59.84 USD
-1.39 (-2.28%)
59.84 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. Both the profitability and the financial health of TRNS get a neutral evaluation. Nothing too spectacular is happening here. TRNS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- TRNS had positive earnings in the past year.
- TRNS had a positive operating cash flow in the past year.
- TRNS had positive earnings in each of the past 5 years.
- Each year in the past 5 years TRNS had a positive operating cash flow.
1.2 Ratios
- TRNS has a Return On Assets of 2.34%. This is comparable to the rest of the industry: TRNS outperforms 42.00% of its industry peers.
- TRNS's Return On Equity of 3.84% is on the low side compared to the rest of the industry. TRNS is outperformed by 62.00% of its industry peers.
- The Return On Invested Capital of TRNS (3.29%) 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 9.64%.
| 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.
- TRNS's Profit Margin has improved in the last couple of years.
- TRNS's Operating Margin of 6.39% is in line compared 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.
- With a Gross Margin value of 32.45%, TRNS perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- TRNS's Gross Margin has improved in the last couple of years.
| 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
- 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
- Compared to 5 years ago, TRNS has more shares outstanding
- Compared to 1 year ago, TRNS has a worse debt to assets ratio.
2.2 Solvency
- TRNS has an Altman-Z score of 2.97. 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 has a Altman-Z score (2.97) which is in line with 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 62.00% 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.
- Looking at the Debt to Equity ratio, with a value of 0.38, TRNS is in line with its industry, outperforming 58.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 4.45 | ||
| Altman-Z | 2.97 |
ROIC/WACC0.34
WACC9.72%
2.3 Liquidity
- TRNS has a Current Ratio of 2.43. This indicates that TRNS is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 2.43, TRNS is doing good in the industry, outperforming 64.00% of the companies in the same industry.
- A Quick Ratio of 2.06 indicates that TRNS has no problem at all paying its short term obligations.
- TRNS has a Quick ratio of 2.06. This is in the better half of the industry: TRNS outperforms 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
- TRNS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.66%.
- Measured over the past 5 years, TRNS shows a small growth in Earnings Per Share. The EPS has been growing by 6.36% on average per year.
- 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 quite strong growth in Earnings Per Share. The EPS will grow by 19.42% on average per year.
- TRNS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.30% yearly.
EPS Next Y40.16%
EPS Next 2Y28.24%
EPS Next 3Y16.78%
EPS Next 5Y19.42%
Revenue Next Year18.13%
Revenue Next 2Y12.77%
Revenue Next 3Y9.23%
Revenue Next 5Y9.3%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 35.83, which means the current valuation is very expensive for TRNS.
- Compared to the rest of the industry, the Price/Earnings ratio of TRNS indicates a slightly more expensive valuation: TRNS is more expensive than 60.00% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.87. TRNS is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 24.75, which indicates a rather expensive current valuation of TRNS.
- TRNS's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, TRNS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.83 | ||
| Fwd PE | 24.75 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRNS is on the same level as its industry peers.
- TRNS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TRNS is cheaper than 78.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.21 | ||
| EV/EBITDA | 16.35 |
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.
- A more expensive valuation may be justified as TRNS's earnings are expected to grow with 16.78% in the coming years.
PEG (NY)0.89
PEG (5Y)5.63
EPS Next 2Y28.24%
EPS Next 3Y16.78%
5. Dividend
5.1 Amount
- No dividends for TRNS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TRANSCAT INC / TRNS FAQ
What is the fundamental rating for TRNS stock?
ChartMill assigns a fundamental rating of 5 / 10 to TRNS.
Can you provide the valuation status for TRANSCAT INC?
ChartMill assigns a valuation rating of 3 / 10 to TRANSCAT INC (TRNS). This can be considered as Overvalued.
What is the profitability of TRNS stock?
TRANSCAT INC (TRNS) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for TRNS stock?
The Price/Earnings (PE) ratio for TRANSCAT INC (TRNS) is 35.83 and the Price/Book (PB) ratio is 1.89.
What is the financial health of TRANSCAT INC (TRNS) stock?
The financial health rating of TRANSCAT INC (TRNS) is 5 / 10.