NasdaqGM:TRNS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with solid track record.

Risks

  • Transcat is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-1.8%

NasdaqGM:TRNS

0.7%

US Trade Distributors

0.2%

US Market


1 Year Return

-6.6%

NasdaqGM:TRNS

-18.0%

US Trade Distributors

-0.7%

US Market

TRNS outperformed the Trade Distributors industry which returned -16.8% over the past year.

TRNS underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

TRNSIndustryMarket
7 Day-1.8%0.7%0.2%
30 Day-6.7%-1.3%-2.7%
90 Day-10.5%-2.3%1.6%
1 Year-6.6%-6.6%-16.6%-18.0%1.6%-0.7%
3 Year118.4%118.4%24.1%18.7%40.0%30.9%
5 Year153.0%153.0%10.5%2.7%53.8%36.8%

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 based on future cash flows and its price relative to the stock market?

21.81x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Transcat's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Transcat's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Transcat is overvalued based on earnings compared to the US Trade Distributors industry average.

Transcat is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Transcat is poor value based on expected growth next year.


Price Based on Value of Assets

Transcat is overvalued based on assets compared to the US Trade Distributors industry average.


Next Steps

Future Growth

How is Transcat expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Transcat's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).

Transcat's earnings are expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).

Transcat's revenue growth is positive but not above the United States of America market average.

Transcat's earnings growth is positive but not above the United States of America market average.

Transcat's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Transcat will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Transcat performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Transcat's year on year earnings growth rate has been positive over the past 5 years.

Transcat's 1-year earnings growth exceeds its 5-year average (14.6% vs 14.5%)

Transcat's earnings growth has exceeded the US Trade Distributors industry average in the past year (14.6% vs -5.1%).


Return on Equity

Transcat has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Transcat used its assets more efficiently than the US Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Transcat has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Transcat's financial position?


Financial Position Analysis

Transcat is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Transcat's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Transcat's level of debt (36.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (35.4% vs 36.8% today).

Debt is well covered by operating cash flow (46.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.1x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Transcat's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Transcat's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Transcat has not reported any payouts.

Unable to verify if Transcat's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Transcat has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Lee Rudow (55yo)

6.1yrs

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

Lee's remuneration is about average for companies of similar size in United States of America.

Lee's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.3yrs

Average Tenure

53yo

Average Age

The tenure for the Transcat management team is about average.


Board Age and Tenure

14.8yrs

Average Tenure

69yo

Average Age

The average tenure for the Transcat board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Transcat individual insiders have only sold shares 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
BuyUS$25,60026 Nov 18
Gary Haseley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,250
Max PriceUS$20.48
BuyUS$71,52021 Nov 18
Gary Haseley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$20.44
BuyUS$6,03919 Nov 18
Michael Tschiderer
EntityIndividual
Role
Chief Financial Officer
VP of Finance
Shares300
Max PriceUS$20.45
SellUS$40,56213 Nov 18
John Smith
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,916
Max PriceUS$21.17
BuyUS$6,16501 Nov 18
Michael Tschiderer
EntityIndividual
Role
Chief Financial Officer
VP of Finance
Shares300
Max PriceUS$20.55

Ownership Breakdown


Management Team

  • Scott Deverell (53yo)

    Corporate Controller & Principal Accounting Officer

    • Tenure: 3.4yrs
  • Mike Tschiderer (59yo)

    VP of Finance

    • Tenure: 3.4yrs
    • Compensation: US$470.92k
  • Lee Rudow (55yo)

    President

    • Tenure: 6.1yrs
    • Compensation: US$958.91k
  • Michael West (48yo)

    Vice President of Inside Sales & Marketing

    • Tenure: 4.8yrs
  • Jennifer Nelson (48yo)

    Vice President of Human Resources

    • Tenure: 4.3yrs

Board Members

  • Carl Sassano (69yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$83.75k
  • Rick Harrison (73yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$87.50k
  • Angela Panzarella (61yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$80.00k
  • Paul Moore (68yo)

    Independent Director

    • Tenure: 18.3yrs
    • Compensation: US$95.00k
  • Charles Hadeed (69yo)

    Chairman of the Board

    • Tenure: 6.1yrs
    • Compensation: US$117.50k
  • Alan Resnick (75yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$80.00k
  • Gary Haseley (58yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$102.50k
  • Lee Rudow (55yo)

    President

    • Tenure: 6.1yrs
    • Compensation: US$958.91k
  • John Smith (71yo)

    Independent Director

    • Tenure: 17.6yrs
    • Compensation: US$86.63k

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$164.160m
  • Shares outstanding: 7.31m
  • 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 Analysis2019/08/20 23:49
End of Day Share Price2019/08/20 00:00
Earnings2019/06/29
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.