Virco Manufacturing (VIRC) a little-known small cap that screened as a value in my monthly scans is also making strong momentum move out of a weekly flag, shares up 51.6% YTD and 310% of the past year. Virco is seeing momentum as a re-shoring play and with ocean freight rates high, Virco is a domestic beneficiary.

Virco is America’s leading manufacturer and supplier of educational furniture and equipment. Virco is the largest manufacturer and supplier of movable furniture and equipment for the education market in the United States founded in 1950 and the founding family still owns 30% of outstanding shares. Its product lines include Chairs, Desks, Tables, Storage and more.

Virco’s proprietary PlanSCAPE® Software & Project Management is a key competitive advantage. The market for school furniture and equipment is highly seasonal: 60% of deliveries take place in the months of June through August. The Price/Cube Threshold is the minimum selling price per cubic foot needed to offset the costs and risks of ocean freight.  The price/cube threshold forms a protective moat around Virco’s bulky school furniture, which sells below the threshold.  This means that even if overseas labor is free, bulky school furniture can’t be imported and sold at a lower price than Virco.

VIRC has a market cap of $295M and remains cheap at 10.3X Earnings, 6.6X LTM EBITDA and 10X FCF with revenues seen rising 13.5% in FY25 and 5.1% in FY26. VIRC has no analyst coverage nor does it hold earnings calls. It is simply an attractive small cap value benefitting from reshoring and could see upside from stronger government school funding.