Virco Manufacturing (VIRC) AI Stock Analysis

• Market Cap: $135.51M
• Dividend Yield: 1.16%
• Average Volume (3M): 59.74K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 1.17
• Revenue Growth: -9.84%
• EPS Growth: -20.47%
• Country: US
• Employees: 810
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.05
• Shares Outstanding: 15,738,138
• 10 Day Avg. Volume: 51,692
• 30 Day Avg. Volume: 59,745
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 1.68
• Enterprise Value/Ebitda: 5.66
• 1Y Price Target: $9.50
• Price Target Upside: 10.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: $9.50 ▲(10.34% Upside)

Virco Manufacturing's overall stock score is driven by its strong financial performance and attractive valuation. The company's robust profitability and efficient cash flow management are significant strengths. While technical analysis indicates mixed signals, the low P/E ratio suggests potential undervaluation, making the stock appealing despite the need to monitor rising debt levels.

Virco Manufacturing Business Overview & Revenue Model

Company Description

Virco Mfg. Corporation engages in the design, production, and distribution of furniture in the United States. It offers seating products, including 4-leg chairs, cantilever chairs, tablet armchairs with work surfaces and compact footprints, steel-frame and floor rockers, stools, series chairs, stack and folding chairs, hard plastic seating, upholstered stack and ergonomic chairs, and plastic stack chairs. The company also provides folding, activity, office, computer, and mobile tables; and computer furniture, such as keyboard mouse trays, CPU holders, support columns, desks and workstations, specialty tables, instructor media stations and towers, and other products. In addition, it offers chair desks, combo units, and tablet arm and caster units, as well as a returns and credenzas. Further, the company provides administrative office furniture, including desks, bookcases, storage cabinets, and other items, as well as wardrobe tower cabinets, file credenzas, and mobile pedestals; laboratory furniture comprising steel-based science tables, table bases, lab stools, and wood-frame science tables; mobile furniture, such as mobile tables for cafeterias, mobile cabinets, and mobile task chairs for school settings and offices; and handling and storage equipment, as well as manufactures stackable storage trucks. It serves educational institutions, convention centers and arenas, hospitality providers, government facilities, and places of worship through its sales and support teams, and dealer network. The company was incorporated in 1950 and is headquartered in Torrance, California.

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 demonstrates strong profitability with solid EBIT, EBITDA, and profit margins, coupled with a stable balance sheet and effective cash flow management. Despite a slight decline in revenue growth and rising debt levels, the overall financial health remains robust.

Income Statement

Virco Manufacturing's income statement reflects strong profitability with a TTM gross profit margin of 43.57% and a net profit margin of 7.99%. Despite a slight revenue decline of 4.81% from the previous year, the company has managed to maintain healthy EBIT and EBITDA margins of 9.79% and 12.92%, respectively. These figures indicate effective cost management and operational efficiency, although the decline in revenue growth warrants monitoring.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.39 and a solid equity ratio of 57.46%, indicating a stable financial position with a strong equity base. Return on equity stands at 19.17%, demonstrating efficient use of shareholder funds to generate profits. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Virco Manufacturing exhibits strong cash flow performance with a free cash flow to net income ratio of 0.54 and an operating cash flow to net income ratio of 0.92 in the TTM period. The free cash flow growth rate is a modest 1.42%, but the consistent positive operating cash flow highlights the company's ability to generate cash from its operations effectively.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	266.24M	269.12M	231.06M	184.83M	152.79M
Gross Profit	114.69M	116.06M	85.34M	60.93M	54.92M
EBITDA	34.46M	37.02M	10.02M	2.04M	4.23M
Net Income	21.64M	21.91M	16.55M	-15.14M	-2.23M
Balance Sheet
Total Assets	191.95M	146.44M	150.13M	126.44M	125.04M
Cash, Cash Equivalents and Short-Term Investments	26.87M	5.29M	1.06M	1.36M	402.00K
Total Debt	41.82M	11.96M	33.62M	30.68M	30.73M
Total Liabilities	82.68M	55.27M	82.06M	79.00M	70.85M
Stockholders Equity	109.27M	91.18M	68.06M	47.45M	54.19M
Cash Flow
Free Cash Flow	26.83M	21.71M	-7.12M	-3.40M	5.64M
Operating Cash Flow	33.13M	26.96M	-3.79M	-401.00K	7.80M
Investing Cash Flow	-5.56M	-4.76M	-3.33M	-2.37M	-2.13M
Financing Cash Flow	-5.98M	-17.97M	6.82M	3.73M	-6.41M

Virco Manufacturing Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.61
• 50DMA: Positive
• 100DMA: Positive
• 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 8.61 is above the 20-day moving average (MA) of 8.29, above the 50-day MA of 8.18, and below the 200-day MA of 9.98, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 58.04 is Neutral, neither overbought nor oversold. The STOCH value of 62.98 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
VIRC	77 Outperform	$135.51M	6.92	20.52%	1.16%	-9.84%	-20.47%
FLXS	72 Outperform	$244.70M	13.07	12.67%	1.53%	6.86%	88.42%
HBB	68 Neutral	$198.65M	6.26	20.79%	3.15%	-2.09%	-5.04%
Sector *	61 Neutral	$17.64B	14.17	-5.23%	3.04%	1.43%	-15.11%
BSET	58 Neutral	$146.16M	59.14	1.46%	4.76%	-7.22%	―
HOFT	51 Neutral	$106.86M	―	-5.55%	9.21%	-3.89%	-391.05%
LCUT	48 Neutral	$89.50M	―	-17.08%	4.30%	-1.14%	-95.76%

Virco Manufacturing Corporate Events

Virco Manufacturing Approves Salary Increase for CFO

On June 19, 2025, Virco Manufacturing‘s Board of Directors approved a salary increase for Bassey Yau, the newly appointed Senior Vice President and Chief Financial Officer, raising her base compensation to $340,000. During the company’s Annual Meeting on June 17, 2025, stockholders elected Bradley Richardson and Douglas A. Virtue as Class III directors and ratified the appointment of Moss Adams LLP as the independent registered public accounting firm for the fiscal year ending January 31, 2026.

Virco Manufacturing Declares Q2 Cash Dividend Amid Challenges

On June 3, 2025, Virco Mfg. Corporation’s Board of Directors declared a cash dividend of $0.025 per share for the second fiscal quarter, payable on July 11, 2025, to shareholders of record as of June 20, 2025. Despite a slowdown in demand, the company reported a first-quarter profit of $700,000, with a 22.9% decline in shipments and backlog. However, gross margin improved to 47.5% due to a higher proportion of full-service orders and the absence of last year’s low-margin disaster recovery order. The company also invested over $2 million in major platform processes to expand operations and support domestic market expansion.