Transcat, Inc.
Transcat, Inc. Fundamental Analysis
Transcat, Inc. (TRNS) shows weak financial fundamentals with a PE ratio of 76.34, profit margin of 2.63%, and ROE of 2.84%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 7.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TRNS's fundamental strength across five key dimensions:
Efficiency Score
WeakTRNS struggles to generate sufficient returns from assets.
Valuation Score
ModerateTRNS shows balanced valuation metrics.
Growth Score
ModerateTRNS shows steady but slowing expansion.
Financial Health Score
ExcellentTRNS maintains a strong and stable balance sheet.
Profitability Score
ModerateTRNS maintains healthy but balanced margins.
Key Financial Metrics
Is TRNS Expensive or Cheap?
P/E Ratio
TRNS trades at 76.34 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TRNS's PEG of 0.76 indicates potential undervaluation.
Price to Book
The market values Transcat, Inc. at 2.14 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.21 times EBITDA. This signals the market has high growth expectations.
How Well Does TRNS Make Money?
Net Profit Margin
For every $100 in sales, Transcat, Inc. keeps $2.63 as profit after all expenses.
Operating Margin
Core operations generate 5.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.84 in profit for every $100 of shareholder equity.
ROA
Transcat, Inc. generates $1.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Transcat, Inc. produces operating cash flow of $39.95M, showing steady but balanced cash generation.
Free Cash Flow
Transcat, Inc. produces free cash flow of $25.30M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.71 in free cash annually.
FCF Yield
TRNS converts 3.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
76.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How TRNS Stacks Against Its Sector Peers
| Metric | TRNS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 76.34 | 24.98 | Worse (Expensive) |
| ROE | 2.84% | 1284.00% | Weak |
| Net Margin | 2.63% | -45683.00% (disorted) | Weak |
| Debt/Equity | 0.45 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.21 | 10.67 | Strong Liquidity |
| ROA | 1.76% | -1542352.00% (disorted) | Weak |
TRNS outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Transcat, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.38%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
43.61%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
169.14%
Industry Style: Cyclical, Value, Infrastructure
High Growth