VirTra (VTSI) AI Stock Analysis

• Market Cap: $52.59M
• Dividend Yield: N/A
• Average Volume (3M): 87.91K
• Price to Earnings (P/E): 49.8
• Beta (1Y): 0.92
• Revenue Growth: -29.61%
• EPS Growth: -78.85%
• Country: US
• Employees: 111
• Sector: Industrials
• Sector Strength: 90
• Industry: Aerospace & Defense
• EPS (TTM): 0.11
• Shares Outstanding: 11,260,209
• 10 Day Avg. Volume: 74,690
• 30 Day Avg. Volume: 87,912
• PEG Ratio: -0.48
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -86.13
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 2.11
• Enterprise Value/Ebitda: 1.50
• 1Y Price Target: $8.25
• Price Target Upside: 28.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

VirTra shows a solid financial foundation with strong margins and a stable balance sheet. The recent earnings call was positive, indicating a return to profitability and strategic growth initiatives. However, the stock's valuation seems high, and technical indicators present mixed signals. Overall, VirTra is well-positioned for growth but faces challenges from macroeconomic headwinds and valuation concerns.

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 Business Overview & Revenue Model

Company Description

VirTra, 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 Money

VirTra generates revenue primarily through the sale and leasing of its immersive simulation training systems to law enforcement agencies, military organizations, and other security-focused entities. The company's revenue streams include the direct sale of hardware and software solutions, recurring revenue from service and maintenance contracts, and the customization and integration of training modules tailored to specific client needs. Additionally, VirTra often engages in strategic partnerships and collaborations to expand its market reach and enhance its product offerings. These partnerships can lead to joint development projects and co-marketing opportunities, further supporting the company's growth and revenue generation.

VirTra Financial Statement Overview

Summary

VirTra presents a stable financial standing with consistent revenue growth and strong margins. The balance sheet is solid with low debt levels and a high equity ratio, mitigating financial risk. Cash flow performance has room for improvement, with some volatility in free cash flow, but operating cash flows have been positive recently.

Income Statement

VirTra has shown consistent revenue growth over the years, with a notable jump from 2020 to 2023. The gross profit margin has been strong, indicating efficient cost management. However, the net profit margin shows some volatility, which could point to fluctuating operational costs or other expenses impacting profitability. EBIT and EBITDA margins are healthy, reflecting operational efficiency.

Balance Sheet

The balance sheet is robust with a strong equity position as evidenced by a high equity ratio. The debt-to-equity ratio is low, indicating a conservative approach to leverage. Return on Equity (ROE) is positive, suggesting effective use of equity capital to generate profits. Overall, the financial position appears stable with low leverage risk.

Cash Flow

The cash flow statement shows a mixed performance with free cash flow fluctuating over the years. Operating cash flow has been positive recently, which is a good sign, but the free cash flow has seen some negative years. The operating cash flow to net income ratio is reasonable, indicating decent cash conversion from profits.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
26.35M	38.04M	28.30M	24.43M	19.09M
	Gross Profit
19.41M	26.67M	16.25M	11.41M	11.90M
	EBIT
2.00M	9.64M	2.59M	1.45M	1.23M
	EBITDA
3.67M	11.65M	3.48M	1.45M	1.90M
	Net Income Common Stockholders
1.36M	8.40M	1.96M	2.54M	1.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.04M	18.85M	13.48M	19.71M	6.84M
	Total Assets
66.43M	69.63M	53.81M	49.58M	22.75M
	Total Debt
8.26M	8.79M	9.56M	9.37M	2.50M
	Net Debt
-9.78M	-10.06M	-3.92M	-10.34M	-4.34M
	Total Liabilities
19.76M	27.01M	20.13M	18.35M	11.09M
	Stockholders Equity
45.69M	42.62M	33.68M	31.23M	11.66M
Cash Flow		Free Cash Flow
-588.31K	5.55M	-6.03M	-3.86M	2.18M
	Operating Cash Flow
1.26M	6.68M	-2.69M	-125.74K	2.25M
	Investing Cash Flow
-1.85M	-1.13M	-3.34M	-3.74M	1.85M
	Financing Cash Flow
-220.71K	-188.18K	-190.42K	16.73M	1.33M

VirTra Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 6.41 is above the 20-day moving average (MA) of 4.32, above the 50-day MA of 4.67, and above the 200-day MA of 6.18, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 77.35 is Negative, neither overbought nor oversold. The STOCH value of 64.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VTSI.

VirTra Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPXS	78 Outperform	$47.24M	12.89	25.69%	―	23.22%	39.83%
CODA	72 Outperform	$75.58M	19.34	7.61%	―	15.63%	64.98%
VTSI	70 Outperform	$52.59M	49.84	3.10%	―	-29.61%	-78.85%
Sector *	64 Neutral	$4.38B	12.03	5.25%	249.91%	4.11%	-11.02%
CVU	54 Neutral	$47.06M	13.96	13.74%	―	-6.23%	-80.67%
SIDU	48 Neutral	$29.65M	―	-114.28%	―	-21.64%	86.28%
KITT	36 Underperform	$36.21M	―	153.01%	―	-72.64%	30.43%