TRANSCAT INC (TRNS) Stock Fundamental Analysis
USA - NASDAQ:TRNS - US8935291075 - Common Stock
74.82 USD
-1.59 (-2.08%)
74.82 USD
0 (0%)
TRNS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 50 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
TRNS had positive earnings in the past year.
In the past year TRNS had a positive cash flow from operations.
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 3.41%. This is comparable to the rest of the industry: TRNS outperforms 50.00% of its industry peers.
TRNS's Return On Equity of 4.57% is on the low side compared to the rest of the industry. TRNS is outperformed by 62.00% of its industry peers.
The Return On Invested Capital of TRNS (3.98%) is worse than 64.00% 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 10.24%.
| 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's Profit Margin of 4.64% is in line compared to the rest of the industry. TRNS outperforms 58.00% of its industry peers.
In the last couple of years the Profit Margin of TRNS has grown nicely.
TRNS has a Operating Margin (6.59%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TRNS has grown nicely.
The Gross Margin of TRNS (32.14%) 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 | 6.59% | ||
| 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.
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.
The debt/assets ratio for TRNS is higher compared to a year ago.
2.2 Solvency
TRNS has an Altman-Z score of 5.58. This indicates that TRNS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.58, TRNS belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
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 a decent Debt to FCF ratio value of 1.76, TRNS is doing good in the industry, outperforming 80.00% 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.
With a decent Debt to Equity ratio value of 0.11, TRNS is doing good in the industry, outperforming 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 5.58 |
ROIC/WACC0.42
WACC9.5%
2.3 Liquidity
TRNS has a Current Ratio of 2.92. This indicates that TRNS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TRNS (2.92) is better than 76.00% of its industry peers.
TRNS has a Quick Ratio of 2.36. This indicates that TRNS is financially healthy and has no problem in meeting its short term obligations.
TRNS has a Quick ratio of 2.36. This is amongst the best in the industry. TRNS outperforms 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
TRNS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.51%.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.49%.
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)-6.51%
EPS 3Y-2.79%
EPS 5Y6.36%
EPS Q2Q%22.92%
Revenue 1Y (TTM)8.49%
Revenue growth 3Y10.75%
Revenue growth 5Y9.97%
Sales Q2Q%14.57%
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 16.33% yearly.
The Revenue is expected to grow by 9.34% on average over the next years. This is quite good.
EPS Next Y47.52%
EPS Next 2Y30.17%
EPS Next 3Y3.33%
EPS Next 5Y16.33%
Revenue Next Year16.45%
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.
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 47.35.
Compared to the rest of the industry, the Price/Earnings ratio of TRNS indicates a slightly more expensive valuation: TRNS is more expensive than 66.00% of the companies listed in the same industry.
TRNS is valuated expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 30.04, the valuation of TRNS can be described as expensive.
Based on the Price/Forward Earnings ratio, TRNS is valued a bit more expensive than 66.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TRNS to the average of the S&P500 Index (22.73), we can say TRNS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.35 | ||
| Fwd PE | 30.04 |
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 62.00% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TRNS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.65 | ||
| EV/EBITDA | 18.69 |
4.3 Compensation for Growth
TRNS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)1
PEG (5Y)7.45
EPS Next 2Y30.17%
EPS Next 3Y3.33%
5. Dividend
5.1 Amount
No dividends for TRNS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
74.82
-1.59 (-2.08%)
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 Change1.62%
Market Cap697.32M
Analysts78.18
Price Target111.59 (49.14%)
Short Float %3.76%
Short Ratio3.51
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)1.11%
PT rev (3m)0.37%
EPS NQ rev (1m)2.23%
EPS NQ rev (3m)7.45%
EPS NY rev (1m)10.73%
EPS NY rev (3m)42.45%
Revenue NQ rev (1m)1.22%
Revenue NQ rev (3m)6.7%
Revenue NY rev (1m)6.87%
Revenue NY rev (3m)6.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.35 | ||
| Fwd PE | 30.04 | ||
| P/S | 2.42 | ||
| P/FCF | 35.65 | ||
| P/OCF | 20.7 | ||
| P/B | 2.38 | ||
| P/tB | 10.98 | ||
| EV/EBITDA | 18.69 |
EPS(TTM)1.58
EY2.11%
EPS(NY)2.49
Fwd EY3.33%
FCF(TTM)2.1
FCFY2.81%
OCF(TTM)3.61
OCFY4.83%
SpS30.92
BVpS31.39
TBVpS6.81
PEG (NY)1
PEG (5Y)7.45
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%
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 Turnover0.73
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 | 5.58 |
F-Score4
WACC9.5%
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)-6.51%
EPS 3Y-2.79%
EPS 5Y6.36%
EPS Q2Q%22.92%
EPS Next Y47.52%
EPS Next 2Y30.17%
EPS Next 3Y3.33%
EPS Next 5Y16.33%
Revenue 1Y (TTM)8.49%
Revenue growth 3Y10.75%
Revenue growth 5Y9.97%
Sales Q2Q%14.57%
Revenue Next Year16.45%
Revenue Next 2Y11.88%
Revenue Next 3Y9.2%
Revenue Next 5Y9.34%
EBIT growth 1Y-13.17%
EBIT growth 3Y8.38%
EBIT growth 5Y11.83%
EBIT Next Year157.68%
EBIT Next 3Y38.68%
EBIT Next 5Y27.44%
FCF growth 1Y54.5%
FCF growth 3Y51.16%
FCF growth 5Y38.93%
OCF growth 1Y50.08%
OCF growth 3Y30.31%
OCF growth 5Y27.52%