Fundamentals snapshot
VCTR · NMS · Financial Services · Asset Management
Current price
$126.38
52-week range
$60.70 - $129.31
Market cap
$7.81B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net debt $800.59M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Victory Capital Holdings, Inc. is a company that manages money for others, offering a wide range of investment products like mutual funds and exchange-traded funds (ETFs) to different types of customers, from big institutions to individual savers. The money they make primarily comes from fees charged for managing these investments, which is important because it shows how consistently they earn money from their services.
Victory Capital's story began with Cleveland Trust, a bank founded in 1894. Over many decades, through mergers and the formation of holding companies, its asset management arm evolved. In its current form, Victory Capital Holdings was established in 2013, growing through strategic acquisitions, including a significant one of USAA Asset Management Company in 2019. This growth has transformed it from a smaller firm into a diversified global asset management platform, adapting to changing market needs and investor demands. The company went public on the Nasdaq in 2018, marking a new phase of growth and visibility.
Victory Capital is an asset management firm. Think of it like a company that manages money for others. It offers various investment products and strategies designed to help individuals and institutions grow their wealth over time. These products include mutual funds, which are like baskets of stocks or bonds, and exchange-traded funds (ETFs), which are similar to mutual funds but trade on stock exchanges like individual stocks. They also manage money directly for large clients through separate accounts and offer specialized investment options like alternative investments and education savings plans (529 plans).
Victory Capital operates through what it calls 'Investment Franchises.' These are essentially specialized teams, each focusing on a particular type of investment strategy, like U.S. Growth stocks, fixed income (which means bonds), or emerging markets. This multi-boutique approach allows each franchise to concentrate on its area of expertise, aiming to deliver strong performance for clients. These franchises manage a significant portion of the company's assets, offering a diverse range of investment styles and approaches to clients.
The Solutions Platform is another key part of Victory Capital's business. It offers more customized or diversified investment solutions, often using a combination of strategies from different franchises or employing rules-based approaches. This platform caters to clients who may need more tailored investment portfolios or want access to strategies that blend different asset classes or investment styles. It's designed to provide a broader set of investment options beyond the specialized focus of individual franchises.
While the Investment Franchises focus on managing money, the 'back end' of Victory Capital handles everything else. This includes centralized distribution (getting the investment products in front of clients), marketing, and operations (the day-to-day running of the business, like client service and technology). This integrated model aims to create efficiency and scale, allowing the specialized investment teams to focus on performance while the centralized functions support growth and client relationships across various channels like financial advisors and institutional investors.
Victory Capital's current strategy focuses on sustainable and profitable growth, driven by both organic expansion and strategic acquisitions. They are actively looking to deepen relationships with financial advisors, institutional investors, and retirement platforms. A key priority is expanding their product capabilities, including a growing emphasis on their ETF platform, which offers cost-effective investment solutions. The company also aims to leverage its integrated model to achieve greater scale and efficiency, ultimately seeking to grow assets under management significantly.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net debt $800.6M. Interest coverage 8.5x.
Victory Capital Holdings, Inc.'s profit covers its interest bill about 8.5 times over. which is stronger than most peers shown here.
Total debt $1.01B Interest coverage 8.47x This is the baseline the peer rows are being compared against.
Total debt $3.18B Interest coverage 3.48x -59% vs VCTR Carries about 2.4x less debt cushion than VCTR.
Total debt $313.05M Interest coverage 46.74x +452% vs VCTR Carries about 5.5x more debt cushion than VCTR.
Total debt $361.03M Interest coverage 21.73x +157% vs VCTR Carries about 2.6x more debt cushion than VCTR.
Total debt $132.46M Interest coverage 13.66x +61% vs VCTR Carries about 1.6x more debt cushion than VCTR.
Total debt $497.30M Interest coverage 1.03x -88% vs VCTR Carries about 8.2x less debt cushion than VCTR.
What you should know
The numbers
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Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know