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Measuring Transcat, Inc.'s (NASDAQ:TRNS) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess TRNS's recent performance announced on 30 March 2019 and compare these figures to its historical trend and industry movements.
How Well Did TRNS Perform?
TRNS's trailing twelve-month earnings (from 30 March 2019) of US$7.1m has jumped 21% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 13%, indicating the rate at which TRNS is growing has accelerated. What's the driver of this growth? Well, let’s take a look at if it is merely because of an industry uplift, or if Transcat has experienced some company-specific growth.
In terms of returns from investment, Transcat has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 7.6% exceeds the US Trade Distributors industry of 5.6%, indicating Transcat has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Transcat’s debt level, has increased over the past 3 years from 11% to 12%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Transcat gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Transcat to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for TRNS’s future growth? Take a look at our free research report of analyst consensus for TRNS’s outlook.
- Financial Health: Are TRNS’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.