Vinci Compass Investments Ltd. (NASDAQ: VINP)

Sector: Financial Services Industry: Asset Management CIK: 0001826286
Market Cap 275.69 Mn
P/B 1.02
P/E 7.01
P/S 3.21
ROIC (Qtr) 37.17
Div Yield % 3.70
Rev 1y % (Qtr) 113.68
Total Debt (Qtr) 136.97 Mn
Debt/Equity (Qtr) 0.39
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About

Investment thesis

Bull case

  • Healthy cash reserves of 19.14M provide 3.19x coverage of short-term debt 6.01M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 37.14M provides exceptional 71.80x coverage of minority interest expenses 517254.17, showing strong core operations.
  • Strong tangible asset base of 449.97M provides 3.29x coverage of total debt 136.97M, indicating robust asset backing and low credit risk.
  • Tangible assets of 449.97M provide exceptional 161.67x coverage of deferred revenue 2.78M, showing strong service capability backing.
  • Robust free cash flow of 30.14M exceeds capital expenditure of 6.99M by 4.31x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 37.14M barely covers its investment activities of (21.19M), with a coverage ratio of -1.75, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 37.14M provides thin coverage of dividend payments of (39.05M) with a -0.95 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 19.14M provide limited coverage of acquisition spending of (45.54M), which is -0.42x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Short-term investments of 289.84M significantly exceed cash reserves of 19.14M, which is 15.14x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Free cash flow of 30.14M represents just -1.54x of debt issuance (19.59M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Asset Management
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BLK BlackRock, Inc. 199.59 Bn 85.40 21.98 15.04 Bn
2 BN BROOKFIELD Corp /ON/ 103.94 Bn 31.52 5.64 262.97 Bn
3 AMP Ameriprise Financial Inc 88.69 Bn 55.02 7.20 5.89 Bn
4 BX Blackstone Inc. 88.51 Bn 49.39 10.93 12.89 Bn
5 KKR KKR & Co. Inc. 55.86 Bn 28.33 13.23 53.12 Bn
6 STT State Street Corp 46.52 Bn 21.77 3.91 34.72 Bn
7 NTRS Northern Trust Corp 34.14 Bn 33.31 6.71 15.64 Bn
8 RJF Raymond James Financial Inc 32.89 Bn 37.63 4.14 5.10 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.50 0.94
EV to Cash from Ops. EV/CFO -6.97 41.10
EV to Debt EV to Debt -2.36 15.28
EV to EBIT EV/EBIT -5.92 23.47
EV to EBITDA EV/EBITDA -6.43 47.80
EV to Free Cash Flow [EV/FCF] EV/FCF -7.05 38.62
EV to Market Cap EV to Market Cap -1.17 7.81
EV to Revenue EV/Rev -3.75 27.38
Price to Book Value [P/B] P/B 1.02 2.34
Price to Earnings [P/E] P/E 7.01 11.81
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.15 4.66
Dividend Payout Ratio % Div Payout % (Qtr) 123.10 -5.56
Dividend per Basic Share Div per Share (Qtr) 0.61 1.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 25.79 49.83
Interest Coverage Int. cover (Qtr) 3.63 25.16
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -67.76 -35.10
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 330.26 15.43
Dividend Growth (1y) % Div 1y % (Qtr) -14.08 1.65
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 13.91 -90.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 33.03 35.24
EBIT Growth (1y) % EBIT 1y % (Qtr) 12.60 -22.13
EBT Growth (1y) % EBT 1y % (Qtr) -3.29 -163.05
EPS Growth (1y) % EPS 1y % (Qtr) -19.83 -20.61
FCF Growth (1y) % FCF 1y % (Qtr) -2.37 220.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 103.44 -53.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.05 0.22
Cash Payout Ratio Cash Payout (Qtr) 0.88 0.36
Cash Ratio Cash Ratio (Qtr) 0.36 0.38
Current Ratio Curr Ratio (Qtr) 6.68 0.86
Debt to Equity Ratio Debt/Equity (Qtr) 0.39 0.70
Interest Cover Ratio Int Coverage (Qtr) 3.63 25.16
Times Interest Earned Times Interest Earned (Qtr) 3.63 25.16
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 37.30 -114.76
EBIT Margin % EBIT Margin % (Qtr) 170.48 -127.24
EBT Margin % EBT Margin % (Qtr) 22.93 -150.97
Gross Margin % Gross Margin % (Qtr) 100.00 67.88
Net Profit Margin % Net Margin % (Qtr) 18.10 -148.68