Quality Investor

Transcat, Inc.

Rank #326Op. Leverage

TRNS · Nasdaq · Industrials

Transcat, Inc. (TRNS) — Rank #326 by gross profitability (GP/assets 0.22) · ROE 1.8% · Piotroski F-Score 5 / 9.

As-of 2026-09-15 · CIK 0000099302 · all metrics point-in-time as of the filing date.

About

Transcat, Inc. provides calibration and laboratory instrument services in the United States, Canada, and internationally.

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The company 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 system that is used to 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, oil and gas, chemical manufacturing, and other industries that require accuracy in processes and confirmation of the capabilities of their equipment. It also provides calibration, repair, preventive maintenance, electrical safety inspection, and documentation and regulatory compliance services to hospital networks and healthcare facilities in the southeastern United States. Transcat, Inc.

was incorporated in 1964 and is headquartered in Rochester, New York.

Industry
Specialty Business Services
Sector
Industrials
State
OH
Filer Category
Large accelerated filer
Fiscal Year End
March 27

Price History

TRNS+25.0% · +4.6% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$756.93M

P/E (annual)

141.9

P/S (annual)

2.3

P/B

2.5

P/OCF (annual)

21.7

Shareholder Yield

-1.4%

Employees

1,413

Industry

Specialty Business Services

Exchange

Nasdaq

Signal Flags

3 green1 red
Revenue growth acceleratingGrowth rate increasing year over year
RPO outpacing revenueRemaining performance obligations growing faster than recognized revenue — forward demand building
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak
Operating margin decliningOperating margin lower than prior year

Quality Profile

Profitability

1/1 pass
GP / assets
0.22
Return on equity
1.8%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.63
Current ratio
2.49×
Net cash
-$103.68M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
2.3%

Growth

2/2 pass
Revenue growth
19.2%
Piotroski F-Score
5 / 9
Share dilution
1.4%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

16.7%

fairly valued

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 1.4% — per-share value needs a total required return of 18.1% once share-count change is priced in.

vs. own 6-year median revenue growth: 12.5%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

11.9%

r = 10% (base)

16.7%

r = 12%

20.9%

Net debt / market cap: 13.7%

Base FCF: $19.6M3Y mean FCF: $21.6M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

140.9xExpensive
24.5xmed 48.4x140.9x

P / S

Price / revenue per share

2.3xFair
0.0xmed 1.7x4.3x

P / B

Price / book value per share

2.5xCheap
0.0xmed 3.1x6.9x

P / GP

Price / gross profit per share

7.0xFair
0.0xmed 6.0x13.3x

P / FCF

Price / free cash flow per share

38.5xFair
0.1xmed 37.4x91.8x

Operating margin expansion and free cash flow are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.22

Primary signal (Novy-Marx).

19th pctl of 37 SIC 38 peers

Return on equity

1.8%

Gross margin

32.6%

11th pctl of 37 SIC 38 peers

Revenue growth (YoY)

19.2%

RPO growth (YoY)

121.2%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

12.9%

Revenue CAGR (5Y)

13.9%

Earnings CAGR (3Y)

-20.5%

FCF CAGR (3Y)

37.4%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.63

65th pctl of 35 SIC 38 peers (best = lowest)

Current ratio

2.49×

54th pctl of 36 SIC 38 peers

Quick ratio

1.91×

Net cash

-$103.68M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$19.55M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

2.64

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

2.3%

Stock-based comp intensity.

Piotroski F-Score

F-Score

5 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20212026
Value
Op. Leverage