Transcat Inc (TRNS): A High-Performing Industrial Distribution Stock with a GF Score of 91
Transcat Inc (NASDAQ:TRNS), a prominent player in the Industrial Distribution sector, is currently trading at $94.53 with a market capitalization of $726.696 million. The company's stock price has seen a gain of 4.38% today and a significant increase of 13.66% over the past four weeks. According to GuruFocus, Transcat Inc has a GF Score of 91 out of 100, indicating the highest outperformance potential. The GF Score is a comprehensive stock performance ranking system that considers five key aspects of valuation: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank.
Financial Strength Analysis
Transcat Inc's Financial Strength Rank stands at 6/10. This ranking is based on several factors, including the company's debt burden, debt to revenue ratio, and Altman Z-Score. Transcat Inc's interest coverage is 4.96, indicating a manageable debt burden. The company's debt to revenue ratio is 0.26, suggesting a healthy financial position. Furthermore, the company's Altman Z-Score is 6.65, indicating a low risk of bankruptcy.
Profitability Rank Analysis
The company's Profitability Rank is 9/10, reflecting its strong profitability. The company's Operating Margin is 7.31%, and its Piotroski F-Score is 6, indicating a healthy financial situation. The company has shown consistent profitability over the past 10 years and has a Predictability Rank of 5.
Growth Rank Analysis
Transcat Inc's Growth Rank is 10/10, reflecting its strong growth in terms of revenue and profitability. The company's 5-year revenue growth rate is 7.20%, and its 3-year revenue growth rate is 9.30%. Additionally, the company's 5-year EBITDA growth rate is 11.60%, indicating robust growth.
GF Value Rank Analysis
The company's GF Value Rank is 3/10, suggesting that the stock is currently overvalued. The GF Value Rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.
Momentum Rank Analysis
Transcat Inc's Momentum Rank is 10/10, indicating strong momentum in its stock price. This rank is determined using the standardized momentum ratio and other momentum indicators.
Competitor Analysis
When compared to its competitors in the Industrial Distribution sector, Transcat Inc stands out with its high GF Score. DXP Enterprises Inc (NASDAQ:DXPE) has a GF Score of 72, Titan Machinery Inc (NASDAQ:TITN) has a GF Score of 87, and BlueLinx Holdings Inc (NYSE:BXC) has a GF Score of 77. More details about these competitors can be found here.
Conclusion
In conclusion, Transcat Inc's high GF Score of 91, strong financial strength, robust profitability, and impressive growth make it a compelling investment option. However, potential investors should be aware of its current overvaluation as indicated by its low GF Value Rank. As always, it's crucial to conduct thorough research and consider various factors before making investment decisions.
This article first appeared on GuruFocus.
