Transcat shows excellent cash conversion, a top Piotroski score, and industry-leading peer growth rank, but consecutive earnings misses, negative momentum, and an already-reached analyst target argue for a cautious near-term stance.
Thesis pillars
- Strong Cash Conversion Piotroski→Stable
- Industry Growth Leader→Stable
- Consecutive Earnings Misses Negative Momentum↑Improving
- +1 more pillar — see the Why tab for full reasoning
Transcat, Inc. (TRNS) Stock Analysis
Industrials · Specialty Business Services
Sell if holding. Analyst target reached at $86.27 — A.R:R is negative (-0.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (2).
Transcat provides accredited calibration, reliability, maintenance optimization, quality and compliance, and CMMS services, and separately operates as a value-added distributor and rental source of test and measurement instruments from roughly 400 brands. The company serves... Read more
Sell if holding. Analyst target reached at $86.27 — A.R:R is negative (-0.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (2). Chart setup: No clear chart pattern; technical signals are mixed. Score 5.6/10, moderate confidence.
Passes 4/8 gates (clean insider activity, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
About Transcat, Inc.
About Transcat, Inc.
Transcat operates 33 calibration service centers across the United States, Canada, and Ireland as of fiscal year 2026, performing more than 1,200,000 calibrations annually for approximately 27,000 customers across its Service and Distribution segments. The company's Service segment customer base concentrates in the life science, pharmaceutical, medical device, aerospace, defense, and energy and utilities industries, while its Distribution segment sells and rents more than 75,000 test and measurement products from roughly 400 brands. In April 2026, Transcat expanded its footprint further by acquiring SCM Metrology and Laboratories, a calibration provider based in Costa Rica.
Transcat earns higher-margin, recurring revenue in its Service segment from periodic calibrations occurring on three-month to twenty-four-month cycles, subcontracting approximately 13% to 15% of Service segment work to third-party vendors with specialized capabilities it does not offer in-house. The lower-margin Distribution segment resells and rents instruments from roughly 400 manufacturer brands, competing against vendors that increasingly sell direct to end customers and against web-based distributors. Growth has been driven substantially by acquisitions: the company completed its two largest deals in company history in fiscal 2026 and 2025, including Essco Calibration Laboratory in the Boston area, its largest-ever acquisition, and Martin Calibration in Minneapolis, both aimed at expanding geographic reach and calibration capacity in life-science- and aerospace-heavy regions.
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Transcat's own 10-K flags a concentration of customers in the life science and other FDA-regulated businesses, alongside industrial, aerospace, defense, and energy and utilities customers, warning that a significant portion of its customers would be similarly affected by changes in economic, political, regulatory, and other industry conditions. That means federal or state budget pressure on life-science grant funding, or a deregulatory shift that dampens oil-and-gas capital spending, could simultaneously soften demand across a large share of Transcat's Service segment rather than being offset by a genuinely uncorrelated customer base.
See also: Industrials · Specialty Business Services
From Transcat, Inc.'s most recent 10-K filing, extracted July 6, 2026.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerlife science and other FDA-regulated businesses10-K Item 1A: 'Our Service segment has a concentration of customers in the life science and other FDA-regulated businesses'
Material Events(8-K, last 90d)
- 2026-05-19Item 5.02LOWTranscat's Compensation Committee approved a compensation increase for COO Michael W. West for fiscal 2027, effective March 29, 2026: $425,000 base salary, a 40%-of-base cash incentive target, and a 65%-of-base long-term equity incentive target. Routine compensatory arrangement; no departure.SEC filing →
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Rating Breakdown
1 floor-breaker
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $86.27 — A.R:R is negative (-0.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (2). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $81.96. Score 5.6/10, moderate confidence.
Take-profit target: $93.32 (-0.2% upside). Prior stop was $81.96. Stop-loss: $81.96.
Analyst target reached - limited upside remaining; Consecutive earnings misses (2); Negative momentum.
Transcat, Inc. trades at a P/E of 153.2 (forward 40.8). TrendMatrix value score: 4.5/10. Verdict: Sell.
10 analysts cover TRNS with a consensus score of 4.0/5. Average price target: $101.
What does Transcat, Inc. do?Transcat provides accredited calibration, reliability, maintenance optimization, quality and compliance, and CMMS...
Transcat provides accredited calibration, reliability, maintenance optimization, quality and compliance, and CMMS services, and separately operates as a value-added distributor and rental source of test and measurement instruments from roughly 400 brands. The company serves approximately 27,000 customers through its Service and Distribution segments, operating 33 calibration service centers across the U.S., Canada, and Ireland as of fiscal year 2026, with no single customer accounting for 3% or more of total revenue in fiscal 2026 or 2025.