63.14 USD
-0.76 (-1.19%)
63.14 USD
0 (0%)
Overall TRNS gets a fundamental rating of 5 out of 10. We evaluated TRNS against 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 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.
- TRNS had positive earnings in each of the past 5 years.
- In the past 5 years TRNS always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 2.34%, TRNS perfoms like the industry average, outperforming 42.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 3.84%, TRNS is doing worse than 62.00% of the companies in the same industry.
- The Return On Invested Capital of TRNS (3.29%) is worse than 64.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TRNS 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
- TRNS has a Profit Margin (3.75%) which 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 of 6.39%. 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 (32.45%) which is in line with its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
- An Altman-Z score of 3.05 indicates that TRNS is not in any danger for bankruptcy at the moment.
- TRNS has a Altman-Z score (3.05) 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.
- With a decent Debt to FCF ratio value of 4.45, TRNS is doing good in the industry, outperforming 62.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.38 indicates that TRNS is not too dependend on debt financing.
- TRNS's Debt to Equity ratio of 0.38 is in line compared to the rest of the industry. TRNS outperforms 58.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 4.45 | ||
| Altman-Z | 3.05 |
ROIC/WACC0.34
WACC9.76%
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.
- Looking at the Current ratio, with a value of 2.43, TRNS is in the better half of 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.
- With a decent Quick ratio value of 2.06, TRNS is doing good in the industry, outperforming 76.00% of the companies in the same industry.
| 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.
- 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 11.81%.
- 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)-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 Y47.1%
EPS Next 2Y31.71%
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.
- 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
- With a Price/Earnings ratio of 37.81, TRNS can be considered very expensive at the moment.
- TRNS's Price/Earnings ratio is a bit more expensive when compared to the industry. TRNS is more expensive than 60.00% of the companies in the same industry.
- TRNS is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 24.76, the valuation of TRNS can be described as rather expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as TRNS.
- TRNS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.81 | ||
| Fwd PE | 24.76 |
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.
- Based on the Price/Free Cash Flow ratio, TRNS is valued a bit cheaper than 74.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.44 | ||
| EV/EBITDA | 16.95 |
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 16.78% in the coming years.
PEG (NY)0.8
PEG (5Y)5.94
EPS Next 2Y31.71%
EPS Next 3Y16.78%
5. Dividend
5.1 Amount
- TRNS does not give a dividend.
| 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 37.81 and the Price/Book (PB) ratio is 1.99.
What is the financial health of TRANSCAT INC (TRNS) stock?
The financial health rating of TRANSCAT INC (TRNS) is 6 / 10.