TRANSCAT INC (TRNS) Stock Fundamental Analysis
NASDAQ:TRNS - Nasdaq - US8935291075 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to TRNS. TRNS was compared to 49 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.
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.
In the past 5 years TRNS always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.39%, TRNS perfoms like the industry average, outperforming 52.08% of the companies in the same industry.
With a Return On Equity value of 6.03%, TRNS is not doing good in the industry: 72.92% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 4.66%, TRNS is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for TRNS is below the industry average of 9.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.39% | ||
| ROE | 6.03% | ||
| ROIC | 4.66% |
ROA(3y)5.54%
ROA(5y)5.76%
ROE(3y)10%
ROE(5y)10.48%
ROIC(3y)7.17%
ROIC(5y)7.47%
1.3 Margins
Looking at the Profit Margin, with a value of 6.22%, TRNS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
TRNS's Profit Margin has improved in the last couple of years.
TRNS's Operating Margin of 7.91% is in line compared to the rest of the industry. TRNS outperforms 54.17% of its industry peers.
TRNS's Operating Margin has improved in the last couple of years.
TRNS's Gross Margin of 32.17% is in line compared to the rest of the industry. TRNS outperforms 56.25% of its industry peers.
In the last couple of years the Gross Margin of TRNS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.91% | ||
| PM (TTM) | 6.22% | ||
| GM | 32.17% |
OM growth 3Y7.78%
OM growth 5Y4.68%
PM growth 3Y5.38%
PM growth 5Y3.44%
GM growth 3Y6.67%
GM growth 5Y5.72%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRNS is destroying value.
Compared to 1 year ago, TRNS has more shares outstanding
The number of shares outstanding for TRNS has been increased compared to 5 years ago.
Compared to 1 year ago, TRNS has an improved debt to assets ratio.
2.2 Solvency
TRNS has an Altman-Z score of 5.52. This indicates that TRNS is financially healthy and has little risk of bankruptcy at the moment.
TRNS has a better Altman-Z score (5.52) than 87.50% of its industry peers.
TRNS has a debt to FCF ratio of 2.16. This is a good value and a sign of high solvency as TRNS would need 2.16 years to pay back of all of its debts.
TRNS has a better Debt to FCF ratio (2.16) than 72.92% of its industry peers.
TRNS has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
TRNS has a Debt to Equity ratio of 0.14. This is in the better half of the industry: TRNS outperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 5.52 |
ROIC/WACC0.41
WACC11.36%
2.3 Liquidity
TRNS has a Current Ratio of 2.42. This indicates that TRNS is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.42, TRNS is doing good in the industry, outperforming 62.50% of the companies in the same industry.
A Quick Ratio of 1.98 indicates that TRNS should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.98, TRNS belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.31% over the past year.
TRNS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.85% yearly.
Looking at the last year, TRNS shows a quite strong growth in Revenue. The Revenue has grown by 8.60% in the last year.
Measured over the past years, TRNS shows a quite strong growth in Revenue. The Revenue has been growing by 10.03% on average per year.
EPS 1Y (TTM)42.31%
EPS 3Y15.57%
EPS 5Y10.85%
EPS Q2Q%-34.21%
Revenue 1Y (TTM)8.6%
Revenue growth 3Y14.39%
Revenue growth 5Y10.03%
Sales Q2Q%2.44%
3.2 Future
TRNS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.29% yearly.
TRNS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.66% yearly.
EPS Next Y7.26%
EPS Next 2Y11.96%
EPS Next 3Y14.09%
EPS Next 5Y14.29%
Revenue Next Year7.98%
Revenue Next 2Y8.9%
Revenue Next 3Y7.6%
Revenue Next 5Y6.66%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 42.86, the valuation of TRNS can be described as expensive.
77.08% of the companies in the same industry are cheaper than TRNS, based on the Price/Earnings ratio.
TRNS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.47.
TRNS is valuated quite expensively with a Price/Forward Earnings ratio of 39.79.
TRNS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TRNS is more expensive than 79.17% of the companies in the same industry.
TRNS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.86 | ||
| Fwd PE | 39.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRNS is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRNS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.6 | ||
| EV/EBITDA | 20.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as TRNS's earnings are expected to grow with 14.09% in the coming years.
PEG (NY)5.9
PEG (5Y)3.95
EPS Next 2Y11.96%
EPS Next 3Y14.09%
5. Dividend
5.1 Amount
No dividends for TRNS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TRANSCAT INC
NASDAQ:TRNS (2/4/2025, 8:12:11 PM)
After market: 79.3 0 (0%)79.3
+2.08 (+2.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners94.03%
Inst Owner Change-0.06%
Ins Owners1.85%
Ins Owner Change0.48%
Market Cap729.56M
Analysts78.18
Price Target123.62 (55.89%)
Short Float %4.1%
Short Ratio4.61
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)0
Avg EPS beat(2)-24.97%
Min EPS beat(2)-25.94%
Max EPS beat(2)-24%
EPS beat(4)2
Avg EPS beat(4)6.24%
Min EPS beat(4)-25.94%
Max EPS beat(4)42.97%
EPS beat(8)5
Avg EPS beat(8)1.97%
EPS beat(12)6
Avg EPS beat(12)1.58%
EPS beat(16)9
Avg EPS beat(16)9.65%
Revenue beat(2)0
Avg Revenue beat(2)-6.16%
Min Revenue beat(2)-6.92%
Max Revenue beat(2)-5.4%
Revenue beat(4)1
Avg Revenue beat(4)-4.19%
Min Revenue beat(4)-6.92%
Max Revenue beat(4)1.35%
Revenue beat(8)3
Avg Revenue beat(8)-2.18%
Revenue beat(12)5
Avg Revenue beat(12)-1.24%
Revenue beat(16)8
Avg Revenue beat(16)-0.41%
PT rev (1m)0%
PT rev (3m)-16.27%
EPS NQ rev (1m)-7.17%
EPS NQ rev (3m)-28.78%
EPS NY rev (1m)-7.83%
EPS NY rev (3m)-14.58%
Revenue NQ rev (1m)2.93%
Revenue NQ rev (3m)-1.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.86 | ||
| Fwd PE | 39.79 | ||
| P/S | 2.68 | ||
| P/FCF | 37.6 | ||
| P/OCF | 21.4 | ||
| P/B | 2.6 | ||
| P/tB | 15.6 | ||
| EV/EBITDA | 20.08 |
EPS(TTM)1.85
EY2.33%
EPS(NY)1.99
Fwd EY2.51%
FCF(TTM)2.11
FCFY2.66%
OCF(TTM)3.7
OCFY4.67%
SpS29.59
BVpS30.55
TBVpS5.08
PEG (NY)5.9
PEG (5Y)3.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.39% | ||
| ROE | 6.03% | ||
| ROCE | 6.08% | ||
| ROIC | 4.66% | ||
| ROICexc | 4.72% | ||
| ROICexgc | 14.3% | ||
| OM | 7.91% | ||
| PM (TTM) | 6.22% | ||
| GM | 32.17% | ||
| FCFM | 7.13% |
ROA(3y)5.54%
ROA(5y)5.76%
ROE(3y)10%
ROE(5y)10.48%
ROIC(3y)7.17%
ROIC(5y)7.47%
ROICexc(3y)7.56%
ROICexc(5y)7.72%
ROICexgc(3y)16.38%
ROICexgc(5y)15.84%
ROCE(3y)9.36%
ROCE(5y)9.75%
ROICexcg growth 3Y3.77%
ROICexcg growth 5Y-1.57%
ROICexc growth 3Y-3.05%
ROICexc growth 5Y-5.29%
OM growth 3Y7.78%
OM growth 5Y4.68%
PM growth 3Y5.38%
PM growth 5Y3.44%
GM growth 3Y6.67%
GM growth 5Y5.72%
F-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.16 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 88.22% | ||
| Cap/Sales | 5.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.27% | ||
| Profit Quality | 114.52% | ||
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 5.52 |
F-Score6
WACC11.36%
ROIC/WACC0.41
Cap/Depr(3y)96.7%
Cap/Depr(5y)95.24%
Cap/Sales(3y)4.72%
Cap/Sales(5y)4.35%
Profit Quality(3y)92.6%
Profit Quality(5y)111.61%
High Growth Momentum
Growth
EPS 1Y (TTM)42.31%
EPS 3Y15.57%
EPS 5Y10.85%
EPS Q2Q%-34.21%
EPS Next Y7.26%
EPS Next 2Y11.96%
EPS Next 3Y14.09%
EPS Next 5Y14.29%
Revenue 1Y (TTM)8.6%
Revenue growth 3Y14.39%
Revenue growth 5Y10.03%
Sales Q2Q%2.44%
Revenue Next Year7.98%
Revenue Next 2Y8.9%
Revenue Next 3Y7.6%
Revenue Next 5Y6.66%
EBIT growth 1Y25.88%
EBIT growth 3Y23.29%
EBIT growth 5Y15.18%
EBIT Next Year133.29%
EBIT Next 3Y37.85%
EBIT Next 5Y24.85%
FCF growth 1Y149.53%
FCF growth 3Y4.34%
FCF growth 5Y28.3%
OCF growth 1Y77.38%
OCF growth 3Y11.33%
OCF growth 5Y21.03%