Virtus Investment Partners, Inc. (VRTS)
Valuation Overview•Is Virtus Investment Partners, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 45/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
VRTS demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company maintains stable top-line performance paired with robust earnings compounding (8.8% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 17.4% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $189.1M | -8.0% | — | — | +8.1% | |
| EBITDA | $27.7M | — | -8.4% | — | — | |
| Net Income | $35.5M | +13.7% | +5.6% | — | +14.7% | |
| EPS (Diluted) | $5.17 | +18.2% | +8.8% | +14.8% | +17.7% | |
| Free Cash Flow | -$241.5M | -1837.5% | — | +20.1% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 74.9% | 59.6% | 60.0% | 58.2% |
| Operating Margin | 17.4% | 18.6% | 22.3% | 20.8% |
| Net Margin | 16.7% | 15.2% | 16.1% | 14.8% |
| FCF Margin | -8.1% | 5.9% | 20.0% | 0.6% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $5.56 | $5.38 | -3.2% | ||
| Q1'26 | $6.58 | $6.50 | -1.2% | ||
| Q4'25 | $6.71 | $6.69 | -0.3% | ||
| Q3'25 | $6.21 | $6.25 | +0.6% | ||
| Q2'25 | $5.33 | $5.73 | +7.5% | ||
| Q1'25 | $7.62 | $7.50 | -1.6% | ||
| Q4'24 | $6.80 | $6.92 | +1.8% | ||
| Q3'24 | $6.61 | $6.53 | -1.2% |
Total return is -13.2% (1Y), lagging the benchmark by -38.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -9.9% | -19.2% | — |
| 1Y | -13.2% | -38.2% | +5.4% |
| 3YCAGR | -7.1% | -26.4% | +12.2% |
| 5YCAGR | -7.5% | -20.7% | +14.1% |
| 10YCAGR | +9.3% | -3.9% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Virtus Investment Partners, Inc. (VRTS) valuation, health, and returns.
Based on peer relative multiples, Virtus Investment Partners, Inc. appears Cheap versus peers compared to industry peers.
Virtus Investment Partners, Inc. has multiple valuation anchors: Peer Relative Fair Value: $173.76 | Wall Street Analyst Target: $135.67 (implying -4.2% upside). A convergence of these signals offers higher conviction.
Virtus Investment Partners, Inc. displays fair financial health with a composite quality score of 45/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 3.0%.
Virtus Investment Partners, Inc. pays a 6.6% dividend yield, covered by a 47% payout ratio with 8 years of growth, supplemented by a 6.3% buyback yield.
Virtus Investment Partners, Inc.'s current growth trajectory is Decelerating. The company achieved -8.0% 1Y revenue growth and +18.2% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 11 analysts, beating EPS expectations in 42% of recent quarters with a -3-quarter streak. The consensus price target represents a -4.2% change from current levels.
Investment risks for Virtus Investment Partners, Inc. include: -41.4% 1-year max drawdown. Volatility risk is characterized by a beta of 1.07x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.