VirTra, Inc (NASDAQ: VTSI)

Sector: Technology Industry: Software - Application CIK: 0001085243
Market Cap 58.08 Mn
P/B 1.24
P/E -99.20
P/S 2.40
ROIC (Qtr) 1.06
Div Yield % 0.00
Rev 1y % (Qtr) -28.52
Total Debt (Qtr) 7.94 Mn
Debt/Equity (Qtr) 0.17

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 4.67M provides robust 0.59x coverage of total debt 7.94M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 20.77M provide 49.21x coverage of short-term debt 421995, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 4.67M provides strong 13.05x coverage of stock compensation 358028, indicating sustainable incentive practices.
  • Strong tangible asset base of 63.57M provides 8.01x coverage of total debt 7.94M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 3.62M exceeds capital expenditure of 1.05M by 3.44x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 4.67M barely covers its investment activities of (3.32M), with a coverage ratio of -1.41, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (3.32M) provide weak support for R&D spending of 2.64M, which is -1.26x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 4.67M provides insufficient coverage of deferred revenue obligations of 8.85M, which is 0.53x, raising concerns about future service delivery capabilities.
  • Operating earnings of (384138) show weak coverage of depreciation charges of 1.42M, with a -0.27 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 3.62M represents just -14.17x of debt issuance (255359), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.69 2.65
EV to Cash from Ops. EV/CFO 9.72 13.37
EV to Debt EV to Debt 5.72 57.69
EV to EBIT EV/EBIT -118.25 19.12
EV to EBITDA EV/EBITDA 23.13 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 12.55 14.69
EV to Market Cap EV to Market Cap 0.78 -92.28
EV to Revenue EV/Rev 1.88 4.60
Price to Book Value [P/B] P/B 1.24 4.26
Price to Earnings [P/E] P/E -99.20 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Interest Coverage 0.00 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 54.41 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 5.59 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -110.10 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -73.01 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) -105.86 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) -105.86 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) -109.26 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 66.44 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -33.90 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.37 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 2.14 3.75
Current Ratio Curr Ratio (Qtr) 4.40 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.17 0.17
Interest Cover Ratio Interest Cover Ratio 0.00 -52.32
Times Interest Earned Times Interest Earned 0.00 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 4.30 -100.06
EBIT Margin % EBIT Margin % (Qtr) -1.59 -164.24
EBT Margin % EBT Margin % (Qtr) -1.59 -116.94
Gross Margin % Gross Margin % (Qtr) 68.00 58.20
Net Profit Margin % Net Margin % (Qtr) -2.40 -121.65