TRANSCAT INC (TRNS) Stock Fundamental Analysis
USA - NASDAQ:TRNS - US8935291075 - Common Stock
58.76 USD
+3.41 (+6.16%)
58.76 USD
0 (0%)
Overall TRNS gets a fundamental rating of 5 out of 10. We evaluated TRNS against 51 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TRNS was profitable.
In the past year TRNS had a positive cash flow from operations.
Each year in the past 5 years TRNS has been profitable.
TRNS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.41%, TRNS perfoms like the industry average, outperforming 49.02% of the companies in the same industry.
TRNS has a Return On Equity (4.57%) which is comparable to the rest of the industry.
The Return On Invested Capital of TRNS (3.98%) is worse than 60.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRNS is below the industry average of 10.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 4.57% | ||
| ROIC | 3.98% |
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
TRNS has a Profit Margin (4.64%) which is in line with its industry peers.
In the last couple of years the Profit Margin of TRNS has grown nicely.
TRNS's Operating Margin of 6.59% is in line compared 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.
With a decent Gross Margin value of 32.14%, TRNS is doing good in the industry, outperforming 60.78% of the companies in the same industry.
TRNS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.59% | ||
| PM (TTM) | 4.64% | ||
| GM | 32.14% |
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.
TRNS has more shares outstanding than it did 1 year ago.
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 4.49. This indicates that TRNS is financially healthy and has little risk of bankruptcy at the moment.
TRNS's Altman-Z score of 4.49 is amongst the best of the industry. TRNS outperforms 80.39% of its industry peers.
The Debt to FCF ratio of TRNS is 1.76, which is an excellent value as it means it would take TRNS, only 1.76 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.76, TRNS belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
A Debt/Equity ratio of 0.11 indicates that TRNS is not too dependend on debt financing.
TRNS's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. TRNS outperforms 74.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 4.49 |
ROIC/WACC0.43
WACC9.29%
2.3 Liquidity
A Current Ratio of 2.92 indicates that TRNS has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.92, TRNS is doing good in the industry, outperforming 74.51% of the companies in the same industry.
A Quick Ratio of 2.36 indicates that TRNS has no problem at all paying its short term obligations.
TRNS has a Quick ratio of 2.36. This is amongst the best in the industry. TRNS outperforms 84.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
TRNS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.66%.
The Earnings Per Share has been growing slightly by 6.36% on average over the past years.
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)-15.66%
EPS 3Y-2.79%
EPS 5Y6.36%
EPS Q2Q%25.71%
Revenue 1Y (TTM)7.3%
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.
The Revenue is expected to grow by 9.34% on average over the next years. This is quite good.
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
TRNS is valuated quite expensively with a Price/Earnings ratio of 35.19.
Compared to the rest of the industry, the Price/Earnings ratio of TRNS indicates a slightly more expensive valuation: TRNS is more expensive than 60.78% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.28, TRNS is valued a bit more expensive.
With a Price/Forward Earnings ratio of 22.53, TRNS is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRNS is on the same level as its industry peers.
TRNS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 33.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.19 | ||
| Fwd PE | 22.53 |
4.2 Price Multiples
TRNS's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TRNS is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.99 | ||
| EV/EBITDA | 14.04 |
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)0.62
PEG (5Y)5.53
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 |
58.76
+3.41 (+6.16%)
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 Cap547.64M
Revenue(TTM)278.42M
Net Income(TTM)13.37M
Analysts80
Price Target113.63 (93.38%)
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)2
Avg EPS beat(2)24.54%
Min EPS beat(2)2.65%
Max EPS beat(2)46.44%
EPS beat(4)2
Avg EPS beat(4)-0.21%
Min EPS beat(4)-25.94%
Max EPS beat(4)46.44%
EPS beat(8)5
Avg EPS beat(8)-0.38%
EPS beat(12)7
Avg EPS beat(12)3%
EPS beat(16)9
Avg EPS beat(16)5.31%
Revenue beat(2)1
Avg Revenue beat(2)1.32%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)3.66%
Revenue beat(4)1
Avg Revenue beat(4)-2.42%
Min Revenue beat(4)-6.92%
Max Revenue beat(4)3.66%
Revenue beat(8)3
Avg Revenue beat(8)-1.9%
Revenue beat(12)5
Avg Revenue beat(12)-1.22%
Revenue beat(16)7
Avg Revenue beat(16)-0.8%
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 | 35.19 | ||
| Fwd PE | 22.53 | ||
| P/S | 1.9 | ||
| P/FCF | 27.99 | ||
| P/OCF | 16.26 | ||
| P/B | 1.87 | ||
| P/tB | 8.63 | ||
| EV/EBITDA | 14.04 |
EPS(TTM)1.67
EY2.84%
EPS(NY)2.61
Fwd EY4.44%
FCF(TTM)2.1
FCFY3.57%
OCF(TTM)3.61
OCFY6.15%
SpS30.92
BVpS31.39
TBVpS6.81
PEG (NY)0.62
PEG (5Y)5.53
Graham Number34.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 4.57% | ||
| ROCE | 5.2% | ||
| ROIC | 3.98% | ||
| ROICexc | 4.01% | ||
| ROICexgc | 10.83% | ||
| OM | 6.59% | ||
| PM (TTM) | 4.64% | ||
| GM | 32.14% | ||
| FCFM | 6.79% |
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-Score4
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.76 | ||
| Debt/EBITDA | 0.85 | ||
| Cap/Depr | 70.4% | ||
| Cap/Sales | 4.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.24% | ||
| Profit Quality | 146.34% | ||
| Current Ratio | 2.92 | ||
| Quick Ratio | 2.36 | ||
| Altman-Z | 4.49 |
F-Score4
WACC9.29%
ROIC/WACC0.43
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)7.3%
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-13.17%
EBIT growth 3Y8.38%
EBIT growth 5Y11.83%
EBIT Next Year191.83%
EBIT Next 3Y51.48%
EBIT Next 5Y35.99%
FCF growth 1Y54.5%
FCF growth 3Y51.16%
FCF growth 5Y38.93%
OCF growth 1Y50.08%
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 35.19 and the Price/Book (PB) ratio is 1.87.
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.