Fact based stock research
Victory Capitals (NasdaqGS:VCTR)

US92645B1035

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Victory Capitals stock research in summary

vcm.com

ANALYSIS: With an Obermatt Combined Rank of 88 (better than 88% compared with investment alternatives), Victory Capitals (Asset Management & Custody, USA) shares have much better financial characteristics than comparable stocks. Shares of Victory Capitals are a good value (attractively priced) with a consolidated Value Rank of 71 (better than 71% of alternatives), show above-average growth (Growth Rank of 93) but are riskily financed (Safety Rank of 30), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 88, is a strong buy recommendation based on Victory Capitals's financial characteristics. As the company Victory Capitals's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 71) and above-average growth (Obermatt Growth Rank of 93), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 30) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	71
Growth Rank	93
Safety Rank	30
Combined Rank	88

Country	USA
Industry	Asset Management & Custody
Index	Dividends USA, NASDAQ
Size class	Large

25-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Victory Capitals

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	73	90	77	71
GROWTH
GROWTH	45	75	55	93
SAFETY
SAFETY	3	36	33	30
SENTIMENT
SENTIMENT	n/a	54	98	^new
360° VIEW
360° VIEW	n/a	88	84	^new

Most recent update of the stock research: 25-Apr-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Victory Capitals is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	73	90	77	71
GROWTH
GROWTH	45	75	55	93
SAFETY
SAFETY	3	36	33	30
COMBINED
COMBINED	22	87	58	88

Last update of combined financial performance: 25-Apr-2024. Stock analysis on combined financial performance: The higher the rank of Victory Capitals the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 71 (better than 71% compared with alternatives), Victory Capitals shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Victory Capitals. Price-to-Sales (P/S) is 52, which means that the stock price compared with what market professionals expect for future sales is lower than for 52% of comparable companies, indicating a good value concerning Victory Capitals's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 82% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 60 (dividends are expected to be higher than 60% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 54% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Victory Capitals to 46. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 71, is a buy recommendation based on Victory Capitals's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	76	67	52	52
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	91	97	95	82
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	33	61	49	46
DIVIDEND YIELD
DIVIDEND YIELD	47	77	79	60
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	73	90	77	71

Last update of Value Rank: 25-Apr-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Victory Capitals; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 93 (better than 93% compared with alternatives) for 2024, Victory Capitals shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Victory Capitals. Sales Growth has a rank of 100 which means that currently, professionals expect the company to grow more than 100% of its competitors. Both Profit Growth, with a rank of 85, and Stock Returns, with a rank of 94, are also above average. But Capital Growth only has a rank of 16, which means that, currently, professionals expect the company to grow its invested capital less than 84% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 93, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	15	75	27	100
PROFIT GROWTH
PROFIT GROWTH	n/a	41	52	85
CAPITAL GROWTH
CAPITAL GROWTH	n/a	55	50	16
STOCK RETURNS
STOCK RETURNS	92	72	75	94
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	45	75	55	93

Last update of Growth Rank: 25-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Victory Capitals.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 30 (better than 30% compared with alternatives), the company Victory Capitals has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Victory Capitals is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Victory Capitals. Liquidity is at 35, meaning that the company generates less profit to service its debt than 65% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 46, meaning the company has an above-average debt-to-equity ratio. It has more debt than 54% of its competitors. Finally, Refinancing is at a rank of 37 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 63% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 30 (worse than 70% compared with alternatives), Victory Capitals has a financing structure that is riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Victory Capitals because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	24	44	44	46
REFINANCING
REFINANCING	10	32	37	37
LIQUIDITY
LIQUIDITY	33	42	44	35
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	3	36	33	30

Last update of Safety Rank: 25-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Victory Capitals and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	36	51	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	86	79	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	30	82	^new
MARKET PULSE
MARKET PULSE	n/a	54	85	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	54	98	^new

Last update of Sentiment Rank: 25-Apr-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Victory Capitals.
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