VIRCO MFG CORPORATION (VIRC) Stock Fundamental Analysis
USA - NASDAQ:VIRC - US9276511097 - Common Stock
8.07 USD
+0.05 (+0.62%)
8.07 USD
0 (0%)
Overall VIRC gets a fundamental rating of 6 out of 10. We evaluated VIRC against 84 industry peers in the Commercial Services & Supplies industry. VIRC gets an excellent profitability rating and is at the same time showing great financial health properties. VIRC is valued correctly, 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
VIRC's Return On Assets of 6.84% is fine compared to the rest of the industry. VIRC outperforms 77.38% of its industry peers.
Looking at the Return On Equity, with a value of 11.78%, VIRC is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.58%, VIRC is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
VIRC had an Average Return On Invested Capital over the past 3 years of 14.56%. This is above the industry average of 10.60%.
The last Return On Invested Capital (8.58%) for VIRC is well below the 3 year average (14.56%), which needs to be investigated, but indicates that VIRC had better years and this may not be a problem.
| 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
Looking at the Profit Margin, with a value of 5.74%, VIRC is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Profit Margin of VIRC has grown nicely.
With a Operating Margin value of 7.71%, VIRC perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
In the last couple of years the Operating Margin of VIRC has grown nicely.
The Gross Margin of VIRC (42.64%) is better than 75.00% of its industry peers.
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.
VIRC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VIRC has been increased compared to 5 years ago.
VIRC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.87 indicates that VIRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
VIRC has a Altman-Z score (2.87) which is in line with its industry peers.
VIRC has a debt to FCF ratio of 1.90. This is a very positive value and a sign of high solvency as it would only need 1.90 years to pay back of all of its debts.
VIRC's Debt to FCF ratio of 1.90 is amongst the best of the industry. VIRC outperforms 82.14% of its industry peers.
VIRC has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.03, VIRC is in the better half of the industry, outperforming 79.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | 2.87 |
ROIC/WACC1
WACC8.61%
2.3 Liquidity
A Current Ratio of 2.96 indicates that VIRC has no problem at all paying its short term obligations.
VIRC has a Current ratio of 2.96. This is amongst the best in the industry. VIRC outperforms 82.14% of its industry peers.
A Quick Ratio of 1.38 indicates that VIRC should not have too much problems paying its short term obligations.
VIRC has a Quick ratio (1.38) which 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
VIRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.27%.
The Earnings Per Share has been growing by 54.95% on average over the past years. This is a very strong growth
VIRC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.99%.
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.
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
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 9.28 indicates a reasonable valuation of VIRC.
Based on the Price/Earnings ratio, VIRC is valued cheaper than 91.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of VIRC to the average of the S&P500 Index (27.20), we can say VIRC is valued rather cheaply.
The Price/Forward Earnings ratio is 6.88, which indicates a rather cheap valuation of VIRC.
Based on the Price/Forward Earnings ratio, VIRC is valued cheaper than 95.24% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, VIRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 6.88 |
4.2 Price Multiples
VIRC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VIRC is cheaper than 92.86% of the companies in the same industry.
VIRC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.16 | ||
| EV/EBITDA | 5.28 |
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)0.17
EPS Next 2Y-6.44%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VIRC has a Yearly Dividend Yield of 1.22%.
VIRC's Dividend Yield is a higher than the industry average which is at 2.27.
Compared to an average S&P500 Dividend Yield of 2.38, VIRC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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
8.07
+0.05 (+0.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners54.71%
Inst Owner Change-6.39%
Ins Owners15.48%
Ins Owner Change0.78%
Market Cap127.18M
Analysts85.71
Price Target12.24 (51.67%)
Short Float %5.69%
Short Ratio11.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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)26.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 6.88 | ||
| P/S | 0.54 | ||
| P/FCF | 60.16 | ||
| P/OCF | 13.62 | ||
| P/B | 1.1 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 5.28 |
EPS(TTM)0.87
EY10.78%
EPS(NY)1.17
Fwd EY14.54%
FCF(TTM)0.13
FCFY1.66%
OCF(TTM)0.59
OCFY7.34%
SpS15.03
BVpS7.32
TBVpS7.32
PEG (NY)N/A
PEG (5Y)0.17
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 | 2.87 |
F-Score3
WACC8.61%
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%