Virco Manufacturing (VIRC) AI Stock Analysis

• Market Cap: $155.24M
• Dividend Yield: 0.94%
• Average Volume (3M): 74.43K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 1.68
• Revenue Growth: 5.68%
• EPS Growth: -11.30%
• Country: US
• Employees: 776
• Sector: Consumer Cyclical
• Sector Strength: 51
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 1.54
• Shares Outstanding: 16,289,406
• 10 Day Avg. Volume: 58,880
• 30 Day Avg. Volume: 74,428
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.56
• Price to Cash Flow (P/CF): 1.20
• P/FCF Ratio: 1.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Virco Manufacturing's strong financial performance and attractive valuation are significant strengths, supporting a solid stock score. However, technical analysis indicates bearish trends, suggesting caution. The lack of detailed earnings call information limits potential positive sentiment impact.

Virco Manufacturing Business Overview & Revenue Model

Company Description

Virco Manufacturing Corporation (VIRC) is a prominent American company primarily involved in the design, production, and distribution of furniture for educational and commercial environments. Founded in 1950 and headquartered in Torrance, California, Virco is recognized for its durable and functional furniture solutions, catering mainly to K-12 schools, higher education institutions, and various corporate settings. The company emphasizes ergonomic design and sustainability, offering a range of products including chairs, desks, tables, and storage solutions.

How the Company Makes Money

Virco Manufacturing makes money by manufacturing and selling furniture primarily to educational institutions, which constitute its largest customer base. The company's revenue model is centered around the direct sale of its products, which are marketed through a combination of direct sales efforts, catalogs, and an online presence. Key revenue streams include contracts with school districts and educational consortia, as well as sales to retail distributors and dealers who resell to end-users. Partnerships with educational organizations and participation in state and national procurement contracts also significantly contribute to Virco's earnings. Additionally, Virco's commitment to sustainable practices and American-made products helps them maintain a competitive edge and appeal to environmentally conscious buyers.

Virco Manufacturing Financial Statement Overview

Summary

Virco Manufacturing demonstrates strong financial health with notable revenue and profit growth. The company maintains a solid balance sheet with manageable debt levels and high return on equity, reflecting efficient operations. Robust cash flows support liquidity and operational efficiency. Monitoring liability trends is advisable for sustained performance.

Income Statement

Virco Manufacturing shows a strong income statement with significant revenue growth, achieving a TTM (Trailing-Twelve-Months) revenue of $280.4 million, up from $269.1 million the previous year. Gross profit margin has improved to 44.0% in TTM, indicating effective cost management. The net profit margin stands at 8.9% for TTM, showing profitability. EBIT and EBITDA margins are solid at 11.8% and 14.0% respectively, reflecting good operational performance.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.33 in TTM, indicating manageable leverage. The return on equity is healthy at 21.6% for TTM, demonstrating efficient use of equity to generate profits. The equity ratio stands at 55.1%, suggesting a strong equity position relative to total assets. The company shows good financial health, but a slight increase in total liabilities is a point to monitor.

Cash Flow

Cash flow analysis indicates robust operating cash flow of $46.1 million in TTM, significantly enhancing from previous periods. Free cash flow growth is impressive, with a TTM value of $40.1 million, driven by strong operating performance. The operating cash flow to net income ratio of 1.84 suggests high cash conversion efficiency. The free cash flow to net income ratio of 1.60 further supports strong liquidity and cash management.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
280.38M	269.12M	231.06M	184.83M	152.79M	191.06M
	Gross Profit
123.31M	116.06M	85.34M	60.93M	54.92M	71.67M
	EBIT
33.21M	31.88M	5.48M	-2.53M	-1.44M	-580.00K
	EBITDA
39.20M	37.02M	10.02M	2.04M	4.23M	11.30M
	Net Income Common Stockholders
25.03M	21.91M	16.55M	-15.14M	-2.23M	2.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.26M	5.29M	1.06M	1.36M	402.00K	1.15M
	Total Assets
111.98M	146.44M	150.13M	126.44M	125.04M	138.99M
	Total Debt
2.25M	11.96M	33.62M	30.68M	30.73M	40.14M
	Net Debt
-5.00K	6.67M	32.56M	29.32M	30.33M	38.99M
	Total Liabilities
49.23M	55.27M	82.06M	79.00M	70.85M	84.17M
	Stockholders Equity
62.75M	91.18M	68.06M	47.45M	54.19M	54.82M
Cash Flow		Free Cash Flow
40.10M	21.71M	-7.12M	-3.40M	5.64M	5.54M
	Operating Cash Flow
46.11M	26.96M	-3.79M	-401.00K	7.80M	9.76M
	Investing Cash Flow
-4.80M	-4.76M	-3.33M	-2.37M	-2.13M	-4.26M
	Financing Cash Flow
-7.34M	-17.97M	6.82M	3.73M	-6.41M	-5.09M

Virco Manufacturing Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIRC, the sentiment is Negative. The current price of 9.5 is below the 20-day moving average (MA) of 9.85, below the 50-day MA of 10.51, and below the 200-day MA of 13.31, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 37.36 is Neutral, neither overbought nor oversold. The STOCH value of 29.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VIRC.

Virco Manufacturing Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EDU	74 Outperform	$7.68B	20.28	10.40%	―	34.42%	28.54%
LZB	73 Outperform	$1.61B	13.40	12.40%	2.10%	1.81%	8.09%
SCS	68 Neutral	$1.25B	10.80	12.80%	3.65%	0.20%	51.62%
VIRC	66 Neutral	$155.24M	6.18	23.88%	0.94%	5.68%	-11.30%
Sector *	59 Neutral	$12.24B	11.04	-1.00%	3.78%	1.30%	-19.54%
MLKN	58 Neutral	$1.35B	46.53	2.28%	3.79%	-2.68%	-56.16%
HNI	52 Neutral	$2.08B	15.42	17.42%	2.96%	3.80%	182.70%

Virco Manufacturing Corporate Events

Virco Manufacturing Reports Mixed Q3 2024 Results

Virco Mfg. Corporation reported a mixed financial performance for the third quarter of 2024 with a slight decline in revenue but a notable increase in gross profit for the first nine months. Despite higher SG&A expenses, the company maintained a strong balance sheet, supported by effective cash flow management and reduced inventory levels. The return to traditional seasonal patterns in the school furniture market helped stabilize order rates, while strategic investments in manufacturing processes and potential acquisitions are expected to enhance future growth. The company declared a quarterly dividend and remains committed to maximizing shareholder returns.