Is Virco Manufacturing Corp. overvalued or undervalued?

As of 29 July 2024, the valuation grade for Virco Manufacturing Corp. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, with a P/E ratio of 7, significantly lower than its peers, such as Steelcase, Inc. at 9.37 and ACCO Brands Corp. at 4.33. Additionally, Virco's EV to EBITDA stands at 3.39, which is competitive compared to Steelcase's 5.09, further supporting the undervaluation thesis.
Virco's financial metrics also highlight its strong performance, with a remarkable dividend yield of 114.24% and a return on capital employed (ROCE) of 31.58%. The company's recent stock performance shows a 1-week return of 8.87%, contrasting with a slight decline in the S&P 500, which underscores its potential for recovery and growth. Overall, these factors suggest that Virco Manufacturing Corp. is positioned as an attractive investment opportunity in the current market landscape.