# Transcat (TRNS.US)

Canonical: https://gigainvestors.com/s/TRNS

Analysis as of: 2026-10-16T07:32:30.964Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $82.61 per share; close as of 2026-10-15.

Estimated value: low $23.60 per share, central $29.17 per share, high $34.02 per share. Buy at or below the central value $29.17 per share. Valuation as of 2026-10-16T07:32:30.964Z; scenarios are not confidence intervals.

Expected annual return: 5.5% at the stated quote. About 5.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.15×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.06×

- FY2018: 0.06×

- FY2019: 0.06×

- FY2020: 0.06×

- FY2021: 0.06×

- FY2022: 0.07×

- FY2023: 0.07×

- FY2024: 0.08×

- FY2025: 0.06×

- FY2026: 0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 14.1%

- ROIC, second-lowest year: 8.5%

- Typical minus recent gross margin: -4.7 pp

- Typical gross margin (annual median): 27.6%

- Recent gross margin (lower of latest and 3-year median): 32.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.2%

- ROIC including acquisitions, ten-year median: 7.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 13.8%

- FY2018: 16.5%

- FY2019: 17.5%

- FY2020: 14.5%

- FY2021: 14.7%

- FY2022: 15.8%

- FY2023: 13.8%

- FY2024: 13.8%

- FY2025: 8.5%

- FY2026: 4.3%

### economics: pass

- Owner earnings / net income, 5-yr: 1.32×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $74M

- Net income, five-year total: $56M

- Return on incremental invested capital: 17.4%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 3.3 pp

- Working capital / revenue, final three-year average: 19.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 1.14×

- FY2024: 1.02×

- FY2025: 1.37×

- FY2026: 3.02×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 16.5% vs 8.5%

- Per-share earnings: 0.64 to 1.57 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.8%

- Ordinary dilution, 5-year annual growth: 4.4%

- Market cap gain: $596M

- Cumulative retained earnings: $70M

- Diluted shares, 10-year annual growth: 2.8%

- Diluted shares, 5-year annual growth: 4.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 11.9%

- Per-share value change: $0.93

- Per-share value, starting three-year median: $0.64

- Per-share value, ending three-year median: $1.57

- Buybacks concentrated in cheaper years (correlation): 0.16

- Average buyback yield: 0.5%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $249M

- Cumulative net income, 10 years: $89M

- ROIC, first three-year median: 16.5%

- ROIC, last three-year median: 8.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: $0.64

- FY2018: $0.81

- FY2019: $0.95

- FY2020: $1.08

- FY2021: $1.03

- FY2022: $1.50

- FY2023: $1.40

- FY2024: $1.63

- FY2025: $1.57

- FY2026: $0.57

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -6.1%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 21.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 6.48×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.98×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -3.3%

- FY2018: -4.1%

- FY2019: -5.1%

- FY2020: -2.7%

- FY2021: -12.0%

- FY2022: -3.5%

- FY2023: -3.2%

- FY2024: -6.6%

- FY2025: -6.4%

- FY2026: -6.1%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 35% since May 2024 · sales +19.2%

Story as of 2026-10-16T09:59:43.411Z; price observation 2026-10-15.

Price needs cash profits to grow 16.1% a year for ten years

### Sales · FY2025–2026

sales +19.2%; source https://www.sec.gov/Archives/edgar/data/99302/000143774926018588/trns20260328_10k.htm; observed 2026-05-27.

- FY2017: $144M 

- FY2018: $155M 

- FY2019: $161M 

- FY2020: $173M 

- FY2021: $173M 

- FY2022: $205M 

- FY2023: $231M 

- FY2024: $259M 

- FY2025: $278M 

- FY2026: $332M 

### Gross margin · FY2026

gross margin 32.6%; source https://www.sec.gov/Archives/edgar/data/99302/000143774926018588/trns20260328_10k.htm; observed 2026-05-27.

- FY2017: 24.3% 

- FY2018: 24.1% 

- FY2019: 24.5% 

- FY2020: 24.5% 

- FY2021: 26.6% 

- FY2022: 28.5% 

- FY2023: 29.6% 

- FY2024: 32.3% 

- FY2025: 32.1% 

- FY2026: 32.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty business services; annual sales are USD 331.9 million.

- Source: https://www.sec.gov/Archives/edgar/data/99302/000143774926018588/trns20260328_10k.htm (filed 2026-05-27); FY2026: revenue 331877000; grossProfit 108304000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); TRNS.US: Transcat, Inc. provides calibration and laboratory instrument services in the United States, Canada, and internationally. 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.

### Why customers stay

Margins ranged from 32.1% to 32.6% during 2024–26; it earns 14.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2024: grossProfit / revenue = 32.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2025: grossProfit / revenue = 32.1%.

- Source: https://www.sec.gov/Archives/edgar/data/99302/000143774926018588/trns20260328_10k.htm (filed 2026-05-27); FY2026: grossProfit / revenue = 32.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); 10-year return on capital observations [[2017,0.13807126984551954],[2018,0.16450699267111915],[2019,0.1747068354210219],[2020,0.14456761923965583],[2021,0.1470693585559427],[2022,0.1577493072245535],[2023,0.13823015695010876],[2024,0.13818843681861964],[2025,0.08519996191160274],[2026,0.04324613637102504]]; median 0.1413988880948823. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 17.4% on new investment; paid dividends in 2 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2017: growth capex 0; upkeep 5250000; cash acquisitions 6977000; owner earnings 5456000. Growth capex plus acquisitions / owner earnings = 1.278775659824047.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2018: growth capex 0; upkeep 5882000; owner earnings 6031000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2019: growth capex 595618.750290513; upkeep 6402381.249709487; cash acquisitions 3614000; owner earnings 7103618.750290513. Growth capex plus acquisitions / owner earnings = 0.5926020100837133.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2020: growth capex 0; upkeep 6579000; cash acquisitions 12983000; owner earnings 8147000. Growth capex plus acquisitions / owner earnings = 1.5935927335215416.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2021: growth capex 0; upkeep 6617000; cash acquisitions 3551000; owner earnings 8754000. Growth capex plus acquisitions / owner earnings = 0.4056431345670551.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2022: growth capex 585000; upkeep 9567000; cash acquisitions 29808000; owner earnings 11380000. Growth capex plus acquisitions / owner earnings = 2.670738137082601.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2023: growth capex 0; upkeep 9414000; cash acquisitions 9109000; owner earnings 12229000. Growth capex plus acquisitions / owner earnings = 0.744868754599722.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2024: growth capex 0; upkeep 13280000; cash acquisitions 12859000; owner earnings 13911000. Growth capex plus acquisitions / owner earnings = 0.9243763927826899.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2025: growth capex 0; upkeep 13197000; cash acquisitions 87436000; owner earnings 19885000. Growth capex plus acquisitions / owner earnings = 4.397083228564244.

- Source: https://www.sec.gov/Archives/edgar/data/99302/000143774926018588/trns20260328_10k.htm (filed 2026-05-27); FY2026: growth capex 0; upkeep 15298000; cash acquisitions 82525000; owner earnings 16250000. Growth capex plus acquisitions / owner earnings = 5.078461538461538.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); Incremental return on capital 0.17442934544892855, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); Dividend observations: [[2017,9034000],[2018,0],[2019,0],[2020,0],[2021,1982000],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/99302/000143774926018588/trns20260328_10k.htm (filed 2026-05-27); FY2026: cash repurchases 469000 USD.

### Are managers owners

Insiders own 2.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); TRNS.US SharesStats.PercentInsiders = 2.4490000000000003 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits grow 16.1% yearly over ten years; actual growth was 12%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); Ten-year compound average after fade. Initial solved rate 0.22078193397500445. Price 82.61; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.5573655385479568 → FY2026 1.732409381663113. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $10.50 per share

- 2016-11: $10.75 per share

- 2016-12: $10.80 per share

- 2017-01: $12.05 per share

- 2017-02: $12.10 per share

- 2017-03: $12.70 per share

- 2017-04: $12.20 per share

- 2017-05: $12.13 per share

- 2017-06: $12.15 per share

- 2017-07: $13.00 per share

- 2017-08: $13.30 per share

- 2017-09: $13.55 per share

- 2017-10: $12.65 per share

- 2017-11: $14.00 per share

- 2017-12: $14.25 per share

- 2018-01: $15.70 per share

- 2018-02: $15.70 per share

- 2018-03: $15.65 per share

- 2018-04: $16.50 per share

- 2018-05: $18.15 per share

- 2018-06: $18.90 per share

- 2018-07: $22.85 per share

- 2018-08: $24.48 per share

- 2018-09: $22.85 per share

- 2018-10: $20.71 per share

- 2018-11: $20.73 per share

- 2018-12: $19.02 per share

- 2019-01: $22.40 per share

- 2019-02: $23.00 per share

- 2019-03: $22.98 per share

- 2019-04: $23.05 per share

- 2019-05: $24.80 per share

- 2019-06: $25.59 per share

- 2019-07: $23.82 per share

- 2019-08: $23.23 per share

- 2019-09: $25.61 per share

- 2019-10: $31.34 per share

- 2019-11: $32.79 per share

- 2019-12: $31.86 per share

- 2020-01: $30.60 per share

- 2020-02: $28.89 per share

- 2020-03: $26.50 per share

- 2020-04: $28.09 per share

- 2020-05: $25.04 per share

- 2020-06: $25.86 per share

- 2020-07: $27.90 per share

- 2020-08: $29.41 per share

- 2020-09: $29.30 per share

- 2020-10: $30.91 per share

- 2020-11: $31.70 per share

- 2020-12: $34.68 per share

- 2021-01: $36.57 per share

- 2021-02: $44.83 per share

- 2021-03: $49.08 per share

- 2021-04: $50.00 per share

- 2021-05: $52.84 per share

- 2021-06: $56.51 per share

- 2021-07: $63.85 per share

- 2021-08: $67.76 per share

- 2021-09: $64.48 per share

- 2021-10: $74.88 per share

- 2021-11: $88.97 per share

- 2021-12: $92.43 per share

- 2022-01: $94.91 per share

- 2022-02: $78.46 per share

- 2022-03: $81.14 per share

- 2022-04: $73.00 per share

- 2022-05: $63.39 per share

- 2022-06: $56.81 per share

- 2022-07: $62.32 per share

- 2022-08: $74.09 per share

- 2022-09: $75.69 per share

- 2022-10: $82.76 per share

- 2022-11: $80.03 per share

- 2022-12: $70.87 per share

- 2023-01: $83.52 per share

- 2023-02: $89.99 per share

- 2023-03: $89.39 per share

- 2023-04: $76.29 per share

- 2023-05: $84.53 per share

- 2023-06: $85.31 per share

- 2023-07: $83.88 per share

- 2023-08: $101.96 per share

- 2023-09: $97.97 per share

- 2023-10: $90.02 per share

- 2023-11: $97.98 per share

- 2023-12: $109.33 per share

- 2024-01: $110.04 per share

- 2024-02: $105.16 per share

- 2024-03: $111.43 per share

- 2024-04: $107.37 per share

- 2024-05: $127.40 per share

- 2024-06: $119.68 per share

- 2024-07: $115.24 per share

- 2024-08: $123.46 per share

- 2024-09: $120.77 per share

- 2024-10: $95.57 per share

- 2024-11: $104.89 per share

- 2024-12: $105.74 per share

- 2025-01: $77.02 per share

- 2025-02: $79.52 per share

- 2025-03: $74.45 per share

- 2025-04: $79.33 per share

- 2025-05: $87.38 per share

- 2025-06: $85.96 per share

- 2025-07: $76.43 per share

- 2025-08: $83.95 per share

- 2025-09: $73.20 per share

- 2025-10: $72.65 per share

- 2025-11: $56.54 per share

- 2025-12: $56.73 per share

- 2026-01: $60.31 per share

- 2026-02: $77.97 per share

- 2026-03: $73.45 per share

- 2026-04: $76.10 per share

- 2026-05: $84.52 per share

- 2026-06: $92.77 per share

- 2026-07: $85.37 per share

- 2026-08: $86.49 per share

- 2026-09: $88.42 per share

- 2026-10: $82.61 per share

## Annual estimated value (USD per share)

- FY2017: low $8.00 per share, central $9.90 per share, high $11.55 per share

- FY2018: low $9.62 per share, central $12.01 per share, high $14.02 per share

- FY2019: low $9.67 per share, central $12.04 per share, high $14.05 per share

- FY2020: low $10.69 per share, central $13.29 per share, high $15.51 per share

- FY2021: low $11.83 per share, central $14.43 per share, high $16.82 per share

- FY2022: low $14.82 per share, central $18.06 per share, high $21.05 per share

- FY2023: low $17.99 per share, central $22.22 per share, high $25.92 per share

- FY2024: low $23.62 per share, central $29.06 per share, high $33.34 per share

- FY2025: low $18.86 per share, central $23.03 per share, high $26.84 per share

- FY2026: low $22.43 per share, central $27.72 per share, high $32.34 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/99302/000143774926018588/trns20260328_10k.htm); period 2026-03-28, filed 2026-05-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.