NasdaqGM:TRNS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TRNS's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.4%

TRNS

2.7%

US Trade Distributors

2.8%

US Market


1 Year Return

-3.1%

TRNS

20.8%

US Trade Distributors

20.9%

US Market

Return vs Industry: TRNS underperformed the US Trade Distributors industry which returned 21.1% over the past year.

Return vs Market: TRNS underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

TRNSIndustryMarket
7 Day2.4%2.7%2.8%
30 Day2.5%22.3%11.1%
90 Day8.3%14.7%6.5%
1 Year-3.1%-3.1%23.1%20.8%23.6%20.9%
3 Year127.8%127.8%36.9%30.4%47.3%37.6%
5 Year239.5%239.5%91.2%77.5%94.3%72.9%

Long-Term 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?

34.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRNS ($31.78) is trading above our estimate of fair value ($27.68)

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 (34.6x) compared to the US Trade Distributors industry average (21.9x).

PE vs Market: TRNS is poor value based on its PE Ratio (34.6x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: TRNS is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: TRNS is overvalued based on its PB Ratio (3.4x) compared to the US Trade Distributors industry average (1.8x).


Next Steps

Future Growth

How is Transcat forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

27.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRNS's forecast earnings growth (27.4% per year) is above the savings rate (2.2%).

Earnings vs Market: TRNS's earnings (27.4% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TRNS's revenue (6.5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: TRNS's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRNS's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Transcat performed over the past 5 years?

15.0%

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%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: TRNS's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: TRNS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TRNS had negative earnings growth (-18.3%) over the past year, making it difficult to compare to the Trade Distributors industry average (-6.9%).


Return on Equity

High ROE: TRNS's Return on Equity (9.7%) is considered low.


Next Steps

Financial Health

How is Transcat's financial position?


Financial Position Analysis

Short Term Liabilities: TRNS's short term assets ($45.4M) exceed its short term liabilities ($20.6M).

Long Term Liabilities: TRNS's short term assets ($45.4M) exceed its long term liabilities ($35.3M).


Debt to Equity History and Analysis

Debt Level: TRNS's debt to equity ratio (32.4%) is considered satisfactory.

Reducing Debt: TRNS's debt to equity ratio has reduced from 33.2% to 32.4% over the past 5 years.

Debt Coverage: TRNS's debt is well covered by operating cash flow (93.3%).

Interest Coverage: TRNS's interest payments on its debt are well covered by EBIT (11.3x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

Lee Rudow (56 yo)

7.33yrs

Tenure

US$1,026,383

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 ($USD1.03M) is about average for companies of similar size in the US market ($USD1.10M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lee Rudow
President7.33yrsUS$1.03m2.33%
$ 5.5m
Michael West
Vice President of Distribution & Marketing6yrsUS$399.11k0.21%
$ 497.6k
Mark Doheny
Chief Financial Officerno datano datano data
Leanne Branham
Vice President of Service Operations1.33yrsno datano data
Scott Deverell
Corporate Controller & Principal Accounting Officer4.67yrsno data0.037%
$ 87.1k
James Jenkins
General Counsel & VP of Corporate Development0.17yrno datano data
Jennifer Nelson
Vice President of Human Resources5.58yrsno datano data

5.1yrs

Average Tenure

55yo

Average Age

Experienced Management: TRNS's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lee Rudow
President7.33yrsUS$1.03m2.33%
$ 5.5m
Carl Sassano
Independent Director20.08yrsUS$55.00k0.88%
$ 2.1m
Richard Harrison
Independent Director16yrsUS$60.00k0.44%
$ 1.0m
Angela Panzarella
Independent Director6.83yrsUS$50.00k0.23%
$ 553.5k
Paul Moore
Independent Director19.5yrsUS$65.00k0.80%
$ 1.9m
Charles Hadeed
Independent Director13.83yrsUS$90.00k0.55%
$ 1.3m
Gary Haseley
Independent Chairman0.17yrUS$75.00k0.41%
$ 974.1k
John Smith
Independent Director18.83yrsUS$57.50k0.44%
$ 1.0m
Oksana Dominach
Independent Director1.08yrsUS$107.70k0%
$ 0

13.8yrs

Average Tenure

69yo

Average Age

Experienced Board: TRNS's board of directors are seasoned and experienced ( 13.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TRNS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$236.273m
  • Shares outstanding: 7.43m
  • 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 Analysis2020/11/28 23:04
End of Day Share Price2020/11/27 00:00
Earnings2020/09/26
Annual Earnings2020/03/28


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.