Virco Manufacturing (VIRC) AI Stock Analysis

• Market Cap: $128.27M
• Dividend Yield: 1.23%
• Average Volume (3M): 61.64K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 1.17
• Revenue Growth: -9.84%
• EPS Growth: -20.47%
• Country: US
• Employees: 810
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.05
• Shares Outstanding: 15,738,138
• 10 Day Avg. Volume: 74,517
• 30 Day Avg. Volume: 61,639
• PEG Ratio: -0.11
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.64
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 0.94
• Enterprise Value/Ebitda: 0.70
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $8.50 ▲(4.29%Upside)

Virco Manufacturing's overall score is primarily supported by its strong financial performance and attractive valuation, indicating a solid foundation and potential for value appreciation. However, technical indicators show bearish momentum, which poses a short-term risk. The absence of earnings call and corporate events data limits further insights.

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 Manufacturing makes money through the sale of its furniture products, primarily targeting educational institutions such as public and private K-12 schools, colleges, and universities. The company generates revenue by designing, manufacturing, and distributing a wide variety of classroom and educational furniture. Key revenue streams include the direct sale of products through a network of sales representatives and dealers, as well as through contracts with school districts and educational organizations. Virco's earnings are influenced by factors such as school budget allocations, government funding for educational infrastructure, and trends in educational environment design. The company may also engage in partnerships with educational institutions and participate in government procurement programs to enhance its market reach and revenue potential.

Virco Manufacturing Financial Statement Overview

Summary

Virco Manufacturing demonstrates solid financial health with strong profitability metrics and a stable balance sheet. Despite a slight revenue decline, the company maintains operational efficiency and effective cash flow management. However, the rising debt levels should be monitored to avoid potential risks.

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
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
253.26M	266.24M	269.12M	231.06M	184.83M	152.79M
	Gross Profit
110.37M	114.69M	116.06M	85.34M	60.93M	54.92M
	EBIT
24.79M	27.86M	31.88M	5.48M	-2.53M	-1.44M
	EBITDA
32.72M	34.46M	37.02M	10.02M	2.04M	4.23M
	Net Income Common Stockholders
20.24M	21.64M	21.91M	16.55M	-15.14M	-2.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
935.00K	26.87M	5.29M	1.06M	1.36M	402.00K
	Total Assets
183.78M	191.95M	146.44M	150.13M	126.44M	125.04M
	Total Debt
41.26M	41.82M	11.96M	33.62M	30.68M	30.73M
	Net Debt
40.33M	14.95M	6.67M	32.56M	29.32M	30.33M
	Total Liabilities
78.18M	82.68M	55.27M	82.06M	79.00M	70.85M
	Stockholders Equity
105.60M	109.27M	91.18M	68.06M	47.45M	54.19M
Cash Flow		Free Cash Flow
10.95M	26.83M	21.71M	-7.12M	-3.40M	5.64M
	Operating Cash Flow
18.60M	33.13M	26.96M	-3.79M	-401.00K	7.80M
	Investing Cash Flow
-7.07M	-5.56M	-4.76M	-3.33M	-2.37M	-2.13M
	Financing Cash Flow
-11.25M	-5.98M	-17.97M	6.82M	3.73M	-6.41M

Virco Manufacturing Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.15
• 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 8.15 is below the 20-day moving average (MA) of 8.23, below the 50-day MA of 8.82, and below the 200-day MA of 11.52, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 44.38 is Neutral, neither overbought nor oversold. The STOCH value of 25.42 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
HBB	78 Outperform	$230.20M	6.87	21.86%	2.86%	5.46%	18.70%
FLXS	73 Outperform	$188.04M	14.03	9.48%	1.91%	7.24%	-9.51%
VIRC	70 Outperform	$128.27M	6.55	20.52%	1.23%	-9.84%	-20.47%
Sector *	62 Neutral	$6.80B	11.08	2.79%	5.80%	2.68%	-24.86%
LCUT	58 Neutral	$84.72M	―	-5.83%	4.50%	-0.39%	-122.38%
BSET	54 Neutral	$134.83M	―	-3.83%	5.15%	-11.78%	-13.89%
HOFT	53 Neutral	$107.61M	―	-5.55%	9.14%	-3.89%	-391.05%

Virco Manufacturing Corporate Events

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.

The most recent analyst rating on (VIRC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Virco Manufacturing stock, see the VIRC Stock Forecast page.