VirTra, Inc (VTSI) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

VirTra's EV/EBITDA of 28.1 is above its 5-year median of 15.4.

P/B below the industry

VirTra's price-to-book of 1.04 is below the Miscellaneous Manufacturing Industries median of 1.73.

Trading above fair value

The share price of $4.24 is above our fair value estimate of $3.15.

Margin of safety under 20%

The price is 34.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -81.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -51.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -235% over the last twelve months, against a 5-year average of -29.4% a year.

Growth against the industry

Needs revenue for this year and last.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was -0.5% over the last twelve months and averaged 8.8% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -2.0%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

VirTra's return on equity of -0.5% is below the Miscellaneous Manufacturing Industries median of 4.4%.

Earnings shrank over 5 years

Net income shrank 29.4% a year on average over the last five fiscal years.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

Low debt

Debt is 23.8% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 9.1% five years ago to 23.8%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 0.2% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 4.05 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.04; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

VirTra has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.