NasdaqGM:TACT

Stock Analysis Report

TransAct Technologies

Executive Summary

TransAct Technologies Incorporated designs, develops, and markets transaction-based and specialty printers and terminals in the United States and internationally.

Risk Analysis

Dividend of 3.23% is not well covered by earnings

Profit margins (4.9%) are lower than last year (7.2%)

Does not have a meaningful market cap ($81M)



Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TACT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.1%

TACT

3.2%

US Tech

0.8%

US Market


1 Year Return

18.9%

TACT

55.9%

US Tech

17.8%

US Market

Return vs Industry: TACT underperformed the US Tech industry which returned 55.9% over the past year.

Return vs Market: TACT exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

TACTIndustryMarket
7 Day3.1%3.2%0.8%
30 Day-0.3%2.7%1.8%
90 Day-6.5%19.3%4.1%
1 Year23.1%18.9%58.5%55.9%20.4%17.8%
3 Year89.4%71.2%128.9%111.1%45.9%36.4%
5 Year147.5%105.0%141.9%117.3%68.1%49.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

36.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TACT ($11.13) is trading above our estimate of fair value ($5.26)

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


Price To Earnings Ratio

PE vs Industry: TACT is poor value based on its PE Ratio (36.4x) compared to the Tech industry average (21.5x).

PE vs Market: TACT is poor value based on its PE Ratio (36.4x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TACT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TACT is overvalued based on its PB Ratio (3x) compared to the US Tech industry average (1.6x).


Next Steps

Future Growth

How is TransAct Technologies forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.1%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as TransAct Technologies has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has TransAct Technologies performed over the past 5 years?

33.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TACT has high quality earnings.

Growing Profit Margin: TACT's current net profit margins (4.9%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: TACT's earnings have grown significantly by 33.6% per year over the past 5 years.

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

Earnings vs Industry: TACT had negative earnings growth (-43.8%) over the past year, making it difficult to compare to the Tech industry average (30.2%).


Return on Equity

High ROE: TACT's Return on Equity (8.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TransAct Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: TACT's short term assets ($25.3M) exceed its short term liabilities ($6.8M).

Long Term Liabilities: TACT's short term assets ($25.3M) exceed its long term liabilities ($2.7M).


Debt to Equity History and Analysis

Debt Level: TACT is debt free.

Reducing Debt: TACT has not had any debt for past 5 years.

Debt Coverage: TACT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TACT has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if TACT's debt is covered by short term assets.


Next Steps

Dividend

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

3.23%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: TACT's dividend (3.23%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: TACT's dividend (3.23%) is low compared to the top 25% of dividend payers in the US market (3.72%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TACT has been paying a dividend for less than 10 years.

Growing Dividend: TACT's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (117.8%), TACT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

8.6yrs

Average management tenure


CEO

Bart Shuldman (62yo)

23.5yrs

Tenure

US$1,431,265

Compensation

Mr. Bart C. Shuldman has been the Chief Executive Officer of Transact Technologies Inc. since June 1996 and its Executive Chairman since February 2001. Mr. Shuldman serves as the Chief Executive Officer an ...


CEO Compensation Analysis

Compensation vs Market: Bart's total compensation ($USD1.43M) is above average for companies of similar size in the US market ($USD530.45K).

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


Management Age and Tenure

8.6yrs

Average Tenure

59yo

Average Age

Experienced Management: TACT's management team is seasoned and experienced (8.6 years average tenure).


Board Age and Tenure

8.5yrs

Average Tenure

62yo

Average Age

Experienced Board: TACT's board of directors are considered experienced (8.5 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

BuyUS$60,00025 Jul 19
John Dillon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$12.00
SellUS$60,00025 Jul 19
Bart Shuldman
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares5,000
Max PriceUS$12.00
SellUS$10,46120 May 19
Grand Slam Asset Management, LLC
EntityCompany
Shares1,100
Max PriceUS$9.51
SellUS$9,19014 May 19
Thomas Schwarz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$9.19
SellUS$18,32014 May 19
Thomas Schwarz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$9.16
SellUS$69,36012 Mar 19
Thomas Schwarz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceUS$8.67
BuyUS$88,10012 Mar 19
John Dillon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$8.81

Ownership Breakdown

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


Management Team

  • Bart Shuldman (62yo)

    Executive Chairman & CEO

    • Tenure: 23.5yrs
    • Compensation: US$1.43m
  • Steve DeMartino (49yo)

    President

    • Tenure: 9.5yrs
    • Compensation: US$732.32k
  • Tracey Chernay (59yo)

    Senior Vice President Casino

    • Tenure: 14.6yrs
    • Compensation: US$322.98k
  • David Block

    Senior Vice President of Software Engineering

    • Tenure: 2.8yrs
  • Andrew Hoffman (61yo)

    Senior Vice President of Operations

    • Tenure: 15.1yrs
    • Compensation: US$327.95k
  • Don Brooks (66yo)

    Senior Vice President of Engineering

    • Tenure: 7.7yrs
    • Compensation: US$277.22k
  • Ray Walsh (33yo)

    Senior Vice President of Global Restaurant Solution Sales

    • Tenure: 0.8yrs
  • David Peters (40yo)

    VP & Chief Accounting Officer

    • Tenure: 1.8yrs

Board Members

  • Thomas Schwarz (82yo)

    Independent Director

    • Tenure: 23.5yrs
    • Compensation: US$86.04k
  • Bart Shuldman (62yo)

    Executive Chairman & CEO

    • Tenure: 23.5yrs
    • Compensation: US$1.43m
  • John Dillon (69yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$86.04k
  • Manny Hilario (51yo)

    Independent Director

    • Tenure: 0.6yrs
  • Haydee Olinger (61yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$44.15k

Company Information

TransAct Technologies Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TransAct Technologies Incorporated
  • Ticker: TACT
  • Exchange: NasdaqGM
  • Founded: 1996
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$80.903m
  • Shares outstanding: 7.47m
  • Website: https://www.transact-tech.com

Number of Employees


Location

  • TransAct Technologies Incorporated
  • One Hamden Center
  • Suite 3B
  • Hamden
  • Connecticut
  • 6518
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TACTNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDAug 1996

Biography

TransAct Technologies Incorporated designs, develops, and markets transaction-based and specialty printers and terminals in the United States and internationally. It offers thermal and inkjet printers and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 23:44
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.