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 gets an excellent profitability rating and is at the same time showing great financial health properties. VIRC is cheap, but on the other hand it scores bad on growth. With these ratings, VIRC could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year VIRC was profitable.
VIRC had a positive operating cash flow in the past year.
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
The Return On Assets of VIRC (11.28%) is better than 81.93% of its industry peers.
VIRC has a better Return On Equity (19.81%) than 83.13% of its industry peers.
The Return On Invested Capital of VIRC (13.35%) is better than 81.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VIRC is above the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.28% | ||
| ROE | 19.81% | ||
| ROIC | 13.35% |
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 Profit Margin of 8.13%. This is in the better half 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.
The Operating Margin of VIRC (10.46%) is better than 72.29% of its industry peers.
VIRC's Operating Margin has improved in the last couple of years.
VIRC has a better Gross Margin (43.08%) than 73.49% of its industry peers.
VIRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.46% | ||
| PM (TTM) | 8.13% | ||
| GM | 43.08% |
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.
Compared to 1 year ago, VIRC has less shares outstanding
The number of shares outstanding for VIRC has been increased compared to 5 years ago.
Compared to 1 year ago, VIRC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.18 indicates that VIRC is not in any danger for bankruptcy at the moment.
The Altman-Z score of VIRC (3.18) is better than 61.45% of its industry peers.
VIRC has a debt to FCF ratio of 0.15. This is a very positive value and a sign of high solvency as it would only need 0.15 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.15, VIRC belongs to the top of the industry, outperforming 90.36% 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.
VIRC has a better Debt to Equity ratio (0.04) than 80.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 3.18 |
ROIC/WACC1.48
WACC9.01%
2.3 Liquidity
A Current Ratio of 2.98 indicates that VIRC has no problem at all paying its short term obligations.
The Current ratio of VIRC (2.98) is better than 84.34% of its industry peers.
A Quick Ratio of 1.36 indicates that VIRC should not have too much problems paying its short term obligations.
VIRC has a Quick ratio (1.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
VIRC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
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 -1.05% in the last year.
VIRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.65% yearly.
EPS 1Y (TTM)0%
EPS 3YN/A
EPS 5Y54.95%
EPS Q2Q%-150%
Revenue 1Y (TTM)-1.05%
Revenue growth 3Y12.94%
Revenue growth 5Y6.65%
Sales Q2Q%-12.68%
3.2 Future
VIRC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -18.62% yearly.
Based on estimates for the next years, VIRC will show a decrease in Revenue. The Revenue will decrease by -0.59% on average per year.
EPS Next Y-39.94%
EPS Next 2Y-18.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.67%
Revenue Next 2Y-0.59%
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.
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
With a Price/Earnings ratio of 6.21, the valuation of VIRC can be described as very cheap.
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.
VIRC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.43.
A Price/Forward Earnings ratio of 10.34 indicates a reasonable valuation of VIRC.
VIRC's Price/Forward Earnings ratio is rather cheap when compared to the industry. VIRC is cheaper than 89.16% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VIRC to the average of the S&P500 Index (22.17), we can say VIRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.21 | ||
| Fwd PE | 10.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIRC is valued cheaply inside the industry as 96.39% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VIRC is valued cheaply inside the industry as 95.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.99 | ||
| EV/EBITDA | 3.26 |
4.3 Compensation for Growth
The decent profitability rating of VIRC may justify a higher PE ratio.
A cheap valuation may be justified as VIRC's earnings are expected to decrease with -18.62% in the coming years.
PEG (NY)N/A
PEG (5Y)0.11
EPS Next 2Y-18.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.22%, VIRC has a reasonable but not impressive dividend return.
In the last 3 months the price of VIRC has falen by -20.79%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.52, VIRC pays a bit more dividend than its industry peers.
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
6.76% of the earnings are spent on dividend by VIRC. This is a low number and sustainable payout ratio.
DP6.76%
EPS Next 2Y-18.62%
EPS Next 3YN/A
8.325
+0.13 (+1.52%)
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 Owners16.04%
Ins Owner Change0%
Market Cap133.95M
Analysts85.71
Price Target12.24 (47.03%)
Short Float %5.91%
Short Ratio9.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend0.09
Dividend Growth(5Y)N/A
DP6.76%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-84.98%
Min EPS beat(2)-128.76%
Max EPS beat(2)-41.2%
EPS beat(4)2
Avg EPS beat(4)7.51%
Min EPS beat(4)-128.76%
Max EPS beat(4)198.04%
EPS beat(8)5
Avg EPS beat(8)22.09%
EPS beat(12)8
Avg EPS beat(12)64.42%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-25.77%
Min Revenue beat(2)-35.14%
Max Revenue beat(2)-16.4%
Revenue beat(4)1
Avg Revenue beat(4)-9.61%
Min Revenue beat(4)-35.14%
Max Revenue beat(4)21.41%
Revenue beat(8)4
Avg Revenue beat(8)-5.76%
Revenue beat(12)4
Avg Revenue beat(12)-8.65%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-29.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-39.77%
EPS NY rev (3m)-39.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.21 | ||
| Fwd PE | 10.34 | ||
| P/S | 0.5 | ||
| P/FCF | 4.99 | ||
| P/OCF | 4.04 | ||
| P/B | 1.23 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 3.26 |
EPS(TTM)1.34
EY16.1%
EPS(NY)0.8
Fwd EY9.67%
FCF(TTM)1.67
FCFY20.03%
OCF(TTM)2.06
OCFY24.73%
SpS16.55
BVpS6.79
TBVpS6.79
PEG (NY)N/A
PEG (5Y)0.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.28% | ||
| ROE | 19.81% | ||
| ROCE | 17.67% | ||
| ROIC | 13.35% | ||
| ROICexc | 16.09% | ||
| ROICexgc | 16.09% | ||
| OM | 10.46% | ||
| PM (TTM) | 8.13% | ||
| GM | 43.08% | ||
| FCFM | 10.08% |
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-Score6
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.15 | ||
| Debt/EBITDA | 0.12 | ||
| Cap/Depr | 110.63% | ||
| Cap/Sales | 2.36% | ||
| Interest Coverage | 79.83 | ||
| Cash Conversion | 98.75% | ||
| Profit Quality | 123.97% | ||
| Current Ratio | 2.98 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 3.18 |
F-Score6
WACC9.01%
ROIC/WACC1.48
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)0%
EPS 3YN/A
EPS 5Y54.95%
EPS Q2Q%-150%
EPS Next Y-39.94%
EPS Next 2Y-18.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.05%
Revenue growth 3Y12.94%
Revenue growth 5Y6.65%
Sales Q2Q%-12.68%
Revenue Next Year-3.67%
Revenue Next 2Y-0.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-12.76%
EBIT growth 3YN/A
EBIT growth 5Y36.4%
EBIT Next Year-26.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y23.59%
FCF growth 3YN/A
FCF growth 5Y37.1%
OCF growth 1Y22.88%
OCF growth 3YN/A
OCF growth 5Y27.69%