VIRCO MFG CORPORATION (VIRC)
US9276511097 - Common Stock
We assign a fundamental rating of 6 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. VIRC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes VIRC very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year VIRC was profitable.
In the past year VIRC had a positive cash flow from operations.
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
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's Return On Equity of 24.85% is amongst the best of the industry. VIRC outperforms 89.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.14%, VIRC belongs to the top of the industry, outperforming 90.48% 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 80.95% of the companies in the same industry.
With a decent Operating Margin value of 13.05%, VIRC is doing good in the industry, outperforming 79.76% 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 44.27%, VIRC is doing good in the industry, outperforming 78.57% of the companies in the same industry.
VIRC's Gross Margin has improved in the last couple of years.
| 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
VIRC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for VIRC has been increased compared to 1 year ago.
The number of shares outstanding for VIRC has been increased compared to 5 years ago.
VIRC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.61 indicates that VIRC is not in any danger for bankruptcy at the moment.
VIRC's Altman-Z score of 3.61 is fine compared to the rest of the industry. VIRC outperforms 67.86% of its industry peers.
The Debt to FCF ratio of VIRC is 0.08, which is an excellent value as it means it would take VIRC, only 0.08 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VIRC (0.08) is better than 91.67% of its industry peers.
VIRC has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
VIRC's Debt to Equity ratio of 0.04 is amongst the best of the industry. VIRC outperforms 84.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | 3.61 |
ROIC/WACC1.83
WACC9.37%
2.3 Liquidity
A Current Ratio of 2.26 indicates that VIRC has no problem at all paying its short term obligations.
VIRC has a Current ratio of 2.26. This is in the better half of the industry: VIRC outperforms 73.81% of its industry peers.
VIRC has a Quick Ratio of 1.20. This is a normal value and indicates that VIRC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of VIRC (1.20) 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 small growth in Earnings Per Share. In the last year, the EPS has grown by 3.77%.
Looking at the last year, VIRC shows a quite strong growth in Revenue. The Revenue has grown by 9.14% in the last year.
VIRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.04% yearly.
EPS 1Y (TTM)3.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%9.47%
Revenue 1Y (TTM)9.14%
Revenue growth 3Y20.76%
Revenue growth 5Y6.04%
Sales Q2Q%1.02%
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 15.88% yearly.
Based on estimates for the next years, VIRC will show a quite strong growth in Revenue. The Revenue will grow by 8.26% on average per year.
EPS Next Y47.06%
EPS Next 2Y15.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.52%
Revenue Next 2Y8.26%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.59, the valuation of VIRC can be described as very reasonable.
Based on the Price/Earnings ratio, VIRC is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
VIRC is valuated cheaply when we compare the Price/Earnings ratio to 29.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.80, the valuation of VIRC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, VIRC is valued cheaper than 95.24% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.01. VIRC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 8.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIRC is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
97.62% 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 | 5.08 | ||
| EV/EBITDA | 6.03 |
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.
VIRC's earnings are expected to grow with 15.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y15.88%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, VIRC is not a good candidate for dividend investing.
VIRC's Dividend Yield is a higher than the industry average which is at 2.12.
Compared to an average S&P500 Dividend Yield of 2.19, VIRC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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
3.66% of the earnings are spent on dividend by VIRC. This is a low number and sustainable payout ratio.
DP3.66%
EPS Next 2Y15.88%
EPS Next 3YN/A
VIRCO MFG CORPORATION
NASDAQ:VIRC (11/22/2024, 8:11:42 PM)
After market: 16.12 +0.29 (+1.83%)15.83
-0.28 (-1.74%)
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 Cap257.87M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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 | 9.59 | ||
| Fwd PE | 8.8 | ||
| 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)0.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.38% | ||
| ROE | 24.85% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.05% | ||
| PM (TTM) | 9.5% | ||
| GM | 44.27% | ||
| 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 Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.2 | ||
| 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)3.77%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y47.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.14%
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