TRANSCAT INC (TRNS)
US8935291075 - Common Stock
We assign a fundamental rating of 5 out of 10 to TRNS. TRNS was compared to 52 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.
In the past year TRNS had a positive cash flow from operations.
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
TRNS has a worse Return On Assets (3.71%) than 61.54% of its industry peers.
The Return On Equity of TRNS (4.77%) is worse than 73.08% of its industry peers.
With a Return On Invested Capital value of 5.63%, TRNS is not doing good in the industry: 67.31% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for TRNS is below the industry average of 11.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.71% | ||
| ROE | 4.77% | ||
| ROIC | 5.63% |
ROA(3y)5.93%
ROA(5y)6.17%
ROE(3y)11.45%
ROE(5y)11.67%
ROIC(3y)8.35%
ROIC(5y)8.76%
1.3 Margins
Looking at the Profit Margin, with a value of 4.16%, TRNS is in line with its industry, outperforming 44.23% of the companies in the same industry.
TRNS's Profit Margin has improved in the last couple of years.
The Operating Margin of TRNS (6.83%) is comparable to the rest of the industry.
TRNS's Operating Margin has improved in the last couple of years.
TRNS has a Gross Margin (31.49%) which is in line with its industry peers.
In the last couple of years the Gross Margin of TRNS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.83% | ||
| PM (TTM) | 4.16% | ||
| GM | 31.49% |
OM growth 3Y3.82%
OM growth 5Y4.15%
PM growth 3Y-0.28%
PM growth 5Y4.05%
GM growth 3Y6.5%
GM growth 5Y4.23%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRNS is destroying value.
The number of shares outstanding for TRNS has been increased compared to 1 year ago.
TRNS has more shares outstanding than it did 5 years ago.
TRNS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 11.09 indicates that TRNS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.09, TRNS belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
TRNS has a debt to FCF ratio of 0.26. This is a very positive value and a sign of high solvency as it would only need 0.26 years to pay back of all of its debts.
TRNS's Debt to FCF ratio of 0.26 is amongst the best of the industry. TRNS outperforms 88.46% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that TRNS is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.01, TRNS belongs to the best of the industry, outperforming 82.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 11.09 |
ROIC/WACC0.61
WACC9.21%
2.3 Liquidity
TRNS has a Current Ratio of 3.37. This indicates that TRNS is financially healthy and has no problem in meeting its short term obligations.
TRNS's Current ratio of 3.37 is fine compared to the rest of the industry. TRNS outperforms 75.00% of its industry peers.
TRNS has a Quick Ratio of 2.81. This indicates that TRNS is financially healthy and has no problem in meeting its short term obligations.
TRNS's Quick ratio of 2.81 is amongst the best of the industry. TRNS outperforms 94.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.37 | ||
| Quick Ratio | 2.81 |
3. Growth
3.1 Past
The earnings per share for TRNS have decreased by -1.52% in the last year.
Measured over the past years, TRNS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.98% on average per year.
The Revenue has grown by 11.70% in the past year. This is quite good.
The Revenue has been growing by 8.26% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.52%
EPS 3Y9.04%
EPS 5Y9.98%
EPS growth Q2Q80.95%
Revenue 1Y (TTM)11.7%
Revenue growth 3Y10.03%
Revenue growth 5Y8.26%
Revenue growth Q2Q13.53%
3.2 Future
The Earnings Per Share is expected to grow by 19.32% on average over the next years. This is quite good.
TRNS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.31% yearly.
EPS Next Y-0.48%
EPS Next 2Y24.34%
EPS Next 3Y11.06%
EPS Next 5Y19.32%
Revenue Next Year12.45%
Revenue Next 2Y10.63%
Revenue Next 3Y8.1%
Revenue Next 5Y9.31%
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 85.74, which means the current valuation is very expensive for TRNS.
TRNS's Price/Earnings ratio is rather expensive when compared to the industry. TRNS is more expensive than 82.69% of the companies in the same industry.
When comparing the Price/Earnings ratio of TRNS to the average of the S&P500 Index (28.06), we can say TRNS is valued expensively.
TRNS is valuated quite expensively with a Price/Forward Earnings ratio of 51.50.
Based on the Price/Forward Earnings ratio, TRNS is valued a bit more expensive than 78.85% of the companies in the same industry.
TRNS is valuated expensively when we compare the Price/Forward Earnings ratio to 20.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.74 | ||
| Fwd PE | 51.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRNS indicates a rather expensive valuation: TRNS more expensive than 80.77% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRNS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.2 | ||
| EV/EBITDA | 31.77 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)8.59
EPS Next 2Y24.34%
EPS Next 3Y11.06%
5. Dividend
5.1 Amount
TRNS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TRANSCAT INC
NASDAQ:TRNS (5/3/2024, 12:30:55 PM)
111.46
+1.21 (+1.1%)
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 Cap984.19M
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 | 85.74 | ||
| Fwd PE | 51.5 | ||
| 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)N/A
PEG (5Y)8.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.71% | ||
| ROE | 4.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.83% | ||
| PM (TTM) | 4.16% | ||
| GM | 31.49% | ||
| 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 Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.37 | ||
| Quick Ratio | 2.81 | ||
| 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)
Growth
EPS 1Y (TTM)-1.52%
EPS 3Y9.04%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.7%
Revenue growth 3Y10.03%
Revenue growth 5Y
Revenue growth 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