Transcat (TRNS) AI Stock Analysis

• Market Cap: $759.23M
• Dividend Yield: N/A
• Average Volume (3M): 84.44K
• Price to Earnings (P/E): 56.8
• Beta (1Y): 0.89
• Revenue Growth: 8.49%
• EPS Growth: -15.53%
• Country: US
• Employees: 1,104
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Distribution
• EPS (TTM): 0.59
• Shares Outstanding: 9,319,079
• 10 Day Avg. Volume: 107,904
• 30 Day Avg. Volume: 84,440
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 2.99
• Enterprise Value/Gross Profit: 9.29
• Enterprise Value/Ebitda: 22.10
• 1Y Price Target: $101.40
• Price Target Upside: 24.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: $90.00 ▲(10.47% Upside)

Transcat's strong financial performance and positive earnings call guidance are significant strengths, indicating potential for future growth. However, technical indicators and valuation concerns, including a high P/E ratio, suggest caution. The company's strategic initiatives and acquisitions provide a positive outlook, but investors should be mindful of profitability and cash flow challenges.

Positive Factors

Acquisition Impact

The acquisition of Essco Calibration is expected to add substantial revenue and is seen as part of the company's growth strategy.

Organic Growth

The company is positioned for organic growth in its service segment, projected to grow at a high single-digit rate.

Revenue Growth

Stronger than modeled revenue was driven largely by strength in the company's equipment rental business, indicating robust performance.

Negative Factors

Economic Concerns

While largely insulated, the company faces potential risks from increased competition from web-based retailers and macroeconomic uncertainties.

Risks and Competition

Risks include dilution risk if additional capital is raised, customer concentration, acquisition integration risk, increased competition, and share volatility due to small capitalization.

Transcat Business Overview & Revenue Model

Company Description

Transcat, Inc. (TRNS) is a leading provider of calibration and measurement solutions, primarily serving the life sciences, industrial, and education sectors. The company specializes in the distribution of calibration instruments, the provision of calibration services, and the sale of related products. Transcat's core offerings include precision measurement equipment, calibration services for various instruments, and training solutions designed to ensure compliance with industry standards.

How the Company Makes Money

Transcat generates revenue through multiple streams, primarily from the sale of calibration instruments and equipment, calibration services, and related training and consulting. The company earns money by selling a wide range of products from various manufacturers, which are essential for precision measurement and compliance in regulated industries. Additionally, Transcat's calibration services include on-site and in-house calibration of instruments, which provides a recurring revenue stream as clients require ongoing calibration to meet regulatory standards. The company may also benefit from partnerships with leading instrument manufacturers, allowing it to offer exclusive products and services, thereby enhancing its market presence and sales capabilities.

Transcat Financial Statement Overview

Summary

Transcat's financial performance is commendable, characterized by strong revenue and profit growth, stable margins, and effective asset utilization. The company maintains a balanced leverage, with consistent growth in equity and cash flow generation, underpinning its financial stability.

Income Statement

Transcat has demonstrated a strong revenue growth trajectory with consistent increases in total revenue over the years. Gross profit margin has remained stable, indicating efficient cost management. The net profit margin is improving, reflecting better control over expenses and increased profitability. EBIT and EBITDA margins are solid, suggesting a healthy operational performance.

Balance Sheet

The company's balance sheet is robust, with a reasonable debt-to-equity ratio indicating balanced leverage. Stockholders' equity has grown, contributing to a stable equity ratio. Return on equity is strong, driven by consistent net income growth, highlighting effective use of equity financing.

Cash Flow

Operating cash flow has shown a positive trend, supporting strong net income conversion. Free cash flow growth has been steady, though capital expenditures have been significant. The company maintains a solid free cash flow to net income ratio, ensuring liquidity for reinvestment and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	288.14M	278.42M	259.48M	230.57M	204.96M	173.34M
Gross Profit	92.62M	89.45M	83.81M	68.36M	58.44M	46.12M
EBITDA	38.92M	37.69M	33.82M	27.39M	24.61M	18.65M
Net Income	13.37M	14.52M	13.65M	10.69M	11.38M	7.79M
Balance Sheet
Total Assets	392.54M	385.24M	287.55M	195.75M	177.76M	132.12M
Cash, Cash Equivalents and Short-Term Investments	1.86M	1.52M	35.18M	1.53M	1.40M	560.00K
Total Debt	65.72M	57.73M	21.54M	62.08M	57.65M	27.52M
Total Liabilities	100.00M	98.36M	62.38M	96.12M	91.59M	57.04M
Stockholders Equity	292.54M	286.88M	225.17M	99.63M	86.18M	75.08M
Cash Flow
Free Cash Flow	19.56M	25.79M	19.34M	7.54M	7.47M	17.02M
Operating Cash Flow	33.68M	38.98M	32.62M	16.95M	17.62M	23.64M
Investing Cash Flow	-84.50M	-84.00M	-41.67M	-18.51M	-39.85M	-10.15M
Financing Cash Flow	30.74M	26.86M	27.40M	876.00K	23.69M	-12.65M

Transcat Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 81.47
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 81.47 is above the 20-day moving average (MA) of 80.09, below the 50-day MA of 81.66, and below the 200-day MA of 88.03, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 50.82 is Neutral, neither overbought nor oversold. The STOCH value of 82.01 is Negative, 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
DXPE	79 Outperform	$1.92B	22.88	20.33%	―	13.93%	48.25%
GIC	78 Outperform	$1.36B	20.72	22.72%	2.94%	-1.58%	-5.62%
TRNS	71 Outperform	$759.23M	56.79	4.82%	―	8.49%	-15.53%
EVI	67 Neutral	$286.94M	49.75	4.71%	―	3.51%	33.35%
DSGR	67 Neutral	$1.48B	395.94	0.65%	―	13.48%	―
Sector *	66 Neutral	£2.67B	12.99	3.30%	3.25%	2.40%	-22.21%
TITN	53 Neutral	$450.84M	11.08	-9.38%	―	-5.32%	-163.42%

Transcat Corporate Events

Transcat Acquires Essco Calibration for $84 Million

On August 5, 2025, Transcat, Inc. acquired Essco Calibration Laboratory, a leading calibration services provider in New England, for $84 million. This acquisition, supported by a new $150 million credit facility, positions Transcat as a dominant player in the region, enhancing its market presence and offering potential sales and cost synergies. The deal marks Transcat’s largest acquisition to date and follows its purchase of Martin Calibration, contributing significantly to its revenue and expanding its capabilities and geographic reach.

The most recent analyst rating on (TRNS) stock is a Buy with a $155.00 price target. To see the full list of analyst forecasts on Transcat stock, see the TRNS Stock Forecast page.

Transcat Secures $150M Credit Facility for Growth

On July 29, 2025, Transcat, Inc. announced the closing of a new five-year $150 million secured credit facility with a syndicate led by M&T Bank, replacing its previous $80 million facility. This new credit facility nearly doubles Transcat’s access to capital, providing greater financial flexibility to support strategic acquisitions and internal growth initiatives, aligning with the company’s aggressive growth trajectory. The facility includes options for revolving loans, swingline loans, and letters of credit, with interest rates tied to the company’s leverage ratio. The arrangement reflects strong confidence from lenders and marks a significant milestone in Transcat’s strategic growth objectives.

The most recent analyst rating on (TRNS) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Transcat stock, see the TRNS Stock Forecast page.

Transcat Director Charles Hadeed Announces Retirement

On July 16, 2025, Charles P. Hadeed announced his retirement from the board of directors of Transcat, Inc., effective August 1, 2025. His departure is not due to any disagreements with the company, and Transcat expressed gratitude for his 23 years of service, including 18 years as a director.

The most recent analyst rating on (TRNS) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Transcat stock, see the TRNS Stock Forecast page.