TRANSCAT INC (TRNS) Stock Fundamental Analysis
NASDAQ:TRNS - Nasdaq - US8935291075 - Common Stock - Currency: USD
Overall TRNS gets a fundamental rating of 5 out of 10. We evaluated TRNS against 48 industry peers in the Trading Companies & Distributors industry. While TRNS has a great health rating, its profitability is only average at the moment. TRNS is quite expensive at the moment. It does show a decent growth rate.
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.
TRNS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TRNS (3.77%) is comparable to the rest of the industry.
TRNS has a Return On Equity of 5.06%. This is in the lower half of the industry: TRNS underperforms 62.50% of its industry peers.
TRNS has a Return On Invested Capital of 4.20%. This is in the lower half of the industry: TRNS underperforms 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRNS is below the industry average of 9.53%.
| 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
Looking at the Profit Margin, with a value of 5.21%, TRNS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of TRNS has grown nicely.
The Operating Margin of TRNS (6.92%) is comparable to the rest of the industry.
TRNS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 32.13%, TRNS is in line with its industry, outperforming 56.25% 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.
TRNS has more shares outstanding than it did 1 year ago.
TRNS has more shares outstanding than it did 5 years ago.
TRNS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.71 indicates that TRNS is not in any danger for bankruptcy at the moment.
TRNS's Altman-Z score of 5.71 is amongst the best of the industry. TRNS outperforms 83.33% of its industry peers.
The Debt to FCF ratio of TRNS is 1.27, which is an excellent value as it means it would take TRNS, only 1.27 years of fcf income to pay off all of its debts.
TRNS has a Debt to FCF ratio of 1.27. This is amongst the best in the industry. TRNS outperforms 83.33% 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.
TRNS has a Debt to Equity ratio of 0.11. This is in the better half of the industry: TRNS outperforms 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 5.71 |
ROIC/WACC0.48
WACC8.74%
2.3 Liquidity
A Current Ratio of 2.29 indicates that TRNS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.29, TRNS is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
A Quick Ratio of 1.87 indicates that TRNS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.87, TRNS is doing good in the industry, outperforming 72.92% of the companies in the same industry.
| 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%.
TRNS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.36% yearly.
TRNS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.30%.
TRNS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.97% yearly.
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
TRNS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.02% yearly.
Based on estimates for the next years, TRNS will show a small growth in Revenue. The Revenue will grow by 7.27% on average per year.
EPS Next Y33.22%
EPS Next 2Y27.15%
EPS Next 3Y21.27%
EPS Next 5Y18.02%
Revenue Next Year8.93%
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
Based on the Price/Earnings ratio of 50.71, the valuation of TRNS can be described as expensive.
Based on the Price/Earnings ratio, TRNS is valued a bit more expensive than 72.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. TRNS is valued rather expensively when compared to this.
TRNS is valuated quite expensively with a Price/Forward Earnings ratio of 38.07.
TRNS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TRNS is more expensive than 72.92% of the companies in the same industry.
TRNS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.71 | ||
| Fwd PE | 38.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRNS indicates a slightly more expensive valuation: TRNS is more expensive than 66.67% of the companies listed in the same industry.
64.58% of the companies in the same industry are more expensive than TRNS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.94 | ||
| EV/EBITDA | 19.66 |
4.3 Compensation for Growth
TRNS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as TRNS's earnings are expected to grow with 21.27% in the coming years.
PEG (NY)1.53
PEG (5Y)7.97
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 |
74.55
-1.88 (-2.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners98.86%
Inst Owner Change-0.18%
Ins Owners1.85%
Ins Owner Change0.62%
Market Cap694.81M
Analysts78
Price Target110.36 (48.03%)
Short Float %4.76%
Short Ratio3.52
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)-0.73%
PT rev (3m)4.29%
EPS NQ rev (1m)-1.82%
EPS NQ rev (3m)25.71%
EPS NY rev (1m)7.41%
EPS NY rev (3m)28.64%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.71 | ||
| Fwd PE | 38.07 | ||
| P/S | 2.5 | ||
| P/FCF | 26.94 | ||
| P/OCF | 17.82 | ||
| P/B | 2.42 | ||
| P/tB | 12.59 | ||
| EV/EBITDA | 19.66 |
EPS(TTM)1.47
EY1.97%
EPS(NY)1.96
Fwd EY2.63%
FCF(TTM)2.77
FCFY3.71%
OCF(TTM)4.18
OCFY5.61%
SpS29.87
BVpS30.78
TBVpS5.92
PEG (NY)1.53
PEG (5Y)7.97
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 | 5.71 |
F-Score4
WACC8.74%
ROIC/WACC0.48
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 Y33.22%
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 Year8.93%
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%