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Virtra (VTSI)
:VTSI
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VirTra
(NASDAQ:VTSI)
Rating:65Neutral
Price Target:
$7.00
▲(6.22%Upside)
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
$73.43M
Dividend YieldN/A
Average Volume (3M)134.15K
Price to Earnings (P/E)51.2
Beta (1Y)1.25
Revenue Growth-29.61%
EPS Growth-78.85%
CountryUS
Employees111
SectorIndustrials
Sector Strength89
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.11
Shares Outstanding11,261,588
10 Day Avg. Volume255,876
30 Day Avg. Volume134,149
Financial Highlights & Ratios
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 Cap0.64
Enterprise Value/Revenue0.41
Enterprise Value/Gross Profit2.45
Enterprise Value/Ebitda2.20
Forecast
1Y Price Target
$8.25Price Target Upside25.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
VirTra Business Overview & Revenue Model
Company DescriptionVirTra, 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 MoneyVirTra generates revenue primarily through the sale of its advanced simulation training systems and related hardware. Additionally, the company offers software and content updates, training services, and ongoing maintenance and support, which serve as supplementary revenue streams. VirTra's clients include law enforcement agencies, military organizations, and commercial entities that require effective training solutions. The company also engages in strategic partnerships to enhance its product offerings and expand its market reach, contributing to its revenue growth.
VirTra Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 41.11%|
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.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.60
Neutral
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.72
Positive
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.55
Neutral
| 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 |
| EBITDA | 2.82M | 3.41M | 11.65M | 3.48M | 1.45M | 1.90M |
| Net Income | 1.41M | 1.36M | 8.40M | 1.96M | 2.54M | 1.48M |
Balance Sheet | ||||||
| Total Assets | 21.57M | 66.43M | 69.63M | 53.81M | 49.58M | 22.75M |
| Cash, Cash Equivalents and Short-Term Investments | 17.61M | 18.04M | 18.85M | 13.48M | 19.71M | 6.84M |
| Total Debt | 414.30K | 8.26M | 8.79M | 9.56M | 9.37M | 2.50M |
| 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
Positive
6.59
Price Trends
5.73
Positive
5.40
Positive
6.03
Positive
Market Momentum
0.24
Positive
54.27
Neutral
39.91
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 6.59 is above the 20-day moving average (MA) of 6.48, above the 50-day MA of 5.73, and above the 200-day MA of 6.03, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 54.27 is Neutral, neither overbought nor oversold. The STOCH value of 39.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $82.54M | 18.06 | 25.69% | ― | 21.77% | 36.36% | |
72 Outperform | $91.26M | 26.82 | 6.40% | ― | 15.63% | 64.98% | |
65 Neutral | $73.43M | 51.24 | 3.10% | ― | -29.61% | -78.85% | |
65 Neutral | $10.75B | 15.65 | 5.18% | 1.92% | 3.09% | -27.41% | |
62 Neutral | $43.03M | 23.31 | 7.62% | ― | -7.34% | -88.84% | |
48 Neutral | $31.12M | ― | -109.05% | ― | -18.70% | 84.35% | |
42 Neutral | $39.65M | ― | 153.01% | ― | -64.51% | 7.09% |
* Industrials Sector Average
Performance Comparison
VTSI
VirTra
6.59
-0.98
-12.95%
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KITT
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1.03
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SIDU
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.