VirTra (VTSI) AI Stock Analysis

• Market Cap: $69.37M
• Dividend Yield: N/A
• Average Volume (3M): 104.78K
• Price to Earnings (P/E): 47.9
• Beta (1Y): 1.17
• Revenue Growth: -29.61%
• EPS Growth: -78.85%
• Country: US
• Employees: 111
• Sector: Industrials
• Sector Strength: 87
• Industry: Aerospace & Defense
• EPS (TTM): 0.11
• Shares Outstanding: 11,261,588
• 10 Day Avg. Volume: 80,715
• 30 Day Avg. Volume: 104,782
• PEG Ratio: -0.93
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.43
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 2.45
• Enterprise Value/Ebitda: 2.20
• 1Y Price Target: $8.25
• Price Target Upside: 33.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: $7.00 ▲(13.64%Upside)

VirTra's overall score is bolstered by positive technical momentum and a strong earnings call that highlights profitability and strategic advancements. However, financial performance is hindered by declining revenue and negative cash flows, while valuation concerns due to a high P/E ratio also weigh on the score.

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 and leasing of its immersive simulation training systems to law enforcement agencies, military organizations, and other security-focused entities. The company's revenue streams include the direct sale of hardware and software solutions, recurring revenue from service and maintenance contracts, and the customization and integration of training modules tailored to specific client needs. Additionally, VirTra often engages in strategic partnerships and collaborations to expand its market reach and enhance its product offerings. These partnerships can lead to joint development projects and co-marketing opportunities, further supporting the company's growth and revenue generation.

VirTra Financial Statement Overview

Summary

VirTra's balance sheet is strong with low leverage and a solid equity base. However, there are notable concerns with declining revenue growth and negative cash flow from operations, which impact overall financial health.

Income Statement

VirTra's income statement shows stable gross profit margins, with a TTM (Trailing-Twelve-Months) Gross Profit Margin of 75.3%. However, there's a declining trend in revenue growth, with a decrease from $38.04M in 2023 to $25.42M in the TTM period. Net Profit Margin also shows a decrease, indicating pressure on profitability. The EBIT Margin of 7.73% and EBITDA Margin of 11.11% suggest moderate operational efficiency but highlight potential challenges in maintaining profitability.

Balance Sheet

VirTra's balance sheet reveals a solid financial position with a strong equity base. The Debt-to-Equity Ratio has improved to 0.01, showing low leverage and minimal reliance on debt. The Return on Equity (ROE) at the TTM period is 3.0%, reflecting moderate profitability of equity investments. The Equity Ratio stands at 217.8%, indicating a strong equity financing structure, which minimizes financial risk.

Cash Flow

The company's cash flow statement reflects volatility, with negative operating cash flows of -$3.81M in the TTM period. The Free Cash Flow has also decreased, indicating challenges in generating cash from operations. The Operating Cash Flow to Net Income Ratio is negative, suggesting inefficiency in converting net income into cash. Despite these challenges, the company maintains cash reserves to cover short-term liabilities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
25.42M	26.35M	38.04M	28.30M	24.43M	19.09M
	Gross Profit
19.15M	19.41M	26.67M	16.25M	11.41M	11.90M
	EBIT
1.97M	2.00M	9.64M	2.59M	1.45M	1.23M
	EBITDA
2.82M	3.41M	11.65M	3.48M	1.45M	1.90M
	Net Income Common Stockholders
1.41M	1.36M	8.40M	1.96M	2.54M	1.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.61M	18.04M	18.85M	13.48M	19.71M	6.84M
	Total Assets
21.57M	66.43M	69.63M	53.81M	49.58M	22.75M
	Total Debt
414.30K	8.26M	8.79M	9.56M	9.37M	2.50M
	Net Debt
-17.20M	-9.78M	-10.06M	-3.92M	-10.34M	-4.34M
	Total Liabilities
9.84M	19.76M	27.01M	20.13M	18.35M	11.09M
	Stockholders Equity
46.98M	45.69M	42.62M	33.68M	31.23M	11.66M
Cash Flow		Free Cash Flow
-4.54M	-588.31K	5.55M	-6.03M	-3.86M	2.18M
	Operating Cash Flow
-3.81M	1.26M	6.68M	-2.69M	-125.74K	2.25M
	Investing Cash Flow
-727.17K	-1.85M	-1.13M	-3.34M	-3.74M	1.85M
	Financing Cash Flow
-261.83K	-220.71K	-188.18K	-190.42K	16.73M	1.33M

VirTra Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTSI, the sentiment is Positive. The current price of 6.16 is above the 20-day moving average (MA) of 5.99, above the 50-day MA of 5.05, and above the 200-day MA of 6.01, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 57.33 is Neutral, neither overbought nor oversold. The STOCH value of 41.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VTSI.

VirTra Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPXS	79 Outperform	$65.67M	12.70	25.69%	―	21.77%	36.36%
CODA	72 Outperform	$86.81M	22.22	7.61%	―	15.63%	64.98%
VTSI	67 Neutral	$69.37M	47.90	3.10%	―	-29.61%	-78.85%
Sector *	63 Neutral	$770.65M	8.81	4.79%	3.72%	1.11%	-32.34%
CVU	52 Neutral	$37.96M	20.56	7.62%	―	-7.34%	-88.84%
KITT	48 Neutral	$35.06M	―	153.01%	―	-64.51%	7.09%
SIDU	43 Neutral	$28.19M	―	-109.05%	―	-18.70%	84.35%