VIRCO MFG CORPORATION (VIRC) Stock Fundamental Analysis
USA - NASDAQ:VIRC - US9276511097 - Common Stock
7 USD
+0.26 (+3.86%)
7 USD
0 (0%)
VIRC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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
VIRC had positive earnings in the past year.
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.
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 Return On Assets of 6.84%. This is in the better half of the industry: VIRC outperforms 79.76% of its industry peers.
VIRC has a Return On Equity of 11.78%. This is in the better half of the industry: VIRC outperforms 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.58%, VIRC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VIRC is above the industry average of 10.17%.
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
Looking at the Profit Margin, with a value of 5.74%, VIRC is in the better half of the industry, outperforming 72.62% of the companies in the same industry.
In the last couple of years the Profit Margin of VIRC has grown nicely.
With a decent Operating Margin value of 7.71%, VIRC is doing good in the industry, outperforming 60.71% of the companies in the same industry.
In the last couple of years the Operating Margin of VIRC has grown nicely.
Looking at the Gross Margin, with a value of 42.64%, VIRC is in the better half of the industry, outperforming 76.19% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VIRC is still creating some value.
VIRC has less shares outstanding than it did 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
An Altman-Z score of 2.72 indicates that VIRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
VIRC has a Altman-Z score (2.72) which is comparable to the rest of the 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.
VIRC has a better Debt to FCF ratio (1.90) than 83.33% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that VIRC is not too dependend on debt financing.
VIRC has a Debt to Equity ratio of 0.03. This is in the better half of the industry: VIRC outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | 2.72 |
ROIC/WACC1
WACC8.6%
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 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 of 1.38. This is comparable to the rest of the industry: VIRC outperforms 51.19% of its industry peers.
| 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.
VIRC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 54.95% yearly.
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
The Earnings Per Share is expected to decrease by -6.44% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
VIRC is valuated reasonably with a Price/Earnings ratio of 8.05.
VIRC's Price/Earnings 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/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.50.
VIRC is valuated cheaply with a Price/Forward Earnings ratio of 5.97.
Based on the Price/Forward Earnings ratio, VIRC is valued cheaper than 96.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. VIRC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 5.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIRC is valued cheaply inside the industry as 94.05% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as VIRC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.19 | ||
| EV/EBITDA | 4.42 |
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
With a Yearly Dividend Yield of 1.47%, VIRC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.41, VIRC pays a better dividend. On top of this VIRC pays more dividend than 80.95% of the companies listed in the same industry.
VIRC's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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 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
+0.26 (+3.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners51.57%
Inst Owner Change-0.02%
Ins Owners15.46%
Ins Owner Change0.8%
Market Cap110.32M
Analysts85.71
Price Target12.24 (74.86%)
Short Float %5.83%
Short Ratio11.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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 | 8.05 | ||
| Fwd PE | 5.97 | ||
| P/S | 0.47 | ||
| P/FCF | 52.19 | ||
| P/OCF | 11.81 | ||
| P/B | 0.96 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 4.42 |
EPS(TTM)0.87
EY12.43%
EPS(NY)1.17
Fwd EY16.76%
FCF(TTM)0.13
FCFY1.92%
OCF(TTM)0.59
OCFY8.47%
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 | 2.72 |
F-Score3
WACC8.6%
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%