VIRCO MFG CORPORATION (VIRC) Stock Fundamental Analysis
NASDAQ:VIRC - Nasdaq - US9276511097 - Common Stock - Currency: USD
Taking everything into account, VIRC scores 6 out of 10 in our fundamental rating. VIRC was compared to 84 industry peers in the Commercial Services & Supplies industry. Both the health and profitability get an excellent rating, making VIRC a very profitable company, without any liquidiy or solvency issues. 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.
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.
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 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 19.16%, VIRC belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
VIRC has a better Return On Invested Capital (12.27%) than 82.14% of its industry peers.
VIRC had an Average Return On Invested Capital over the past 3 years of 14.56%. This is above the industry average of 11.60%.
| 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 has a better Profit Margin (7.99%) than 78.57% 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 69.05% of its industry peers.
VIRC's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 43.58%, VIRC is doing good in 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 | 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.
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.
Compared to 1 year ago, VIRC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.11 indicates that VIRC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.11, VIRC is in the better half of the industry, outperforming 63.10% of the companies in the same industry.
The Debt to FCF ratio of VIRC is 0.37, which is an excellent value as it means it would take VIRC, only 0.37 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VIRC (0.37) is better than 89.29% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that VIRC is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.04, VIRC belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.37 | ||
| Altman-Z | 3.11 |
ROIC/WACC1.4
WACC8.78%
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 85.71% 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 84.52% 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.
The Earnings Per Share has been growing by 54.95% on average over the past years. This is a very strong growth
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
The Earnings Per Share is expected to decrease by -6.44% on average over the next years.
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
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.
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
VIRC is valuated cheaply with a Price/Earnings ratio of 6.20.
VIRC's Price/Earnings ratio is rather cheap when compared to the industry. VIRC is cheaper than 91.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. VIRC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.66 indicates a rather cheap valuation of VIRC.
VIRC's Price/Forward Earnings ratio is rather cheap when compared to the industry. VIRC is cheaper than 94.05% of the companies in the same industry.
VIRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.2 | ||
| Fwd PE | 6.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIRC is valued cheaper than 94.05% of the companies in the same industry.
84.52% of the companies in the same industry are more expensive than VIRC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.22 | ||
| EV/EBITDA | 4.11 |
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)0.11
EPS Next 2Y-6.44%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VIRC has a Yearly Dividend Yield of 1.29%. Purely for dividend investing, there may be better candidates out there.
VIRC's Dividend Yield is a higher than the industry average which is at 2.48.
Compared to an average S&P500 Dividend Yield of 2.39, VIRC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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
7.81
+0.07 (+0.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners54.7%
Inst Owner Change-0.84%
Ins Owners15.33%
Ins Owner Change0.78%
Market Cap122.93M
Analysts85.71
Price Target12.24 (56.72%)
Short Float %5.69%
Short Ratio10.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-23.82%
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 | 6.2 | ||
| Fwd PE | 6.66 | ||
| P/S | 0.49 | ||
| P/FCF | 11.22 | ||
| P/OCF | 6.61 | ||
| P/B | 1.16 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 4.11 |
EPS(TTM)1.26
EY16.13%
EPS(NY)1.17
Fwd EY15.02%
FCF(TTM)0.7
FCFY8.91%
OCF(TTM)1.18
OCFY15.13%
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 | 3.11 |
F-Score4
WACC8.78%
ROIC/WACC1.4
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%