TRANSCAT INC (TRNS) Stock Fundamental Analysis
NASDAQ:TRNS - US8935291075 - Common Stock
90.43 USD
+4.4 (+5.11%)
90.43 USD
0 (0%)
TRNS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 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. TRNS is valied quite expensively at the moment, while it does show a decent 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.
In the past 5 years TRNS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.77%, TRNS is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Return On Equity of TRNS (5.06%) is worse than 60.42% of its industry peers.
The Return On Invested Capital of TRNS (4.20%) is worse than 64.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRNS is below the industry average of 9.78%.
| 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
TRNS has a Profit Margin of 5.21%. This is in the better half of the industry: TRNS outperforms 60.42% of its industry peers.
In the last couple of years the Profit Margin of TRNS has grown nicely.
TRNS's Operating Margin of 6.92% is in line compared to the rest of the industry. TRNS outperforms 56.25% of its industry peers.
In the last couple of years the Operating Margin of TRNS has grown nicely.
TRNS has a Gross Margin (32.13%) 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 | 6.92% | ||
| 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
TRNS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TRNS has more shares outstanding
The number of shares outstanding for TRNS has been increased compared to 5 years ago.
TRNS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.50 indicates that TRNS is not in any danger for bankruptcy at the moment.
TRNS has a Altman-Z score of 6.50. This is amongst the best in the industry. TRNS outperforms 89.58% 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.
The Debt to FCF ratio of TRNS (1.27) is better than 85.42% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that TRNS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.11, TRNS is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 6.5 |
ROIC/WACC0.44
WACC9.54%
2.3 Liquidity
TRNS has a Current Ratio of 2.29. This indicates that TRNS is financially healthy and has no problem in meeting its short term obligations.
TRNS has a Current ratio of 2.29. This is in the better half of the industry: TRNS outperforms 60.42% of its industry peers.
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
The earnings per share for TRNS have decreased by -6.51% in the last year.
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.
Looking at the last year, TRNS shows a small growth in Revenue. The Revenue has grown by 7.30% in the last year.
The Revenue has been growing by 9.97% on average over the past years. This is quite good.
EPS 1Y (TTM)-6.51%
EPS 3Y-2.79%
EPS 5Y6.36%
EPS Q2Q%22.92%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y10.75%
Revenue growth 5Y9.97%
Sales Q2Q%14.57%
3.2 Future
The Earnings Per Share is expected to grow by 16.33% 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 9.34% yearly.
EPS Next Y47.52%
EPS Next 2Y30.17%
EPS Next 3Y20.87%
EPS Next 5Y16.33%
Revenue Next Year14.68%
Revenue Next 2Y11.88%
Revenue Next 3Y9.2%
Revenue Next 5Y9.34%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 57.23, TRNS can be considered very expensive at the moment.
72.92% of the companies in the same industry are cheaper than TRNS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.24, TRNS is valued quite expensively.
Based on the Price/Forward Earnings ratio of 36.31, the valuation of TRNS can be described as expensive.
TRNS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TRNS is more expensive than 70.83% of the companies in the same industry.
TRNS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.23 | ||
| Fwd PE | 36.31 |
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 72.92% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRNS indicates a somewhat cheap valuation: TRNS is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.68 | ||
| EV/EBITDA | 23.11 |
4.3 Compensation for Growth
The 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 20.87% in the coming years.
PEG (NY)1.2
PEG (5Y)9
EPS Next 2Y30.17%
EPS Next 3Y20.87%
5. Dividend
5.1 Amount
TRNS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
90.43
+4.4 (+5.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners101.82%
Inst Owner Change-4.52%
Ins Owners1.93%
Ins Owner Change0.73%
Market Cap842.81M
Analysts78.18
Price Target111.59 (23.4%)
Short Float %4.37%
Short Ratio3.97
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)1.11%
PT rev (3m)5.45%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)25.4%
EPS NY rev (1m)10.73%
EPS NY rev (3m)42.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)5.28%
Revenue NY rev (3m)4.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.23 | ||
| Fwd PE | 36.31 | ||
| P/S | 3.03 | ||
| P/FCF | 32.68 | ||
| P/OCF | 21.62 | ||
| P/B | 2.94 | ||
| P/tB | 15.28 | ||
| EV/EBITDA | 23.11 |
EPS(TTM)1.58
EY1.75%
EPS(NY)2.49
Fwd EY2.75%
FCF(TTM)2.77
FCFY3.06%
OCF(TTM)4.18
OCFY4.63%
SpS29.87
BVpS30.78
TBVpS5.92
PEG (NY)1.2
PEG (5Y)9
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 | 6.5 |
F-Score4
WACC9.54%
ROIC/WACC0.44
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)-6.51%
EPS 3Y-2.79%
EPS 5Y6.36%
EPS Q2Q%22.92%
EPS Next Y47.52%
EPS Next 2Y30.17%
EPS Next 3Y20.87%
EPS Next 5Y16.33%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y10.75%
Revenue growth 5Y9.97%
Sales Q2Q%14.57%
Revenue Next Year14.68%
Revenue Next 2Y11.88%
Revenue Next 3Y9.2%
Revenue Next 5Y9.34%
EBIT growth 1Y-8.04%
EBIT growth 3Y8.38%
EBIT growth 5Y11.83%
EBIT Next Year157.68%
EBIT Next 3Y38.68%
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%