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Transcat

Nasdaq:TRNS
Snowflake Description

Excellent balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TRNS
Nasdaq
$162M
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Transcat, Inc. provides calibration and laboratory instrument services in North America and internationally. The last earnings update was 11 days ago. More info.


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TRNS Share Price and Events
7 Day Returns
-3.8%
NasdaqGM:TRNS
-1.5%
US Trade Distributors
-1%
US Market
1 Year Returns
-7.6%
NasdaqGM:TRNS
-16.6%
US Trade Distributors
-0.4%
US Market
TRNS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Transcat (TRNS) -3.8% -9.7% -8.9% -7.6% 103.4% 149.2%
US Trade Distributors -1.5% -3.8% -4.7% -16.6% 18.4% 2.2%
US Market -1% -3.3% 0.4% -0.4% 30.4% 37.1%
1 Year Return vs Industry and Market
  • TRNS outperformed the Trade Distributors industry which returned -16.6% over the past year.
  • TRNS underperformed the Market in United States of America which returned -0.4% over the past year.
Price Volatility
TRNS
Industry
5yr Volatility vs Market
Related Companies

TRNS Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Transcat to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Transcat.

NasdaqGM:TRNS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:TRNS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.879 (1 + (1- 21%) (18.73%))
1.006
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.006 * 5.96%)
8.73%

Discounted Cash Flow Calculation for NasdaqGM:TRNS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Transcat is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGM:TRNS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.73%)
2020 1.49 Est @ -60.31% 1.37
2021 0.87 Est @ -41.4% 0.74
2022 0.63 Est @ -28.16% 0.49
2023 0.51 Est @ -18.89% 0.36
2024 0.45 Est @ -12.41% 0.29
2025 0.41 Est @ -7.87% 0.25
2026 0.39 Est @ -4.69% 0.22
2027 0.38 Est @ -2.46% 0.20
2028 0.38 Est @ -0.9% 0.18
2029 0.38 Est @ 0.19% 0.16
Present value of next 10 years cash flows $4.26
NasdaqGM:TRNS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $0.38 × (1 + 2.73%) ÷ (8.73% – 2.73%)
$6.50
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $6.50 ÷ (1 + 8.73%)10
$2.82
NasdaqGM:TRNS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4.26 + $2.82
$7.08
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7.08 / 7.31
$0.97
NasdaqGM:TRNS Discount to Share Price
Calculation Result
Value per share (USD) From above. $0.97
Current discount Discount to share price of $22.13
= -1 x ($22.13 - $0.97) / $0.97
-2183.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Transcat is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Transcat's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Transcat's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:TRNS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-29) in USD $1.03
NasdaqGM:TRNS Share Price ** NasdaqGM (2019-08-16) in USD $22.13
United States of America Trade Distributors Industry PE Ratio Median Figure of 41 Publicly-Listed Trade Distributors Companies 14.75x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Transcat.

NasdaqGM:TRNS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:TRNS Share Price ÷ EPS (both in USD)

= 22.13 ÷ 1.03

21.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Transcat's expected growth come at a high price?
Raw Data
NasdaqGM:TRNS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.48x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
10.6%per year
United States of America Trade Distributors Industry PEG Ratio Median Figure of 32 Publicly-Listed Trade Distributors Companies 0.93x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

NasdaqGM:TRNS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.48x ÷ 10.6%

2.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Transcat is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Transcat's assets?
Raw Data
NasdaqGM:TRNS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-29) in USD $8.31
NasdaqGM:TRNS Share Price * NasdaqGM (2019-08-16) in USD $22.13
United States of America Trade Distributors Industry PB Ratio Median Figure of 52 Publicly-Listed Trade Distributors Companies 1.44x
United States of America Market PB Ratio Median Figure of 5,265 Publicly-Listed Companies 1.7x
NasdaqGM:TRNS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:TRNS Share Price ÷ Book Value per Share (both in USD)

= 22.13 ÷ 8.31

2.66x

* Primary Listing of Transcat.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Transcat is overvalued based on assets compared to the US Trade Distributors industry average.
X
Value checks
We assess Transcat's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. Transcat has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TRNS Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Transcat expected to grow at an attractive rate?
  • Transcat's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Transcat's earnings growth is positive but not above the United States of America market average.
  • Transcat's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:TRNS Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:TRNS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 10.6%
NasdaqGM:TRNS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 5.6%
United States of America Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:TRNS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:TRNS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 184 9 1
2020-03-31 173 7 1
NasdaqGM:TRNS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-29 167 10 7
2019-03-30 161 13 7
2018-12-29 159 11 7
2018-09-29 158 13 7
2018-06-30 156 16 6
2018-03-31 155 10 6
2017-12-23 151 9 5
2017-09-23 148 4 4
2017-06-24 147 5 4
2017-03-25 144 8 5
2016-12-24 138 7 5
2016-09-24 131 11 4

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Transcat's earnings are expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).
  • Transcat's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:TRNS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Transcat Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:TRNS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 1.15 1.15 1.15 1.00
2020-03-31 0.92 0.92 0.92 1.00
NasdaqGM:TRNS Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-29 1.03
2019-03-30 0.99
2018-12-29 0.97
2018-09-29 1.00
2018-06-30 0.91
2018-03-31 0.83
2017-12-23 0.69
2017-09-23 0.61
2017-06-24 0.64
2017-03-25 0.65
2016-12-24 0.67
2016-09-24 0.64

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Transcat will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Transcat's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Transcat has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TRNS Past Performance

  How has Transcat performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Transcat's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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%).
Earnings and Revenue History
Transcat's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Transcat Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:TRNS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-29 166.64 7.44 30.12
2019-03-30 160.90 7.15 29.11
2018-12-29 158.86 6.94 28.60
2018-09-29 158.47 7.20 28.49
2018-06-30 155.52 6.49 28.52
2018-03-31 155.14 5.92 28.42
2017-12-23 151.14 4.90 28.14
2017-09-23 148.47 4.34 27.66
2017-06-24 147.03 4.47 27.11
2017-03-25 143.90 4.52 26.94
2016-12-24 138.31 4.67 25.94
2016-09-24 130.65 4.47 24.27
2016-06-25 125.64 4.43 22.99
2016-03-26 122.17 4.12 22.22
2015-12-26 121.65 4.46 21.48
2015-09-26 122.54 4.20 22.20
2015-06-27 124.18 4.18 22.44
2015-03-28 123.62 4.03 22.32
2014-12-27 121.69 3.82 22.62
2014-09-27 121.15 3.80 22.80
2014-06-28 118.92 3.71 22.93
2014-03-29 118.51 3.98 23.09
2013-12-28 119.19 4.10 22.54
2013-09-28 118.00 4.09 22.15
2013-06-29 115.91 4.06 21.51
2013-03-30 112.30 3.70 21.06
2012-12-29 111.98 3.10 21.64
2012-09-29 111.12 3.34 21.37

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Transcat has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Transcat used its assets more efficiently than the US Trade Distributors industry average last year based on Return on Assets.
  • Transcat has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Transcat's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Transcat has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TRNS Health

 How is Transcat's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Transcat's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Transcat's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Transcat Company Filings, last reported 1 month ago.

NasdaqGM:TRNS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-29 60.70 22.36 0.62
2019-03-30 59.63 21.00 0.79
2018-12-29 56.52 24.55 0.82
2018-09-29 54.87 25.30 0.57
2018-06-30 52.87 21.55 0.49
2018-03-31 51.35 22.85 0.58
2017-12-23 48.60 26.25 0.50
2017-09-23 46.60 29.71 0.63
2017-06-24 44.98 31.96 0.60
2017-03-25 43.40 27.31 0.84
2016-12-24 42.43 26.20 0.56
2016-09-24 41.20 23.79 0.60
2016-06-25 40.05 27.35 0.78
2016-03-26 38.91 19.07 0.64
2015-12-26 37.01 10.54 0.15
2015-09-26 36.00 11.98 0.16
2015-06-27 35.23 11.47 0.05
2015-03-28 34.32 12.17 0.07
2014-12-27 32.65 14.84 0.02
2014-09-27 31.87 16.33 0.26
2014-06-28 30.85 10.82 0.17
2014-03-29 30.08 7.59 0.02
2013-12-28 28.12 10.61 0.17
2013-09-28 32.77 8.72 0.41
2013-06-29 32.54 8.65 0.58
2013-03-30 31.65 8.02 0.41
2012-12-29 29.57 6.64 0.46
2012-09-29 28.70 7.24 0.19
  • 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).
X
Financial health checks
We assess Transcat's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Transcat has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TRNS Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Transcat dividends.
If you bought $2,000 of Transcat shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:TRNS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United States of America Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:TRNS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-03-31
2020-03-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Transcat's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess Transcat's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Transcat afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Transcat has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TRNS Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lee Rudow
COMPENSATION $958,905
AGE 55
TENURE AS CEO 6.1 years
CEO Bio

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 at Davis Inotek Calibration Laboratory. He has been with Davis Inotek since 1993. He served as the Chief Operating Officer of Transcat Inc. from November 14, 2011 to July 1, 2013. He has over 25 years of experience in the calibration services and electronic test and measurement industry having held a variety of leadership positions at other leading companies in the electronics equipment and services industry. He served as Executive Vice President of Sales & Operations at Simco Electronics. He served as the President and Chief Executive Officer of Davis Calibration, Inc. and Davis Inotek Instruments, LLC. He served as the President of Davis Inotek Corp. and Davis Instruments Corp. He has been Director of Transcat Inc. since 2015. Mr. Rudow earned his BA degree in Business Administration from Loyola University in 1985.

CEO Compensation
  • Lee's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Lee's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Transcat management team in years:

4.3
Average Tenure
53
Average Age
  • The tenure for the Transcat management team is about average.
Management Team

Lee Rudow

TITLE
President
COMPENSATION
$959K
AGE
55
TENURE
6.1 yrs

Mike Tschiderer

TITLE
VP of Finance
COMPENSATION
$471K
AGE
59
TENURE
3.4 yrs

Scott Deverell

TITLE
Corporate Controller & Principal Accounting Officer
AGE
53
TENURE
3.4 yrs

Michael West

TITLE
Vice President of Inside Sales & Marketing
AGE
48
TENURE
4.8 yrs

Jennifer Nelson

TITLE
Vice President of Human Resources
AGE
48
TENURE
4.3 yrs
Board of Directors Tenure

Average tenure and age of the Transcat board of directors in years:

14.8
Average Tenure
69
Average Age
  • The average tenure for the Transcat board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Charles Hadeed

TITLE
Chairman of the Board
COMPENSATION
$118K
AGE
69
TENURE
6.1 yrs

Lee Rudow

TITLE
President
COMPENSATION
$959K
AGE
55
TENURE
4.6 yrs

Carl Sassano

TITLE
Independent Director
COMPENSATION
$84K
AGE
69
TENURE
18.8 yrs

Paul Moore

TITLE
Independent Director
COMPENSATION
$95K
AGE
68
TENURE
18.3 yrs

Gary Haseley

TITLE
Independent Director
COMPENSATION
$103K
AGE
58
TENURE
4.6 yrs

Alan Resnick

TITLE
Independent Director
COMPENSATION
$80K
AGE
75
TENURE
14.8 yrs

Rick Harrison

TITLE
Independent Director
COMPENSATION
$88K
AGE
73
TENURE
14.8 yrs

John Smith

TITLE
Independent Director
COMPENSATION
$87K
AGE
71
TENURE
17.6 yrs

Angela Panzarella

TITLE
Independent Director
COMPENSATION
$80K
AGE
61
TENURE
5.6 yrs
Who owns this company?
Recent Insider Trading
  • Transcat individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
24. Jun 19 Sell Scott Deverell Individual 20. Jun 19 20. Jun 19 -500 $26.57 $-13,285
20. Jun 19 Sell Charles Hadeed Individual 18. Jun 19 18. Jun 19 -10,000 $26.50 $-265,000
10. Jun 19 Sell John Smith Individual 06. Jun 19 06. Jun 19 -5,000 $24.66 $-123,300
05. Jun 19 Sell Richard Harrison Individual 03. Jun 19 03. Jun 19 -4,000 $24.22 $-96,880
05. Jun 19 Sell Robert Flack Individual 03. Jun 19 04. Jun 19 -8,962 $24.70 $-219,961
29. May 19 Sell Carl Sassano Individual 28. May 19 28. May 19 -5,000 $24.85 $-124,250
26. Nov 18 Buy Gary Haseley Individual 21. Nov 18 21. Nov 18 1,250 $20.48 $25,600
21. Nov 18 Buy Gary Haseley Individual 19. Nov 18 20. Nov 18 3,500 $20.44 $71,520
19. Nov 18 Buy Michael Tschiderer Individual 15. Nov 18 16. Nov 18 300 $20.45 $6,039
13. Nov 18 Sell John Smith Individual 01. Nov 18 01. Nov 18 -1,916 $21.17 $-40,562
01. Nov 18 Buy Michael Tschiderer Individual 30. Oct 18 30. Oct 18 300 $20.55 $6,165
X
Management checks
We assess Transcat's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Transcat has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TRNS News

Simply Wall St News

Should You Be Adding Transcat (NASDAQ:TRNS) To Your Watchlist Today?

In contrast to all that, I prefer to spend time on companies like Transcat (NASDAQ:TRNS), which has not only revenues, but also profits. … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … For growth investors like me, Transcat's raw rate of earnings growth is a beacon in the night.

Simply Wall St -

Shareholders Are Thrilled That The Transcat (NASDAQ:TRNS) Share Price Increased 149%

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … Transcat was able to grow its EPS at 18% per year over three years, sending the share price higher.

Simply Wall St -

A Close Look At Transcat, Inc.’s (NASDAQ:TRNS) 12% ROCE

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Transcat: 0.12 = US$10m ÷ (US$105m - US$22m) (Based on the trailing twelve months to March 2019.) So, Transcat has an ROCE of 12%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Here's What Transcat, Inc.'s (NASDAQ:TRNS) ROCE Can Tell Us

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Transcat: 0.12 = US$10m ÷ (US$105m - US$22m) (Based on the trailing twelve months to March 2019.) Therefore, Transcat has an ROCE of 12%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Should You Be Worried About Insider Transactions At Transcat, Inc. (NASDAQ:TRNS)?

So shareholders might well want to know whether insiders have been buying or selling shares in Transcat, Inc. … In total, insiders sold US$564k worth of shares in that time, and we didn't record any purchases whatsoever. … Insiders sold Transcat shares recently, but they didn't buy any.

Simply Wall St -

Why Transcat, Inc. (NASDAQ:TRNS) Could Be Worth Watching

Great news for investors – Transcat is still trading at a fairly cheap price. … If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.

Simply Wall St -

Should You Be Tempted To Sell Transcat, Inc. (NASDAQ:TRNS) Because Of Its P/E Ratio?

The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Transcat: P/E of 25.12 = $24.27 ÷ $0.97 (Based on the trailing twelve months to December 2018.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each $1 of company earnings. … The Verdict On Transcat's P/E Ratio Transcat trades on a P/E ratio of 25.1, which is above the US market average of 18.

Simply Wall St -

Is Transcat, Inc.'s (NASDAQ:TRNS) Balance Sheet A Threat To Its Future?

Help shape the future of investing tools and you could win a $250 gift card! … (NASDAQ:TRNS) with its market cap of US$174m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … since poor capital management may bring about bankruptcies,

Simply Wall St -

Estimating The Intrinsic Value Of Transcat, Inc. (NASDAQ:TRNS)

by estimating the company's future cash flows and discounting them to their present value. … This is done using the Discounted Cash Flow (DCF) model! … We generally believe that a company's value is the present value of all of the cash it will generate in the future.

Simply Wall St -

Can We See Significant Insider Ownership On The Transcat, Inc. (NASDAQ:TRNS) Share Register?

Generally speaking, as a company grows, institutions will increase their ownership. … Taking a look at our data on the ownership groups (below), it's seems that. … We can zoom in on the different ownership groups, to learn more about TRNS

Simply Wall St -

TRNS Company Info

Description

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, repair, inspection, analytical qualification, preventative maintenance, consulting, and other related services. This segment also provides CalTrak, a proprietary document and asset management software that is used to integrate and manage the workflow of its calibration service centers and customers’ assets; and Compliance, Control and Cost, an online customer portal that provides its customers with Web-based asset management capability, as well as a safe and secure off-site archive of calibration and other service records. The Distribution segment sells and rents test, measurement, and control instruments for customers’ test and measurement instrumentation needs. This segment markets and sells its products through Website, digital and print advertising, proactive outbound sales, and an inbound call center. The company provides services and products to highly regulated industries, principally life science, which includes companies in the pharmaceutical, biotechnology, medical device, and other FDA-regulated industries; and additional industries, including aerospace and defense industrial manufacturing, oil and gas and alternative energy, and other industries that require accuracy in processes and confirmation of the capabilities of their equipment. Transcat, Inc. was founded in 1964 and is headquartered in Rochester, New York.

Details
Name: Transcat, Inc.
TRNS
Exchange: NasdaqGM
Founded: 1964
$161,676,513
7,305,762
Website: http://www.transcat.com
Address: Transcat, Inc.
35 Vantage Point Drive,
Rochester,
New York, 14624,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM TRNS Common Stock Nasdaq Global Market US USD 02. Jan 1980
Number of employees
Current staff
Staff numbers
671
Transcat employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/17 23:48
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/07/25
Last earnings filing: 2019/08/06
Last earnings reported: 2019/06/29
Last annual earnings reported: 2019/03/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.