Virco Manufacturing (VIRC) AI Stock Analysis

• Market Cap: $103.08M
• Dividend Yield: 1.59%
• Average Volume (3M): 55.65K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 1.44
• Revenue Growth: -27.97%
• EPS Growth: -83.58%
• Country: US
• Employees: 810
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.08
• Shares Outstanding: 15,761,141
• 10 Day Avg. Volume: 87,052
• 30 Day Avg. Volume: 55,652
• 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: 1.27
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 1.29
• Enterprise Value/Ebitda: 5.25
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1
• Revenue Forecast (FY): $263.12M

• Rating: 59 Neutral
• Price Target: $7.00 ▲(0.86% Upside)

Virco Manufacturing's overall stock score reflects operational efficiency and a stable balance sheet but is weighed down by declining revenue, profitability, and cash flow challenges. The technical indicators suggest a bearish trend, and recent corporate events highlight financial difficulties. However, the stock's valuation appears attractive, which could offer potential upside if the company successfully navigates its current challenges.

Positive Factors

Operational Efficiency

Strong gross margins indicate efficient production processes, which can support profitability and competitiveness in the long term.

Stable Balance Sheet

A stable balance sheet with moderate leverage provides financial flexibility and resilience against economic fluctuations.

Market Recovery Potential

Exploring new markets and anticipating demand recovery can drive future growth, enhancing long-term revenue prospects.

Negative Factors

Declining Revenue

Significant revenue decline indicates challenges in maintaining market share and sales, impacting long-term growth potential.

Profitability Challenges

Decreasing profit margins suggest challenges in cost management and pricing power, potentially affecting long-term profitability.

Cash Flow Issues

Declining cash flow growth can limit the company's ability to invest in growth opportunities and meet financial obligations.

Virco Manufacturing Business Overview & Revenue Model

Company Description

Virco Manufacturing Corporation (VIRC) is a leading American manufacturer of furniture and equipment for educational institutions and other commercial environments. The company primarily operates within the educational sector, providing a range of products including desks, chairs, tables, and storage solutions designed to enhance learning spaces. With a focus on innovation and sustainability, Virco offers customizable and ergonomic products that cater to the needs of schools and other educational organizations across the United States and internationally.

How the Company Makes Money

Virco generates revenue through the sale of its core products, which include classroom furniture, collaborative learning environments, and specialized equipment for educational settings. The company operates on a direct sales model, distributing its products through a network of independent sales representatives and strategic partnerships with educational organizations and institutions. Key revenue streams come from bulk orders from school districts, contracts with government entities, and online sales through its e-commerce platform. Additionally, Virco benefits from long-term relationships with customers, which often lead to repeat orders and sustained revenue growth. The company's commitment to quality and customer satisfaction further enhances its competitive advantage in the market.

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.

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: Negative
• Last Price: 6.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 6.94 is above the 20-day moving average (MA) of 6.48, above the 50-day MA of 6.78, and below the 200-day MA of 7.89, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 85.85 is Negative, 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
FLXS	75 Outperform	$219.12M	9.77	14.28%	1.77%	6.00%	64.58%
KEQU	70 Outperform	$106.51M	9.43	18.18%	―	43.02%	-37.24%
BSET	66 Neutral	$142.45M	18.50	4.70%	4.59%	-2.74%	―
ETD	66 Neutral	$609.95M	13.13	9.96%	7.86%	-4.61%	-25.66%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VIRC	59 Neutral	$103.08M	26.07	3.37%	1.59%	-27.97%	-83.58%
HOFT	49 Neutral	$124.48M	-4.09	-11.27%	7.20%	-12.09%	-204.66%

Virco Manufacturing Corporate Events

Virco Manufacturing Reports Q3 2025 Net Loss

Virco Mfg. Corporation reported a net loss of $1.3 million for the third quarter of 2025, with sales dropping significantly compared to the previous year, largely due to the expiration of pandemic stimulus funds and cautious spending by educational institutions. Despite the downturn, the company’s balance sheet remains strong, and it anticipates a potential recovery in demand for school furniture, similar to post-pandemic trends, while also exploring opportunities in adjacent markets. The Board declared a quarterly cash dividend of $0.025 per share, payable in January 2026, although future dividends remain uncertain.

The most recent analyst rating on (VIRC) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Virco Manufacturing stock, see the VIRC Stock Forecast page.