TRANSCAT INC (NASDAQ:TRNS) can be considered a quality stock. Here's why.

In this article we will dive into TRANSCAT INC (NASDAQ:TRNS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed TRANSCAT INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of TRANSCAT INC

• Over the past 5 years, TRANSCAT INC has experienced impressive revenue growth, with 10.03% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• The ROIC excluding cash and goodwill of TRANSCAT INC stands at 17.2%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a Debt/Free Cash Flow Ratio of 0.21, TRANSCAT INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a robust Profit Quality (5-year) ratio of 111.0%, TRANSCAT INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• TRANSCAT INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 15.25%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• The EBIT 5-year growth of TRANSCAT INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

How does the complete fundamental picture look for NASDAQ:TRNS?

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

We assign a fundamental rating of 5 out of 10 to TRNS. TRNS was compared to 51 industry peers in the Trading Companies & Distributors industry. TRNS is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. TRNS is valied quite expensively at the moment, while it does show a decent growth rate.

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. 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.