Transcat shows strong 22% revenue growth and excellent cash conversion, but thin 8.3% upside to the analyst target, a 37.8x forward P/E and a mixed earnings record leave a reward-to-risk of only about 1.05.
Thesis pillars
- Rich Valuation Low Margins→Stable
- Strong Revenue Growth→Stable
- Excellent Cash Conversion→Stable
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Oct 24, 2026, based on the 10-K filed May 27, 2026
Transcat, Inc. (TRNS) Stock Analysis
Breakout setup
Industrials · Specialty Business Services
Wait for pullback to $81.99. At $86.31 the A.R:R is 0.7:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $81.99 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Thin upside margin: 5.4%; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6).
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
Wait for pullback to $81.99. At $86.31 the A.R:R is 0.7:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $81.99 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Thin upside margin: 5.4%; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6). Chart setup: Golden cross, above all MAs, RSI 50, MACD bullish. Earnings in 1 day. Wait until post-earnings. Score 5.7/10, moderate confidence.
Passes 5/8 gates (positive momentum, clean insider activity, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 1d<=7d. 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.
Recent developments
updated 2026-11-02Recent Developments — Transcat, Inc.
Latest news
- NEWS Transcat Inc (TRNS) Earnings Forecast: Future EPS & Revenue Growth Estimates - TradingKey — TradingKey neutral
- NEWS Transcat Inc (TRNS) Earnings Forecast: Future EPS & Revenue Growth Estimates - tradingkey.com — tradingkey.com neutral
- NEWS Transcat Q1 2027 Earnings Call Transcript - MarketBeat — MarketBeat neutral
- NEWS Transcat’s (NASDAQ:TRNS) Q2 CY2026: Strong Sales - StockStory — StockStory positive
- NEWS TRNS|Transcat Inc|Price:81.200|Chg%:-4.870 - tradingkey.com — tradingkey.com negative
Generated 2026-11-02T11:48:16Z.
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 →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
10 dimensions · all in-band
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $81.99. At $86.31 the A.R:R is 0.7:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $81.99 (Default 5pct Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Thin upside margin: 5.4%; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6). Chart setup: Golden cross, above all MAs, RSI 50, MACD bullish. Earnings in 1 day. Wait until post-earnings. Target $90.95 (+5.4%), stop $76.92 (−12.2%), A.R:R 0.7:1. Score 5.7/10, moderate confidence.
Take-profit target: $90.95 (+5.4% upside). Target $90.95 (+5.4%), stop $76.92 (−12.2%), A.R:R 0.7:1. Stop-loss: $76.92.
Thin upside margin: 5.4%; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.6); Sector modifier (Industrials): -0.7.
Transcat, Inc. trades at a P/E of 239.7 (forward 39.7). TrendMatrix value score: 5.5/10. Verdict: Buy (Wait for Entry).
11 analysts cover TRNS with a consensus score of 4.0/5. Average price target: $107.
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.