TRNSTranscat, Inc.
Is the business good?
The checks split: earnings fully cash-backed (5.6×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 2% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is TRNS?
Transcat, Inc. earns 2.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 6.7 points below what the capital costs: growth destroys value
- Operating margin
- 3.3%
Operating margin · Specialty Business Services median 6.8% · 12 months to Q1 2026
- Cash conversion
- 5.60×
Cash conversion · 2.46× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.89%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 6.4% |
| FY2021 | 6.9% |
| FY2022 | 7.0% |
| FY2023 | 7.6% |
| FY2024 | 6.4% |
| FY2025 | 4.0% |
Details›
- Gross margin12 months to Q1 2026
- 33%
- Operating margin12 months to Q1 2026
- 3.3%
- Net margin12 months to Q1 2026
- 0.99%
- Free cash flow margin
- 7.3%
- Revenue, trailing twelve months
- $348M
- Free cash flow, trailing twelve months
- $25M
- Net income, trailing twelve months
- $3.4M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 2.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Specialty Business Services
Ranks #19 of 22 by RyuScore