Reasonable growth and debt and a high ROIC for TRANSCAT INC (NASDAQ:TRNS).

In this article we will dive into TRANSCAT INC (NASDAQ:TRNS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed TRANSCAT INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

• TRANSCAT INC has achieved substantial revenue growth over the past 5 years, with a 8.25% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a notable ROIC excluding cash and goodwill at 17.04%, TRANSCAT INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• TRANSCAT INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.82, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• The Profit Quality (5-year) of TRANSCAT INC stands at 98.88%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• TRANSCAT INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 12.8%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, TRANSCAT INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What is the full fundamental picture of NASDAQ:TRNS telling us.

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall TRNS gets a fundamental rating of 5 out of 10. We evaluated TRNS against 52 industry peers in the Trading Companies & Distributors industry. TRNS has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, TRNS is valued expensive at the moment.

Check the latest full fundamental report of TRNS for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.