Transcat (TRNS) AI Stock Analysis

• Market Cap: $655.21M
• Dividend Yield: N/A
• Average Volume (3M): 166.13K
• Price to Earnings (P/E): 35.9
• Beta (1Y): 1.09
• Revenue Growth: 11.81%
• EPS Growth: -39.16%
• Country: US
• Employees: 1,104
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.26
• Shares Outstanding: 9,332,188
• 10 Day Avg. Volume: 133,341
• 30 Day Avg. Volume: 166,125
• PEG Ratio: -9.64
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 2.42
• P/FCF Ratio: 26.14
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 2.45
• Enterprise Value/Gross Profit: 7.55
• Enterprise Value/Ebitda: 18.81
• 1Y Price Target: $100.00
• Price Target Upside: 39.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.86
• Revenue Forecast (FY): $330.61M

• Rating: 63 Neutral
• Price Target: $77.00 ▲(7.32% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is driven primarily by solid fundamental growth and margins with strong operating cash flow, but is held back by higher leverage and weaker TTM net income/free-cash-flow momentum. Technicals are mixed with subdued momentum, valuation is pressured by a negative P/E, and the latest earnings call/corporate updates were net positive due to reaffirmed guidance and leadership continuity.

Positive Factors

Durable Revenue Growth

Transcat shows sustained multi-year top-line expansion, with TTM revenue well above FY2021 and FY2025 levels. Consistent growth across cycles implies durable demand from regulated industries, supporting scale, pricing leverage and long-term reinvestment in service capabilities and distribution.

Strong Cash Generation

Operating cash flow exceeds reported earnings and remains a multi‑year strength, producing positive free cash flow. This cash backing makes growth self‑fundable for capex and targeted M&A, preserves liquidity for working capital, and supports balance‑sheet management over the medium term.

Strategic Acquisitions & Margin Mix

Recent bolt‑on acquisitions materially broaden geographic reach and technical capabilities, enabling cross‑sell and scale. Combined with mix shift (higher‑margin rentals and distribution margin expansion), these structural moves can sustain higher gross and EBITDA margins if integration captures expected synergies.

Negative Factors

Rising Leverage

Leverage has increased materially over recent periods, reducing financial flexibility and increasing fixed obligations. Higher debt loads raise interest sensitivity and constrain optionality for follow‑on investment or M&A without additional equity or deleveraging, elevating medium‑term balance‑sheet risk.

Weakened Free Cash Flow Momentum

While FCF remains positive, the near‑term collapse in FCF growth indicates increased reinvestment or working‑capital strain. That deterioration erodes the cushion for debt servicing and discretionary spending, and if prolonged could force tradeoffs between growth investments and balance‑sheet repair.

Acquisition & Onboarding Profit Pressure

Large acquisitions bring noncash amortization and elevated upfront integration/onboarding costs that depress GAAP profits and reduce reported margins. These charges can persist through integration, and onboarding inefficiencies can temporarily erode service economics, slowing improvement in reported net income.

Transcat Business Overview & Revenue Model

Company Description

Transcat, Inc. provides calibration and laboratory instrument services in the United States, Canada, and internationally. It operates through two segments, Service and Distribution. The Service segment offers calibration, repair, inspection, analytical qualification, preventative maintenance, consulting, and other related services. This segment also provides CalTrak, a proprietary document and asset management software that is used to integrate and manage the workflow of its calibration service centers and customers' assets; and Compliance, Control and Cost, an online customer portal that provides its customers with web-based asset management capability, as well as a safe and secure off-site archive of calibration and other service records. The Distribution segment sells and rents test, measurement, and control instruments for customers' test and measurement instrumentation needs, as well as value added services, such as calibration/certification of equipment purchase, equipment rental, used equipment for sale, and equipment kitting. This segment markets and sells its products through website, digital and print advertising, proactive outbound sales, and an inbound call center. The company provides services and products to highly regulated industries, principally life science, which includes companies in the pharmaceutical, biotechnology, medical device, and other FDA-regulated industries; and additional industries, including aerospace and defense industrial manufacturing, energy and utilities, and other industries that require accuracy in processes and confirmation of the capabilities of their equipment. Transcat, Inc. was incorporated in 1964 and is headquartered in Rochester, New York.

How the Company Makes Money

Transcat generates revenue primarily through two key streams: Calibration Services and Distribution. The Calibration Services segment accounts for a significant portion of the company's revenue by providing essential calibration and repair services to ensure that instruments meet regulatory compliance and industry standards. Additionally, the Distribution segment earns revenue by selling a variety of measurement and test equipment from well-known manufacturers. Transcat also benefits from long-term relationships with clients in regulated industries, which leads to recurring business. The company's strategic partnerships with leading manufacturers further enhance its product offerings and market reach, contributing to its overall earnings.

Transcat Financial Statement Overview

Summary

Solid multi-year revenue growth and improved gross/EBITDA margins, supported by strong operating cash flow. Offsetting this, TTM net profitability and free-cash-flow momentum weakened, and balance-sheet risk rose with a notable increase in debt and modest ROE.

Income Statement

Revenue has grown steadily over the multi-year period (from $173.3M in 2021 to $278.4M in FY2025), and TTM (Trailing-Twelve-Months) revenue is higher at $320.4M, indicating continued expansion. Profitability is solid for a distributor: gross margin improved versus earlier years (about 26.6% in 2021 to ~32.8% TTM), while EBITDA margin has generally trended up to ~14.0% TTM. The key weakness is softer bottom-line performance in TTM: net margin (~4.4%) and net income ($9.1M) are down versus FY2025 ($14.5M, ~5.2% margin), suggesting incremental costs, mix, or other pressures despite stable operating margins.

Balance Sheet

Equity and assets have expanded meaningfully (equity from $75.1M in 2021 to $286.9M in FY2025 and $296.8M in TTM), supporting business scale-up. Leverage, however, has moved higher recently: total debt increased to $129.1M in TTM from $57.7M in FY2025, lifting debt relative to equity to ~0.49 (from ~0.20). Returns on equity are currently modest (about 4.7% TTM vs ~5.1% FY2025 and higher levels in earlier years), which, combined with rising leverage, reduces balance-sheet quality compared with the prior year.

Cash Flow

Cash generation is a clear strength: operating cash flow is strong and stable (about $39.3M TTM and $39.0M in FY2025), and operating cash flow exceeds net income (roughly 1.12x TTM), indicating earnings are backed by cash. Free cash flow is positive ($24.9M TTM), but momentum has weakened sharply with TTM free cash flow growth at -94.4% versus positive growth in FY2025, pointing to higher reinvestment needs or working-capital headwinds. Free cash flow also covers only ~63% of net income in TTM, which is adequate but not exceptional.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	320.40M	278.42M	259.48M	230.57M	204.96M	173.34M
Gross Profit	103.84M	89.45M	83.81M	68.36M	58.44M	46.12M
EBITDA	41.69M	37.69M	33.82M	26.86M	23.57M	18.65M
Net Income	9.10M	14.52M	13.65M	10.69M	11.38M	7.79M
Balance Sheet
Total Assets	472.89M	385.24M	287.55M	195.75M	177.76M	132.12M
Cash, Cash Equivalents and Short-Term Investments	3.47M	1.52M	35.18M	1.53M	1.40M	560.00K
Total Debt	134.00M	57.73M	21.54M	64.41M	57.65M	27.52M
Total Liabilities	176.12M	98.36M	62.38M	96.12M	91.59M	57.04M
Stockholders Equity	296.77M	286.88M	225.17M	99.63M	86.18M	75.08M
Cash Flow
Free Cash Flow	24.87M	25.79M	19.34M	7.54M	7.47M	17.02M
Operating Cash Flow	39.28M	38.98M	32.62M	16.95M	17.62M	23.64M
Investing Cash Flow	-98.27M	-84.00M	-41.67M	-18.51M	-39.85M	-10.15M
Financing Cash Flow	57.54M	26.86M	27.40M	876.00K	23.69M	-12.65M

Transcat Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRNS, the sentiment is Negative. The current price of 71.75 is below the 20-day moving average (MA) of 75.56, above the 50-day MA of 70.74, and below the 200-day MA of 71.98, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 56.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRNS.

Transcat Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIC	76 Outperform	$1.16B	15.56	23.59%	3.48%	0.16%	2.99%
DXPE	75 Outperform	$2.00B	19.31	18.67%	―	12.76%	36.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TRNS	63 Neutral	$655.21M	35.90	2.84%	―	11.81%	-39.16%
EVI	57 Neutral	$264.45M	33.19	3.77%	―	12.63%	-21.23%
DSGR	56 Neutral	$1.20B	152.18	-1.68%	―	14.46%	-588.82%
TITN	47 Neutral	$347.75M	-6.84	-10.12%	―	-8.92%	-304.76%

Transcat Corporate Events

Transcat Appoints Jaime Irick as New President and CEO

On March 6, 2026, Transcat’s board appointed industrial and technology veteran Jaime Irick as president and chief executive officer, with his tenure and board service to begin on March 29, 2026, succeeding long-time CEO Lee D. Rudow, who will move to a senior advisory role through March 2027. The company formalized Irick’s three-year employment agreement, set his initial compensation package, and confirmed that his predecessor’s departure was not due to any dispute over Transcat’s operations or governance.

Irick brings a track record of growth, integration and operational execution from roles at Pittsburgh Paints Company, PPG Industries, Brunswick’s Life Fitness unit and General Electric, experience the board says aligns with Transcat’s strategy of scaling calibration services and strengthening its position in critical regulated industries. On March 6, 2026, Transcat also approved higher fiscal 2027 compensation for chief financial officer Thomas L. Barbato and adopted updated indemnification agreements for directors and executives, moves that underscore its effort to reinforce leadership stability and governance protections as it pursues further growth.

The most recent analyst rating on (TRNS) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Transcat stock, see the TRNS Stock Forecast page.

Transcat grants retention awards amid CEO transition

On January 6, 2026, Transcat’s board compensation committee granted special one-time equity retention awards in the form of restricted stock units to four executive officers, designed to vest on January 6, 2028, contingent on continued employment. Announced publicly on January 8, 2026, these awards are intended to preserve leadership continuity and keep executives focused on operations during the transition prompted by CEO Lee D. Rudow’s previously announced retirement, under which he will remain CEO until March 2026 and then serve in an advisory role through March 2027, a move the board views as critical to ensuring a smooth succession process and maintaining Transcat’s competitive positioning and long-term strategic execution for shareholders.

The most recent analyst rating on (TRNS) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on Transcat stock, see the TRNS Stock Forecast page.