(TRNS) Transcat - Overview
Sector: Industrials | Industry: Specialty Business Services | Exchange: NASDAQ (USA) | Market Cap: 750m USD | Total Return: -4.4% in 12m
Avg Turnover: 10.7M
EPS Trend: -11.8%
Qual. Beats: 0
Rev. Trend: 98.7%
Qual. Beats: 0
Warnings
P/E ratio 140.9
Extended 1w Choppy
Tailwinds
No distinct edge detected
Transcat, Inc. (TRNS) is a specialized provider of calibration and laboratory instrument services, operating through two distinct segments: Service and Distribution. The Service segment focuses on the technical maintenance, repair, and analytical qualification of precision instruments, utilizing proprietary asset management software like CalTrak to ensure regulatory compliance for clients. The Distribution segment manages the sale and rental of test and measurement equipment, often bundling these transactions with value-added calibration certifications.
The company primarily serves highly regulated sectors, including life sciences, aerospace, and defense, where precise equipment performance is a legal or safety requirement. In the calibration services industry, recurring revenue is often driven by mandatory periodic recertification cycles mandated by the FDA and other regulatory bodies. This business model benefits from high switching costs, as integrated asset management software creates deep operational ties between the service provider and the customers quality control workflows.
For a deeper look into the companys valuation metrics and historical performance, you may wish to consult ValueRay. Transcat remains headquartered in Rochester, New York, and has maintained operations since its incorporation in 1964.
- High demand from life science sectors drives recurring calibration service revenue
- Strategic acquisitions expand geographic footprint and specialized laboratory capabilities
- Margin expansion depends on service segment growth outpacing lower-margin distribution sales
- Tightening FDA and aerospace regulations increase demand for third-party compliance services
- Skilled technician labor shortages and wage inflation pressure operational profit margins
| Net Income: 5.38m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -2.63 > 1.0 |
| NWC/Revenue: 15.92% < 20% (prev 15.73%; Δ 0.19% < -1%) |
| CFO/TA 0.07 > 3% & CFO 34.8m > Net Income 5.38m |
| Net Debt (158.1m) to EBITDA (39.4m): 4.01 < 3 |
| Current Ratio: 2.33 > 1.5 & < 3 |
| Outstanding Shares: last quarter (9.35m) vs 12m ago 0.98% < -2% |
| Gross Margin: 32.63% > 18% (prev 0.33%; Δ 3.23k% > 0.5%) |
| Asset Turnover: 76.67% > 50% (prev 72.55%; Δ 4.12% > 0%) |
| Interest Coverage Ratio: 2.80 > 6 (EBITDA TTM 39.4m / Interest Expense TTM 4.74m) |
| A: 0.11 (Total Current Assets 92.5m - Total Current Liabilities 39.6m) / Total Assets 480.5m |
| B: 0.20 (Retained Earnings 97.8m / Total Assets 480.5m) |
| C: 0.03 (EBIT TTM 13.3m / Avg Total Assets 432.9m) |
| D: 0.56 (Book Value of Equity 101.5m / Total Liabilities 179.9m) |
| Altman-Z'' = 2.18 = BBB |
| DSRI: 0.98 (Receivables 65.8m/56.3m, Revenue 331.9m/279.5m) |
| GMI: 1.00 (GM 32.63% / 32.55%) |
| AQI: 1.14 (AQ_t 0.69 / AQ_t-1 0.60) |
| SGI: 1.19 (Revenue 331.9m / 279.5m) |
| TATA: -0.06 (NI 5.38m - CFO 34.8m) / TA 480.5m) |
| Beneish M = -2.89 (Cap -4..+1) = A |
As of May 30, 2026, the stock is trading at USD 84.52 with a total of 270,040 shares traded.
Over the past week, the price has changed by +19.38%,
over one month by +13.53%,
over three months by +8.40% and
over the past year by -4.44%.
Transcat has received a consensus analysts rating of 3.60. Therefore, it is recommended to hold TRNS.
- StrongBuy: 1
- Buy: 1
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 101.3 | 19.9% |
P/E Trailing = 140.9123
P/E Forward = 39.5257
P/S = 2.2317
P/B = 2.2962
Revenue TTM = 331.9m USD
EBIT TTM = 13.3m USD
EBITDA TTM = 39.4m USD
Long Term Debt = 99.9m USD (from longTermDebt, two quarters ago)
Short Term Debt = 4.88m USD (from shortTermDebt, two quarters ago)
Debt = 163.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 34.1m
Net Debt = 158.1m USD (calculated: Debt 163.0m - CCE 4.94m)
Enterprise Value = 907.8m USD (749.7m + Debt 163.0m - CCE 4.94m)
Interest Coverage Ratio = 2.80 (Ebit TTM 13.3m / Interest Expense TTM 4.74m)
EV/FCF = 46.49x (Enterprise Value 907.8m / FCF TTM 19.5m)
FCF Yield = 2.15% (FCF TTM 19.5m / Enterprise Value 907.8m)
FCF Margin = 5.88% (FCF TTM 19.5m / Revenue TTM 331.9m)
Net Margin = 1.62% (Net Income TTM 5.38m / Revenue TTM 331.9m)
Gross Margin = 32.63% ((Revenue TTM 331.9m - Cost of Revenue TTM 223.6m) / Revenue TTM)
Gross Margin QoQ = 34.28% (prev 30.11%)
Tobins Q-Ratio = 1.89 (Enterprise Value 907.8m / Total Assets 480.5m)
Interest Expense / Debt = 2.91% (Interest Expense 4.74m / Debt 163.0m)
Taxrate = 34.91% (399k / 1.14m)
NOPAT = 8.63m (EBIT 13.3m * (1 - 34.91%))
Current Ratio = 2.33 (Total Current Assets 92.5m / Total Current Liabilities 39.6m)
Debt / Equity = 0.54 (Debt 163.0m / totalStockholderEquity, last quarter 300.6m)
Debt / EBITDA = 4.01 (Net Debt 158.1m / EBITDA 39.4m)
Debt / FCF = 8.09 (Net Debt 158.1m / FCF TTM 19.5m)
Total Stockholder Equity = 296.3m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.24% (Net Income 5.38m / Total Assets 480.5m)
RoE = 1.81% (Net Income TTM 5.38m / Total Stockholder Equity 296.3m)
RoCE = 3.35% (EBIT 13.3m / Capital Employed (Equity 296.3m + L.T.Debt 99.9m))
RoIC = 1.98% (NOPAT 8.63m / Invested Capital 435.9m)
WACC = 6.36% (E(749.7m)/V(912.7m) * Re(7.33%) + D(163.0m)/V(912.7m) * Rd(2.91%) * (1-Tc(0.35)))
Discount Rate = 7.33% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 76.41 | Cagr: 2.96%
[DCF] Terminal Value 73.10% ; FCFF base≈22.0m ; Y1≈19.3m ; Y5≈15.6m
[DCF] Fair Price = 9.91 (EV 250.6m - Net Debt 158.1m = Equity 92.5m / Shares 9.33m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -11.84 | EPS CAGR: -1.83% | SUE: 0.0 | # QB: 0
Revenue Correlation: 98.66 | Revenue CAGR: 12.30% | SUE: -0.15 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.49 | Chg30d=-4.57% | Revisions=N/A | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.53 | Chg30d=-4.77% | Revisions=N/A | Analysts=3
EPS current Year (2027-03-31): EPS=2.06 | Chg30d=-4.18% | Revisions=+0% | GrowthEPS=+12.2% | GrowthRev=+6.9%
EPS next Year (2028-03-31): EPS=2.15 | Chg30d=+3.86% | Revisions=+20% | GrowthEPS=+4.1% | GrowthRev=+0.0%
[Analyst] Revisions Ratio: +20%