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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Voya Financial, Inc. (XNYS:VOYA) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
VOYA
Name:
VOYA FINANCIAL, INC. (XNYS:VOYA)
Sector:
419.00M
Industry:
Financial Conglomerates
CEO:
Mr. Rodney Martin
Total Employees:
6,000
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -199.95% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF VOYA FINANCIAL, INC.(VOYA) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND FINANCIAL CONGLOMERATES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
61.28
One Month Price Target:
$61.7
Six Month Price Target :
$63.81
Likely Price in One Year's Time:
Ticker:
$66.33
Likely Trading Range Today Under (Normal Volatility)
$61.06
Price Upper limit ($) :
$61.54
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$58.41
This week:
$54.87
This month :
$48.45
Other Primary facts
Market Cap:
5.91B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
97.92M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
14.23%
-11.44%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$74.59
$68.49
$47.97
$54.07
Medium risk (<10%) entry points
Buy Call
Sell Call
$66.50
Buy Put:
Sell Put:
$65.20
$56.04
$57.36
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
VOYA
Sharpe Ratio:
1.18%
Comparison:
VOYA, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is 145.51% higher than the industry
& is -48.32% lower than the market/S&P 500 average
Average Returns/Yield of
VOYA
Daily returns:
0.04%
Weekly returns:
0.18%
Monthly returns:
0.72%
Yearly returns:
1.02%
Comparison of returns:
Average annual returns/yield (last 3 years) is 746.62% above industry average
Classification:
VOYA, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.7
Statistical test of Returns:
VOYA has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.30%
Weekly Volatility:
5.13%
Monthly Volatility:
10.27%
Yearly Volatility:
35.58%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.38%
Volatility in last five trading days has been -83.50% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.68%
Weekly VaR:
-10.47%
Monthly VaR:
-20.93%
How Much Can the price of
VOYA
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-18%
Worst case (decline):
-72.51%
This translates to price declining to:
$50.19
This translates to price declining to:
$16.85
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
VOYA is a 47.73% riskier investment compared to the market/S&P 500 & is 26.56% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -25.22% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
VOYA
Beta in relation to market/S&P 500--1.23
Expected beta in 1 year's time:
0.928
Expected beta in 3 year's time:
1.313
Unlevered (debt free) Beta:
0.878
Beta in relation to Nasdaq (XNAS):
0.739
Beta in relation to all global stocks::
0.742
Beta Comparison & Analysis
Beta of competitors/peers::
0.921
Beta is 33.21% higher than peers
Average Industry Beta:
1.541
Beta is -20.34% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
24.84%
Sustainable growth rate is -33.73% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.029
Alpha is -76.82% below industry average alpha yield
Alpha is -187% below the market average
Analysis of Cost of Capital of
VOYA
Equity cost of capital:
0.116
Equity cost of capital is -15.66% below industry mean WACC
Unlevered (without debt) cost of capital:
8.27%
Before-tax cost of debt:
8.72%
After-tax cost of debt:
6.89%
Overall debt rating:
Non-investment grade (junk/speculative grade
Weighted average cost of capital (WACC):
6.89%
WACC is 10.42% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$78.65
Revenue growth rate per share of (3Y):
0.78
Annual revenue growth rate is -142.20% below industry average
EPS:
$8.28
Expected Annual growth rate of EPS (3Y):
0.00%
-
Free cash flow (FCF) per share:
$12.72
Balance sheet equity growth per share: 2373.57%
Equity growth rate per share is 273.26% higher than the industry
Debt per share
$24.57
EBITDA per share
$12.46
Valuation Analysis Today of
VOYA
P/E Ratio:
11.54
P/E Ratio of Competitors/Peers:
10.7
P/E ratio is 7.86% higher than main peers & is -59.95% lower than the industry
Stock price/value with industry average P/E ratio: $238.70
VOYA is -74.33% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
0.78
Price to sales ratio is -36.81% below the industry mean
P/B (Price to book value ratio):
0.78
Price to free cash flow: 4.82
Price to free cash flow ratio is -15.01% lower than the industry
Net income growth rate (3Y):
210.87%
Net income growth rate is -67.63% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 1.33%
Dividend yeild: 1.04%
Previous Dividend: $0.04
Previous adjusted dividend: $0.04
Previous Dividend: $0.64
Expected next dividend best case: $0.09
Expected next dividend worst case: -$0.01
Average dividend payment (long-term): $0.15
Average dividend increase/decrease (growth rate) % per period: 23.11%
Expected next dividend payment date: 13/09/2022
Expected next dividend record date: 31/08/2022
-
Previous dividend payment date: 15/06/2022
Previous dividend record date: 06/02/2022
-
Dividend History:
2022-06-01--$0.04
2022-02-24--$0.20
2021-09-01--$0.04
2022-05-24--$0.20
2021-11-26--$0.20
2021-08-25--$0.17
Dividend growth rate is -80.49% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
38.82%
Net debt to equity ratio:
22.52%
Debt to assets ratio:
1.49%
Net debt to assets ratio:
0.86%
Debt-to-asset ratio is -98.21% below industry average
Ability to repay debt:
Interest coverage ratio:
5.81
Interest coverage ratio is -76.54% less than industry average
Looking forward:
Debt growth rate:
-9.20%
Annual debt growth is -100% lower than industry average debt growth rate
Debt repayment rate in last quarter: 9.55%
Analysis of Key Statistics
Correlation of price movement with the market:
0.739
Statistical significance of correlation:
VOYA has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.652
Stock price is 13.34% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.652
Correlation of price movement with Nasdaq (^IXIC):
0.042
Covariance of price movement with the market:
0.056
Kurtosis
5.094
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.173
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
VOYA
Gross Profit Margin Ratio:
-
Operating Profit Margin Ratio:
1.09%
Operating profit margin is -95.81% lower than the industry
Net Profit Margin Ratio:
-
Effective Tax Rate:
-2.35%
Effective tax rate is -108.93% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
16.99%
Return on equity (ROE) is -63.04% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
0.65%
Return on assets (ROA) is -88.65% lower than the industry
Financial Leverage:
1.0x
Current Ratio:
14329
Current ratio is 486227.45% above industry average
Cash Conversion Cycle (days):
0
-
The remaining useful life of property plant & equipment is: 0.3 years
Stock based compensation to net income ratio:
-3.51%
In-depth Efficiency Analysis
Revenue generated per employee:
1.3M
Each employee generates 14% more revenue than industry average revenue per employee
EBITDA generated per employee:
203.3K
Each employee generates -11% less EBITDA than industry average revenue per employee
Profit generated per employee:
175.5K
Each employee generates 20% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
69.8K
Each employee generates -275% less free cash flow than industry average revenue per employee
Assets/Capital per employee
234.2K
Each employee generates -275% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
VOYA
RNR-PE
STIFEL FINANCIAL CORP. (XNYS:SF)
RNR-PF
REINSURANCE GROUP OF AMERICA, INCORPORATED (XNYS:RGA)
OLD REPUBLIC INTERNATIONAL CORPORATION (XNYS:ORI)
SYNOVUS FINANCIAL CORP. (XNYS:SNV)
RENAISSANCERE HOLDINGS LTD. (XNYS:RNR)
THE WESTERN UNION COMPANY (XNYS:WU)
HOULIHAN LOKEY, INC. (XNYS:HLI)
Current Analyst Ratings
Strong buy�17%
Buy�21%
Hold�13%
Sell�4%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
7.70B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
-
-
-
-
-
-
632.00M
632.00M
-
210.00M
-
1.22B
84.00M
1.05B
1.83B
- 43000.00K
1.05B
Statement of Cash Flow
Date:
Period:
-
Differed Income Tax :
-
Stock Based Compensation :
- 37000.00K
Change in Working Capital :
456.00M
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
-
Net Cash Provided by Operating Activities:
419.00M
Investments in PP&E:
-
Net Acquisitions:
-
Purchases of Investments:
- 202000.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
1.01B
57.00M
1.07B
13.26B
-
-
14.33B
-
-
-
42.89B
1.41B
- 42893000.00K
1.41B
148.88B
161.81B
-
1.00M
28.00M
-
-
1.00M
2.41B
151.70B
154.10B
-
154.10B
1.00M
- 1269000.00K
527.0M
6.94B
March 31, 2022 at 6:00:00 AM
4.45B
6.20B
160.30B
42.95B
2.41B
1.4B
- 575000.00K
374.00M
- 403000.00K
- 254000.00K
2.00M
- 500000.00K
- 14000.00K
359.00M
- 407000.00K
-
- 391000.00K
1.01B
1.40B
419.00M
-
419.00M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
VOYA
2023
2024
2025
2026
2027
$66.66
$94.73
$102.54
$111.00
$120.15