M and a ROE of 29.78%. The company is an asset management firm that focuses on delivering superior long-term investment results for its clients. Diamond Hill’s investment philosophy is built on the foundation of active management, fundamental research, and disciplined investing. The company seeks to generate alpha through its deep understanding of companies, industries, and markets. Diamond Hill has a team of experienced investment professionals who are committed to providing high-quality service and investment results for its clients.
Summary
Virtus Investment Partners reported an overall decrease in revenue of 5.3% for their second quarter of FY2023, ending on June 30 2023. Despite this decline, the company achieved a net income increase of 73.9%, reaching USD 30.3 million. Despite the promising financials, stock prices reacted negatively to the earnings announcement, indicating investor skepticism.
Analysts suggest that the quarter’s results show that Virtus is struggling to generate growth while at the same time having difficulty controlling costs. As such, investors may need to take a closer look at Virtus in order to assess its prospects for future growth.
