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Transact Technologies Inc. (TACT)
NASDAQ:TACT
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Transact Technologies
(NASDAQ:TACT)
48Neutral
Transact Technologies (TACT) vs. S&P 500 (SPY)
Market Cap
$37.10M
Dividend YieldN/A
Average Volume (3M)15.46K
Price to Earnings (P/E)―
Beta (1Y)0.56
Revenue Growth-40.27%
EPS Growth-306.30%
CountryUS
Employees108
SectorTechnology
Sector Strength42
IndustryComputer Hardware
Share Statistics
EPS (TTM)-0.98
Shares Outstanding10,080,717
10 Day Avg. Volume13,500
30 Day Avg. Volume15,458
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.85
Price to Cash Flow (P/CF)30.20
P/FCF Ratio38.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.75Price Target Upside86.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Transact Technologies Business Overview & Revenue Model
Company DescriptionTransact Technologies (TACT) is a leading provider of software-driven technology and printing solutions for high-growth markets. The company serves various sectors, including casino and gaming, lottery, food safety, point of sale (POS), and oil and gas. Transact Technologies is renowned for its innovative approach to developing products that enhance efficiency and productivity, such as its specialized printers, terminals, and related software applications.
How the Company Makes MoneyTransact Technologies generates revenue through the sale of its hardware products, which include printers and terminals specifically designed for niche markets such as casinos, lotteries, and food safety. Additionally, the company earns money through the provision of software solutions that accompany their hardware, enabling enhanced performance and functionality. The company also benefits from recurring revenue streams in the form of maintenance contracts, software subscriptions, and consumable supplies like printer paper and ink. Key partnerships with industry leaders in the gaming and food service sectors further bolster Transact Technologies' revenue by expanding its market reach and customer base.
Transact Technologies Financial Statement Overview
Summary
Transact Technologies is experiencing a significant decline in revenue and profitability, with a negative net profit margin and reduced gross profit margin. The balance sheet shows low leverage but a concerning negative return on equity. Cash flow has weakened, though free cash flow remains positive. Overall, the company faces challenges in financial performance.Income Statement
Transact Technologies has experienced a significant decline in revenue from $72.63M in 2023 to $43.38M in 2024, indicating a revenue growth rate of -40.24%. The gross profit margin decreased to 49.51% in 2024 from 52.84% in 2023, reflecting a reduction in profitability. The net profit margin has also turned negative at -22.73% in 2024 compared to 6.54% in 2023. Overall, the company is facing challenges in maintaining its revenue and profitability levels.40
Negative
Balance Sheet
The company's debt-to-equity ratio improved to 0.04 in 2024 from 0.10 in 2023, suggesting lower leverage. However, the return on equity turned negative at -32.19% in 2024, down from 12.04% in 2023, indicating declining profitability. The equity ratio remains stable at 69.56%, showing a solid equity base. Although leverage is low, the negative ROE is a concern.60
Neutral
Cash Flow
Operating cash flow decreased significantly from $5.51M in 2023 to $1.86M in 2024. Free cash flow also saw a decline but remained positive at $1.54M. The operating cash flow to net income ratio of -0.19 indicates challenges in converting income to cash flow. Although free cash flow is positive, the overall cash flow position has weakened.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 43.38M | 72.63M | 58.14M | 39.39M | 30.59M | Gross Profit |
| 21.48M | 38.40M | 24.41M | 15.25M | 12.93M | EBIT |
| -3.63M | 5.71M | -7.68M | -9.51M | -8.17M | EBITDA |
| -3.63M | 7.20M | -6.36M | -4.97M | -6.70M | Net Income Common Stockholders |
| -9.86M | 4.75M | -5.94M | -4.14M | -5.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 14.39M | 12.32M | 7.95M | 19.46M | 10.36M | Total Assets |
| 44.03M | 54.20M | 51.83M | 50.94M | 42.25M | Total Debt |
| 1.19M | 3.90M | 4.81M | 2.57M | 5.87M | Net Debt |
| -13.21M | -8.42M | -3.14M | -16.89M | -4.49M | Total Liabilities |
| 13.40M | 14.78M | 17.97M | 11.95M | 12.01M | Stockholders Equity |
| 30.63M | 39.41M | 33.86M | 38.99M | 30.24M |
| Cash Flow | Free Cash Flow | |||
| 1.54M | 4.61M | -13.52M | -3.89M | -4.25M | Operating Cash Flow |
| 1.86M | 5.51M | -12.22M | -2.51M | -3.51M | Investing Cash Flow |
| -322.00K | -901.00K | -1.30M | 222.00K | -1.34M | Financing Cash Flow |
| 634.00K | -87.00K | 2.06M | 11.47M | 11.03M |
Transact Technologies Technical Analysis
Negative
3.62
Price Trends
4.09
Negative
4.13
Negative
4.14
Negative
Market Momentum
-0.09
Negative
39.58
Neutral
35.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TACT, the sentiment is Negative. The current price of 3.62 is below the 20-day moving average (MA) of 3.78, below the 50-day MA of 4.09, and below the 200-day MA of 4.14, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 39.58 is Neutral, neither overbought nor oversold. The STOCH value of 35.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TACT.
Transact Technologies Risk Analysis
Transact Technologies disclosed 37 risk factors in its most recent earnings report. Transact Technologies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Transact Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $36.25M | 7.91 | 18.98% | 13.48% | -0.77% | -11.22% | |
68 Neutral | $38.98M | 12.49 | 19.32% | ― | -0.37% | ― | |
62 Neutral | $35.09M | 94.77 | 1.11% | ― | 28.82% | 60.24% | |
57 Neutral | $20.94B | 10.43 | -13.41% | 2.52% | 4.53% | -23.34% | |
48 Neutral | $37.10M | ― | -28.16% | ― | -40.27% | -306.30% | |
43 Neutral | $39.45M | ― | -2911.20% | ― | -27.60% | -5.44% | |
39 Underperform | $38.02M | ― | -42.84% | ― | 46.83% | 31.40% |
* Technology Sector Average
Performance Comparison
TACT
Transact Technologies
3.72
-1.20
-24.39%
LGL
LGL Group
6.93
1.11
19.07%
MNDO
MIND CTI
1.76
0.08
4.76%
PXLW
Pixelworks
0.62
-1.77
-74.06%
REFR
Research Frontiers
1.13
-0.14
-11.02%
USIO
Usio
1.51
-0.05
-3.21%
Transact Technologies Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: 0.56% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in Baja terminal sales and a recovery in casino and gaming revenue. However, significant declines were noted in total net sales, FST revenue, and recurring revenue. The company also faced a large non-cash charge impacting net income. Overall, the sentiment reflects a challenging year with some positive developments and strategic cost reductions.Highlights
Record Baja Terminal Sales
The fourth quarter saw the highest number of Baja terminals sold since 2020, with a total of 1,639 units. Over the last eight quarters, there has been a 42% compounded annual growth rate in Baja terminal placements.
Casino and Gaming Revenue Growth
Fourth quarter casino and gaming revenue was $4.8 million, up approximately 13.5% to 14% year over year and 5% sequentially. The company expects continued recovery in this segment.
Cost Reduction Initiatives
Operating expenses decreased by $1.3 million or 19% in the fourth quarter and by $7.6 million or 23% for the full year, due to successful cost reduction initiatives.
Strong Balance Sheet
The company ended 2024 with $14.4 million in cash, up from $2.1 million at the end of 2023, providing liquidity for at least the next twelve months.
Lowlights
Significant Decline in Total Net Sales
Total net sales for the fourth quarter were $10.2 million, down 23% compared to the fourth quarter of 2023. For the full year, net sales were $43.4 million, down 40% compared to 2023.
FST Revenue Decline
Fourth quarter FST revenue was $4.3 million, flat sequentially and down 9% year over year. Full year FST sales were down 1% compared to 2023.
Recurring Revenue Decline
Recurring FST sales were down 15% in the fourth quarter and 3% for the full year. This includes the loss of a significant customer.
Non-Cash Charge Impacting Net Income
A $7.3 million non-cash charge was incurred to record a full valuation allowance on deferred tax assets, contributing to a net loss of $8 million for the fourth quarter.
Decline in POS Automation and TSG Sales
POS automation sales decreased 74% and TSG sales decreased 73% in the fourth quarter compared to the prior year.
Company Guidance
During TransAct Technologies' fourth quarter 2024 earnings call, the company provided guidance for 2025, anticipating total revenue between $47 million and $52 million, with adjusted EBITDA ranging from breakeven to a negative $2 million. This outlook assumes continued recovery in the casino and gaming segment, with no supply chain or demand disruptions. The company reported a 42% compound annual growth rate in quarterly Baja terminal placements over the past two years and expected this trend to continue. Despite challenges, such as a $7.3 million non-cash charge for a full valuation allowance on deferred tax assets, TransAct remains optimistic about its strategic initiatives and market opportunities, particularly in the food service technology sector.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.