Transcat (TRNS)
NASDAQ:TRNS
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Transcat
(NASDAQ:TRNS)
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Rating:63Neutral
Price Target:
$89.00
▲(6.82% Upside)
Action:ReiteratedDate: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
Recurring, compliance-driven Services business
Transcat's Services segment is rooted in recurring calibration and compliance work for regulated end markets. That creates sticky, contract-driven revenue with high retention and predictable cadence, supporting durable cash flows and cross-sell opportunities with Distribution over a multi-quarter horizon.
Negative Factors
Rising leverage and balance-sheet pressure
A material increase in debt raises financial risk and reduces flexibility for future investments or downturns. Higher leverage increases interest sensitivity and may constrain capital allocation choices, particularly given modest ROE; this elevated debt position remains relevant for several quarters as integration and deleveraging proceed.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, compliance-driven Services business
Transcat's Services segment is rooted in recurring calibration and compliance work for regulated end markets. That creates sticky, contract-driven revenue with high retention and predictable cadence, supporting durable cash flows and cross-sell opportunities with Distribution over a multi-quarter horizon.
Read all positive factors
Transcat (TRNS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$757.96M
Dividend YieldN/A
Average Volume (3M)130.26K
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth11.81%
EPS Growth-39.16%
CountryUS
Employees1,104
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)0.26
Shares Outstanding9,332,188
10 Day Avg. Volume112,541
30 Day Avg. Volume130,258
Financial Highlights & Ratios
PEG Ratio-9.64
Price to Book (P/B)2.35
Price to Sales (P/S)2.42
P/FCF Ratio26.14
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue2.79
Enterprise Value/Gross Profit8.61
Enterprise Value/Ebitda21.45
Forecast
1Y Price Target
$100.00Price Target Upside20.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.18
Revenue Forecast (FY)$353.84M
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, analy...
How the Company Makes Money
Transcat makes money primarily through two revenue streams: Services and Distribution. (1) Services revenue: The company earns fees for calibration and related quality services performed either in Transcat calibration laboratories or at customer s...
Transcat Key Performance Indicators (KPIs)
Transcat Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 25, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line and adjusted-profitability growth across both Service and Distribution segments (26% consolidated revenue growth, 29% service growth, 20% distribution growth), margin expansion (overall +60 bps, distribution +330 bps), robust adjusted EBITDA improvement and strategic acquisitions that broaden capabilities and geographic reach. Near-term GAAP results were weighed down by acquisition amortization, higher interest and CEO succession-related one-time charges, as well as temporary service margin pressure from onboarding new customers and elevated capex reducing operating cash flow. Management reaffirmed high-single-digit Q4 organic service growth and highlighted a healthy pipeline and improved balance sheet (2.0x leverage), supporting confidence in continued execution. Overall, the positives around growth, margin expansion, strategic M&A and liquidity outweigh the transitory headwinds.Positive Updates
Strong Consolidated Revenue Growth
Consolidated revenue increased 26% year-over-year to $83.9 million, driven by double-digit growth in both Service and Distribution segments.
Negative Updates
GAAP Net Loss and Increased Noncash Charges
Reported Q3 GAAP net loss of $1.1 million, driven by higher amortization expense tied to the Martin and Essco acquisitions (largest in company history) and increased noncash acquisition-related expenses.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Consolidated Revenue Growth
Consolidated revenue increased 26% year-over-year to $83.9 million, driven by double-digit growth in both Service and Distribution segments.
Read all positive updates
Company Guidance
Transcat reaffirmed Q4 organic service revenue growth guidance of high single‑digit percentage growth and said Q3’s momentum should carry into the fourth quarter (Q3: consolidated revenue +26% to $83.9M; service revenue +29% with 7% organic growth; distribution revenue $30.2M, +20%), noting adjusted EBITDA was $10.1M (up ~27% YoY) and consolidated gross profit rose 28% to $25.3M with consolidated gross margins +60 bps (distribution gross margin +330 bps); the company expects onboarding-related service margin headwinds from Q3 to normalize over the next few quarters (Q4 historically highest service margins — 36.2% last year), will incur some additional one‑time CEO succession costs in Q4, and affirmed its strong balance sheet (total debt $99.9M, $50.1M revolver capacity, 2.0x leverage) to support continued organic growth and M&A.Transcat Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
61
Positive
| 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
Positive
83.32
Price Trends
74.76
Positive
66.56
Positive
71.62
Positive
Market Momentum
1.96
Negative
71.03
Negative
93.69
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRNS, the sentiment is Positive. The current price of 83.32 is above the 20-day moving average (MA) of 74.79, above the 50-day MA of 74.76, and above the 200-day MA of 71.62, indicating a bullish trend. The MACD of 1.96 indicates Negative momentum. The RSI at 71.03 is Negative, neither overbought nor oversold. The STOCH value of 93.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRNS.
Transcat Risk Analysis
Transcat disclosed 34 risk factors in its most recent earnings report. Transcat 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
Transcat Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.27B | 15.56 | 23.59% | 3.48% | 0.16% | 2.99% | |
75 Outperform | $2.38B | 19.31 | 18.67% | ― | 12.76% | 36.11% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $757.96M | -122.65 | 2.84% | ― | 11.81% | -39.16% | |
57 Neutral | $292.49M | 33.19 | 3.77% | ― | 12.63% | -21.23% | |
56 Neutral | $1.26B | 152.18 | 1.29% | ― | 14.46% | -588.82% | |
55 Neutral | $473.40M | -6.84 | -9.00% | ― | -8.92% | -304.76% |
* Industrials Sector Average
TRNS
Transcat
83.32
-2.96
-3.43%
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156.03
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94.26%
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22.52
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27.61
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33.50
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TITN
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Transcat Corporate Events
Business Operations and StrategyExecutive/Board Changes
Transcat Appoints Jaime Irick as New President and CEO
Positive
Mar 9, 2026
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 wil...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.