TRANSCAT INC (TRNS) Stock Fundamental Analysis
USA - NASDAQ:TRNS - US8935291075 - Common Stock
71.91 USD
-1.21 (-1.65%)
71.91 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TRNS. TRNS was compared to 50 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TRNS was profitable.
In the past year TRNS had a positive cash flow from operations.
Each year in the past 5 years TRNS has been profitable.
TRNS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.41%, TRNS perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
TRNS has a Return On Equity of 4.57%. This is in the lower half of the industry: TRNS underperforms 62.00% of its industry peers.
The Return On Invested Capital of TRNS (3.98%) is worse than 64.00% of its industry peers.
TRNS had an Average Return On Invested Capital over the past 3 years of 6.00%. This is below the industry average of 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 4.57% | ||
| ROIC | 3.98% |
ROA(3y)4.66%
ROA(5y)5.25%
ROE(3y)7.28%
ROE(5y)9.09%
ROIC(3y)6%
ROIC(5y)6.74%
1.3 Margins
TRNS's Profit Margin of 4.64% is in line compared to the rest of the industry. TRNS outperforms 56.00% of its industry peers.
TRNS's Profit Margin has improved in the last couple of years.
TRNS has a Operating Margin of 6.59%. This is comparable to the rest of the industry: TRNS outperforms 52.00% of its industry peers.
In the last couple of years the Operating Margin of TRNS has grown nicely.
TRNS has a Gross Margin of 32.14%. This is comparable to the rest of the industry: TRNS outperforms 60.00% of its industry peers.
In the last couple of years the Gross Margin of TRNS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.59% | ||
| PM (TTM) | 4.64% | ||
| GM | 32.14% |
OM growth 3Y-2.14%
OM growth 5Y1.69%
PM growth 3Y-2.08%
PM growth 5Y2.27%
GM growth 3Y4.06%
GM growth 5Y5.54%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRNS is destroying value.
The number of shares outstanding for TRNS has been increased compared to 1 year ago.
The number of shares outstanding for TRNS has been increased compared to 5 years ago.
TRNS has a worse debt/assets ratio than last year.
2.2 Solvency
TRNS has an Altman-Z score of 5.48. This indicates that TRNS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.48, TRNS belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
The Debt to FCF ratio of TRNS is 1.76, which is an excellent value as it means it would take TRNS, only 1.76 years of fcf income to pay off all of its debts.
TRNS has a better Debt to FCF ratio (1.76) than 78.00% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that TRNS is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.11, TRNS is doing good in the industry, outperforming 74.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 5.48 |
ROIC/WACC0.42
WACC9.5%
2.3 Liquidity
A Current Ratio of 2.92 indicates that TRNS has no problem at all paying its short term obligations.
TRNS has a better Current ratio (2.92) than 74.00% of its industry peers.
A Quick Ratio of 2.36 indicates that TRNS has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.36, TRNS belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
TRNS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.51%.
The Earnings Per Share has been growing slightly by 6.36% on average over the past years.
TRNS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.49%.
TRNS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.97% yearly.
EPS 1Y (TTM)-6.51%
EPS 3Y-2.79%
EPS 5Y6.36%
EPS Q2Q%22.92%
Revenue 1Y (TTM)8.49%
Revenue growth 3Y10.75%
Revenue growth 5Y9.97%
Sales Q2Q%14.57%
3.2 Future
Based on estimates for the next years, TRNS will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.33% on average per year.
Based on estimates for the next years, TRNS will show a quite strong growth in Revenue. The Revenue will grow by 9.34% on average per year.
EPS Next Y47.52%
EPS Next 2Y30.17%
EPS Next 3Y3.33%
EPS Next 5Y16.33%
Revenue Next Year16.45%
Revenue Next 2Y11.88%
Revenue Next 3Y9.2%
Revenue Next 5Y9.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
TRNS is valuated quite expensively with a Price/Earnings ratio of 45.51.
TRNS's Price/Earnings ratio is a bit more expensive when compared to the industry. TRNS is more expensive than 66.00% of the companies in the same industry.
TRNS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.27.
With a Price/Forward Earnings ratio of 28.87, TRNS can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TRNS is valued a bit more expensive than the industry average as 66.00% of the companies are valued more cheaply.
TRNS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.51 | ||
| Fwd PE | 28.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRNS is valued a bit more expensive than 60.00% of the companies in the same industry.
TRNS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.26 | ||
| EV/EBITDA | 18.28 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.96
PEG (5Y)7.16
EPS Next 2Y30.17%
EPS Next 3Y3.33%
5. Dividend
5.1 Amount
No dividends for TRNS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
71.91
-1.21 (-1.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners101.82%
Inst Owner Change-4.52%
Ins Owners1.93%
Ins Owner Change1.62%
Market Cap670.20M
Analysts78.18
Price Target111.59 (55.18%)
Short Float %4.58%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.54%
Min EPS beat(2)2.65%
Max EPS beat(2)46.44%
EPS beat(4)2
Avg EPS beat(4)-0.21%
Min EPS beat(4)-25.94%
Max EPS beat(4)46.44%
EPS beat(8)5
Avg EPS beat(8)-0.38%
EPS beat(12)7
Avg EPS beat(12)3%
EPS beat(16)9
Avg EPS beat(16)5.31%
Revenue beat(2)1
Avg Revenue beat(2)1.32%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)3.66%
Revenue beat(4)1
Avg Revenue beat(4)-2.42%
Min Revenue beat(4)-6.92%
Max Revenue beat(4)3.66%
Revenue beat(8)3
Avg Revenue beat(8)-1.9%
Revenue beat(12)5
Avg Revenue beat(12)-1.22%
Revenue beat(16)7
Avg Revenue beat(16)-0.8%
PT rev (1m)1.11%
PT rev (3m)0.37%
EPS NQ rev (1m)2.23%
EPS NQ rev (3m)7.45%
EPS NY rev (1m)10.73%
EPS NY rev (3m)42.45%
Revenue NQ rev (1m)1.22%
Revenue NQ rev (3m)6.7%
Revenue NY rev (1m)6.87%
Revenue NY rev (3m)6.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.51 | ||
| Fwd PE | 28.87 | ||
| P/S | 2.33 | ||
| P/FCF | 34.26 | ||
| P/OCF | 19.9 | ||
| P/B | 2.29 | ||
| P/tB | 10.56 | ||
| EV/EBITDA | 18.28 |
EPS(TTM)1.58
EY2.2%
EPS(NY)2.49
Fwd EY3.46%
FCF(TTM)2.1
FCFY2.92%
OCF(TTM)3.61
OCFY5.03%
SpS30.92
BVpS31.39
TBVpS6.81
PEG (NY)0.96
PEG (5Y)7.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 4.57% | ||
| ROCE | 5.2% | ||
| ROIC | 3.98% | ||
| ROICexc | 4.01% | ||
| ROICexgc | 10.83% | ||
| OM | 6.59% | ||
| PM (TTM) | 4.64% | ||
| GM | 32.14% | ||
| FCFM | 6.79% |
ROA(3y)4.66%
ROA(5y)5.25%
ROE(3y)7.28%
ROE(5y)9.09%
ROIC(3y)6%
ROIC(5y)6.74%
ROICexc(3y)6.37%
ROICexc(5y)6.98%
ROICexgc(3y)14.95%
ROICexgc(5y)15.39%
ROCE(3y)7.84%
ROCE(5y)8.8%
ROICexcg growth 3Y-9.42%
ROICexcg growth 5Y-3.25%
ROICexc growth 3Y-18.51%
ROICexc growth 5Y-11.8%
OM growth 3Y-2.14%
OM growth 5Y1.69%
PM growth 3Y-2.08%
PM growth 5Y2.27%
GM growth 3Y4.06%
GM growth 5Y5.54%
F-Score4
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.76 | ||
| Debt/EBITDA | 0.85 | ||
| Cap/Depr | 70.4% | ||
| Cap/Sales | 4.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.24% | ||
| Profit Quality | 146.34% | ||
| Current Ratio | 2.92 | ||
| Quick Ratio | 2.36 | ||
| Altman-Z | 5.48 |
F-Score4
WACC9.5%
ROIC/WACC0.42
Cap/Depr(3y)85.02%
Cap/Depr(5y)89.69%
Cap/Sales(3y)4.65%
Cap/Sales(5y)4.54%
Profit Quality(3y)129.96%
Profit Quality(5y)134.79%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.51%
EPS 3Y-2.79%
EPS 5Y6.36%
EPS Q2Q%22.92%
EPS Next Y47.52%
EPS Next 2Y30.17%
EPS Next 3Y3.33%
EPS Next 5Y16.33%
Revenue 1Y (TTM)8.49%
Revenue growth 3Y10.75%
Revenue growth 5Y9.97%
Sales Q2Q%14.57%
Revenue Next Year16.45%
Revenue Next 2Y11.88%
Revenue Next 3Y9.2%
Revenue Next 5Y9.34%
EBIT growth 1Y-13.17%
EBIT growth 3Y8.38%
EBIT growth 5Y11.83%
EBIT Next Year157.68%
EBIT Next 3Y38.68%
EBIT Next 5Y27.44%
FCF growth 1Y54.5%
FCF growth 3Y51.16%
FCF growth 5Y38.93%
OCF growth 1Y50.08%
OCF growth 3Y30.31%
OCF growth 5Y27.52%