Why the quality investor may take a look at NASDAQ:TRNS.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if TRANSCAT INC (NASDAQ:TRNS) is suited for quality investing. Investors should of couse do their own research, but we spotted TRANSCAT INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NASDAQ:TRNS highlighted

• The 5-year revenue growth of TRANSCAT INC has been remarkable, with 8.25% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• TRANSCAT INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 17.04% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• The Debt/Free Cash Flow Ratio of TRANSCAT INC stands at 3.82, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• With a favorable Profit Quality (5-year) ratio of 98.88%, TRANSCAT INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• TRANSCAT INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 12.8%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, TRANSCAT INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental Analysis Observations

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

TRNS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 53 industry peers in the Trading Companies & Distributors industry. While TRNS has a great health rating, its profitability is only average at the moment. While showing a medium growth rate, TRNS is valued expensive at the moment.

Check the latest full fundamental report of TRNS for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.