NasdaqGM:TRNS

Stock Analysis Report

Executive Summary

Transcat, Inc. provides calibration and laboratory instrument services in North America and internationally.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Transcat's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TRNS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.3%

TRNS

1.4%

US Trade Distributors

0.3%

US Market


1 Year Return

59.3%

TRNS

21.7%

US Trade Distributors

18.5%

US Market

Return vs Industry: TRNS exceeded the US Trade Distributors industry which returned 21.7% over the past year.

Return vs Market: TRNS exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

TRNSIndustryMarket
7 Day1.3%1.4%0.3%
30 Day8.7%-1.1%1.5%
90 Day46.0%11.5%5.7%
1 Year59.3%59.3%24.0%21.7%21.1%18.5%
3 Year213.4%213.4%28.4%22.8%45.9%36.4%
5 Year233.9%233.9%45.4%34.9%71.4%52.5%

Price Volatility Vs. Market

How volatile is Transcat's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Transcat undervalued compared to its fair value and its price relative to the market?

28.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRNS ($33.22) is trading above our estimate of fair value ($2.28)

Significantly Below Fair Value: TRNS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TRNS is poor value based on its PE Ratio (28.9x) compared to the Trade Distributors industry average (16.8x).

PE vs Market: TRNS is poor value based on its PE Ratio (28.9x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: TRNS is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: TRNS is overvalued based on its PB Ratio (3.9x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is Transcat forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRNS's forecast earnings growth (6.2% per year) is above the savings rate (1.7%).

Earnings vs Market: TRNS's earnings (6.2% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: TRNS's earnings are forecast to grow, but not significantly.

Revenue vs Market: TRNS's revenue (5.5% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: TRNS's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TRNS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Transcat performed over the past 5 years?

15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRNS has high quality earnings.

Growing Profit Margin: TRNS's current net profit margins (4.9%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: TRNS's earnings have grown by 15.7% per year over the past 5 years.

Accelerating Growth: TRNS's earnings growth over the past year (15.7%) exceeds its 5-year average (15.7% per year).

Earnings vs Industry: TRNS earnings growth over the past year (15.7%) exceeded the Trade Distributors industry -8.5%.


Return on Equity

High ROE: TRNS's Return on Equity (13.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Transcat's financial position?


Financial Position Analysis

Short Term Liabilities: TRNS's short term assets ($46.3M) exceed its short term liabilities ($19.4M).

Long Term Liabilities: TRNS's short term assets ($46.3M) exceed its long term liabilities ($33.0M).


Debt to Equity History and Analysis

Debt Level: TRNS's debt to equity ratio (39.4%) is considered satisfactory.

Reducing Debt: TRNS's debt to equity ratio has reduced from 51.1% to 39.4% over the past 5 years.

Debt Coverage: TRNS's debt is well covered by operating cash flow (42.7%).

Interest Coverage: TRNS's interest payments on its debt are well covered by EBIT (10.4x coverage).


Balance Sheet

Inventory Level: TRNS has a high level of physical assets or inventory.

Debt Coverage by Assets: TRNS's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

What is Transcat's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TRNS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TRNS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TRNS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TRNS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TRNS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Transcat's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Lee Rudow (55yo)

6.4yrs

Tenure

US$958,905

Compensation

Mr. Lee D. Rudow has been the President of Transcat Inc. since September 11, 2012 and has been its Chief Executive Officer since July 1, 2013. Mr. Rudow serves as the President and Chief Executive Officer  ...


CEO Compensation Analysis

Compensation vs Market: Lee's total compensation ($USD958.91K) is about average for companies of similar size in the US market ($USD1.13M).

Compensation vs Earnings: Lee's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.7yrs

Average Tenure

54yo

Average Age

Experienced Management: TRNS's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

10.8yrs

Average Tenure

69yo

Average Age

Experienced Board: TRNS's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$13,28524 Jun 19
Scott Deverell
EntityIndividual
Role
Chief Accounting Officer
Corporate Controller & Principal Accounting Officer
Shares500
Max PriceUS$26.57
SellUS$265,00020 Jun 19
Charles Hadeed
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares10,000
Max PriceUS$26.50
SellUS$123,30010 Jun 19
John Smith
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$24.66
SellUS$96,88005 Jun 19
Richard Harrison
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$24.22
SellUS$219,96105 Jun 19
Robert Flack
EntityIndividual
Shares8,962
Max PriceUS$24.70
SellUS$124,25029 May 19
Carl Sassano
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$24.85

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Scott Deverell (53yo)

    Corporate Controller & Principal Accounting Officer

    • Tenure: 3.8yrs
  • Mike Tschiderer (59yo)

    VP of Finance

    • Tenure: 3.8yrs
    • Compensation: US$470.92k
  • Lee Rudow (55yo)

    President

    • Tenure: 6.4yrs
    • Compensation: US$958.91k
  • Leanne Branham (55yo)

    Vice President of Operations

    • Tenure: 0yrs
  • Michael West (48yo)

    Vice President of Distribution & Marketing

    • Tenure: 5.1yrs
  • Jennifer Nelson (48yo)

    Vice President of Human Resources

    • Tenure: 4.7yrs

Board Members

  • Carl Sassano (69yo)

    Independent Director

    • Tenure: 19.2yrs
    • Compensation: US$83.75k
  • Rick Harrison (73yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$87.50k
  • Angela Panzarella (61yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$80.00k
  • Paul Moore (68yo)

    Independent Director

    • Tenure: 18.6yrs
    • Compensation: US$95.00k
  • Charles Hadeed (69yo)

    Chairman of the Board

    • Tenure: 6.4yrs
    • Compensation: US$117.50k
  • Alan Resnick (75yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$80.00k
  • Gary Haseley (58yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$102.50k
  • Lee Rudow (55yo)

    President

    • Tenure: 6.4yrs
    • Compensation: US$958.91k
  • John Smith (71yo)

    Independent Director

    • Tenure: 17.9yrs
    • Compensation: US$86.63k
  • Sandy Dominach

    Director

    • Tenure: 0.2yrs

Company Information

Transcat, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Transcat, Inc.
  • Ticker: TRNS
  • Exchange: NasdaqGM
  • Founded: 1964
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$244.467m
  • Shares outstanding: 7.36m
  • Website: https://www.transcat.com

Number of Employees


Location

  • Transcat, Inc.
  • 35 Vantage Point Drive
  • Rochester
  • New York
  • 14624
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRNSNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJan 1980

Biography

Transcat, Inc. provides calibration and laboratory instrument services in North America and internationally. It operates in two segments, Service and Distribution. The Service segment offers calibration, r ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 23:46
End of Day Share Price2019/12/09 00:00
Earnings2019/09/28
Annual Earnings2019/03/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.