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Transcat, Inc. ( Transcat , the Company, we or us ) is a leading provider of accredited calibration services, cost control and optimization services, and distribution and rental of value-added professional grade handheld test, measurement, and control instrumentation. We are focused on providing services and products to highly regulated industries, particularly the life science industry, which …
Operating margin is thin at 4.00%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 19.2%, still solid. Margins contracted 2.4pp, which offsets some of the top-line progress.
Free cash flow declined 24% versus the prior year, cash generation momentum has weakened. ROIC dropped from 4.76% to 2.74%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$332M
▲ +19.2% YoY
Net Income (TTM)
$5M
▼ -63.0% YoY
Op. Margin
4.00%
▼ -2.4pp YoY
ROIC
2.74%
▼ -2.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$20M
▼ -24.2% YoY
Op. Cash Flow (TTM)
$35M
▼ -10.6% YoY
Net Debt
$129M
Cash & Equiv.
$5M
5Y CAGR: +13.9%
5Y CAGR: +2.8%
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