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Virco Mfg. Corporation (VIRC)

Company Dividend Discount ModelIndustry: Furnishings, Fixtures & AppliancesSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$3.26 - $5.70$4.30
Multi-Stage$3.55 - $3.88$3.71
Blended Fair Value$4.01
Current Price$7.32
Upside-45.27%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.00%0.00%0.090.020.000.000.000.000.060.000.000.00
YoY Growth--347.40%0.00%0.00%0.00%0.00%-100.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.00%0.19%0.00%0.00%0.00%0.00%1.29%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3.86
(-) Cash Dividends Paid (M)1.60
(=) Cash Retained (M)2.27
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)0.770.480.29
Cash Retained (M)2.272.272.27
(-) Cash Required (M)-0.77-0.48-0.29
(=) Excess Retained (M)1.491.781.98
(/) Shares Outstanding (M)15.9115.9115.91
(=) Excess Retained per Share0.090.110.12
LTM Dividend per Share0.100.100.10
(+) Excess Retained per Share0.090.110.12
(=) Adjusted Dividend0.190.210.22
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate2.96%3.96%4.96%
Fair Value$3.26$4.30$5.70
Upside / Downside-55.48%-41.27%-22.16%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3.864.024.184.344.514.694.83
Payout Ratio41.34%51.07%60.80%70.54%80.27%90.00%92.50%
Projected Dividends (M)1.602.052.543.063.624.224.47

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate2.96%3.96%4.96%
Year 1 PV (M)1.861.881.90
Year 2 PV (M)2.092.132.17
Year 3 PV (M)2.292.362.43
Year 4 PV (M)2.462.562.66
Year 5 PV (M)2.602.732.87
PV of Terminal Value (M)45.1947.4249.75
Equity Value (M)56.4959.0861.77
Shares Outstanding (M)15.9115.9115.91
Fair Value$3.55$3.71$3.88
Upside / Downside-51.50%-49.28%-46.97%

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