VIRCO MFG CORPORATION (VIRC)
US9276511097 - Common Stock
We assign a fundamental rating of 7 out of 10 to VIRC. VIRC was compared to 84 industry peers in the Commercial Services & Supplies industry. VIRC is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. A decent growth rate in combination with a cheap valuation! Better keep an eye on VIRC. This makes VIRC very considerable for value investing!
1. Profitability
1.1 Basic Checks
VIRC had positive earnings in the past year.
VIRC had a positive operating cash flow in the past year.
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
The Return On Assets of VIRC (16.70%) is better than 96.34% of its industry peers.
The Return On Equity of VIRC (27.78%) is better than 93.90% of its industry peers.
VIRC's Return On Invested Capital of 24.48% is amongst the best of the industry. VIRC outperforms 97.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.7% | ||
| ROE | 27.78% | ||
| ROIC | 24.48% |
ROA(3y)4.67%
ROA(5y)2.79%
ROE(3y)5.47%
ROE(5y)3.34%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 9.06%, VIRC belongs to the top of the industry, outperforming 84.15% of the companies in the same industry.
With a decent Operating Margin value of 12.89%, VIRC is doing good in the industry, outperforming 79.27% of the companies in the same industry.
In the last couple of years the Operating Margin of VIRC has grown nicely.
With a decent Gross Margin value of 43.87%, VIRC is doing good in the industry, outperforming 78.05% of the companies in the same industry.
In the last couple of years the Gross Margin of VIRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.89% | ||
| PM (TTM) | 9.06% | ||
| GM | 43.87% |
OM growth 3Y195.7%
OM growth 5Y59.54%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.27%
GM growth 5Y5.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VIRC is creating value.
Compared to 1 year ago, VIRC has more shares outstanding
Compared to 5 years ago, VIRC has more shares outstanding
The debt/assets ratio for VIRC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.42 indicates that VIRC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.42, VIRC belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
VIRC has a debt to FCF ratio of 0.24. This is a very positive value and a sign of high solvency as it would only need 0.24 years to pay back of all of its debts.
VIRC has a Debt to FCF ratio of 0.24. This is amongst the best in the industry. VIRC outperforms 91.46% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that VIRC is not too dependend on debt financing.
VIRC has a Debt to Equity ratio of 0.07. This is in the better half of the industry: VIRC outperforms 79.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.24 | ||
| Altman-Z | 5.42 |
ROIC/WACC2.66
WACC9.2%
2.3 Liquidity
A Current Ratio of 2.30 indicates that VIRC has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.30, VIRC is doing good in the industry, outperforming 76.83% of the companies in the same industry.
VIRC has a Quick Ratio of 2.30. This is a bad value and indicates that VIRC is not financially healthy enough and could expect problems in meeting its short term obligations.
VIRC has a Quick ratio of 0.59. This is amonst the worse of the industry: VIRC underperforms 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.81% over the past year.
Looking at the last year, VIRC shows a very strong growth in Revenue. The Revenue has grown by 20.09%.
VIRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.04% yearly.
EPS 1Y (TTM)25.81%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%244.44%
Revenue 1Y (TTM)20.09%
Revenue growth 3Y20.76%
Revenue growth 5Y6.04%
Sales Q2Q%33.75%
3.2 Future
VIRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.07% yearly.
Based on estimates for the next years, VIRC will show a quite strong growth in Revenue. The Revenue will grow by 9.61% on average per year.
EPS Next Y41.51%
EPS Next 2Y16.07%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.33%
Revenue Next 2Y9.61%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.86, the valuation of VIRC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of VIRC indicates a rather cheap valuation: VIRC is cheaper than 92.68% of the companies listed in the same industry.
VIRC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.41.
With a Price/Forward Earnings ratio of 9.38, the valuation of VIRC can be described as very reasonable.
91.46% of the companies in the same industry are more expensive than VIRC, based on the Price/Forward Earnings ratio.
VIRC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 9.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIRC is valued cheaper than 87.80% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VIRC indicates a rather cheap valuation: VIRC is cheaper than 85.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.35 | ||
| EV/EBITDA | 6.55 |
4.3 Compensation for Growth
VIRC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VIRC has a very decent profitability rating, which may justify a higher PE ratio.
VIRC's earnings are expected to grow with 16.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y16.07%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VIRC has a yearly dividend return of 0.49%, which is pretty low.
VIRC's Dividend Yield is a higher than the industry average which is at 2.23.
Compared to an average S&P500 Dividend Yield of 2.30, VIRC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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 Years0
Div Non Decr Years1
5.3 Sustainability
2.57% of the earnings are spent on dividend by VIRC. This is a low number and sustainable payout ratio.
DP2.57%
EPS Next 2Y16.07%
EPS Next 3YN/A
VIRCO MFG CORPORATION
NASDAQ:VIRC (7/26/2024, 7:05:30 PM)
After market: 16.94 0 (0%)16.94
+0.58 (+3.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap274.60M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 9.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.7% | ||
| ROE | 27.78% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.89% | ||
| PM (TTM) | 9.06% | ||
| GM | 43.87% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.3 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)25.81%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y41.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.09%
Revenue growth 3Y20.76%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y