VRTS Stock Fair Value – VIRTUS INVESTMENT PARTNERS Reports Strong Q2 Earnings for FY2023
July 29, 2023
☀️Earnings Overview
On July 28 2023, VIRTUS INVESTMENT PARTNERS ($NASDAQ:VRTS) reported their financial performance for the second quarter of FY2023 ending June 30 2023. The company recorded a total revenue of USD 212.3 million, which was 5.3% lower than the same period the previous year. However, net income rose by 73.9% to USD 30.3 million.
Price History
VIRTUS INVESTMENT PARTNERS reported strong quarterly earnings for FY2023 on Friday, with the stock opening at $202.3 and closing at $201.8, representing a 4.3% drop from the previous closing price of 210.8. The company attributed this increase primarily to cost containment initiatives such as reducing staff costs, streamlining operations, and optimizing asset structure. The strong quarterly performance by VIRTUS INVESTMENT PARTNERS can be attributed to its robust management strategies and strategic investments in various asset classes, which have enabled the company to generate higher returns for its investors. With its healthy balance sheet and strong financial position, VIRTUS INVESTMENT PARTNERS remains well positioned to capitalize on the current market conditions and deliver consistent results going forward. 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 Stock Fair Value
At GoodWhale, we have conducted an in-depth analysis of VIRTUS INVESTMENT PARTNERS’s fundamentals. As a result, our proprietary Valuation Line has calculated the fair value of a share in VIRTUS INVESTMENT PARTNERS to be around $227.7. 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 recently reported their second quarter earnings for FY2023, ending June 30 2023. Revenue saw a slight decrease of 5.3% year-on-year to USD 212.3 million, while net income grew significantly by 73.9% to USD 30.3 million. However, their stock price decreased on the same day, suggesting investors were not fully satisfied with the results. Going forward, investors should continue to monitor the company’s earnings and financial health for a better understanding of the long-term investment potential in VIRTUS INVESTMENT PARTNERS.
