VirTra (VTSI) AI Stock Analysis

Compare

205 Followers

Top Page

VirTra

(NASDAQ:VTSI)

Rating:65Neutral

Price Target:

$5.50

▲( 1.66% Upside)

VirTra's overall stock score is driven by significant strengths in earnings call insights, which highlight strategic progress and operational improvements. However, challenges in financial performance, particularly in terms of cash flow and declining revenues, and a high P/E ratio indicating overvaluation, moderate the overall 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 (VTSI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$60.93M

Dividend YieldN/A

Average Volume (3M)104.50K

Price to Earnings (P/E)42.1

Beta (1Y)1.14

Revenue Growth-29.61%

EPS Growth-78.85%

CountryUS

Employees111

SectorIndustrials

Sector Strength92

IndustryAerospace & Defense

Share Statistics

EPS (TTM)0.11

Shares Outstanding11,261,588

10 Day Avg. Volume179,856

30 Day Avg. Volume104,499

Financial Highlights & Ratios

PEG Ratio-0.48

Price to Book (P/B)1.11

Price to Sales (P/S)0.00

P/FCF Ratio-86.13

Enterprise Value/Market Cap0.67

Enterprise Value/Revenue0.32

Enterprise Value/Gross Profit2.11

Enterprise Value/Ebitda1.50

Forecast

1Y Price Target

$8.25

Price Target Upside52.50% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

VirTra Business Overview & Revenue Model

Company DescriptionVirTra, Inc. (VTSI) is a leading provider of immersive simulation training solutions for law enforcement, military, educational, and commercial markets. The company specializes in developing advanced virtual reality training platforms that utilize high-definition video, realistic scenarios, and cutting-edge technology to enhance the preparedness and decision-making skills of professionals in high-stress environments. VirTra's core products include firearms training simulators, use-of-force training systems, and driving simulators, all designed to improve the effectiveness and safety of personnel in critical situations.

How the Company Makes MoneyVirTra 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 presents a stable financial standing with consistent revenue growth and strong margins. The balance sheet is solid with low debt levels and a high equity ratio, mitigating financial risk. Cash flow performance has room for improvement, with some volatility in free cash flow, but operating cash flows have been positive recently.

Income Statement

Positive

VirTra has shown consistent revenue growth over the years, with a notable jump from 2020 to 2023. The gross profit margin has been strong, indicating efficient cost management. However, the net profit margin shows some volatility, which could point to fluctuating operational costs or other expenses impacting profitability. EBIT and EBITDA margins are healthy, reflecting operational efficiency.

Balance Sheet

Positive

The balance sheet is robust with a strong equity position as evidenced by a high equity ratio. The debt-to-equity ratio is low, indicating a conservative approach to leverage. Return on Equity (ROE) is positive, suggesting effective use of equity capital to generate profits. Overall, the financial position appears stable with low leverage risk.

Cash Flow

Positive

The cash flow statement shows a mixed performance with free cash flow fluctuating over the years. Operating cash flow has been positive recently, which is a good sign, but the free cash flow has seen some negative years. The operating cash flow to net income ratio is reasonable, indicating decent cash conversion from profits.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
26.35M	38.04M	28.30M	24.43M	19.09M
	Gross Profit
19.41M	26.67M	16.25M	11.41M	11.90M
	EBIT
2.00M	9.64M	2.59M	1.45M	1.23M
	EBITDA
3.67M	11.65M	3.48M	1.45M	1.90M
	Net Income Common Stockholders
1.36M	8.40M	1.96M	2.54M	1.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.04M	18.85M	13.48M	19.71M	6.84M
	Total Assets
66.43M	69.63M	53.81M	49.58M	22.75M
	Total Debt
8.26M	8.79M	9.56M	9.37M	2.50M
	Net Debt
-9.78M	-10.06M	-3.92M	-10.34M	-4.34M
	Total Liabilities
19.76M	27.01M	20.13M	18.35M	11.09M
	Stockholders Equity
45.69M	42.62M	33.68M	31.23M	11.66M
Cash Flow		Free Cash Flow
-588.31K	5.55M	-6.03M	-3.86M	2.18M
	Operating Cash Flow
1.26M	6.68M	-2.69M	-125.74K	2.25M
	Investing Cash Flow
-1.85M	-1.13M	-3.34M	-3.74M	1.85M
	Financing Cash Flow
-220.71K	-188.18K	-190.42K	16.73M	1.33M

VirTra Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price5.41

Price Trends

50DMA

4.71

Positive

100DMA

5.47

Negative

200DMA

6.08

Negative

Market Momentum

MACD

0.28

Negative

RSI

56.01

Neutral

STOCH

27.19

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTSI, the sentiment is Neutral. The current price of 5.41 is above the 20-day moving average (MA) of 5.05, above the 50-day MA of 4.71, and below the 200-day MA of 6.08, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 56.01 is Neutral, neither overbought nor oversold. The STOCH value of 27.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VTSI.

VirTra Risk Analysis

VirTra disclosed 26 risk factors in its most recent earnings report. VirTra reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

VirTra Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPXS	77 Outperform	$57.31M	11.69	25.69%	―	21.77%	36.36%
CODA	72 Outperform	$81.42M	20.84	7.61%	―	15.63%	64.98%
VTSI	65 Neutral	$60.93M	42.07	3.10%	―	-29.61%	-78.85%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.39%	3.96%	-12.36%
CVU	56 Neutral	$40.04M	21.69	7.62%	―	-7.34%	-88.84%
SIDU	37 Underperform	$28.55M	―	-109.05%	―	-18.70%	84.35%
KITT	35 Underperform	$34.44M	―	153.01%	―	-64.51%	7.09%

* Industrials Sector Average

Performance Comparison

VTSI

VirTra

5.41

-4.79

-46.96%

CVU

CPI Aerostructures

3.08

0.73

31.06%

OPXS

Optex Systems Holdings

8.29

0.04

0.48%

CODA

Coda Octopus Group

7.25

0.59

8.86%

KITT

Nauticus Robotics

0.93

-4.65

-83.33%

SIDU

Sidus Space, Inc. Class A

1.56

-1.36

-46.58%

VirTra Earnings Call Summary

Earnings Call Date:May 12, 2025

(Q1-2025)

% Change Since: 15.85%|

Next Earnings Date:Aug 18, 2025

Earnings Call Sentiment Positive

VirTra's Q1 2025 earnings call highlighted strong financial performance with a return to GAAP profitability, increased bookings, and improved operational efficiency. However, challenges such as revenue decline and macroeconomic headwinds were noted. The company's strategic initiatives and innovations, such as the V-XR platform, position it well for future growth despite current challenges.

Q1-2025 Updates

Positive Updates

Return to GAAP Profitability

VirTra posted a return to GAAP profitability in Q1 2025, demonstrating strong financial performance despite a challenging environment.

Strong Gross Margins

The gross profit for Q1 improved to $5.2 million, or 73% of total revenue, compared to 64% in the prior year period, reflecting a 25% decrease in cost of sales.

Significant Increase in Bookings

Bookings for the quarter totaled $6.4 million, more than double the $2.9 million recorded in Q1 of 2024.

Expansion of Certified Training Content

VirTra expanded its certified training content to over 120 hours, reflecting a commitment to high-impact training solutions.

Improved Operational Efficiency

Operating income increased by 110% to $1.4 million compared to $650,000 in the prior year period.

V-XR Platform Interest

Growing interest in the V-XR extended reality platform, with two units sold and several more in active quote discussions.

Negative Updates

Revenue Decline

Total revenue for Q1 2025 was $7.2 million, a 3% decrease from $7.3 million in the prior year, due to delayed deliveries.

Government Revenue Decrease

Government revenue for Q1 was $5.2 million, down from $6.7 million in the prior year period, impacted by funding delays.

Macro Headwinds Impacting Sales Cycles

Sales cycles are taking longer due to economic uncertainty and tightening government budgets, affecting the timing of contracts.

Company Guidance

During the first quarter of 2025, VirTra demonstrated strong financial performance and strategic progress despite challenging macroeconomic conditions. The company achieved a return to GAAP profitability, posting a net income of $1.3 million, or $0.11 per diluted share, which marked a 170% increase from the previous year. Total revenue for the quarter was $7.2 million, with gross margins improving to 73%, up from 64% in the prior year period. VirTra ended the quarter with $6.4 million in bookings and a $21.2 million backlog, reflecting a robust market position and ongoing demand for their training solutions. The company also emphasized their strategic shift to three-year agreements for their STEP program, enhancing recurring revenue streams. Additionally, VirTra's focus on expanding their V-XR platform and leveraging advanced technologies such as AI for content development positions them well to meet evolving training needs across law enforcement, military, and federal agencies.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.