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Virtu Financial (VIRT) Stock Analysis

This is a peer-relative look at Virtu Financial (VIRT): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Financial Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Virtu Financial (VIRT)
Profile ItemVIRT
NameVirtu Financial Inc. Class A Common Stock
Country/RegionUnited States
GICS SectorFinancials
GICS Industry GroupFinancial Services
GICS IndustryCapital Markets
GICS Sub-IndustryInvestment Banking & Brokerage
Market Capitalization11.67 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateApril 16, 2015
Security TypeCommon Stock

Price Performance

Cumulative Growth

VIRT
GSPC
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Virtu Financial (VIRT) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Virtu Financial (VIRT) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Virtu Financial (VIRT) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Virtu Financial (VIRT) metric values compared with Financial Services industry-group medians
MetricCurrent stock: VIRTIndustry group median
Total Return (1Y)57.98%1.90%
Total Return (3Y, Annualized)51.24%12.71%
Total Return (5Y, Annualized)19.25%2.81%

Risk Profile

Drawdown History

VIRT
GSPC
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Virtu Financial (VIRT) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Virtu Financial (VIRT) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Virtu Financial (VIRT) metric values compared with Financial Services industry-group medians
MetricCurrent stock: VIRTIndustry group median
Volatility (1Y, Annualized)37.43%36.24%
Beta (5Y)0.691.04
Max Drawdown (5Y)-54.52%-48.56%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. VIRT is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Virtu Financial (VIRT) metric values compared with Financial Services industry-group medians
MetricCurrent stock: VIRTIndustry group median
Sharpe Ratio (1Y)1.43-0.09
Sortino Ratio (1Y)2.27-0.13

Profitability

ROE (TTM)

Virtu Financial (VIRT) posts ROE of 57.03%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

VIRT

Financial Services industry group

57.03%

Group distribution
VIRT
57.03%
Max
44.78%
Q3
21.85%
Median
12.91%
Q1
4.48%
Min
-18.71%
Largest peers
MA
231.37%
V
63.51%
VIRT
57.03%
MS
18.04%
GS
17.71%
BRK.A
12.12%
BRK.B
12.12%
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Where Virtu Financial (VIRT) stands on ROE within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Virtu Financial (VIRT) keeps 17.96% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

VIRT

Financial Services industry group

17.96%

Group distribution
Max
62.84%
Q3
28.05%
VIRT
17.96%
Median
15.36%
Q1
4.82%
Min
-28.52%
Largest peers
V
51.20%
MA
46.73%
GS
31.21%
MS
25.63%
BRK.A
22.30%
BRK.B
22.30%
VIRT
17.96%
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Where Virtu Financial (VIRT) stands on net margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Virtu Financial (VIRT) turns 36.32% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

VIRT

Financial Services industry group

36.32%

Group distribution
Max
107.33%
Q3
55.90%
VIRT
36.32%
Median
30.09%
Q1
14.60%
Min
-44.34%
Largest peers
V
63.73%
MA
60.53%
MS
39.00%
GS
38.37%
VIRT
36.32%
BRK.A
32.56%
BRK.B
32.56%
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Where Virtu Financial (VIRT) stands on operating margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Virtu Financial (VIRT) metric values compared with Financial Services industry-group medians
MetricCurrent stock: VIRTIndustry group median
ROE (TTM)57.03%12.91%
ROA (TTM)5.01%3.60%
Net Margin (TTM)17.96%15.36%
Operating Margin (TTM)36.32%30.09%
Gross Margin (TTM)----

Growth

Revenue Growth

Virtu Financial (VIRT) grew revenue 26.25%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Virtu Financial (VIRT): Revenue Growth across different time periods, set against Financial Services industry-group medians.

EPS Growth

Virtu Financial (VIRT) grew earnings per share 72.73%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

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Virtu Financial (VIRT): EPS Growth across different time periods, set against Financial Services industry-group medians.

Growth Metrics

Virtu Financial (VIRT) metric values compared with Financial Services industry-group medians
MetricCurrent stock: VIRTIndustry group median
Revenue Growth (YoY)26.25%9.46%
Revenue Growth (3Y CAGR)15.38%10.90%
EPS Growth (YoY)72.73%7.46%
EPS Growth (3Y CAGR)28.11%13.04%

Financial Strength

Current Ratio (MRQ)

current ratio is set aside for Virtu Financial (VIRT) in Financial Services: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for Virtu Financial (VIRT) in Financial Services: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.

Financial Strength Metrics

Virtu Financial (VIRT) metric values compared with Financial Services industry-group medians
MetricCurrent stock: VIRTIndustry group median
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Virtu Financial (VIRT) has dividend yield of 1.78%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

VIRT

Financial Services industry group

1.78%

Group distribution
Max
9.77%
Q3
3.92%
VIRT
1.78%
Median
1.09%
Q1
0.00%
Min
0.00%
Largest peers
MS
2.40%
GS
2.07%
VIRT
1.78%
V
0.66%
MA
0.53%
BRK.A
0.00%
BRK.B
0.00%
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Where Virtu Financial (VIRT) stands on dividend yield within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Virtu Financial (VIRT) has payout ratio of 15.95%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

VIRT

Financial Services industry group

15.95%

Group distribution
Max
241.07%
Q3
97.36%
Median
25.77%
VIRT
15.95%
Q1
0.00%
Min
0.00%
Largest peers
MS
32.91%
GS
25.88%
V
21.75%
MA
17.63%
VIRT
15.95%
BRK.A
0.00%
BRK.B
0.00%
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Where Virtu Financial (VIRT) stands on payout ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Virtu Financial (VIRT) metric values compared with Financial Services industry-group medians
MetricCurrent stock: VIRTIndustry group median
Dividend Yield (TTM)1.78%1.09%
Dividend Payout Ratio (TTM)15.95%25.77%

Valuation

P/E Ratio (TTM)

Virtu Financial (VIRT) trades at P/E ratio of 7.92, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

VIRT

Financial Services industry group

7.92

Group distribution
Max
45.85
Q3
24.64
Median
15.37
Q1
9.68
VIRT
7.92
Min
0.16
Largest peers
V
34.31
MA
34.15
MS
14.39
BRK.A
14.36
BRK.B
14.36
GS
12.45
VIRT
7.92
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Where Virtu Financial (VIRT) stands on P/E ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Virtu Financial (VIRT) trades at 3.35 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

VIRT

Financial Services industry group

3.35

Group distribution
Max
9.23
Q3
4.57
VIRT
3.35
Median
2.72
Q1
1.28
Min
-0.55
Largest peers
V
17.18
MA
15.67
MS
3.55
GS
3.52
VIRT
3.35
BRK.A
3.18
BRK.B
3.18
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Where Virtu Financial (VIRT) stands on P/S ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Virtu Financial (VIRT) trades at 1.92 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

VIRT

Financial Services industry group

1.92

Group distribution
Max
7.79
Q3
3.63
VIRT
1.92
Median
1.57
Q1
0.81
Min
-0.39
Largest peers
MA
84.30
V
22.05
MS
2.65
GS
2.36
VIRT
1.92
BRK.A
1.72
BRK.B
0.00
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Where Virtu Financial (VIRT) stands on P/B ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Virtu Financial (VIRT) metric values compared with Financial Services industry-group medians
MetricCurrent stock: VIRTIndustry group median
P/E Ratio (TTM)7.9215.37
P/S Ratio (TTM)3.352.72
P/B Ratio (MRQ)1.921.57
Free Cash Flow Yield (TTM)----