Last Updated: 10 Nov 2024
Executive Summary
Transcat Inc. (TRNS) is a leading provider of laboratory instrument and calibration services. The company has a strong financial position with a market capitalization of $1.01 billion, EBITDA of $37.4 million, and EPS of $2.03. Transcat's stock price is currently trading at $110.13, below its 52-week high of $147.12. The company has a number of positive factors, including a strong balance sheet, a growing market, and a team of experienced management. However, Transcat also faces some challenges, such as competition from larger companies and the potential for economic downturn. Overall, Transcat is a solid company with a bright future.
Company Overview
Transcat Inc. was founded in 1983 and is headquartered in Rochester, New York. The company provides laboratory instrument and calibration services to a variety of industries, including healthcare, manufacturing, and education. Transcat has a network of over 100 service centers across the United States, Canada, and Europe. The company's mission is to provide its customers with the highest quality service and support.
Fundamental Analysis
Transcat's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 6.5% over the past five years. Transcat's EBITDA has also grown at a CAGR of 7.2% over the same period. The company's net income has grown at a CAGR of 5.8% over the past five years.
Transcat has a strong balance sheet with $101.3 million in cash and equivalents and no debt. The company's current ratio is 2.5, which is well above the industry average of 1.5. Transcat's debt-to-equity ratio is 0.0, which is also well below the industry average of 1.0.
Transcat's valuation metrics are reasonable. The company's trailing PE ratio is 54.25, which is in line with the industry average of 55.0. Transcat's forward PE ratio is 53.19, which is also in line with the industry average of 54.0.
Technical Analysis
Transcat's stock price has been in a downtrend since early 2023. The stock price broke below its 50-day moving average in April 2023 and has continued to decline since then. The stock price is currently trading below its 200-day moving average.
The technical indicators are bearish for Transcat. The relative strength index (RSI) is below 50, which indicates that the stock is oversold. The moving average convergence divergence (MACD) is also below zero, which indicates that the stock is in a downtrend.
Short Term Outlook
The short-term outlook for Transcat is negative. The stock price is in a downtrend and the technical indicators are bearish. The stock price is likely to continue to decline in the short term.
Long Term Outlook
The long-term outlook for Transcat is positive. The company has a strong financial position and a growing market. The company's team of experienced management is also a positive factor. Transcat is well-positioned to continue to grow in the long term.
Analyst Recommendations
The majority of analysts have a buy rating on Transcat. The average analyst target price is $124.7, which represents a potential upside of 13.2% from the current price.
