VIRCO MFG CORPORATION (VIRC) Stock Fundamental Analysis
NASDAQ:VIRC - Nasdaq - US9276511097 - Common Stock - Currency: USD
Overall VIRC gets a fundamental rating of 6 out of 10. We evaluated VIRC against 83 industry peers in the Commercial Services & Supplies industry. Both the health and profitability get an excellent rating, making VIRC a very profitable company, without any liquidiy or solvency issues. VIRC is valued quite cheap, but it does not seem to be growing. With these ratings, VIRC could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
VIRC had positive earnings in the past year.
In the past year VIRC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VIRC reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: VIRC reported negative operating cash flow in multiple years.
1.2 Ratios
VIRC has a better Return On Assets (11.01%) than 80.72% of its industry peers.
VIRC has a Return On Equity of 19.16%. This is amongst the best in the industry. VIRC outperforms 81.93% of its industry peers.
VIRC has a better Return On Invested Capital (12.27%) than 81.93% of its industry peers.
VIRC had an Average Return On Invested Capital over the past 3 years of 14.56%. This is above the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.01% | ||
| ROE | 19.16% | ||
| ROIC | 12.27% |
ROA(3y)12.41%
ROA(5y)4.7%
ROE(3y)22.69%
ROE(5y)6.43%
ROIC(3y)14.56%
ROIC(5y)N/A
1.3 Margins
VIRC has a better Profit Margin (7.99%) than 77.11% of its industry peers.
VIRC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.79%, VIRC is in the better half of the industry, outperforming 68.67% of the companies in the same industry.
In the last couple of years the Operating Margin of VIRC has grown nicely.
VIRC has a Gross Margin of 43.58%. This is in the better half of the industry: VIRC outperforms 74.70% of its industry peers.
In the last couple of years the Gross Margin of VIRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.79% | ||
| PM (TTM) | 7.99% | ||
| GM | 43.58% |
OM growth 3YN/A
OM growth 5Y27.9%
PM growth 3YN/A
PM growth 5Y45.57%
GM growth 3Y9.34%
GM growth 5Y3.01%
2. Health
2.1 Basic Checks
VIRC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, VIRC has less shares outstanding
VIRC has more shares outstanding than it did 5 years ago.
VIRC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.17 indicates that VIRC is not in any danger for bankruptcy at the moment.
VIRC has a Altman-Z score of 3.17. This is in the better half of the industry: VIRC outperforms 62.65% of its industry peers.
The Debt to FCF ratio of VIRC is 0.37, which is an excellent value as it means it would take VIRC, only 0.37 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.37, VIRC belongs to the top of the industry, outperforming 89.16% of the companies in the same industry.
VIRC has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.04, VIRC belongs to the best of the industry, outperforming 80.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.37 | ||
| Altman-Z | 3.17 |
ROIC/WACC1.21
WACC10.14%
2.3 Liquidity
VIRC has a Current Ratio of 3.02. This indicates that VIRC is financially healthy and has no problem in meeting its short term obligations.
VIRC has a better Current ratio (3.02) than 84.34% of its industry peers.
A Quick Ratio of 0.65 indicates that VIRC may have some problems paying its short term obligations.
With a Quick ratio value of 0.65, VIRC is not doing good in the industry: 87.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for VIRC have decreased strongly by -19.23% in the last year.
Measured over the past years, VIRC shows a very strong growth in Earnings Per Share. The EPS has been growing by 54.95% on average per year.
Looking at the last year, VIRC shows a decrease in Revenue. The Revenue has decreased by -9.84% in the last year.
The Revenue has been growing slightly by 6.65% on average over the past years.
EPS 1Y (TTM)-19.23%
EPS 3YN/A
EPS 5Y54.95%
EPS Q2Q%-61.54%
Revenue 1Y (TTM)-9.84%
Revenue growth 3Y12.94%
Revenue growth 5Y6.65%
Sales Q2Q%-27.78%
3.2 Future
VIRC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.44% yearly.
Based on estimates for the next years, VIRC will show a decrease in Revenue. The Revenue will decrease by -1.02% on average per year.
EPS Next Y-24.03%
EPS Next 2Y-6.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.29%
Revenue Next 2Y-1.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.46 indicates a rather cheap valuation of VIRC.
90.36% of the companies in the same industry are more expensive than VIRC, based on the Price/Earnings ratio.
VIRC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.69.
Based on the Price/Forward Earnings ratio of 6.94, the valuation of VIRC can be described as very cheap.
Based on the Price/Forward Earnings ratio, VIRC is valued cheaply inside the industry as 95.18% of the companies are valued more expensively.
VIRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.46 | ||
| Fwd PE | 6.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VIRC indicates a rather cheap valuation: VIRC is cheaper than 93.98% of the companies listed in the same industry.
84.34% of the companies in the same industry are more expensive than VIRC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.95 | ||
| EV/EBITDA | 4.37 |
4.3 Compensation for Growth
The decent profitability rating of VIRC may justify a higher PE ratio.
VIRC's earnings are expected to decrease with -6.44% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.12
EPS Next 2Y-6.44%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.23%, VIRC has a reasonable but not impressive dividend return.
VIRC's Dividend Yield is a higher than the industry average which is at 2.53.
Compared to an average S&P500 Dividend Yield of 2.43, VIRC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
VIRC has paid a dividend for at least 10 years, which is a reliable track record.
VIRC has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VIRC pays out 7.56% of its income as dividend. This is a sustainable payout ratio.
DP7.56%
EPS Next 2Y-6.44%
EPS Next 3YN/A
8.135
-0.37 (-4.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners54.7%
Inst Owner Change-1.37%
Ins Owners15.33%
Ins Owner Change0.72%
Market Cap130.89M
Analysts85.71
Price Target12.24 (50.46%)
Short Float %5.72%
Short Ratio9.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend0.09
Dividend Growth(5Y)N/A
DP7.56%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.47%
Min EPS beat(2)-128.76%
Max EPS beat(2)137.71%
EPS beat(4)2
Avg EPS beat(4)-7.57%
Min EPS beat(4)-128.76%
Max EPS beat(4)137.71%
EPS beat(8)5
Avg EPS beat(8)33.25%
EPS beat(12)9
Avg EPS beat(12)78.46%
EPS beat(16)9
Avg EPS beat(16)29.89%
Revenue beat(2)0
Avg Revenue beat(2)-27.31%
Min Revenue beat(2)-35.14%
Max Revenue beat(2)-19.48%
Revenue beat(4)0
Avg Revenue beat(4)-19.83%
Min Revenue beat(4)-35.14%
Max Revenue beat(4)-8.3%
Revenue beat(8)3
Avg Revenue beat(8)-8.4%
Revenue beat(12)4
Avg Revenue beat(12)-8.32%
Revenue beat(16)5
Avg Revenue beat(16)-10.48%
PT rev (1m)0%
PT rev (3m)-29.41%
EPS NQ rev (1m)-16.9%
EPS NQ rev (3m)-16.9%
EPS NY rev (1m)26.49%
EPS NY rev (3m)-23.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-2.73%
Revenue NY rev (3m)-8.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.46 | ||
| Fwd PE | 6.94 | ||
| P/S | 0.52 | ||
| P/FCF | 11.95 | ||
| P/OCF | 7.04 | ||
| P/B | 1.24 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 4.37 |
EPS(TTM)1.26
EY15.49%
EPS(NY)1.17
Fwd EY14.42%
FCF(TTM)0.68
FCFY8.37%
OCF(TTM)1.16
OCFY14.21%
SpS15.74
BVpS6.56
TBVpS6.56
PEG (NY)N/A
PEG (5Y)0.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.01% | ||
| ROE | 19.16% | ||
| ROCE | 16.25% | ||
| ROIC | 12.27% | ||
| ROICexc | 12.35% | ||
| ROICexgc | 12.35% | ||
| OM | 9.79% | ||
| PM (TTM) | 7.99% | ||
| GM | 43.58% | ||
| FCFM | 4.32% |
ROA(3y)12.41%
ROA(5y)4.7%
ROE(3y)22.69%
ROE(5y)6.43%
ROIC(3y)14.56%
ROIC(5y)N/A
ROICexc(3y)15.89%
ROICexc(5y)N/A
ROICexgc(3y)15.89%
ROICexgc(5y)N/A
ROCE(3y)19.28%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y32.4%
ROICexc growth 3YN/A
ROICexc growth 5Y32.4%
OM growth 3YN/A
OM growth 5Y27.9%
PM growth 3YN/A
PM growth 5Y45.57%
GM growth 3Y9.34%
GM growth 5Y3.01%
F-Score4
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.37 | ||
| Debt/EBITDA | 0.12 | ||
| Cap/Depr | 129.9% | ||
| Cap/Sales | 3.02% | ||
| Interest Coverage | 123.35 | ||
| Cash Conversion | 60.63% | ||
| Profit Quality | 54.13% | ||
| Current Ratio | 3.02 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 3.17 |
F-Score4
WACC10.14%
ROIC/WACC1.21
Cap/Depr(3y)95.65%
Cap/Depr(5y)78.97%
Cap/Sales(3y)1.92%
Cap/Sales(5y)1.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-19.23%
EPS 3YN/A
EPS 5Y54.95%
EPS Q2Q%-61.54%
EPS Next Y-24.03%
EPS Next 2Y-6.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.84%
Revenue growth 3Y12.94%
Revenue growth 5Y6.65%
Sales Q2Q%-27.78%
Revenue Next Year-6.29%
Revenue Next 2Y-1.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-31.52%
EBIT growth 3YN/A
EBIT growth 5Y36.4%
EBIT Next Year-26.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1486.46%
FCF growth 3YN/A
FCF growth 5Y37.1%
OCF growth 1Y437.69%
OCF growth 3YN/A
OCF growth 5Y27.69%