VIRCO MFG CORPORATION (VIRC) Stock Fundamental Analysis
USA - NASDAQ:VIRC - US9276511097 - Common Stock
7.4 USD
0 (0%)
7.4 USD
0 (0%)
Overall VIRC gets a fundamental rating of 6 out of 10. We evaluated VIRC against 82 industry peers in the Commercial Services & Supplies industry. VIRC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. VIRC has a valuation in line with the averages, but it does not seem to be growing.
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.
The reported net income has been mixed in the past 5 years: VIRC reported negative net income in multiple years.
In multiple years VIRC reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.84%, VIRC is doing good in the industry, outperforming 79.27% of the companies in the same industry.
VIRC's Return On Equity of 11.78% is fine compared to the rest of the industry. VIRC outperforms 70.73% of its industry peers.
The Return On Invested Capital of VIRC (8.58%) is better than 74.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VIRC is above the industry average of 10.38%.
The 3 year average ROIC (14.56%) for VIRC is well above the current ROIC(8.58%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.84% | ||
| ROE | 11.78% | ||
| ROIC | 8.58% |
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 5.74% is fine compared to the rest of the industry. VIRC outperforms 71.95% of its industry peers.
VIRC's Profit Margin has improved in the last couple of years.
The Operating Margin of VIRC (7.71%) is better than 62.20% of its industry peers.
VIRC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 42.64%, VIRC is in the better half of the industry, outperforming 76.83% of the companies in the same industry.
VIRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.71% | ||
| PM (TTM) | 5.74% | ||
| GM | 42.64% |
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.
VIRC has more shares outstanding than it did 5 years ago.
VIRC has a better debt/assets ratio than last year.
2.2 Solvency
VIRC has an Altman-Z score of 2.79. This is not the best score and indicates that VIRC is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.79, VIRC is in line with its industry, outperforming 58.54% of the companies in the same industry.
The Debt to FCF ratio of VIRC is 1.90, which is an excellent value as it means it would take VIRC, only 1.90 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.90, VIRC belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
VIRC has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of VIRC (0.03) is better than 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | 2.79 |
ROIC/WACC1
WACC8.55%
2.3 Liquidity
VIRC has a Current Ratio of 2.96. This indicates that VIRC is financially healthy and has no problem in meeting its short term obligations.
VIRC has a better Current ratio (2.96) than 82.93% of its industry peers.
VIRC has a Quick Ratio of 1.38. This is a normal value and indicates that VIRC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of VIRC (1.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.96 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The earnings per share for VIRC have decreased strongly by -47.27% in the last year.
The Earnings Per Share has been growing by 54.95% on average over the past years. This is a very strong growth
Looking at the last year, VIRC shows a very negative growth in Revenue. The Revenue has decreased by -15.99% in the last 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)-47.27%
EPS 3YN/A
EPS 5Y54.95%
EPS Q2Q%-37.5%
Revenue 1Y (TTM)-15.99%
Revenue growth 3Y12.94%
Revenue growth 5Y6.65%
Sales Q2Q%-15.06%
3.2 Future
Based on estimates for the next years, VIRC will show a decrease in Earnings Per Share. The EPS will decrease by -6.44% on average per year.
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 8.51 indicates a reasonable valuation of VIRC.
Compared to the rest of the industry, the Price/Earnings ratio of VIRC indicates a rather cheap valuation: VIRC is cheaper than 91.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.77, VIRC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.31, the valuation of VIRC can be described as very cheap.
92.68% of the companies in the same industry are more expensive than VIRC, based on the Price/Forward Earnings ratio.
VIRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 6.31 |
4.2 Price Multiples
VIRC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VIRC is cheaper than 93.90% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as VIRC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.17 | ||
| EV/EBITDA | 4.85 |
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)0.15
EPS Next 2Y-6.44%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VIRC has a Yearly Dividend Yield of 1.43%.
Compared to an average industry Dividend Yield of 2.51, VIRC pays a better dividend. On top of this VIRC pays more dividend than 80.49% of the companies listed in the same industry.
VIRC's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
VIRC has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of VIRC decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VIRC pays out 11.75% of its income as dividend. This is a sustainable payout ratio.
DP11.75%
EPS Next 2Y-6.44%
EPS Next 3YN/A
7.4
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners51.57%
Inst Owner Change-0.03%
Ins Owners15.46%
Ins Owner Change1.36%
Market Cap116.62M
Analysts85.71
Price Target12.24 (65.41%)
Short Float %5.83%
Short Ratio11.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend0.09
Dividend Growth(5Y)N/A
DP11.75%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)56.74%
Min EPS beat(2)-24.23%
Max EPS beat(2)137.71%
EPS beat(4)1
Avg EPS beat(4)-14.12%
Min EPS beat(4)-128.76%
Max EPS beat(4)137.71%
EPS beat(8)4
Avg EPS beat(8)24.61%
EPS beat(12)8
Avg EPS beat(12)73.37%
EPS beat(16)9
Avg EPS beat(16)29.72%
Revenue beat(2)0
Avg Revenue beat(2)-20.09%
Min Revenue beat(2)-20.7%
Max Revenue beat(2)-19.48%
Revenue beat(4)0
Avg Revenue beat(4)-22.93%
Min Revenue beat(4)-35.14%
Max Revenue beat(4)-16.4%
Revenue beat(8)2
Avg Revenue beat(8)-12.3%
Revenue beat(12)4
Avg Revenue beat(12)-9.11%
Revenue beat(16)5
Avg Revenue beat(16)-10.53%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 6.31 | ||
| P/S | 0.49 | ||
| P/FCF | 55.17 | ||
| P/OCF | 12.49 | ||
| P/B | 1.01 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 4.85 |
EPS(TTM)0.87
EY11.76%
EPS(NY)1.17
Fwd EY15.85%
FCF(TTM)0.13
FCFY1.81%
OCF(TTM)0.59
OCFY8.01%
SpS15.03
BVpS7.32
TBVpS7.32
PEG (NY)N/A
PEG (5Y)0.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.84% | ||
| ROE | 11.78% | ||
| ROCE | 11.36% | ||
| ROIC | 8.58% | ||
| ROICexc | 8.72% | ||
| ROICexgc | 8.72% | ||
| OM | 7.71% | ||
| PM (TTM) | 5.74% | ||
| GM | 42.64% | ||
| FCFM | 0.89% |
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-Score3
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 1.9 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 119.22% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 217.51 | ||
| Cash Conversion | 38.38% | ||
| Profit Quality | 15.56% | ||
| Current Ratio | 2.96 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 2.79 |
F-Score3
WACC8.55%
ROIC/WACC1
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)-47.27%
EPS 3YN/A
EPS 5Y54.95%
EPS Q2Q%-37.5%
EPS Next Y-24.03%
EPS Next 2Y-6.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-15.99%
Revenue growth 3Y12.94%
Revenue growth 5Y6.65%
Sales Q2Q%-15.06%
Revenue Next Year-6.29%
Revenue Next 2Y-1.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-50.35%
EBIT growth 3YN/A
EBIT growth 5Y36.4%
EBIT Next Year-26.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y122.07%
FCF growth 3YN/A
FCF growth 5Y37.1%
OCF growth 1Y287.91%
OCF growth 3YN/A
OCF growth 5Y27.69%