VIRCO MFG CORPORATION (VIRC) Stock Fundamental Analysis
NASDAQ:VIRC - Nasdaq - US9276511097 - Common Stock - Currency: USD
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 has a bad growth rate and is valued cheaply. With these ratings, VIRC could be worth investigating further for value investing!.
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.
In multiple years VIRC reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.38%, VIRC belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
VIRC has a better Return On Equity (24.85%) than 90.48% of its industry peers.
With an excellent Return On Invested Capital value of 17.14%, VIRC belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.38% | ||
| ROE | 24.85% | ||
| ROIC | 17.14% |
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 9.50%, VIRC belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Operating Margin, with a value of 13.05%, VIRC belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
In the last couple of years the Operating Margin of VIRC has grown nicely.
VIRC has a Gross Margin of 44.27%. This is in the better half of the industry: VIRC outperforms 76.19% of its industry peers.
In the last couple of years the Gross Margin of VIRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.05% | ||
| PM (TTM) | 9.5% | ||
| GM | 44.27% |
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
VIRC has more shares outstanding than it did 5 years ago.
VIRC has a better debt/assets ratio than last year.
2.2 Solvency
VIRC has an Altman-Z score of 3.13. This indicates that VIRC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.13, VIRC is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
VIRC has a debt to FCF ratio of 0.08. This is a very positive value and a sign of high solvency as it would only need 0.08 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.08, VIRC belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that VIRC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.04, VIRC belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | 3.13 |
ROIC/WACC1.83
WACC9.39%
2.3 Liquidity
VIRC has a Current Ratio of 2.26. This indicates that VIRC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of VIRC (2.26) is better than 77.38% of its industry peers.
A Quick Ratio of 1.20 indicates that VIRC should not have too much problems paying its short term obligations.
VIRC has a Quick ratio (1.20) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
VIRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.40%.
VIRC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.45%.
The Revenue has been growing slightly by 6.04% on average over the past years.
EPS 1Y (TTM)-10.4%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-16.13%
Revenue 1Y (TTM)16.45%
Revenue growth 3Y20.76%
Revenue growth 5Y6.04%
Sales Q2Q%-1.94%
3.2 Future
VIRC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.14% yearly.
The Revenue is expected to grow by 3.72% on average over the next years.
EPS Next Y17.22%
EPS Next 2Y-0.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.07%
Revenue Next 2Y3.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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
The Price/Earnings ratio is 6.65, which indicates a rather cheap valuation of VIRC.
Based on the Price/Earnings ratio, VIRC is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
VIRC is valuated cheaply when we compare the Price/Earnings ratio to 29.16, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.71, which 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 91.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.95, VIRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.65 | ||
| Fwd PE | 7.71 |
4.2 Price Multiples
94.05% of the companies in the same industry are more expensive than VIRC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VIRC is valued cheaply inside the industry as 98.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.31 | ||
| EV/EBITDA | 3.98 |
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.
The decent profitability rating of VIRC may justify a higher PE ratio.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y-0.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, VIRC is not a good candidate for dividend investing.
In the last 3 months the price of VIRC has falen by -36.85%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
VIRC's Dividend Yield is a higher than the industry average which is at 2.30.
With a Dividend Yield of 0.97, VIRC pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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 3.66% of its income as dividend. This is a sustainable payout ratio.
DP3.66%
EPS Next 2Y-0.14%
EPS Next 3YN/A
10.3
-0.21 (-2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners54.7%
Inst Owner Change-1.14%
Ins Owners16.04%
Ins Owner Change-0.09%
Market Cap167.79M
Analysts85.71
Price Target17.34 (68.35%)
Short Float %7.4%
Short Ratio7.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend0.02
Dividend Growth(5Y)N/A
DP3.66%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)100%
Min EPS beat(2)1.96%
Max EPS beat(2)198.04%
EPS beat(4)3
Avg EPS beat(4)63.35%
Min EPS beat(4)-1.67%
Max EPS beat(4)198.04%
EPS beat(8)7
Avg EPS beat(8)117.12%
EPS beat(12)8
Avg EPS beat(12)44.34%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)6.56%
Min Revenue beat(2)-8.3%
Max Revenue beat(2)21.41%
Revenue beat(4)2
Avg Revenue beat(4)-1.68%
Min Revenue beat(4)-21.47%
Max Revenue beat(4)21.41%
Revenue beat(8)4
Avg Revenue beat(8)-2.2%
Revenue beat(12)5
Avg Revenue beat(12)-6.39%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-20.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.65 | ||
| Fwd PE | 7.71 | ||
| P/S | 0.59 | ||
| P/FCF | 3.31 | ||
| P/OCF | 2.99 | ||
| P/B | 1.56 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 3.98 |
EPS(TTM)1.55
EY15.05%
EPS(NY)1.34
Fwd EY12.97%
FCF(TTM)3.11
FCFY30.24%
OCF(TTM)3.44
OCFY33.42%
SpS17.31
BVpS6.62
TBVpS6.62
PEG (NY)0.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.38% | ||
| ROE | 24.85% | ||
| ROCE | 22.88% | ||
| ROIC | 17.14% | ||
| ROICexc | 18.01% | ||
| ROICexgc | 18.01% | ||
| OM | 13.05% | ||
| PM (TTM) | 9.5% | ||
| GM | 44.27% | ||
| FCFM | 17.99% |
ROA(3y)4.67%
ROA(5y)2.79%
ROE(3y)5.47%
ROE(5y)3.34%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y256.96%
ROICexcg growth 5Y64.91%
ROICexc growth 3Y256.96%
ROICexc growth 5Y64.91%
OM growth 3Y195.7%
OM growth 5Y59.54%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.27%
GM growth 5Y5.22%
F-Score7
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.08 | ||
| Debt/EBITDA | 0.1 | ||
| Cap/Depr | 99.65% | ||
| Cap/Sales | 1.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 133.02% | ||
| Profit Quality | 189.39% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.13 |
F-Score7
WACC9.39%
ROIC/WACC1.83
Cap/Depr(3y)80.65%
Cap/Depr(5y)71.47%
Cap/Sales(3y)1.67%
Cap/Sales(5y)1.72%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.4%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-16.13%
EPS Next Y17.22%
EPS Next 2Y-0.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16.45%
Revenue growth 3Y20.76%
Revenue growth 5Y6.04%
Sales Q2Q%-1.94%
Revenue Next Year5.07%
Revenue Next 2Y3.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y50.82%
EBIT growth 3Y257.1%
EBIT growth 5Y69.18%
EBIT Next Year40.63%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y430.12%
FCF growth 3Y56.63%
FCF growth 5YN/A
OCF growth 1Y574.79%
OCF growth 3Y51.2%
OCF growth 5Y62.77%