VirTra (VTSI) AI Stock Analysis

• Market Cap: $61.26M
• Dividend Yield: N/A
• Average Volume (3M): 85.13K
• Price to Earnings (P/E): 154.5
• Beta (1Y): 1.21
• Revenue Growth: -17.36%
• EPS Growth: -94.28%
• Country: US
• Employees: 111
• Sector: Technology
• Sector Strength: 83
• Industry: Aerospace & Defense
• EPS (TTM): 0.02
• Shares Outstanding: 11,261,588
• 10 Day Avg. Volume: 113,545
• 30 Day Avg. Volume: 85,132
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 2.54
• Enterprise Value/Gross Profit: 3.63
• Enterprise Value/Ebitda: 24.44
• 1Y Price Target: $8.25
• Price Target Upside: 48.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $6.00 ▲(7.72% Upside)

VirTra's overall stock score is driven by mixed financial performance and high valuation concerns. While the company maintains financial stability, challenges in profitability and cash flow management weigh on its score. Technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. The earnings call highlights both opportunities and risks, with positive revenue growth tempered by margin pressures and funding delays.

Positive Factors

International Expansion

Management secured contacts with agencies in Europe and Latin America, expanding VirTra's international reach.

Product Launch

The company has been accepting initial orders for the V-XR and is preparing customer deliveries, indicating strong product demand.

Negative Factors

Federal Funding Challenges

The challenging federal funding environment is expected to impact the near term, with headwinds likely persisting for 1-2 more quarters.

Revenue and EPS Miss

VirTra reported revenue and EPS below estimates due to the impact of federal budget delays and grant disbursement pauses.

VirTra Business Overview & Revenue Model

Company Description

VirTra, Inc. provides force training simulators and firearms training simulators for law enforcement, military, educational, and commercial markets worldwide. It offers V-300 simulator, a 300 degree wrap-around screen for simulation training; V-180 simulator, a 180 degree screen for smaller spaces or budgets; V-100, a single-screen firearms training simulator system; V-100 MIL, a single-screen small arms training simulator; and V-ST PRO, a realistic single screen firearms shooting and skills training simulator. The company also provides Virtual Interactive Coursework Training Academy, which enables law enforcement agencies to teach, train, test, and sustain departmental training requirements; and Subscription Training Equipment Partnership, a program that allows agencies to utilize VirTra's simulator products, accessories, and V-VICTA interactive coursework on a subscription basis. In addition, it offers V-Author software that allows users to create, edit, and train with content specific to agency's objectives; a range of simulated recoil kits/weapons; Threat-Fire, a return fire device that applies real-world stress on the trainees during simulation training; and TASER, an OC spray and low-light training devices. It sells its simulators and related products through a direct sales force and distribution partners. The company was formerly known as VirTra Systems, Inc. and changed its name to VirTra, Inc. in October 2016. VirTra, Inc. was founded in 1993 and is headquartered in Chandler, Arizona.

How the Company Makes Money

VirTra generates revenue primarily through the sale of its training simulators and associated software, which are marketed to law enforcement agencies, military personnel, and private security firms. The company's revenue model includes direct sales of hardware and software solutions, as well as ongoing maintenance and support services. Additionally, VirTra offers training programs and scenario development services, creating further income streams. Key partnerships with government agencies and defense contractors enhance their market reach and credibility, while recurring revenue from service agreements and software licensing contributes to stable cash flow.

VirTra Financial Statement Overview

Summary

VirTra's financial performance is mixed. The company shows strong financial stability with a low debt-to-equity ratio, but profitability and cash flow metrics indicate challenges. Revenue growth is slowing, and margins are under pressure, impacting overall profitability. Cash flow management needs improvement.

Income Statement

VirTra's income statement shows moderate performance with a gross profit margin of 70.04% in TTM, indicating efficient cost management. However, the net profit margin has decreased to 1.47% from 5.18% in the previous year, reflecting challenges in converting revenue into profit. Revenue growth is positive at 3.56% TTM, but lower compared to previous periods, suggesting a slowdown in growth. EBIT and EBITDA margins have also declined, indicating reduced operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.0078 in TTM, showcasing financial stability and low leverage. Return on equity has decreased to 0.83% TTM from 2.98% in the previous year, indicating reduced profitability from shareholders' equity. The equity ratio is not provided, but overall, the company maintains a solid financial position with minimal debt.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -205.78% TTM, indicating potential cash management issues. The operating cash flow to net income ratio is 0.60, suggesting moderate efficiency in converting income into cash. The free cash flow to net income ratio is 0.80, indicating that a substantial portion of net income is being converted into free cash flow, albeit with declining growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.32M	26.35M	38.04M	28.30M	24.43M	19.09M
Gross Profit	18.44M	19.41M	26.67M	16.25M	11.41M	11.90M
EBITDA	2.74M	3.41M	11.65M	3.89M	2.04M	1.90M
Net Income	386.15K	1.36M	8.40M	1.96M	2.54M	1.48M
Balance Sheet
Total Assets	67.37M	65.45M	69.63M	53.81M	49.58M	22.75M
Cash, Cash Equivalents and Short-Term Investments	20.70M	18.04M	18.85M	13.48M	19.71M	6.84M
Total Debt	8.04M	8.26M	8.79M	9.56M	9.37M	2.50M
Total Liabilities	20.03M	19.76M	27.01M	20.13M	18.35M	11.09M
Stockholders Equity	47.34M	45.69M	42.62M	33.68M	31.23M	11.66M
Cash Flow
Free Cash Flow	4.80M	-588.31K	5.55M	-6.03M	-3.86M	2.18M
Operating Cash Flow	6.04M	1.26M	6.68M	-2.69M	-125.74K	2.25M
Investing Cash Flow	-3.50M	-1.85M	-1.13M	-3.34M	-3.74M	1.85M
Financing Cash Flow	-252.04K	-220.71K	-188.18K	-190.42K	16.73M	1.33M

VirTra Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 5.57 is below the 20-day moving average (MA) of 6.31, below the 50-day MA of 6.33, and below the 200-day MA of 6.03, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 40.66 is Neutral, neither overbought nor oversold. The STOCH value of 18.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VTSI.

VirTra Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPXS	76 Outperform	$71.97M	14.74	25.14%	―	21.00%	20.18%
CODA	72 Outperform	$82.68M	25.02	6.40%	―	24.78%	23.18%
Sector *	61 Neutral	$34.98B	7.37	-10.82%	1.91%	8.82%	-8.66%
VTSI	55 Neutral	$61.26M	154.49	0.83%	―	-17.36%	-94.28%
CVU	49 Neutral	$34.84M	18.87	-3.87%	―	-14.35%	-105.66%
KITT	42 Neutral	$33.45M	―	153.01%	―	-14.94%	49.72%
SIDU	42 Neutral	$29.01M	―	-157.68%	―	-2.60%	82.24%