TRANSCAT INC (TRNS) Stock Fundamental Analysis
NASDAQ:TRNS - Nasdaq - US8935291075 - Common Stock - Currency: USD
TRNS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 49 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 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.
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
The Return On Assets of TRNS (3.77%) is comparable to the rest of the industry.
TRNS's Return On Equity of 5.06% is on the low side compared to the rest of the industry. TRNS is outperformed by 69.39% of its industry peers.
The Return On Invested Capital of TRNS (4.19%) is worse than 67.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRNS is below the industry average of 9.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 5.06% | ||
| ROIC | 4.19% |
ROA(3y)4.66%
ROA(5y)5.25%
ROE(3y)7.28%
ROE(5y)9.09%
ROIC(3y)5.91%
ROIC(5y)6.68%
1.3 Margins
With a decent Profit Margin value of 5.21%, TRNS is doing good in the industry, outperforming 61.22% of the companies in the same industry.
TRNS's Profit Margin has improved in the last couple of years.
The Operating Margin of TRNS (6.90%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TRNS has remained more or less at the same level.
TRNS has a Gross Margin (32.13%) which 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 | 6.9% | ||
| PM (TTM) | 5.21% | ||
| GM | 32.13% |
OM growth 3Y-4.37%
OM growth 5Y0.3%
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.
Compared to 5 years ago, TRNS has more shares outstanding
Compared to 1 year ago, TRNS has a worse debt to assets ratio.
2.2 Solvency
TRNS has an Altman-Z score of 5.90. This indicates that TRNS is financially healthy and has little risk of bankruptcy at the moment.
TRNS has a better Altman-Z score (5.90) than 85.71% 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's Debt to FCF ratio of 1.27 is amongst the best of the industry. TRNS outperforms 81.63% 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 73.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 5.9 |
ROIC/WACC0.42
WACC10.07%
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.
With a Current ratio value of 2.29, TRNS perfoms like the industry average, outperforming 57.14% 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.
Looking at the Quick ratio, with a value of 1.87, TRNS is in the better half of the industry, outperforming 75.51% 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 -7.55% in the last year.
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%.
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)-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
Based on estimates for the next years, TRNS will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.76% on average per year.
The Revenue is expected to grow by 6.61% on average over the next years.
EPS Next Y3.56%
EPS Next 2Y12.38%
EPS Next 3Y26.68%
EPS Next 5Y19.76%
Revenue Next Year9.83%
Revenue Next 2Y7.41%
Revenue Next 3Y6.94%
Revenue Next 5Y6.61%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 54.36, which means the current valuation is very expensive for TRNS.
Based on the Price/Earnings ratio, TRNS is valued a bit more expensive than 73.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of TRNS to the average of the S&P500 Index (26.43), we can say TRNS is valued expensively.
Based on the Price/Forward Earnings ratio of 52.49, the valuation of TRNS can be described as expensive.
Based on the Price/Forward Earnings ratio, TRNS is valued a bit more expensive than 75.51% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.17. TRNS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.36 | ||
| Fwd PE | 52.49 |
4.2 Price Multiples
TRNS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TRNS is more expensive than 67.35% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TRNS is valued a bit cheaper than 61.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.88 | ||
| EV/EBITDA | 20.53 |
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 26.68% in the coming years.
PEG (NY)15.26
PEG (5Y)8.55
EPS Next 2Y12.38%
EPS Next 3Y26.68%
5. Dividend
5.1 Amount
No dividends for TRNS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
79.91
-6.04 (-7.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners96.42%
Inst Owner Change4.95%
Ins Owners1.82%
Ins Owner Change0.59%
Market Cap744.76M
Analysts78
Price Target105.83 (32.44%)
Short Float %6.13%
Short Ratio4.71
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%
PT rev (3m)-2.12%
EPS NQ rev (1m)36.51%
EPS NQ rev (3m)36.51%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.87%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.36 | ||
| Fwd PE | 52.49 | ||
| P/S | 2.67 | ||
| P/FCF | 28.88 | ||
| P/OCF | 19.1 | ||
| P/B | 2.6 | ||
| P/tB | 13.5 | ||
| EV/EBITDA | 20.53 |
EPS(TTM)1.47
EY1.84%
EPS(NY)1.52
Fwd EY1.91%
FCF(TTM)2.77
FCFY3.46%
OCF(TTM)4.18
OCFY5.23%
SpS29.87
BVpS30.78
TBVpS5.92
PEG (NY)15.26
PEG (5Y)8.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 5.06% | ||
| ROCE | 5.47% | ||
| ROIC | 4.19% | ||
| ROICexc | 4.21% | ||
| ROICexgc | 12.48% | ||
| OM | 6.9% | ||
| 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)5.91%
ROIC(5y)6.68%
ROICexc(3y)6.28%
ROICexc(5y)6.93%
ROICexgc(3y)14.67%
ROICexgc(5y)15.23%
ROCE(3y)7.72%
ROCE(5y)8.72%
ROICexcg growth 3Y-11.48%
ROICexcg growth 5Y-4.58%
ROICexc growth 3Y-20.36%
ROICexc growth 5Y-13.01%
OM growth 3Y-4.37%
OM growth 5Y0.3%
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 | 103.17% | ||
| Profit Quality | 177.66% | ||
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | 5.9 |
F-Score4
WACC10.07%
ROIC/WACC0.42
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 Y3.56%
EPS Next 2Y12.38%
EPS Next 3Y26.68%
EPS Next 5Y19.76%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y10.75%
Revenue growth 5Y9.97%
Sales Q2Q%8.77%
Revenue Next Year9.83%
Revenue Next 2Y7.41%
Revenue Next 3Y6.94%
Revenue Next 5Y6.61%
EBIT growth 1Y-8.2%
EBIT growth 3Y5.91%
EBIT growth 5Y10.3%
EBIT Next Year165.09%
EBIT Next 3Y45.08%
EBIT Next 5Y27.95%
FCF growth 1Y33.37%
FCF growth 3Y51.16%
FCF growth 5Y38.93%
OCF growth 1Y19.53%
OCF growth 3Y30.31%
OCF growth 5Y27.52%