TRANSCAT INC (TRNS) Stock Fundamental Analysis
USA - NASDAQ:TRNS - US8935291075 - Common Stock
54.29 USD
+0.36 (+0.67%)
54.29 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 has only an average score on both its financial health and profitability. TRNS has a correct valuation and a medium 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.
TRNS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TRNS has a Return On Assets of 2.34%. This is comparable to the rest of the industry: TRNS outperforms 45.10% of its industry peers.
The Return On Equity of TRNS (3.84%) is comparable to the rest of the industry.
TRNS's Return On Invested Capital of 3.29% is on the low side compared to the rest of the industry. TRNS is outperformed by 64.71% 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 9.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 3.84% | ||
| ROIC | 3.29% |
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
The Profit Margin of TRNS (3.75%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TRNS has grown nicely.
TRNS has a Operating Margin (6.39%) which is comparable to the rest of the industry.
TRNS's Operating Margin has improved in the last couple of years.
The Gross Margin of TRNS (32.45%) is better than 60.78% of its industry peers.
In the last couple of years the Gross Margin of TRNS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.39% | ||
| PM (TTM) | 3.75% | ||
| GM | 32.45% |
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
TRNS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TRNS has more shares outstanding
TRNS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TRNS is higher compared to a year ago.
2.2 Solvency
TRNS has an Altman-Z score of 2.76. This is not the best score and indicates that TRNS is in the grey zone with still only limited risk for bankruptcy at the moment.
TRNS's Altman-Z score of 2.76 is in line compared to the rest of the industry. TRNS outperforms 52.94% of its industry peers.
TRNS has a debt to FCF ratio of 4.45. This is a neutral value as TRNS would need 4.45 years to pay back of all of its debts.
The Debt to FCF ratio of TRNS (4.45) is better than 64.71% of its industry peers.
TRNS has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
TRNS has a Debt to Equity ratio of 0.38. This is comparable to the rest of the industry: TRNS outperforms 56.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 4.45 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.35
WACC9.31%
2.3 Liquidity
A Current Ratio of 2.43 indicates that TRNS has no problem at all paying its short term obligations.
TRNS has a Current ratio of 2.43. This is in the better half of the industry: TRNS outperforms 64.71% of its industry peers.
A Quick Ratio of 2.06 indicates that TRNS has no problem at all paying its short term obligations.
The Quick ratio of TRNS (2.06) is better than 74.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
The earnings per share for TRNS have decreased strongly by -15.66% in the last year.
TRNS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.36% yearly.
Looking at the last year, TRNS shows a quite strong growth in Revenue. The Revenue has grown by 11.81% in the last year.
Measured over the past years, TRNS shows a quite strong growth in Revenue. The Revenue has been growing by 9.97% on average per year.
EPS 1Y (TTM)-15.66%
EPS 3Y-2.79%
EPS 5Y6.36%
EPS Q2Q%25.71%
Revenue 1Y (TTM)11.81%
Revenue growth 3Y10.75%
Revenue growth 5Y9.97%
Sales Q2Q%21.3%
3.2 Future
Based on estimates for the next years, TRNS will show a very strong growth in Earnings Per Share. The EPS will grow by 20.16% on average per year.
TRNS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.34% yearly.
EPS Next Y56.64%
EPS Next 2Y33.21%
EPS Next 3Y13.91%
EPS Next 5Y20.16%
Revenue Next Year16.45%
Revenue Next 2Y11.88%
Revenue Next 3Y10.93%
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
A Price/Earnings ratio of 32.51 indicates a quite expensive valuation of TRNS.
60.78% of the companies in the same industry are cheaper than TRNS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.89, TRNS is valued a bit more expensive.
The Price/Forward Earnings ratio is 20.81, which indicates a rather expensive current valuation of TRNS.
TRNS's Price/Forward Earnings ratio is in line with the industry average.
TRNS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.51 | ||
| Fwd PE | 20.81 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRNS.
TRNS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TRNS is cheaper than 72.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.13 | ||
| EV/EBITDA | 14.78 |
4.3 Compensation for Growth
TRNS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as TRNS's earnings are expected to grow with 13.91% in the coming years.
PEG (NY)0.57
PEG (5Y)5.11
EPS Next 2Y33.21%
EPS Next 3Y13.91%
5. Dividend
5.1 Amount
TRNS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
54.29
+0.36 (+0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners95.92%
Inst Owner Change-0.33%
Ins Owners0.99%
Ins Owner Change1.85%
Market Cap505.98M
Revenue(TTM)302.58M
Net Income(TTM)11.35M
Analysts80
Price Target113.63 (109.3%)
Short Float %4.34%
Short Ratio4.43
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)1
Avg EPS beat(2)15.93%
Min EPS beat(2)-14.58%
Max EPS beat(2)46.44%
EPS beat(4)2
Avg EPS beat(4)2.63%
Min EPS beat(4)-24%
Max EPS beat(4)46.44%
EPS beat(8)5
Avg EPS beat(8)8.39%
EPS beat(12)7
Avg EPS beat(12)3.58%
EPS beat(16)8
Avg EPS beat(16)2.32%
Revenue beat(2)2
Avg Revenue beat(2)2.55%
Min Revenue beat(2)1.44%
Max Revenue beat(2)3.66%
Revenue beat(4)2
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-6.92%
Max Revenue beat(4)3.66%
Revenue beat(8)4
Avg Revenue beat(8)-1.54%
Revenue beat(12)5
Avg Revenue beat(12)-1.13%
Revenue beat(16)7
Avg Revenue beat(16)-0.89%
PT rev (1m)1.83%
PT rev (3m)2.96%
EPS NQ rev (1m)-10.16%
EPS NQ rev (3m)6.33%
EPS NY rev (1m)0%
EPS NY rev (3m)17.58%
Revenue NQ rev (1m)2.99%
Revenue NQ rev (3m)10.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.51 | ||
| Fwd PE | 20.81 | ||
| P/S | 1.67 | ||
| P/FCF | 20.13 | ||
| P/OCF | 12.74 | ||
| P/B | 1.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.78 |
EPS(TTM)1.67
EY3.08%
EPS(NY)2.61
Fwd EY4.81%
FCF(TTM)2.7
FCFY4.97%
OCF(TTM)4.26
OCFY7.85%
SpS32.47
BVpS31.7
TBVpS-0.87
PEG (NY)0.57
PEG (5Y)5.11
Graham Number34.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 3.84% | ||
| ROCE | 4.3% | ||
| ROIC | 3.29% | ||
| ROICexc | 3.33% | ||
| ROICexgc | 10.5% | ||
| OM | 6.39% | ||
| PM (TTM) | 3.75% | ||
| GM | 32.45% | ||
| FCFM | 8.31% |
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%
ROICexgc growth 3Y-9.42%
ROICexgc 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-Score3
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 4.45 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 65.9% | ||
| Cap/Sales | 4.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.79% | ||
| Profit Quality | 221.43% | ||
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z | 2.76 |
F-Score3
WACC9.31%
ROIC/WACC0.35
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)-15.66%
EPS 3Y-2.79%
EPS 5Y6.36%
EPS Q2Q%25.71%
EPS Next Y56.64%
EPS Next 2Y33.21%
EPS Next 3Y13.91%
EPS Next 5Y20.16%
Revenue 1Y (TTM)11.81%
Revenue growth 3Y10.75%
Revenue growth 5Y9.97%
Sales Q2Q%21.3%
Revenue Next Year16.45%
Revenue Next 2Y11.88%
Revenue Next 3Y10.93%
Revenue Next 5Y9.34%
EBIT growth 1Y-18.82%
EBIT growth 3Y8.38%
EBIT growth 5Y11.83%
EBIT Next Year191.83%
EBIT Next 3Y51.48%
EBIT Next 5Y35.99%
FCF growth 1Y42.8%
FCF growth 3Y51.16%
FCF growth 5Y38.93%
OCF growth 1Y43.49%
OCF growth 3Y30.31%
OCF growth 5Y27.52%
TRANSCAT INC / TRNS FAQ
What is the fundamental rating for TRNS stock?
ChartMill assigns a fundamental rating of 5 / 10 to TRNS.
What is the valuation status for TRNS stock?
ChartMill assigns a valuation rating of 4 / 10 to TRANSCAT INC (TRNS). This can be considered as Fairly Valued.
How profitable is TRANSCAT INC (TRNS) stock?
TRANSCAT INC (TRNS) has a profitability rating of 5 / 10.
What are the PE and PB ratios of TRANSCAT INC (TRNS) stock?
The Price/Earnings (PE) ratio for TRANSCAT INC (TRNS) is 32.51 and the Price/Book (PB) ratio is 1.71.
Can you provide the expected EPS growth for TRNS stock?
The Earnings per Share (EPS) of TRANSCAT INC (TRNS) is expected to grow by 56.64% in the next year.