TRANSCAT INC (TRNS) Stock Fundamental Analysis
NASDAQ:TRNS - Nasdaq - US8935291075 - Common Stock - Currency: USD
TRNS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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
In the past year TRNS was profitable.
TRNS had a positive operating cash flow in the past year.
In the past 5 years TRNS has always been profitable.
In the past 5 years TRNS always reported a positive cash flow from operatings.
1.2 Ratios
TRNS has a Return On Assets of 3.77%. This is comparable to the rest of the industry: TRNS outperforms 57.45% of its industry peers.
Looking at the Return On Equity, with a value of 5.06%, TRNS is doing worse than 65.96% of the companies in the same industry.
TRNS has a Return On Invested Capital of 4.20%. This is in the lower half of the industry: TRNS underperforms 63.83% of its industry peers.
TRNS had an Average Return On Invested Capital over the past 3 years of 6.00%. This is below the industry average of 9.62%.
| 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
The Profit Margin of TRNS (5.21%) is better than 65.96% of its industry peers.
TRNS's Profit Margin has improved in the last couple of years.
TRNS has a Operating Margin (6.92%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TRNS has grown nicely.
The Gross Margin of TRNS (32.13%) is comparable to the rest of the 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
TRNS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, TRNS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.33 indicates that TRNS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.33, TRNS belongs to the top of the industry, outperforming 89.36% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 1.27, TRNS belongs to the best of the industry, outperforming 82.98% of the companies in the same industry.
TRNS has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
TRNS's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. TRNS outperforms 74.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 6.33 |
ROIC/WACC0.41
WACC10.14%
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 61.70% of its industry peers.
A Quick Ratio of 1.87 indicates that TRNS should not have too much problems paying its short term obligations.
TRNS's Quick ratio of 1.87 is fine compared to the rest of the industry. TRNS outperforms 74.47% of its industry peers.
| 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%.
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.
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
The Earnings Per Share is expected to grow by 18.02% on average over the next years. This is quite good.
TRNS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.27% yearly.
EPS Next Y24.03%
EPS Next 2Y27.15%
EPS Next 3Y21.27%
EPS Next 5Y18.02%
Revenue Next Year8.85%
Revenue Next 2Y7.72%
Revenue Next 3Y7.51%
Revenue Next 5Y7.27%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 58.90, which means the current valuation is very expensive for TRNS.
Based on the Price/Earnings ratio, TRNS is valued a bit more expensive than the industry average as 72.34% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of TRNS to the average of the S&P500 Index (27.30), we can say TRNS is valued expensively.
With a Price/Forward Earnings ratio of 47.49, TRNS can be considered very expensive at the moment.
74.47% of the companies in the same industry are cheaper than TRNS, based on the Price/Forward Earnings ratio.
TRNS is valuated expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.9 | ||
| Fwd PE | 47.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRNS is valued a bit more expensive than 70.21% of the companies in the same industry.
TRNS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.29 | ||
| EV/EBITDA | 22.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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)2.45
PEG (5Y)9.26
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 |
86.59
-0.8 (-0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners98.86%
Inst Owner Change0%
Ins Owners1.85%
Ins Owner Change0.62%
Market Cap807.02M
Analysts78
Price Target111.18 (28.4%)
Short Float %5.15%
Short Ratio3.68
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)5.06%
PT rev (3m)5.06%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)28.57%
EPS NY rev (1m)19.77%
EPS NY rev (3m)20.78%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.9 | ||
| Fwd PE | 47.49 | ||
| P/S | 2.9 | ||
| P/FCF | 31.29 | ||
| P/OCF | 20.7 | ||
| P/B | 2.81 | ||
| P/tB | 14.63 | ||
| EV/EBITDA | 22.36 |
EPS(TTM)1.47
EY1.7%
EPS(NY)1.82
Fwd EY2.11%
FCF(TTM)2.77
FCFY3.2%
OCF(TTM)4.18
OCFY4.83%
SpS29.87
BVpS30.78
TBVpS5.92
PEG (NY)2.45
PEG (5Y)9.26
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 | 6.33 |
F-Score4
WACC10.14%
ROIC/WACC0.41
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 Y24.03%
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 Year8.85%
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%