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Transcat Inc. (TRNS) Fundamental Analysis & AI Grade 2026

TRNS Nasdaq Instruments For Meas & Testing of Electricity & Elec Signals OH CIK: 0000099302
Recently Updated • Analysis: May 28, 2026 • SEC Data: 2026-03-28
Combined AI Grade
C
70% Confidence
N/A
C
70% Conf
Pending
Analysis scheduled

📊 TRNS Key Takeaways

Revenue: $331.9M
Net Margin: 1.6%
Free Cash Flow: $19.6M
Current Ratio: 2.33x
Debt/Equity: 0.33x
EPS: $0.57
AI Grade: C with 70% confidence
Transcat Inc. (TRNS) receives a C fundamental grade with 70% confidence from our AI analysis based on SEC 10-K filings. With revenue of $331.9M, net profit margin of 1.6%, and return on equity (ROE) of 1.8%, Transcat Inc. demonstrates mixed fundamentals in the Utilities sector. Below is our complete TRNS stock analysis for 2026.

Is Transcat Inc. (TRNS) a Good Investment?

Claude

While TRNS demonstrated solid 19.2% revenue growth, the 63% collapse in net income coupled with deteriorating profitability metrics (1.6% net margin, 1.8% ROE) signals severe operational challenges. Despite positive free cash flow of $19.6M, the company is failing to convert top-line growth into bottom-line profits.

Transcat Inc. Key Strengths (TRNS)

Claude
  • + Strong revenue growth of 19.2% YoY demonstrates market demand and sales execution
  • + Positive free cash flow of $19.6M indicates cash-generating operations despite profit issues
  • + Solid liquidity with current ratio of 2.33x and manageable debt at 0.33x leverage

TRNS Stock Risks: Transcat Inc. Investment Risks

Claude
  • ! Net income collapsed 63% YoY despite revenue growth—indicates profitability crisis and operational deterioration
  • ! Critically low net margin of 1.6% and ROE of 1.8% suggest business is structurally unprofitable or facing severe headwinds
  • ! Minimal cash position of $4.9M relative to $480.5M asset base limits financial flexibility and emergency capacity

Key Metrics to Watch

Claude
  • * Operating margin trend and root cause of profitability decline to determine if temporary or structural
  • * Operating expense growth rate versus revenue growth to identify cost control deterioration
  • * Operating cash flow sustainability and working capital changes in next two quarters

Transcat Inc. (TRNS) Financial Metrics & Key Ratios

Revenue
$331.9M
Net Income
$5.4M
EPS (Diluted)
$0.57
Free Cash Flow
$19.6M
Total Assets
$480.5M
Cash Position
$4.9M

💡 AI Analyst Insight

Strong liquidity with a 2.33x current ratio provides a solid financial cushion.

TRNS Profit Margin, ROE & Profitability Analysis

Gross Margin 32.6%
Operating Margin 4.0%
Net Margin 1.6%
ROE 1.8%
ROA 1.1%
FCF Margin 5.9%

TRNS vs Utilities Sector: How Transcat Inc. Compares

How Transcat Inc. compares to Utilities sector averages

Net Margin
TRNS 1.6%
vs
Sector Avg 12.0%
TRNS Sector
ROE
TRNS 1.8%
vs
Sector Avg 10.0%
TRNS Sector
Current Ratio
TRNS 2.3x
vs
Sector Avg 0.8x
TRNS Sector
Debt/Equity
TRNS 0.3x
vs
Sector Avg 1.4x
TRNS Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Transcat Inc. Stock Overvalued? TRNS Valuation Analysis 2026

Based on fundamental analysis, Transcat Inc. has mixed fundamental signals relative to the Utilities sector in 2026.

Return on Equity
1.8%
Sector avg: 10%
Net Profit Margin
1.6%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.33x
Sector avg: 1.4x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Transcat Inc. Balance Sheet: TRNS Debt, Cash & Liquidity

Current Ratio
2.33x
Quick Ratio
1.99x
Debt/Equity
0.33x
Debt/Assets
37.4%
Interest Coverage
7.23x
Long-term Debt
$99.9M

TRNS Revenue & Earnings Growth: 5-Year Financial Trend

TRNS 5-year financial data: Year 2022: Revenue $205.0M, Net Income $7.8M, EPS $1.03. Year 2023: Revenue $230.6M, Net Income $7.8M, EPS $1.03. Year 2024: Revenue $259.5M, Net Income $11.4M, EPS $1.50. Year 2025: Revenue $278.4M, Net Income $10.7M, EPS $1.40. Year 2026: Revenue $331.9M, Net Income $13.6M, EPS $1.63.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Transcat Inc.'s revenue has grown significantly by 62% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.63 reflects profitable operations.

TRNS Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
5.9%
Free cash flow / Revenue

TRNS Quarterly Earnings & Performance

Quarterly financial performance data for Transcat Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2026 $66.8M -$1.1M $-0.12
Q2 2026 $67.8M $1.3M $0.14
Q1 2026 $66.7M $3.3M $0.35
Q3 2025 $65.2M $460.0K $0.25
Q2 2025 $62.8M $460.0K $0.06
Q1 2025 $60.6M $2.9M $0.38
Q3 2024 $57.4M $460.0K $0.21
Q3 2023 $50.9M $1.6M $0.21

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Transcat Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$34.9M
Cash generated from operations
Stock Buybacks
$469.0K
Shares repurchased (TTM)
Capital Expenditures
$15.3M
Investment in assets
Dividends
None
No dividend program

TRNS SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Transcat Inc. (CIK: 0000099302)

📋 Recent SEC Filings

Date Form Document Action
May 28, 2026 4 xslF345X06/form4.xml View →
May 28, 2026 4 xslF345X06/form4.xml View →
May 28, 2026 4 xslF345X06/form4.xml View →
May 28, 2026 4 xslF345X06/form4.xml View →
May 28, 2026 4 xslF345X06/form4.xml View →

Frequently Asked Questions about TRNS

What is the AI rating for TRNS?

Transcat Inc. (TRNS) has an AI grade of C with 70% confidence, based on fundamental analysis of SEC EDGAR filings.

What are TRNS's key strengths?

Claude: Strong revenue growth of 19.2% YoY demonstrates market demand and sales execution. Positive free cash flow of $19.6M indicates cash-generating operations despite profit issues.

What are the risks of investing in TRNS?

Claude: Net income collapsed 63% YoY despite revenue growth—indicates profitability crisis and operational deterioration. Critically low net margin of 1.6% and ROE of 1.8% suggest business is structurally unprofitable or facing severe headwinds.

What is TRNS's revenue and growth?

Transcat Inc. reported revenue of $331.9M.

Does TRNS pay dividends?

Transcat Inc. does not currently pay dividends.

Where can I find TRNS SEC filings?

Official SEC filings for Transcat Inc. (CIK: 0000099302) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is TRNS's EPS?

Transcat Inc. has a diluted EPS of $0.57.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is TRNS's fundamental grade?

Based on our AI fundamental analysis in June 2026, Transcat Inc. has a C grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is TRNS stock overvalued or undervalued?

Valuation metrics for TRNS: ROE of 1.8% (sector avg: 10%), net margin of 1.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

What is TRNS's AI grade for 2026?

Our dual AI analysis gives Transcat Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is TRNS's free cash flow?

Transcat Inc.'s operating cash flow is $34.9M, with capital expenditures of $15.3M. FCF margin is 5.9%.

How does TRNS compare to other Utilities stocks?

Vs Utilities sector averages: Net margin 1.6% (avg: 12%), ROE 1.8% (avg: 10%), current ratio 2.33 (avg: 0.8).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 28, 2026 | Data as of: 2026-03-28 | Powered by Claude AI