Virco Manufacturing (VIRC) AI Stock Analysis

• Market Cap: $110.96M
• Dividend Yield: 1.42%
• Average Volume (3M): 52.15K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.49
• Revenue Growth: -15.99%
• EPS Growth: -48.23%
• Country: US
• Employees: 810
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.65
• Shares Outstanding: 15,761,141
• 10 Day Avg. Volume: 41,273
• 30 Day Avg. Volume: 52,151
• PEG Ratio: -5.52
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 6.65
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 1.60
• Enterprise Value/Ebitda: 6.48
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $7.00 ▲(0.86% Upside)

Virco Manufacturing's stock score is primarily influenced by its financial performance and valuation. The company shows operational efficiency and a stable balance sheet, but faces challenges with declining revenue and cash flow. The stock's low P/E ratio and moderate dividend yield suggest it may be undervalued, providing a potential opportunity for investors. However, technical indicators point to weak momentum, which could pose short-term risks.

Positive Factors

Operational Efficiency

Strong gross margins indicate efficient production processes, which can lead to sustained profitability and competitive pricing in the educational furniture market.

Stable Balance Sheet

A stable balance sheet with moderate leverage enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Long-term Contracts

Long-term contracts provide a steady revenue stream, reducing volatility and ensuring predictable cash flows, which supports strategic planning and investment.

Negative Factors

Declining Revenue

Declining revenue indicates potential challenges in market demand or competitive positioning, which could impact long-term growth and market share.

Cash Flow Challenges

Deteriorating cash flow can limit the company's ability to invest in new projects, pay down debt, or return capital to shareholders, affecting long-term financial health.

Reduced Profitability

Reduced profitability may indicate rising costs or pricing pressures, which could undermine the company's ability to generate sustainable earnings over time.

Virco Manufacturing Business Overview & Revenue Model

Company Description

Virco Manufacturing Corporation is a leading manufacturer of furniture and equipment for the educational sector, specializing in the design, production, and distribution of classroom furniture, including desks, chairs, and collaborative learning environments. Established in 1950, the company serves schools, colleges, and universities across North America, providing solutions that enhance the learning experience. Virco is committed to sustainability and innovation, offering a wide range of products that meet the evolving needs of educational institutions.

How the Company Makes Money

Virco generates revenue primarily through the sale of its educational furniture and equipment to schools and educational institutions. The company operates a direct sales model, complemented by a network of independent dealers and distributors. Key revenue streams include the sale of classroom desks, chairs, and modular furniture systems, as well as custom furniture solutions tailored to specific client needs. Additionally, Virco benefits from long-term contracts with school districts and educational agencies, providing a steady stream of income. The company also invests in partnerships with educational organizations and participates in bids for government contracts, which further bolster its earnings. Seasonal trends in school purchasing cycles significantly influence revenue, with peak sales typically occurring during the back-to-school season.

Virco Manufacturing Financial Statement Overview

Summary

Virco Manufacturing shows operational efficiency with strong gross margins and a stable balance sheet. However, declining revenue and profitability, coupled with cash flow challenges, highlight areas for improvement. The company should focus on reversing revenue declines and enhancing cash flow management to strengthen its financial position.

Income Statement

Virco Manufacturing's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 42.6%, indicating efficient production. However, the net profit margin has decreased to 5.7% from 8.1% in the previous annual report, reflecting reduced profitability. The revenue growth rate is negative at -6.4% TTM, showing a decline in sales. Despite this, the EBIT and EBITDA margins remain positive, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.36 TTM, indicating moderate leverage. The return on equity is 12.2% TTM, which is a decrease from the previous year but still shows effective use of equity. The equity ratio is strong, suggesting a solid capital structure. However, the decrease in ROE signals a need for improved profitability.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -80.7% TTM. The operating cash flow to net income ratio is low at 0.25 TTM, indicating potential cash flow issues. The free cash flow to net income ratio is 22.6% TTM, reflecting limited cash generation relative to profits. These metrics suggest potential liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	236.93M	266.24M	269.12M	231.06M	184.83M	152.79M
Gross Profit	101.02M	114.69M	116.06M	85.34M	60.93M	54.92M
EBITDA	24.88M	34.46M	37.02M	14.02M	2.04M	4.23M
Net Income	13.59M	21.64M	21.91M	16.55M	-15.14M	-2.23M
Balance Sheet
Total Assets	198.64M	191.95M	146.44M	150.13M	126.44M	125.04M
Cash, Cash Equivalents and Short-Term Investments	2.61M	26.87M	5.29M	1.06M	1.36M	402.00K
Total Debt	41.89M	41.82M	11.96M	38.70M	35.42M	35.40M
Total Liabilities	83.27M	82.68M	55.27M	82.06M	79.00M	70.85M
Stockholders Equity	115.38M	109.27M	91.18M	68.06M	47.45M	54.19M
Cash Flow
Free Cash Flow	2.11M	26.83M	21.71M	-7.12M	-3.40M	5.64M
Operating Cash Flow	9.34M	33.13M	26.96M	-3.79M	-401.00K	7.80M
Investing Cash Flow	-6.34M	-5.56M	-4.76M	-3.33M	-2.37M	-2.13M
Financing Cash Flow	-8.16M	-5.98M	-17.97M	6.82M	3.73M	-6.41M

Virco Manufacturing Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.94
• 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 Positive. The current price of 6.94 is above the 20-day moving average (MA) of 6.93, below the 50-day MA of 7.19, and below the 200-day MA of 8.41, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 50.95 is Neutral, neither overbought nor oversold. The STOCH value of 78.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VIRC.

Virco Manufacturing Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLXS	78 Outperform	$211.11M	9.63	14.28%	1.83%	6.00%	64.58%
BSET	66 Neutral	$134.89M	17.39	4.70%	5.15%	-2.74%	―
ETD	66 Neutral	$614.02M	13.07	9.96%	7.54%	-4.61%	-25.66%
KEQU	64 Neutral	$106.65M	9.00	19.99%	―	30.09%	-33.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VIRC	60 Neutral	$110.96M	8.26	12.18%	1.42%	-15.99%	-48.23%
HOFT	52 Neutral	$120.94M	―	-6.33%	8.18%	-6.46%	-1110.82%

Virco Manufacturing Corporate Events

Virco Manufacturing Reports Decline in Quarterly Earnings

Virco Manufacturing Corporation, a company specializing in the production and distribution of school and office furniture, operates primarily in the educational furniture sector. Known for its seasonal business model, Virco serves a wide range of customers, including educational institutions and government entities.

Virco Declares Cash Dividend Amid Revenue Decline

On September 2, 2025, Virco’s Board of Directors declared a cash dividend of $0.025 per share for the second fiscal quarter, payable on October 10, 2025. Despite a significant reduction in revenue due to a downturn in the school furniture market, Virco reported strong operating and net income for the second quarter and first six months of 2025. The company remains optimistic about future opportunities, leveraging its domestic manufacturing capabilities and strong financial position to navigate current economic uncertainties.

The most recent analyst rating on (VIRC) stock is a Buy with a $9.50 price target. To see the full list of analyst forecasts on Virco Manufacturing stock, see the VIRC Stock Forecast page.