Transact Technologies (TACT) AI Stock Analysis

• Market Cap: $46.63M
• Dividend Yield: N/A
• Average Volume (3M): 53.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -9.09%
• EPS Growth: -1586.89%
• Country: US
• Employees: 108
• Sector: Technology
• Sector Strength: 85
• Industry: Computer Hardware
• EPS (TTM): -0.01
• Shares Outstanding: 10,092,326
• 10 Day Avg. Volume: 90,291
• 30 Day Avg. Volume: 53,877
• PEG Ratio: 0.01
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 26.57
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 1.00
• Enterprise Value/Ebitda: -22.09
• 1Y Price Target: $5.00
• Price Target Upside: 9.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: $4.50 ▼(-1.10% Downside)

Transact Technologies' overall stock score is driven by a positive earnings call outlook and strong technical analysis indicators. However, financial performance challenges and valuation concerns weigh on the score. The company's strategic initiatives, such as the acquisition of the BOHA! software source code, provide optimism for future growth, but operational and profitability issues need to be addressed.

Positive Factors

Strategic Acquisition

The acquisition of the BOHA! software source code allows Transact Technologies greater control over its platform, enhancing its ability to innovate and potentially generate future revenue. This strategic move supports long-term growth in the casino and gaming market.

Revenue Growth in Key Segments

Strong growth in casino and gaming revenue indicates robust demand in these segments, contributing to the company's overall revenue expansion. This growth trend is crucial for sustaining long-term financial health and market position.

Positive EBITDA

Achieving positive adjusted EBITDA reflects improved operational efficiency and profitability, which are essential for long-term financial stability and investment in growth initiatives.

Negative Factors

Declining Revenue

A significant decline in revenue indicates challenges in maintaining sales momentum, which can impact the company's ability to invest in growth and sustain market competitiveness over time.

Negative Profit Margins

Negative profit margins highlight profitability issues, which can constrain the company's ability to reinvest in its business and may affect long-term financial health if not addressed.

Decreased Operating Cash Flow

A significant decrease in operating cash flow suggests difficulties in converting revenue into cash, which could hinder the company's ability to fund operations and growth initiatives sustainably.

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 through multiple streams. The primary revenue model is based on the sale of its hardware and software solutions, including point-of-sale systems and payment processing software. The company also earns income from transaction fees associated with payment processing services, where it charges a percentage of each transaction processed through its systems. Additionally, TACT offers ongoing support and maintenance services for its products, which provides a steady stream of recurring revenue. Strategic partnerships with financial institutions and technology providers further enhance its market reach and contribute to its earnings by facilitating bundled solutions that integrate seamlessly into existing business infrastructures.

Transact Technologies Financial Statement Overview

Summary

Transact Technologies is experiencing a challenging period with declining revenues and profitability. The balance sheet shows low leverage, but the negative return on equity is concerning. While free cash flow remains positive, the significant decrease in operating cash flow suggests operational difficulties. The company needs to address revenue growth and improve operational efficiency to strengthen 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	47.95M	43.38M	72.63M	58.14M	39.39M	30.59M
Gross Profit	22.76M	21.48M	38.40M	24.41M	15.25M	12.93M
EBITDA	-1.03M	-2.21M	7.70M	-6.36M	-4.97M	-6.70M
Net Income	-8.63M	-9.86M	4.75M	-5.94M	-4.14M	-5.63M
Balance Sheet
Total Assets	44.55M	44.03M	54.20M	51.83M	50.94M	42.25M
Cash, Cash Equivalents and Short-Term Investments	17.75M	14.39M	12.32M	7.95M	19.46M	10.36M
Total Debt	3.70M	4.19M	3.90M	4.81M	2.57M	5.87M
Total Liabilities	13.26M	13.40M	14.78M	17.97M	11.95M	12.01M
Stockholders Equity	31.29M	30.63M	39.41M	33.86M	38.99M	30.24M
Cash Flow
Free Cash Flow	6.04M	1.54M	4.61M	-13.52M	-3.89M	-4.25M
Operating Cash Flow	6.15M	1.86M	5.51M	-12.22M	-2.51M	-3.51M
Investing Cash Flow	-108.00K	-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: 4.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 4.55 is above the 20-day moving average (MA) of 4.40, above the 50-day MA of 4.04, and above the 200-day MA of 3.94, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 61.74 is Neutral, neither overbought nor oversold. The STOCH value of 75.07 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
Sector *	61 Neutral	$36.69B	12.42	-10.22%	1.85%	8.50%	-7.32%
TACT	60 Neutral	$46.63M	―	-24.73%	―	-9.09%	-1586.89%
OSS	60 Neutral	$122.12M	―	-44.58%	―	4.65%	-79.75%
KTCC	52 Neutral	$36.70M	―	-6.90%	―	-16.49%	-198.42%
ALOT	48 Neutral	$77.28M	16.92	-20.27%	―	0.63%	-364.33%
SCKT	44 Neutral	$8.04M	―	-16.13%	―	-5.39%	-54.90%
EBON	41 Neutral	$28.07M	―	-7.04%	―	154.52%	47.31%

Transact Technologies Corporate Events

TransAct Technologies Acquires BOHA! Software License

On August 5, 2025, TransAct Technologies entered into a Source Code Purchase and Perpetual License Agreement with Avery Dennison Corporation, acquiring a non-exclusive, perpetual, and royalty-free license for the BOHA! software. This agreement allows TransAct to modify and enhance its BOHA! platform, supporting its strategic priorities and growth in the casino and gaming market. Additionally, TransAct reported preliminary financial results for the second quarter of 2025, highlighting a 19% increase in net sales year-over-year and a significant rise in casino and gaming sales. The company achieved profitability with a decrease in net loss and positive adjusted EBITDA, reflecting progress in its operations and market strategies.