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 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. 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
With an excellent Return On Assets value of 11.01%, VIRC belongs to the best of the industry, outperforming 80.72% of the companies in the same industry.
The Return On Equity of VIRC (19.16%) is better than 81.93% of its industry peers.
VIRC's Return On Invested Capital of 12.27% is amongst the best of the industry. VIRC outperforms 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 | 11.01% | ||
| 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 77.11% of its industry peers.
VIRC's Profit Margin has improved in the last couple of years.
The Operating Margin of VIRC (9.79%) is better than 68.67% of its industry peers.
In the last couple of years the Operating Margin of VIRC has grown nicely.
VIRC has a Gross Margin of 43.58%. This is in the better half of the industry: VIRC outperforms 74.70% of its industry peers.
In the last couple of years the Gross Margin of VIRC has grown nicely.
| 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.
The number of shares outstanding for VIRC has been reduced compared to 1 year ago.
VIRC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VIRC has an improved debt to assets ratio.
2.2 Solvency
VIRC has an Altman-Z score of 3.16. This indicates that VIRC is financially healthy and has little risk of bankruptcy at the moment.
VIRC has a better Altman-Z score (3.16) than 61.45% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 0.37, VIRC belongs to the top of the industry, outperforming 89.16% 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 Debt to Equity ratio of 0.04. This is amongst the best in the industry. VIRC outperforms 80.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.37 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.38
WACC8.9%
2.3 Liquidity
VIRC has a Current Ratio of 3.02. This indicates that VIRC is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.02, VIRC belongs to the best of the industry, outperforming 84.34% of the companies in the same industry.
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 87.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
VIRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.23%.
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.
The Revenue has decreased by -9.84% in the past 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)-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.
The Revenue is expected to decrease by -1.02% on average over the next years.
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
The Price/Earnings ratio is 6.29, which indicates a rather cheap valuation of VIRC.
92.77% of the companies in the same industry are more expensive than VIRC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. VIRC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.75 indicates a rather cheap valuation of VIRC.
Based on the Price/Forward Earnings ratio, VIRC is valued cheaply inside the industry as 95.18% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, VIRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.29 | ||
| Fwd PE | 6.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIRC is valued cheaply inside the industry as 95.18% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VIRC is valued cheaper than 85.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.63 | ||
| EV/EBITDA | 4.32 |
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 -6.44% in the coming years.
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 1.20%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of VIRC has falen by -23.11%. 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 2.44, VIRC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, VIRC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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 7.56% of its income as dividend. This is a sustainable payout ratio.
DP7.56%
EPS Next 2Y-6.44%
EPS Next 3YN/A
7.92
-0.12 (-1.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners54.7%
Inst Owner Change0%
Ins Owners15.33%
Ins Owner Change0.72%
Market Cap127.43M
Analysts85.71
Price Target12.24 (54.55%)
Short Float %6.04%
Short Ratio9.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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)-29.41%
EPS NQ rev (1m)3.83%
EPS NQ rev (3m)-16.9%
EPS NY rev (1m)26.49%
EPS NY rev (3m)-23.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-2.73%
Revenue NY rev (3m)-8.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.29 | ||
| Fwd PE | 6.75 | ||
| P/S | 0.5 | ||
| P/FCF | 11.63 | ||
| P/OCF | 6.85 | ||
| P/B | 1.21 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 4.32 |
EPS(TTM)1.26
EY15.91%
EPS(NY)1.17
Fwd EY14.81%
FCF(TTM)0.68
FCFY8.6%
OCF(TTM)1.16
OCFY14.6%
SpS15.74
BVpS6.56
TBVpS6.56
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 | 3.16 |
F-Score4
WACC8.9%
ROIC/WACC1.38
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%