Transcat Inc.
Find Ratings ReportsTRANSCAT INC's gross profit margin for the third quarter of its fiscal year 2023 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. TRANSCAT INC is extremely liquid. Currently, the Quick Ratio is 2.70 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 129.28% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q3 FY23 | Q3 FY22 |
---|---|---|
Net Sales ($mil) | 65.17 | 57.4 |
EBITDA ($mil) | 8.22 | 6.08 |
EBIT ($mil) | 4.46 | 3.26 |
Net Income ($mil) | 3.35 | 1.6 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 35.21 | 1.59 |
Total Assets ($mil) | 281.07 | 188.47 |
Total Debt ($mil) | 22.06 | 62.17 |
Equity ($mil) | 218.47 | 95.28 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 37.9 | 33.49 |
EBITDA Margin | 12.61 | 10.59 |
Operating Margin | 6.84 | 5.68 |
Sales Turnover | 0.89 | 1.19 |
Return on Assets | 3.7 | 5.34 |
Return on Equity | 4.77 | 10.58 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 3.37 | 2.42 |
Debt/Capital | 0.09 | 0.39 |
Interest Expense | 0.08 | 0.73 |
Interest Coverage | 55.05 | 4.46 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 8.83 | 7.56 |
Div / share | 0.0 | 0.0 |
EPS | 0.38 | 0.21 |
Book value / share | 24.74 | 12.6 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 41213.0 | 63414.0 |
BUY. TRANSCAT INC's P/E ratio indicates a significant premium compared to an average of 40.26 for the Professional, Scientific, and Technical Services subsector and a significant premium compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 4.54 indicates valuation on par with the S&P 500 average of 4.68 and a significant discount versus the subsector average of 13.30. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average.
Price/Earnings |
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Price/Cash Flow |
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TRNS 86.35 | Peers 40.26 | TRNS 32.65 | Peers 33.12 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. TRNS is trading at a significant premium to its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. TRNS is trading at a valuation on par to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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TRNS 51.02 | Peers 25.54 | TRNS NM | Peers 6.56 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. TRNS is trading at a significant premium to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. TRNS's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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TRNS 4.54 | Peers 13.30 | TRNS -1.52 | Peers 3.25 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. TRNS is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, TRNS is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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TRNS 3.95 | Peers 4.53 | TRNS 11.70 | Peers 6.63 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. TRNS is trading at a discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. TRNS has a sales growth rate that significantly exceeds its peers. |
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