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. VIRC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. VIRC is valued quite cheap, but it does not seem to be growing. This makes VIRC very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year VIRC was profitable.
In the past year VIRC had a positive cash flow from operations.
In multiple years VIRC reported negative net income over the last 5 years.
In multiple years VIRC reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of VIRC (11.01%) is better than 83.13% of its industry peers.
The Return On Equity of VIRC (19.16%) is better than 83.13% of its industry peers.
VIRC's Return On Invested Capital of 12.27% is amongst the best of the industry. VIRC outperforms 81.93% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VIRC 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's Profit Margin of 7.99% is fine compared to the rest of the industry. VIRC outperforms 78.31% of its industry peers.
In the last couple of years the Profit Margin of VIRC has grown nicely.
VIRC has a better Operating Margin (9.79%) than 68.67% of its industry peers.
In the last couple of years the Operating Margin of VIRC has grown nicely.
The Gross Margin of VIRC (43.58%) is better than 75.90% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VIRC is creating some value.
The number of shares outstanding for VIRC has been reduced compared to 1 year ago.
Compared to 5 years ago, VIRC has more shares outstanding
VIRC has a better debt/assets ratio than last year.
2.2 Solvency
VIRC has an Altman-Z score of 3.13. This indicates that VIRC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of VIRC (3.13) is better than 60.24% of its industry peers.
VIRC has a debt to FCF ratio of 0.37. This is a very positive value and a sign of high solvency as it would only need 0.37 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.37, VIRC belongs to the best of the industry, outperforming 89.16% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that VIRC is not too dependend on debt financing.
VIRC's Debt to Equity ratio of 0.04 is amongst the best of the industry. VIRC outperforms 80.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.37 | ||
| Altman-Z | 3.13 |
ROIC/WACC1.37
WACC8.97%
2.3 Liquidity
A Current Ratio of 3.02 indicates that VIRC has no problem at all paying its short term obligations.
VIRC has a better Current ratio (3.02) than 85.54% of its industry peers.
A Quick Ratio of 0.65 indicates that VIRC may have some problems paying its short term obligations.
VIRC has a worse Quick ratio (0.65) than 86.75% of its industry peers.
| 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.
VIRC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 54.95% yearly.
The Revenue has decreased by -9.84% in the past year.
Measured over the past years, VIRC shows a small growth in Revenue. The Revenue has been growing by 6.65% on average per year.
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.
VIRC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.02% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 6.29 indicates a rather cheap valuation of VIRC.
VIRC's Price/Earnings ratio is rather cheap when compared to the industry. VIRC is cheaper than 91.57% of the companies in the same industry.
When comparing the Price/Earnings ratio of VIRC to the average of the S&P500 Index (27.41), we can say VIRC is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.75, the valuation of VIRC can be described as very cheap.
VIRC's Price/Forward Earnings ratio is rather cheap when compared to the industry. VIRC is cheaper than 95.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VIRC to the average of the S&P500 Index (35.19), we can say VIRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.29 | ||
| Fwd PE | 6.75 |
4.2 Price Multiples
VIRC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VIRC is cheaper than 93.98% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VIRC is valued cheaply inside the industry as 84.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.38 | ||
| EV/EBITDA | 4.16 |
4.3 Compensation for Growth
VIRC has a very decent profitability rating, which 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)0.11
EPS Next 2Y-6.44%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VIRC has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
The stock price of VIRC dropped by -23.11% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.45, VIRC pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.24, VIRC pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
VIRC has been paying a dividend for at least 10 years, so it has 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
7.56% of the earnings are spent on dividend by VIRC. This is a low number and sustainable payout ratio.
DP7.56%
EPS Next 2Y-6.44%
EPS Next 3YN/A
7.92
-0.12 (-1.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners54.7%
Inst Owner Change0%
Ins Owners15.33%
Ins Owner Change0.72%
Market Cap124.66M
Analysts85.71
Price Target12.24 (54.55%)
Short Float %6.04%
Short Ratio9.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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)0%
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 | 6.29 | ||
| Fwd PE | 6.75 | ||
| P/S | 0.49 | ||
| P/FCF | 11.38 | ||
| P/OCF | 6.7 | ||
| P/B | 1.18 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 4.16 |
EPS(TTM)1.26
EY15.91%
EPS(NY)1.17
Fwd EY14.81%
FCF(TTM)0.7
FCFY8.79%
OCF(TTM)1.18
OCFY14.92%
SpS16.09
BVpS6.71
TBVpS6.71
PEG (NY)N/A
PEG (5Y)0.11
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 | 3.13 |
F-Score4
WACC8.97%
ROIC/WACC1.37
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%