Virtusa Stock Analysis, Valuation (NASDAQ:VRTU)

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$47.59 $0.22 (0.46%) VRTU stock closing price May 18, 2018 (Closing)
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Virtusa
Updated on : May 18, 2018
previous close
VRTU 47.6 (0%)
NASDAQ 7354.3 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer Services
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q3
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
24.9%
Operating Profit
Operating Margin:
4.2%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q3
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$24.4M
Net Income:
-$10.1M
PROS      CONS
Recent Growth
Long Term Growth
PS Valuation
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
VRTU PS :
1.4
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
2.5%
Return on Equity:
1.4%
Free Cash Flow Margin:
8.1%
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Virtusa Stock Analysis

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Investors can watch the Amigobulls Virtusa stock analysis video here. Our analyst opinion covering the buy and sell arguments for VRTU stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Virtusa Corporation Stock Rating 2.9/5

Amigobulls VRTU stock analysis takes into account various financial ratios like relative valuation, Virtusa revenue, growth and return on equity based on latest quarter 2018 Q3 financial statements. We also check Virtusa dividend performance. We compare Virtusa valuation with its sector peers to gauge relative attractiveness of VRTU stock. Our Virtusa stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy VRTU stock?

  • Virtusa's revenue growth came in at 21.5% in 2018 Q3.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 24.9%.
  • When compared with the Computer Services industry average PS ratio of 2.9, the price-to-sales ratio of 1.4 for VRTU stock is attractive.

Should you sell VRTU stock?

  • The VRTU stock currently trades at a PE of 59.5, which is expensive, compared to the industry average of 25.1.

Comments on this video and Virtusa stock

Investors can make use of the Amigobulls Virtusa stock analysis to ascertain how VRTU stock fares in fundamental analysis investment criteria. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Virtusa revenue growth and profit or net income are two main metrics which help in identifying whether VRTU stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about VRTU stock.