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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3206
Positioning
Market Dominance
Manufacturing
Business Supplies
$115M
Robert A. Virtue
Virco Mfg. Corporation engages in the design, production, and distribution of furniture for the commercial and education markets in the United States. It offers seating products, including 4-leg chairs, cantilever chairs, steel-frame rockers, stools, 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.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = VIRC ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$VIRC VIRCO MFG CORPORATION | 42 | 53 | 44 | 20 | 5.4x | 4.1x | 15.8% | 9.9% | 43.6% | 6.6% | 5.2% | -56.1% | 1.4% | 3.0x | $115M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
VIRCO MFG CORPORATION (VIRC) receives a "Reduce" rating with a composite score of 42.4/100. It ranks #3206 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Robert A. Virtue
Chief Executive Officer
Labor Force
820
53
49
74
Audit Verdict: Average governance indicators based on financial metrics.
No recent insider transactions available for VIRC
Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for VIRC.
View All RatingsImproving capital utilization rates confirmed
High margin volatility — erratic forensic earnings quality
ROE proxy 15.8% (sector -2.5%)
GM 44% vs sector 43%, OM 7% vs sector 1%
Capital turnover N/A
Rev growth -56%, 11yr history
Interest coverage -42.3x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
VIRCO MFG CORPORATION receives a Reduce rating from our analysis, with a composite score of 42.4/100 and 2 out of 5 stars, ranking #3206 out of 7,333 stocks. VIRC's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
With a quality score of 53/100, VIRC shows adequate but unremarkable business quality. The company reports a return on equity of 15.8% (sector avg: -2.5%), gross margins of 43.6% (sector avg: 42.5%), net margins of 5.2% (sector avg: -0.2%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
With a value score of 44/100, VIRC appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 5.41x, an EV/EBITDA of 4.10x, a P/B ratio of 0.86x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
With an investment score of 49/100, VIRC exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of -56.1% vs. a sector average of 5.9% and a return on assets of 9.9% (sector: -0.1%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
VIRCO MFG CORPORATION is experiencing notably weak momentum with a score of just 20/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth stands at -56.1% year-over-year, while a beta of 0.75 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
VIRC shows good financial stability with a score of 74/100. Key stability metrics include a beta of 0.75 and a debt-to-equity ratio of 3.00x (sector avg: 0.2x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
VIRCO MFG CORPORATION's short interest score of 20/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 3.00x), micro-cap liquidity risk. At $115M (micro-cap), VIRC carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
VIRC offers a modest dividend yield of 1.4%. While the income contribution is relatively small, even a small dividend signals management's commitment to shareholder returns and can serve as a signal of financial discipline.
VIRCO MFG CORPORATION is a micro-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #3206 of 7,333 overall (56th percentile). Key comparisons include ROE of 15.8% exceeding the -2.5% sector median and operating margins of 6.6% above the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While VIRC currently exhibits a REDUCE profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Momentum (20) would have the largest impact on the composite score.
EV/EBITDA 64% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 738% BELOW SECTOR MEDIAN
Gross Margin IN LINE WITH SECTOR BENCHMARKS
AUDIT DATA AS OF OCT 31, 2025 (Q3 FY2025)
We rate VIRCO MFG CORPORATION (VIRC) as a Reduce with a composite score of 42.4/100 at a current price of $6.26. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.
The rating is primarily driven by strength in stability (74th percentile) and quality (53th percentile), which together account for the majority of the composite score. Offsetting weakness in momentum (20th percentile) and value (44th percentile) tempers our overall conviction. We assign a Narrow Moat rating (40/100), Low uncertainty, and Standard capital allocation.
Key items to watch: momentum to confirm whether the current price trend has legs. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
VIRCO MFG CORPORATION holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 42.4/100 places it at rank #3206 in our full 7,333-stock universe. At $115M in market capitalization, VIRCO MFG CORPORATION is a small-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
Revenue contraction of -56% combined with momentum at the 20th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.
The margin cascade tells an important story: gross margins of 44% (+1.1pp vs sector) narrow to operating margins of 7% (+5.3pp vs sector) and net margins of 5.2%, yielding a gross-to-net conversion rate of 12%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.
At a current price of $6.26, VIRCO MFG CORPORATION is trading near fair value based on current fundamentals. Our value factor score of 44/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at a P/E of 5.4x (a 76% discount to the sector median of 22.3x), EV/EBITDA of 4.1x (discounted to peers), P/B of 0.9x, P/S of 0.4x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.
Gross margins of 44% signal strong pricing power and brand/IP advantages — businesses with margins above 40% have historically demonstrated more resilient earnings through economic cycles.
Returns on equity of 15.8% exceed the cost of equity for most companies, indicating genuine shareholder value creation and a reinvestment engine that compounds wealth over time.
A conservative balance sheet (3% D/E) provides financial flexibility for acquisitions, buybacks, or weathering economic downturns without dilution.
Return on assets of 9.9% indicates efficient deployment of the full asset base, not just equity capital.
The Reduce rating (composite 42.4/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
We assign a Low uncertainty rating to VIRCO MFG CORPORATION. The company exhibits strong financial stability with a beta of 0.75, conservative leverage (3% D/E), and a stability factor in the 74th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.
We identify no major risk factors at this time. The company's stability factor sits at the 74th percentile with quality at the 53th percentile, both of which support our low-risk assessment. The absence of material leverage, profitability, or volatility concerns reduces the likelihood of a permanent capital loss scenario.
Key risk mitigants include: healthy gross margins of 44% provide a buffer against cost pressures; conservative leverage (3% D/E) limits balance sheet risk; above-average stability (74th percentile) suggests predictable business dynamics. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate VIRCO MFG CORPORATION's capital allocation as Standard. Management has shown adequate — though not exceptional — stewardship of shareholder capital. Returns on equity stand at 15.8%, and the balance sheet is managed within acceptable parameters (D/E: 3%). Exemplary allocators typically sustain ROE above 20% and D/E below 50%; VIRCO MFG CORPORATION falls short on at least one dimension.
There is room for improvement in optimizing the capital structure or enhancing shareholder returns. The 1.37% dividend yield provides some income return, but the overall capital allocation framework would benefit from either higher reinvestment returns, improved balance sheet efficiency, or increased shareholder distributions. We will monitor for signs of strategic improvement that could warrant an upgrade.
In summary, VIRCO MFG CORPORATION receives a Reduce rating with a composite score of 42.4/100 (rank #3206 of 7,333). Our quantitative framework assigns a Narrow Moat (40/100, trend: stable), Low uncertainty, and Standard capital allocation. The average factor score across quality, value, momentum, stability, and investment is 48/100.
Our analysis does not support a constructive view on VIRCO MFG CORPORATION at this time. The combination of the current quantitative profile, low uncertainty, and standard capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign VIRCO MFG CORPORATION a Narrow Moat rating with a composite moat score of 40/100. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that VIRCO MFG CORPORATION can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being margin superiority at 13.8/20.
The strongest moat sources are margin superiority (13.8/20) and financial resilience (9.4/20). GM 44% vs sector 43%, OM 7% vs sector 1%. Interest coverage -42.3x. These pillars form the core of VIRCO MFG CORPORATION's competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and economic value creation (7.5/20). Capital turnover N/A. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect VIRCO MFG CORPORATION's moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include gross margins of 44% providing a solid profitability foundation, declining revenues (-56%) that pressure the earnings outlook, returns on equity of 15.8% driving shareholder value creation. The margin cascade from 44% gross to 7% operating to 5.2% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality is adequate though not exceptional, with the quality factor at the 53th percentile.
The margin profile shows gross margins of 44%, operating margins of 7%, net margins of 5.2%. Return metrics include ROE of 15.8% and ROA of 9.9%. Relative to the Manufacturing sector, gross margins are 1.1 percentage points above the sector median of 43%, and ROE of 15.8% compares to a sector median of -2.5%.
The balance sheet reflects a conservatively managed balance sheet with D/E of 3%, a dividend yield of 1.37%, revenue growth of -56%. The sector median D/E is 0%, putting VIRCO MFG CORPORATION at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Revenue decline of -56% signals business deterioration — declining revenues make it difficult to grow into the current valuation and often precede further negative revisions.
Weak momentum (20th percentile) suggests institutional selling pressure and unfavorable technical dynamics that may persist.
Above 50MA
37.18%
Net New Highs
+51081
Institutional investors hold a significant 55% stake in Virco Mfg. Corporation (NASDAQ:VIRC), making them the largest shareholder group. This substantial ownership implies that the company's stock price is highly sensitive to their trading activities. The top seven shareholders collectively own 51% of the company, with CEO Robert Virtue being the largest individual shareholder at 20%.
Robert A. Virtue, CEO of Virco MFG Corporation (NASDAQ:VIRC), recently acquired 2,500 shares of the company's common stock for a total of $15,800, at a price of $6.32 per share. This transaction on January 13, 2026, increases his direct ownership to 495,824 shares. The article details this insider trading activity.
Wall Street Zen has downgraded Virco Manufacturing (NASDAQ:VIRC) from a "hold" to a "sell" rating following the company's significant earnings miss in its latest quarterly report. Despite insiders recently purchasing shares, the stock is trading near its 12-month low, reflecting market concerns over its financial performance. MarketBeat and Weiss Ratings currently maintain a "Hold" consensus for the furniture manufacturer.
Virco Mfg Corporation (NASDAQ:VIRC) reported a significant net loss of $1.3 million and sales of $47.6 million for its fiscal Q3 2025, falling well short of analyst expectations due to a cyclical downturn in its core market. The company attributes the decline largely to the expiration of federal pandemic recovery stimulus funds for schools. Despite the poor quarterly results, Virco highlights a strong balance sheet and maintained dividend, with management expressing confidence in a future market recovery.
Virco Mfg (NASDAQ:VIRC) shareholders, despite a recent 20% drop in the last quarter and a total 58% decline over the past year, have still seen a robust 186% total shareholder return (TSR) over the last five years, including dividends. The company transitioned to profitability, which aligns with its strong long-term share price gain, and there has been significant insider buying recently. The article suggests that longer-term investors have still achieved substantial annual returns, and the current pullback might be an opportunity if fundamental growth continues.