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ZYBERNO

Stock Report

Updated Sep 1, 2026

VIRTUS INVESTMENT PARTNERS, INC. (VRTS)

Financial Services • NYSE

$168.52

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

29.0/100

POOR BUSINESS

VIRTUS INVESTMENT PARTNERS, INC. (VRTS) scores 29/100 — concerning metrics indicating significant structural or financial risks.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full VRTS quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

Margin of Safety unavailable — insufficient data for the owner-earnings DCF.

BRINA GAP ↗

Is the market underestimating or overestimating what this business is capable of going forward?

-6.8%

Slight Overestimate

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full VRTS valuation analysis · → View full VRTS Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):AVERAGE (12.5%)

Debt-to-Equity (Solvency Risk):GOOD (0.54x)

Operating Margin (Operational Efficiency):GOOD (15.7%)

Return on Capital (Capital Efficiency):POOR (8.0%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

VIRTUS INVESTMENT PARTNERS, INC. (VRTS) stock report — Zyberno Score 29/100 (POOR BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, VIRTUS INVESTMENT PARTNERS, INC. (VRTS) shows a Brina Gap of -6.8%, which weakens the case: based on the company's ROIC (8.0%) and reinvestment rate (-52.0%), the business can fundamentally grow at -4.2% — but the current enterprise value implies the market expects 2.7%.

Over the trailing twelve months, VRTS generated -$33.78M in Owner Earnings. Capital was deployed as follows: $10.00M returned via share buybacks, $66.47M paid as dividends, $6.27M invested in capital expenditures. Reinvestment rate: -52.0%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:168.52

Market Cap:$1.12B

Valuation Multiples (4)

P/E Ratio:

9.61x

📊 Click to view full VRTS P/E analysis →

P/B Ratio:1.19x

P/S Ratio:1.36x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$1.54B

Ev Ebitda Ratio:5.65x

Price Action & Momentum (3)

12-1 Momentum:

-12.4% (24th pctile)

📈 Click to view full VRTS Momentum analysis →

Momentum Percentile:24 / 100

% of 52-Week High:82.8%

B. Profitability Assessment

Return Metrics (7)

ROE:

12.5%

📊 Click to view full VRTS ROE analysis →

ROA:2.7%

Roic:

8.0%

📊 Click to view full VRTS ROIC analysis →

Reinvestment Rate:-52.0%

Fundamental Growth Rate (g):-4.2%

Market-Implied Growth Rate:2.7%

Brina Gap:

-6.8%

☷ Click to view full VRTS Brina Gap analysis →

Margin Analysis (3)

Operating Margin Ttm:15.7%

Net Margin Ttm:14.0%

Ebitda Margin:33.1%

TTM Performance (2)

Operating Margin Ttm:15.7%

Net Margin Ttm:14.0%

Yield Metrics (2)

Earnings Yield:$10.40

Dividend Yield:5.9%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.52

📊 Click to view full VRTS Earnings Surprise analysis →

EPS Surprise vs Expected:19.8%

Latest Earnings Filed:2026-08-07

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):0.0%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):-6.4%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-16.5%

Operating Cash Flow Growth Rate (Linear):-16.6%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):-5.5%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:1.34x

Quick Ratio:1.34x

Cash Ratio:0.00x

Leverage Analysis (3)

Debt To Equity Ttm:0.54x

Debt-to-Equity Ratio:0.54x

Debt To Ebitda:1.53x

Coverage Ratios (1)

Times Interest Earned:-999.00

Capital Structure (4)

Working Capital:1,151,676,000.00

Cash And Cash Equivalents:0.00

Long Term Debt:$418.63M

Net Debt:$418.63M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $825.31M

Linear Growth: 3.0%

📊 Click to view full VRTS Revenue analysis & methodology →

Cost Of Revenue Ttm:$0.00

Profitability Breakdown (2)

$0.00

Operating income TTM: $129.65M

Linear Growth: -5.5%

📊 Click to view full VRTS Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: $115.95M

Linear Growth: -6.4%

📊 Click to view full VRTS Net Income analysis & methodology →

Income Before Tax:$158.02M

Ebitda Ttm:272,829,000.00

Operating Expenses (5)

Operating Expenses:695,658,000.00

R And D Expense:0.00

Sga Expense:0.00

Income Tax Expense:$42.07M

Interest Expense:0.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:0.0%

Ebitda Margin:33.1%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$4.54B

Current Assets:$4.54B

Ppe Net:22,146,000.00

Goodwill:640,791,000.00

Intangible Assets:$599.18M

Liability Structure (4)

Total Liabilities:3,384,674,000.00

Current Liabilities:3,384,674,000.00

Long Term Debt:$418.63M

Short Term Debt:$4.00K

Equity & Capital (3)

Equity:$946.36M

Retained Earnings:$359.97M

Common Stock:1,000,000,000.00

Working Capital Items (3)

Accounts Receivable:101,514,000.00

Inventory:0.00

Accounts Payable:51,678,000.00

Special Items (2)

Contract Liabilities:0.00

Stock Based Compensation:10,930,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: -$27.51M

Linear Growth: -16.6%

Free cash flow TTM: -$33.78M

Linear Growth: -16.5%

📊 Click to view full VRTS Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:-$198.47M

Capital Expenditures Ttm:6,266,000.00

Financing Activities (3)

Financing Cash Flow:-$40.90M

Dividends Paid Ttm:66,471,000.00

Stock Repurchase:10,000,000.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:143,182,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):17.83

Eps diluted TTM: $17.53

Linear Growth: -4.7%

📊 Click to view full VRTS EPS analysis & methodology →

Earnings Per Share Ttm:$17.38

Revenue & Cash Per Share (2)

Sales Per Share Ttm:123.73

Operating Cash Flow Per Share:-$10.07

Book Value & Capital (2)

Book Value Per Share:$141.88

Cash Per Share:-999.00

Dividend Policy (1)

Dividend Payout Ratio:72.25x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.19x

Working Capital Turnover Ttm:0.72x

Receivables Management (2)

Receivables Turnover Ttm:8.13x

Days Sales Outstanding Ttm:44.90

Inventory Management (2)

Inventory Turnover Ttm:-999.00x

Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:22.86

Cash Conversion Cycle:-976.96

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:60.00

Quality Score:60.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (1)

-$33.78M

Damodaran Growth Analysis (4)

Reinvestment Rate:-52.0%

Fundamental Growth Rate (g):-4.2%

Market-Implied Growth Rate:2.7%

Brina Gap:

-6.8%

☷ Click to view full VRTS Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):0.0%

Net Income Growth Rate (Linear):-6.4%

Operating Income Growth Rate (Linear):-5.5%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-16.5%

Operating Cash Flow Growth Rate (Linear):-16.6%

Other Growth Rates (1)

Book Value Growth Rate (Linear):3.9%

C. Company Profile & Context

Corporate Information (6)

Symbol:VRTS

Company Name:VIRTUS INVESTMENT PARTNERS, INC.

Sector:Financial Services

Industry:Asset Management

Exchange:NYSE

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:high

Volume Category:N/A

Share Structure (3)

Shares Outstanding:6.67M

Shares Outstanding Basic:6.67M

Shares Outstanding Diluted:6.78M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-09-01 04:32:24 UTC

Data Timestamp:2026-09-01T04:32:24.186375