Quality Investor

Transcat, Inc.

Rank #311Op. LeverageWatchlistCompare with other stocks

TRNS · Nasdaq · Industrials

Transcat, Inc. (TRNS) — Rank #311 by gross profitability (GP/assets 0.22) · ROE 1.8% · Piotroski F-Score 5 / 9.

As-of 2026-10-30 · 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

Company Snapshot

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

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

1,413

Industry

Specialty Business Services

Exchange

Nasdaq

11/12

Flags passed

TRNS fails 1 critical flag

Passes 11 of 12 quality flags

  • FAIL
    Operating margin declining

    Operating margin lower than prior year

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · RPO outpacing revenue · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

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%

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

Profitability

Does it make money well?

Warning: Operating margin declining · GP/assets 0.22

Gross profitability (GP / assets)

0.22

Primary signal (Novy-Marx).

5th of 5 SIC 3825 peers

Return on equity

1.8%

Gross margin

32.6%

5th of 5 SIC 3825 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%

Cash Flow Health

Is the cash real?

No warning flags · FCF 264% above net income

Free cash flow

$19.55M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

263.7%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

2.3%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net debt $103.68M, F-Score 5/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.63

2nd of 5 SIC 3825 peers (best = lowest)

Current ratio

2.49×

3rd of 5 SIC 3825 peers

Quick ratio

1.91×

Net cash

-$103.68M

Cash & equivalents minus total debt.

Piotroski F-Score

5 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

1.7 / 5

Weak
Share count trend
1.4%2/5 Fair
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory
-13.3%0/5 Weak

Lifecycle Phase History

20212026
Value
Op. Leverage

Price History

TRNS+34.1% · +6.0% CAGRSPY+82.9% · +12.8% CAGR