TRANSCAT INC (TRNS)
US8935291075 - Common Stock
TRNS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 industry peers in the Trading Companies & Distributors industry. TRNS is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. While showing a medium growth rate, TRNS is valued expensive at the moment.
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
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.
Looking at the Return On Equity, with a value of 6.67%, TRNS is doing worse than 60.78% of the companies in the same industry.
TRNS has a Return On Invested Capital (6.10%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRNS 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
Looking at the Profit Margin, with a value of 6.63%, TRNS is in the better half of the industry, outperforming 68.63% of the companies in the same industry.
TRNS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.74%, TRNS is in line with its industry, outperforming 56.86% of the companies in the same industry.
TRNS's Operating Margin has improved in the last couple of years.
TRNS has a Gross Margin (32.83%) which is comparable to the rest of the industry.
TRNS's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, TRNS has more shares outstanding
Compared to 5 years ago, TRNS has more shares outstanding
The debt/assets ratio for TRNS has been reduced compared to a year ago.
2.2 Solvency
TRNS has an Altman-Z score of 12.47. This indicates that TRNS is financially healthy and has little risk of bankruptcy at the moment.
TRNS has a better Altman-Z score (12.47) than 98.04% of its industry peers.
The Debt to FCF ratio of TRNS is 0.18, which is an excellent value as it means it would take TRNS, only 0.18 years of fcf income to pay off all of its debts.
TRNS has a Debt to FCF ratio of 0.18. This is amongst the best in the industry. TRNS outperforms 88.24% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that TRNS is not too dependend on debt financing.
TRNS has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. TRNS outperforms 84.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 12.47 |
ROIC/WACC0.56
WACC10.99%
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.
TRNS has a better Current ratio (3.59) than 78.43% of its industry peers.
TRNS has a Quick Ratio of 3.00. This indicates that TRNS is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TRNS (3.00) is better than 92.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.59 | ||
| Quick Ratio | 3 |
3. Growth
3.1 Past
TRNS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 75.22%, which is quite impressive.
Measured over the past years, TRNS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.85% on average per year.
Looking at the last year, TRNS shows a quite strong growth in Revenue. The Revenue has grown by 11.42% in the last year.
Measured over the past years, TRNS shows a quite strong growth in Revenue. The Revenue has been growing by 10.03% on average per year.
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
Based on estimates for the next years, TRNS will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.38% on average per year.
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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 54.42, TRNS can be considered very expensive at the moment.
76.47% of the companies in the same industry are cheaper than TRNS, based on the Price/Earnings ratio.
TRNS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.10.
A Price/Forward Earnings ratio of 42.94 indicates a quite expensive valuation of TRNS.
72.55% of the companies in the same industry are cheaper than TRNS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TRNS to the average of the S&P500 Index (23.79), we can say TRNS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.42 | ||
| Fwd PE | 42.94 |
4.2 Price Multiples
70.59% of the companies in the same industry are cheaper than TRNS, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRNS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.54 | ||
| EV/EBITDA | 24.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TRNS does not grow enough to justify the current Price/Earnings ratio.
TRNS has a very decent profitability rating, which may justify a higher PE ratio.
TRNS's earnings are expected to grow with 20.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.42
PEG (5Y)5.02
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 (11/13/2024, 8:06:07 PM)
After market: 107.745 0 (0%)107.745
+0.92 (+0.86%)
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 Cap991.25M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.42 | ||
| Fwd PE | 42.94 | ||
| 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)2.42
PEG (5Y)5.02
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