Is Virco Manufacturing Corp. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Virco Manufacturing Corp. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued, particularly in light of its P/E ratio of 7, which is significantly lower than the industry average, and an EV to EBITDA ratio of 3.39, suggesting strong earnings relative to its enterprise value. Additionally, the dividend yield is exceptionally high at 114.24%, reflecting a robust return to shareholders.
In comparison with peers, Virco's P/E ratio is notably lower than that of ACCO Brands Corp., which stands at 5.45, and Kewaunee Scientific Corp. at 13.96, both of which indicate that Virco may be undervalued relative to its competitors. Despite recent underperformance, with a YTD return of -20.98% compared to the S&P 500's 12.22%, the long-term outlook remains positive, as evidenced by a 5-year return of 282.08%, outperforming the S&P 500's 96.61%.