Transcat Inc. Common Stock (TRNS)

FairStock Score: 25/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital, generate cash, and sell at a discount to intrinsic value. Transcat is in a sensible niche—calibration and instrument services, with a Service segment and Distribution segment, plus CalTrak for asset management. The numbers, however, do not yet show a high-quality compounder. In fiscal 2025, the year ended 2026-03-28, revenue rose to $331.9M from $278.4M in fiscal 2024, the year ended 2025-03-29, but net income fell to $5.4M from $14.5M, and diluted EPS dropped to $0.57 from $1.57. In fiscal Q1 2026, the quarter ended 2026-06-27, revenue was $92.9M versus $76.4M in fiscal Q1 2025, the quarter ended 2025-06-28, yet net income was only $1.3M versus $3.3M, and EPS was $0.14 versus $0.35. Returns are poor: FairStock calculates ROE at 1.16% and ROCE at 2.18%. The Lynch category is Slow Grower—Shrinking, with profit down 7.2% a year over five years despite 13.9% revenue growth. Financial health is not alarming, with D/E of 0.47, Altman Z-Score 3.21, Piotroski 5/9, and TTM FCF $25.4M, a 3.1% FCF yield. But at the 2026-10-13 close of $86.94, FairStock calculates P/E 241.5, P/B 2.70, EV/EBITDA 24.49, and a Graham Number of $16.19, leaving a -437% margin of safety. I see growth in sales, but not yet in owner earnings. Until profits and returns recover, the price offers little Graham-style protection.

In plain English: Transcat provides calibration and laboratory instrument services, mainly for industrial customers, and also distributes instruments. Sales grew in fiscal 2025, the year ended 2026-03-28, to $331.9 million, but profits fell sharply, and the business earns very little on the money invested in it. At the 2026-10-13 close of $86.94, the price looks expensive compared with current earnings and the company's accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-06-27) · fiscal Q3 2025 10-Q (period ended 2025-12-27) · fiscal Q2 2025 10-Q (period ended 2025-09-30) · fiscal Q1 2025 10-Q (period ended 2025-06-28) · FY2025 10-K (period ended 2026-03-28) · FY2024 10-K (period ended 2025-03-29) · FY2023 10-K (period ended 2024-03-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer