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VirTra Inc (VTSI)
NASDAQ:VTSI
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VirTra
(NASDAQ:VTSI)
59Neutral
Positive Factors
International Expansion
Management secured contacts with agencies in Europe and Latin America, indicating potential for international growth.
Product Development
VirTra completed the development stage of the U.S. Army’s IVAS program 42 days ahead of schedule, showcasing strong project execution capabilities.
Negative Factors
Federal Funding
The challenging federal funding environment is expected to impact the near term, with headwinds likely persisting.
Revenue and Earnings
VirTra reported revenue and EPS below estimates due to the impact of federal budget delays and grant disbursement pauses.
VirTra (VTSI) vs. S&P 500 (SPY)
Market Cap
$50.56M
Dividend YieldN/A
Average Volume (3M)71.76K
Price to Earnings (P/E)34.6
Beta (1Y)1.07
Revenue Growth-30.73%
EPS Growth-83.53%
CountryUS
Employees111
SectorIndustrials
Sector Strength65
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.13
Shares Outstanding11,260,209
10 Day Avg. Volume80,082
30 Day Avg. Volume71,762
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.84
Price to Cash Flow (P/CF)10.50
P/FCF Ratio11.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.25Price Target Upside86.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
VirTra Business Overview & Revenue Model
Company DescriptionVirTra, Inc. (VTSI) is a leading provider of immersive simulation training solutions for law enforcement, military, educational, and commercial markets. The company specializes in developing advanced virtual reality training platforms that utilize high-definition video, realistic scenarios, and cutting-edge technology to enhance the preparedness and decision-making skills of professionals in high-stress environments. VirTra's core products include firearms training simulators, use-of-force training systems, and driving simulators, all designed to improve the effectiveness and safety of personnel in critical situations.
How the Company Makes MoneyVirTra generates revenue primarily through the sale and leasing of its immersive simulation training systems to law enforcement agencies, military organizations, and other security-focused entities. The company's revenue streams include the direct sale of hardware and software solutions, recurring revenue from service and maintenance contracts, and the customization and integration of training modules tailored to specific client needs. Additionally, VirTra often engages in strategic partnerships and collaborations to expand its market reach and enhance its product offerings. These partnerships can lead to joint development projects and co-marketing opportunities, further supporting the company's growth and revenue generation.
VirTra Financial Statement Overview
Summary
VirTra presents a stable financial standing with consistent revenue growth and strong margins. The balance sheet is solid with low debt levels and a high equity ratio, mitigating financial risk. Cash flow performance has room for improvement, with some volatility in free cash flow, but operating cash flows have been positive recently.Income Statement
VirTra has shown consistent revenue growth over the years, with a notable jump from 2020 to 2023. The gross profit margin has been strong, indicating efficient cost management. However, the net profit margin shows some volatility, which could point to fluctuating operational costs or other expenses impacting profitability. EBIT and EBITDA margins are healthy, reflecting operational efficiency.68
Positive
Balance Sheet
The balance sheet is robust with a strong equity position as evidenced by a high equity ratio. The debt-to-equity ratio is low, indicating a conservative approach to leverage. Return on Equity (ROE) is positive, suggesting effective use of equity capital to generate profits. Overall, the financial position appears stable with low leverage risk.72
Positive
Cash Flow
The cash flow statement shows a mixed performance with free cash flow fluctuating over the years. Operating cash flow has been positive recently, which is a good sign, but the free cash flow has seen some negative years. The operating cash flow to net income ratio is reasonable, indicating decent cash conversion from profits.64
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 31.77M | 26.35M | 38.04M | 28.30M | 24.43M | 19.09M | Gross Profit |
| 24.89M | 19.41M | 26.67M | 16.25M | 11.41M | 11.90M | EBIT |
| 5.85M | 2.00M | 9.64M | 2.59M | 1.45M | 1.23M | EBITDA |
| 7.14M | 2.00M | 11.65M | 3.48M | 1.45M | 1.90M | Net Income Common Stockholders |
| 5.80M | 1.36M | 8.40M | 1.96M | 2.54M | 1.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 292.33K | 18.04M | 18.85M | 13.48M | 19.71M | 6.84M | Total Assets |
| 8.74M | 20.98M | 69.63M | 53.81M | 49.58M | 22.75M | Total Debt |
| 535.00K | 457.52K | 8.79M | 9.56M | 9.37M | 2.50M | Net Debt |
| 242.67K | -17.58M | -10.06M | -3.92M | -10.34M | -4.34M | Total Liabilities |
| 1.34M | 10.12M | 27.01M | 20.13M | 18.35M | 11.09M | Stockholders Equity |
| 7.40M | 45.69M | 42.62M | 33.68M | 31.23M | 11.66M |
| Cash Flow | Free Cash Flow | ||||
| 2.68M | -588.31K | 5.55M | -6.03M | -3.86M | 2.18M | Operating Cash Flow |
| 4.99M | 1.26M | 6.68M | -2.69M | -125.74K | 2.25M | Investing Cash Flow |
| -2.31M | -1.85M | -1.13M | -3.34M | -3.74M | 1.85M | Financing Cash Flow |
| -210.67K | -220.71K | -188.18K | -190.42K | 16.73M | 1.33M |
VirTra Technical Analysis
Negative
4.42
Price Trends
5.72
Negative
6.36
Negative
6.71
Negative
Market Momentum
-0.34
Positive
34.86
Neutral
15.78
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTSI, the sentiment is Negative. The current price of 4.42 is below the 20-day moving average (MA) of 5.08, below the 50-day MA of 5.72, and below the 200-day MA of 6.71, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 34.86 is Neutral, neither overbought nor oversold. The STOCH value of 15.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VTSI.
VirTra Risk Analysis
VirTra disclosed 26 risk factors in its most recent earnings report. VirTra reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
VirTra Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $74.27B | 18.11 | 27.75% | 1.60% | 4.44% | 110.33% | |
70 Outperform | $661.10M | 22.29 | 9.39% | 1.77% | -1.49% | -34.38% | |
69 Neutral | $2.51B | 71.75 | 4.55% | 0.33% | 16.48% | -70.34% | |
62 Neutral | $8.08B | 13.63 | 3.82% | 3.13% | 3.58% | -14.35% | |
59 Neutral | $50.56M | 34.63 | 3.09% | ― | -30.73% | -83.53% | |
58 Neutral | $3.44B | 108.50 | 3.94% | ― | 5.21% | ― | |
51 Neutral | $13.22M | ― | -292.08% | ― | -23.75% | 34.05% |
* Industrials Sector Average
Performance Comparison
VTSI
VirTra
4.42
-10.48
-70.34%
AVAV
AeroVironment
117.59
-28.83
-19.69%
NOC
Northrop Grumman
515.17
63.46
14.05%
RGR
Sturm Ruger & Company
38.55
-7.21
-15.76%
VSEC
VSE
116.76
40.42
52.95%
POAI
Predictive Oncology
1.37
-0.59
-30.10%
VirTra Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: -14.34% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging year for VirTra, primarily due to federal funding delays impacting revenue and contract execution. However, the company achieved significant bookings growth, international expansion, and operational improvements. The sentiment is neutral as the highlights and lowlights are balanced, with strategic advancements counteracting revenue declines.Highlights
Strong Bookings Growth
Bookings for the fourth quarter grew to $12.2 million, a 37% sequential increase from Q3 2024. The full year 2024 bookings totaled $29.6 million, with bookings for federal services and STEP contracts increasing by 24%.
International Expansion
VirTra secured international contracts in Europe and Latin America, leading to a 68% increase in bookings from these regions. The company's training solutions are now operating in 44 countries.
V-XR Platform Launch
The company recorded its first V-XR platform sale in Canada, with strong early customer reception and positive feedback at industry shows.
Operational Improvements
VirTra made significant improvements in manufacturing capabilities, including a state-of-the-art production facility and investing in automation, positioning the company to handle large-scale contracts effectively.
Military Sector Advancements
Completed the final development phase for the U.S. Army's IVAS program 42 days ahead of schedule, leading to early testing completion and transitioning the program to Anduril.
Lowlights
Revenue Decline
Fourth quarter revenue was $5.4 million, down from $10.9 million in the prior year period. Full year 2024 revenue decreased to $26.4 million from $38.8 million in 2023.
Impact of Federal Funding Delays
Federal budget delays and grant distribution pauses slowed contract execution and order conversion, impacting near-term order conversion timing.
Net Loss for Fourth Quarter
Net loss for the fourth quarter was $0.9 million or negative $0.08 per diluted share, compared to net income of $3.5 million or positive $0.32 per diluted share in the fourth quarter of 2023.
International Revenue Decrease
International revenue for the year was $3.1 million, down from $6.5 million in the prior year period.
Company Guidance
During VirTra's fourth quarter and full year 2024 earnings call, the company provided guidance on its strategic initiatives and financial performance, highlighting several key metrics. Despite a challenging year due to federal funding delays, VirTra ended 2024 with a $22 million backlog and total bookings for the year amounting to $29.6 million, though this was a decline of $4.2 million compared to 2023. The company experienced sequential bookings growth each quarter and closed the year with $5.4 million in fourth-quarter revenue, a decrease from $10.9 million in the prior year period, largely due to federal budget delays. For the full year, revenue was $26.4 million, down from $38.8 million in 2023. However, the company noted a 24% increase in bookings for all federal services and STEP contracts, excluding 2023 design and prototype contracts. VirTra also reported a gross profit for the year of $19.4 million, representing 74% of total revenue, and adjusted EBITDA of $2.9 million compared to $12.4 million in 2023. Looking forward, VirTra remains focused on converting its backlog into revenue, scaling its content library, and leveraging extended reality technologies to enhance its training solutions. The company emphasized its ongoing efforts to strengthen customer relationships and improve sales and operational efficiencies.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.