Transact Technologies (TACT) AI Stock Analysis

• Market Cap: $37.50M
• Dividend Yield: N/A
• Average Volume (3M): 15.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: -25.06%
• EPS Growth: -1624.61%
• Country: US
• Employees: 108
• Sector: Technology
• Sector Strength: 91
• Industry: Computer Hardware
• EPS (TTM): 0.00
• Shares Outstanding: 10,080,717
• 10 Day Avg. Volume: 16,336
• 30 Day Avg. Volume: 15,240
• PEG Ratio: -0.32
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.63
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 2.71
• Enterprise Value/Ebitda: -14.45
• 1Y Price Target: $4.50
• Price Target Upside: 19.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: $4.00 ▲(5.82%Upside)

Transact Technologies is facing significant financial challenges, which weigh heavily on the overall score. While technical indicators are mixed, positive momentum from the earnings call provides a boost. However, the negative P/E ratio and absence of dividends detract from valuation attractiveness. The company's ability to sustain growth in key segments will be crucial moving forward.

Transact Technologies Business Overview & Revenue Model

Company Description

TransAct Technologies Incorporated designs, develops, and markets transaction-based and specialty printers and terminals in the United States and internationally. Its thermal printers and terminals to generates labels, coupons, and transaction records, such as receipts, tickets, and other documents, as well as printed logging and plotting of data. The company also provides consumable products, including POS receipt paper, inkjet cartridges, ribbons, and other printing supplies, as well as replacement parts and accessories; maintenance and repair services; and refurbished printers. In addition, it offers EPICENTRAL print system, a software solution that enables casino operators to create promotional coupons and marketing messages, and print them at the slot machine; and technical support services, as well as spare parts and accessories. Further, the company provides BOHA! terminal that combines hardware and software components in a device that includes an operating system, touchscreen, and one or two thermal print mechanisms. It markets its products under the BOHA!, AccuDate, Epic, Ithaca, EPICENTRAL, and Printrex brands for food service technology, point of sale automation, casino and gaming, lottery, and oil and gas markets, as well as government. The company sells its products to original equipment manufacturers, value-added resellers, and distributors, as well as directly to end-users through its Webstore transactsupplies.com. TransAct Technologies Incorporated was incorporated in 1996 and is headquartered in Hamden, Connecticut.

How the Company Makes Money

Transact Technologies generates revenue primarily through the sale of its technology solutions and services. The company's key revenue streams include the sale of hardware products, such as printers and terminals, and associated software solutions that cater to specific market needs. Additionally, Transact Technologies earns money through the provision of recurring services, including maintenance and support contracts, software subscriptions, and consumables. Strategic partnerships with industry leaders further enhance the company's market reach and contribute to its earnings by expanding its customer base and facilitating the adoption of its products across different sectors.

Transact Technologies Financial Statement Overview

Summary

Transact Technologies is experiencing a challenging period with significant declines in revenue and profitability. While leverage is low, the declining return on equity and operating cash flow indicate operational difficulties. The company must address these to improve its financial position.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.75M	43.38M	72.63M	58.14M	39.39M	30.59M
Gross Profit	21.98M	21.48M	38.40M	24.41M	15.25M	12.93M
EBITDA	-1.32M	-2.21M	7.70M	-6.36M	-4.97M	-6.70M
Net Income	-8.81M	-9.86M	4.75M	-5.94M	-4.14M	-5.63M
Balance Sheet
Total Assets	44.16M	44.03M	54.20M	51.83M	50.94M	42.25M
Cash, Cash Equivalents and Short-Term Investments	14.18M	14.39M	12.32M	7.95M	19.46M	10.36M
Total Debt	948.00K	4.19M	3.90M	4.81M	2.57M	5.87M
Total Liabilities	13.22M	13.40M	14.78M	17.97M	11.95M	12.01M
Stockholders Equity	30.94M	30.63M	39.41M	33.86M	38.99M	30.24M
Cash Flow
Free Cash Flow	2.96M	1.54M	4.61M	-13.52M	-3.89M	-4.25M
Operating Cash Flow	3.19M	1.86M	5.51M	-12.22M	-2.51M	-3.51M
Investing Cash Flow	-226.00K	-322.00K	-901.00K	-1.30M	222.00K	-1.34M
Financing Cash Flow	655.00K	634.00K	-87.00K	2.06M	11.47M	11.03M

Transact Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TACT, the sentiment is Positive. The current price of 3.78 is above the 20-day moving average (MA) of 3.61, above the 50-day MA of 3.62, and below the 200-day MA of 4.00, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 57.00 is Neutral, neither overbought nor oversold. The STOCH value of 77.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TACT.

Transact Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNDO	73 Outperform	$29.12M	7.97	18.26%	15.38%	-5.54%	-27.40%
USIO	72 Outperform	$42.30M	13.17	19.38%	―	3.07%	―
LGL	64 Neutral	$38.91M	99.60	1.04%	―	28.82%	60.24%
TACT	56 Neutral	$37.50M	―	-25.34%	―	-25.06%	-1624.61%
Sector *	50 Neutral	C$2.94B	1.84	-63.12%	2.59%	11.24%	-12.42%
REFR	47 Neutral	$50.60M	―	-37.98%	―	62.28%	44.68%
PXLW	43 Neutral	$37.56M	―	-2911.20%	―	-47.93%	-37.78%

Transact Technologies Corporate Events

TransAct Technologies Holds 2025 Annual Stockholders Meeting

On May 29, 2025, TransAct Technologies held its 2025 Annual Meeting of Stockholders where several proposals were voted on. The stockholders elected six directors to serve until the 2026 Annual Meeting and ratified the selection of CBIZ CPAs P.C. as the independent registered public accounting firm for 2025. Additionally, the stockholders approved the executive compensation on a non-binding advisory basis and voted on the frequency of future advisory votes on executive compensation.

The most recent analyst rating on (TACT) stock is a Buy with a $7.50 price target. To see the full list of analyst forecasts on Transact Technologies stock, see the TACT Stock Forecast page.