TRANSCAT INC (TRNS)
US8935291075 - Common Stock
We assign a fundamental rating of 6 out of 10 to TRNS. TRNS was compared to 51 industry peers in the Trading Companies & Distributors industry. While TRNS has a great health rating, its profitability is only average at the moment. TRNS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TRNS was profitable.
TRNS had a positive operating cash flow in the past year.
In the past 5 years TRNS has always been profitable.
In the past 5 years TRNS always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.54%, TRNS is doing good in the industry, outperforming 64.71% of the companies in the same industry.
TRNS's Return On Equity of 6.67% is on the low side compared to the rest of the industry. TRNS is outperformed by 60.78% of its industry peers.
TRNS has a Return On Invested Capital (6.10%) which is in line with its industry peers.
TRNS had an Average Return On Invested Capital over the past 3 years of 7.17%. This is below the industry average of 9.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 6.67% | ||
| ROIC | 6.1% |
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
With a decent Profit Margin value of 6.63%, TRNS is doing good in the industry, outperforming 68.63% of the companies in the same industry.
TRNS's Profit Margin has improved in the last couple of years.
TRNS has a Operating Margin (8.74%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TRNS has grown nicely.
TRNS has a Gross Margin (32.83%) which is in line with its industry peers.
In the last couple of years the Gross Margin of TRNS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.74% | ||
| PM (TTM) | 6.63% | ||
| GM | 32.83% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRNS is destroying value.
TRNS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TRNS has more shares outstanding
TRNS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.06 indicates that TRNS is not in any danger for bankruptcy at the moment.
TRNS's Altman-Z score of 12.06 is amongst the best of the industry. TRNS outperforms 98.04% of its industry peers.
TRNS has a debt to FCF ratio of 0.18. This is a very positive value and a sign of high solvency as it would only need 0.18 years to pay back of all of its debts.
The Debt to FCF ratio of TRNS (0.18) is better than 88.24% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that TRNS is not too dependend on debt financing.
TRNS's Debt to Equity ratio of 0.00 is amongst the best of the industry. TRNS outperforms 84.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 12.06 |
ROIC/WACC0.53
WACC11.55%
2.3 Liquidity
TRNS has a Current Ratio of 3.59. This indicates that TRNS is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.59, TRNS is doing good in the industry, outperforming 78.43% of the companies in the same industry.
A Quick Ratio of 3.00 indicates that TRNS has no problem at all paying its short term obligations.
TRNS's Quick ratio of 3.00 is amongst the best of the industry. TRNS outperforms 92.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.59 | ||
| Quick Ratio | 3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 75.22% over the past year.
The Earnings Per Share has been growing by 10.85% on average over the past years. This is quite good.
Looking at the last year, TRNS shows a quite strong growth in Revenue. The Revenue has grown by 11.42% in the last year.
TRNS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.03% yearly.
EPS 1Y (TTM)75.22%
EPS 3Y15.57%
EPS 5Y10.85%
EPS Q2Q%483.33%
Revenue 1Y (TTM)11.42%
Revenue growth 3Y14.39%
Revenue growth 5Y10.03%
Sales Q2Q%8%
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 13.38% yearly.
Based on estimates for the next years, TRNS will show a small growth in Revenue. The Revenue will grow by 6.50% on average per year.
EPS Next Y22.53%
EPS Next 2Y25.62%
EPS Next 3Y20.39%
EPS Next 5Y13.38%
Revenue Next Year8.38%
Revenue Next 2Y7.19%
Revenue Next 3Y6.14%
Revenue Next 5Y6.5%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 53.93, the valuation of TRNS can be described as expensive.
TRNS's Price/Earnings ratio is a bit more expensive when compared to the industry. TRNS is more expensive than 76.47% of the companies in the same industry.
TRNS is valuated expensively when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
TRNS is valuated quite expensively with a Price/Forward Earnings ratio of 42.56.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRNS indicates a slightly more expensive valuation: TRNS is more expensive than 72.55% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, TRNS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.93 | ||
| Fwd PE | 42.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRNS indicates a slightly more expensive valuation: TRNS is more expensive than 70.59% of the companies listed in the same industry.
TRNS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.02 | ||
| EV/EBITDA | 23.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TRNS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TRNS's earnings are expected to grow with 20.39% in the coming years.
PEG (NY)2.39
PEG (5Y)4.97
EPS Next 2Y25.62%
EPS Next 3Y20.39%
5. Dividend
5.1 Amount
No dividends for TRNS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TRANSCAT INC
NASDAQ:TRNS (11/21/2024, 4:30:01 PM)
After market: 106.79 0 (0%)106.79
+3.96 (+3.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap982.47M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.93 | ||
| Fwd PE | 42.56 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.39
PEG (5Y)4.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 6.67% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.74% | ||
| PM (TTM) | 6.63% | ||
| GM | 32.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.59 | ||
| Quick Ratio | 3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)75.22%
EPS 3Y15.57%
EPS 5Y
EPS Q2Q%
EPS Next Y22.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.42%
Revenue growth 3Y14.39%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y