TRANSCAT INC (TRNS) Stock Fundamental Analysis
USA - NASDAQ:TRNS - US8935291075 - Common Stock
55.64 USD
-0.95 (-1.68%)
55.64 USD
0 (0%)
Taking everything into account, TRNS scores 5 out of 10 in our fundamental rating. TRNS was compared to 51 industry peers in the Trading Companies & Distributors industry. TRNS has an average financial health and profitability rating. TRNS has a decent growth rate and is not valued too expensively.
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.
In the past 5 years TRNS has always been profitable.
Each year in the past 5 years TRNS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.34%, TRNS is in line with its industry, outperforming 45.10% of the companies in the same industry.
With a Return On Equity value of 3.84%, TRNS perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.29%, TRNS is doing worse than 64.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRNS is below the industry average of 10.12%.
| 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
With a Profit Margin value of 3.75%, TRNS perfoms like the industry average, outperforming 54.90% of the companies in the same industry.
TRNS's Profit Margin has improved in the last couple of years.
TRNS has a Operating Margin of 6.39%. This is comparable to the rest of the industry: TRNS outperforms 50.98% of its industry peers.
TRNS's Operating Margin has improved in the last couple of years.
TRNS has a better Gross Margin (32.45%) than 60.78% of 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
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 2.83. 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 (2.83) which is in line with its industry peers.
The Debt to FCF ratio of TRNS is 4.45, which is a neutral value as it means it would take TRNS, 4.45 years of fcf income to pay off all of its debts.
TRNS's Debt to FCF ratio of 4.45 is fine compared to the rest of the industry. TRNS outperforms 64.71% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that TRNS is not too dependend on debt financing.
TRNS has a Debt to Equity ratio (0.38) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 4.45 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.35
WACC9.31%
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.
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.
Looking at the Quick ratio, with a value of 2.06, TRNS is in the better half of the industry, outperforming 74.51% 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.
TRNS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.36% yearly.
The Revenue has grown by 11.81% in the past year. This is quite good.
The Revenue has been growing by 9.97% on average over the past years. This is quite good.
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
TRNS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.16% yearly.
Based on estimates for the next years, TRNS will show a quite strong growth in Revenue. The Revenue will grow by 9.34% on average per year.
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.
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 33.32, which means the current valuation is very expensive for TRNS.
TRNS's Price/Earnings ratio is a bit more expensive when compared to the industry. TRNS is more expensive than 60.78% of the companies in the same industry.
When comparing the Price/Earnings ratio of TRNS to the average of the S&P500 Index (26.34), we can say TRNS is valued slightly more expensively.
The Price/Forward Earnings ratio is 21.33, which indicates a rather expensive current valuation of TRNS.
TRNS's Price/Forward Earnings is on the same level as the industry average.
TRNS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.32 | ||
| Fwd PE | 21.33 |
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 72.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.63 | ||
| EV/EBITDA | 15.29 |
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 13.91% in the coming years.
PEG (NY)0.59
PEG (5Y)5.24
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 |
55.64
-0.95 (-1.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners95.92%
Inst Owner Change-4.78%
Ins Owners0.99%
Ins Owner Change1.01%
Market Cap518.56M
Revenue(TTM)302.58M
Net Income(TTM)11.35M
Analysts80
Price Target113.63 (104.22%)
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)0%
EPS NQ rev (3m)12.22%
EPS NY rev (1m)0%
EPS NY rev (3m)17.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.32 | ||
| Fwd PE | 21.33 | ||
| P/S | 1.71 | ||
| P/FCF | 20.63 | ||
| P/OCF | 13.05 | ||
| P/B | 1.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.29 |
EPS(TTM)1.67
EY3%
EPS(NY)2.61
Fwd EY4.69%
FCF(TTM)2.7
FCFY4.85%
OCF(TTM)4.26
OCFY7.66%
SpS32.47
BVpS31.7
TBVpS-0.87
PEG (NY)0.59
PEG (5Y)5.24
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 | 2.83 |
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 33.32 and the Price/Book (PB) ratio is 1.76.
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.