Virco Mfg. Corporation

Virco Mfg. Corporation

VIRCยทNASDAQ

$5.44

-8.7%
Consumer CyclicalFurnishings, Fixtures & Appliances

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.

At a Glance

Live Snapshot
Market Cap$85.57M
EPS0.1600
P/E Ratio34.00
Earnings Date06/03/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 34.0).

Valuation inputs: P/E 34.0, earnings yield +2.9%, momentum -8.7%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +2.4%, ROIC +1.8%).

Profitability stack: net margin +1.3%, ROE +2.4%, ROIC +1.8%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile is elevated and scenario stress-testing is essential.

Risk factors: liabilities/assets +39.2%, momentum -8.7%, net margin +1.3%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

virc

Virco Mfg. Corporation Market vs Earnings Trajectory

VIRC ยท NASDAQ

Loading price and EPS data...

Virco Mfg. Corporation

Virco Mfg. Corporation Fair Value Envelope

VIRC ยท NASDAQ

Our analysis suggests that VIRC has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $5.44, this represents a potential HIDDEN relative to our calculated worth for Virco Mfg. Corporation.

Intrinsic Value
Current Price: $5.44
3Y-84.0%
5Y-214.0%
10Y-89.0%
3Y-14.0%
5Y+31.0%
10Y+15.0%
3Y-84.0%
5Y-215.0%
10Y-89.0%
3Y-78.0%
5Y-111.0%
10Y-114.0%
3Y-6.0%
5Y-219.0%
10Y-560.0%
3Y+16.0%
5Y+39.0%
10Y+61.0%
Virco Mfg. Corporation

Virco Mfg. Corporation Profit Bridge

VIRC ยท NASDAQ
Revenue199.65M
Cost of Goods Sold (118.41M)
Gross Profit81.24M
Operating Expenses (77.58M)
Operating Income3.66M
Interest Expense (300.00K)
Other Income/Expense-196.00K
Pretax Income3.46M
Income Tax (895.00K)
Net Income2.57M
Net Income
2.57M

Profitability Analysis

Gross Margin

40.7%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

1.8%

Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.

Net Profit Margin

1.3%

Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.

Effective Tax Rate

25.8%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

40.69%
Gross Profit Margin
-6%
3Y+10.0%
5Y+13.0%
10Y+13.0%
1.83%
Operating Profit Margin
-82%
3Y-60.0%
5Y-295.0%
10Y-47.0%
1.29%
Net Profit Margin
-84%
3Y-82.0%
5Y-188.0%
10Y-90.0%
2.42%
Return on Equity
-88%
3Y-90.0%
5Y-159.0%
10Y-94.0%
1.47%
Return on Assets
-87%
3Y-87.0%
5Y-183.0%
10Y-93.0%
1.82%
Return on Invested Capital
-86%
3Y-80.0%
5Y-291.0%
10Y-94.0%
VIRC

Virco Mfg. Corporation Cash Conversion Engine

VIRC ยท NASDAQ
Net Income2.57M
Depreciation & Amortization6.14M
Stock-Based Compensation208.00K
Change in Working Capital-13.71M
Others3.39M
Capital Expenditures-5.85M
Free Cash Flow-6.70M

Cash Flow Quality Analysis

FCF Conversion Rate

-260.7%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

CapEx Intensity

-696.1%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

-125.0%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

-$13.71M

Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extensionโ€”monitor closely.

Cash Flow Quality Insight

Cash flow concerns: Despite profitability, the company is burning cash. Review working capital management, CapEx levels, and sustainability of current operations.

virc

Virco Mfg. Corporation Funding & Solvency Profile

VIRC ยท NASDAQ
Cash & Cash Equivalents3.73M
Net Receivables15.03M
Inventory68.33M
Other Current Assets15.23M
Total Current Assets102 M
Property, Plant & Equipment62.73M
Goodwill & Intangible Assets0.00
Long-Term Investments0.00
Other Non-Current Assets4.87M
Total Non-Current Assets68 M
Total Assets
175.48M

Financial Health Analysis

Current Ratio

2.71x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.71x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

65 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

58% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

virc

Virco Mfg. Corporation Street Expectations Map

VIRC ยท NASDAQ

No Target Data

No analyst price targets available for virc.

virc

Virco Mfg. Corporation Insider Positioning

VIRC ยท NASDAQ

During the last 12 months, insiders have purchased $476K worth of VIRC shares, with no selling activity reported.

3 Months

Bought

18.5K

112.99K

Sold

0

0.00

Net Activity

+113K

+$113K

3-6 Months

Bought

4.5K

28.81K

Sold

0

0.00

Net Activity

+29K

+$29K

6-9 Months

Bought

18.0K

130.38K

Sold

0

0.00

Net Activity

+130K

+$130K

9-12 Months

Bought

25.0K

203.54K

Sold

0

0.00

Net Activity

+204K

+$204K

Top Buyers

1
VDA

Virtue Douglas A

Director, Officer: Executive Vice President

29.0K sharesโ€ข3 transactions

$193K

2
VRA

Virtue Robert A

Director, Officer: Ceo

11.5K sharesโ€ข4 transactions

$79K

3
RBC

Richardson Bradley C

Director

8.1K sharesโ€ข2 transactions

$63K

4
LRR

Lind Robert R

Director

6.6K sharesโ€ข2 transactions

$53K

5
WA

Winkler Agnieszka

Director

6.1K sharesโ€ข1 transactions

$50K

Top Sellers

No selling activity

Insider Activity Analysis

Net Insider Sentiment

Bullish

Strong bullish signal with $476K net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.

Buy/Sell Ratio

โˆž:1

Perfect buy/sell ratio. Only buying activity with zero sellingโ€”the most bullish possible insider signal.

Recent Trend (3 Months)

$113K

Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.

Insider Participation

High Buying

5 insider buyers vs. 0 sellers. Broad-based buying across management team suggests widespread confidence.

Insider Activity Insight

Strong confluence of bullish signals: High buy/sell ratio, multiple insiders participating, and recent buying momentum all point to significant insider confidence. This level of coordinated buying often precedes positive developments.

0.41%
Dividend Yield
15%
3Y-
5Y-
10Y-
ย 

virc Dividend History

VIRC
10Y CAGR +4%
Latest $0.025
Annual $0.125
5 year growth trend
Last Period: +0%