TRANSCAT INC (TRNS) Stock Fundamental Analysis
NASDAQ:TRNS - Nasdaq - US8935291075 - Common Stock - Currency: USD
TRNS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 49 industry peers in the Trading Companies & Distributors industry. TRNS has an excellent financial health rating, but there are some minor concerns on its profitability. TRNS is valied quite expensively at the moment, while 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.
In the past 5 years TRNS has always been profitable.
In the past 5 years TRNS always reported a positive cash flow from operatings.
1.2 Ratios
TRNS has a Return On Assets (3.77%) which is in line with its industry peers.
TRNS has a worse Return On Equity (5.06%) than 65.31% of its industry peers.
TRNS has a worse Return On Invested Capital (4.20%) than 63.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRNS is below the industry average of 9.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 5.06% | ||
| ROIC | 4.2% |
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 decent Profit Margin value of 5.21%, TRNS is doing good in the industry, outperforming 65.31% of the companies in the same industry.
TRNS's Profit Margin has improved in the last couple of years.
TRNS has a Operating Margin (6.92%) which is comparable to the rest of the industry.
TRNS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 32.13%, TRNS perfoms like the industry average, outperforming 59.18% of the companies in the same industry.
In the last couple of years the Gross Margin of TRNS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.92% | ||
| PM (TTM) | 5.21% | ||
| GM | 32.13% |
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
TRNS has a worse debt/assets ratio than last year.
2.2 Solvency
TRNS has an Altman-Z score of 6.25. This indicates that TRNS is financially healthy and has little risk of bankruptcy at the moment.
TRNS's Altman-Z score of 6.25 is amongst the best of the industry. TRNS outperforms 87.76% of its industry peers.
TRNS has a debt to FCF ratio of 1.27. This is a very positive value and a sign of high solvency as it would only need 1.27 years to pay back of all of its debts.
TRNS has a better Debt to FCF ratio (1.27) than 81.63% of its industry peers.
TRNS has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.11, TRNS is in the better half of the industry, outperforming 73.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 6.25 |
ROIC/WACC0.42
WACC10.07%
2.3 Liquidity
A Current Ratio of 2.29 indicates that TRNS has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.29, TRNS is doing good in the industry, outperforming 61.22% of the companies in the same industry.
TRNS has a Quick Ratio of 1.87. This is a normal value and indicates that TRNS is financially healthy and should not expect problems in meeting its short term obligations.
TRNS's Quick ratio of 1.87 is fine compared to the rest of the industry. TRNS outperforms 75.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
TRNS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.55%.
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.
TRNS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.30%.
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)-7.55%
EPS 3Y-2.79%
EPS 5Y6.36%
EPS Q2Q%-49.35%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y10.75%
Revenue growth 5Y9.97%
Sales Q2Q%8.77%
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 18.02% on average per year.
TRNS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.27% yearly.
EPS Next Y24.03%
EPS Next 2Y27.15%
EPS Next 3Y21.27%
EPS Next 5Y18.02%
Revenue Next Year8.85%
Revenue Next 2Y7.72%
Revenue Next 3Y7.51%
Revenue Next 5Y7.27%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 59.23, 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 71.43% of the companies listed in the same industry.
TRNS is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 47.76 indicates a quite expensive valuation of TRNS.
Based on the Price/Forward Earnings ratio, TRNS is valued a bit more expensive than the industry average as 73.47% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, TRNS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.23 | ||
| Fwd PE | 47.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRNS is valued a bit more expensive than 67.35% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TRNS is valued a bit cheaper than 61.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.47 | ||
| EV/EBITDA | 22.01 |
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's earnings are expected to grow with 21.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.46
PEG (5Y)9.31
EPS Next 2Y27.15%
EPS Next 3Y21.27%
5. Dividend
5.1 Amount
No dividends for TRNS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
87.07
+1.11 (+1.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners98.86%
Inst Owner Change5.01%
Ins Owners1.85%
Ins Owner Change0.62%
Market Cap811.49M
Analysts78
Price Target111.18 (27.69%)
Short Float %5.15%
Short Ratio3.68
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)-10.68%
Min EPS beat(2)-24%
Max EPS beat(2)2.65%
EPS beat(4)2
Avg EPS beat(4)-3.84%
Min EPS beat(4)-25.94%
Max EPS beat(4)31.94%
EPS beat(8)5
Avg EPS beat(8)-1.28%
EPS beat(12)7
Avg EPS beat(12)2.79%
EPS beat(16)9
Avg EPS beat(16)8.07%
Revenue beat(2)0
Avg Revenue beat(2)-3.96%
Min Revenue beat(2)-6.92%
Max Revenue beat(2)-1.01%
Revenue beat(4)0
Avg Revenue beat(4)-4.78%
Min Revenue beat(4)-6.92%
Max Revenue beat(4)-1.01%
Revenue beat(8)2
Avg Revenue beat(8)-2.41%
Revenue beat(12)5
Avg Revenue beat(12)-1.27%
Revenue beat(16)7
Avg Revenue beat(16)-0.69%
PT rev (1m)5.06%
PT rev (3m)8.83%
EPS NQ rev (1m)-6.2%
EPS NQ rev (3m)28.04%
EPS NY rev (1m)19.77%
EPS NY rev (3m)19.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)-0.89%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.23 | ||
| Fwd PE | 47.76 | ||
| P/S | 2.91 | ||
| P/FCF | 31.47 | ||
| P/OCF | 20.82 | ||
| P/B | 2.83 | ||
| P/tB | 14.71 | ||
| EV/EBITDA | 22.01 |
EPS(TTM)1.47
EY1.69%
EPS(NY)1.82
Fwd EY2.09%
FCF(TTM)2.77
FCFY3.18%
OCF(TTM)4.18
OCFY4.8%
SpS29.87
BVpS30.78
TBVpS5.92
PEG (NY)2.46
PEG (5Y)9.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 5.06% | ||
| ROCE | 5.48% | ||
| ROIC | 4.2% | ||
| ROICexc | 4.22% | ||
| ROICexgc | 12.5% | ||
| OM | 6.92% | ||
| PM (TTM) | 5.21% | ||
| GM | 32.13% | ||
| FCFM | 9.26% |
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%
ROICexcg growth 3Y-9.42%
ROICexcg 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-Score4
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.27 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 71.08% | ||
| Cap/Sales | 4.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.08% | ||
| Profit Quality | 177.66% | ||
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | 6.25 |
F-Score4
WACC10.07%
ROIC/WACC0.42
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)-7.55%
EPS 3Y-2.79%
EPS 5Y6.36%
EPS Q2Q%-49.35%
EPS Next Y24.03%
EPS Next 2Y27.15%
EPS Next 3Y21.27%
EPS Next 5Y18.02%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y10.75%
Revenue growth 5Y9.97%
Sales Q2Q%8.77%
Revenue Next Year8.85%
Revenue Next 2Y7.72%
Revenue Next 3Y7.51%
Revenue Next 5Y7.27%
EBIT growth 1Y-8.04%
EBIT growth 3Y8.38%
EBIT growth 5Y11.83%
EBIT Next Year165.09%
EBIT Next 3Y39.2%
EBIT Next 5Y27.44%
FCF growth 1Y33.37%
FCF growth 3Y51.16%
FCF growth 5Y38.93%
OCF growth 1Y19.53%
OCF growth 3Y30.31%
OCF growth 5Y27.52%