Is TRANSCAT INC (TRNS) Halal?

NASDAQ Industrials United States $666M
✓ HALAL
Confidence: 95/100
TRANSCAT INC (TRNS) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 8.8% against the AAOIFI threshold of 30%, TRANSCAT INC comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Specialty Business Services), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from March 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 8.8%
/ 30%
0.2%
/ 30%
8.5%
/ 30%
0.3%
/ 5%
✓ HALAL
DJIM 8.8%
/ 33%
0.2%
/ 33%
8.5%
/ 33%
0.3%
/ 5%
✓ HALAL
MSCI 15.0%
/ 33%
0.4%
/ 33%
14.6%
/ 33%
0.3%
/ 5%
✓ HALAL
S&P 8.8%
/ 33%
0.2%
/ 33%
8.5%
/ 33%
0.3%
/ 5%
✓ HALAL
FTSE 15.0%
/ 33%
0.4%
/ 33%
14.6%
/ 50%
0.3%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
83.9
Forward: 34.5
EPS
$0.85
P/B Ratio
2.2
EV/EBITDA
19.3
EV: $796M
Revenue
$278M
Growth: 25.6%
Beta
0.7
Low volatility
Current Ratio
2.2

Profitability

Gross Margin 32.5%
Operating Margin 1.0%
Net Margin 2.5%
Return on Equity (ROE) 2.7%
Return on Assets (ROA) 2.4%

Cash Flow & Balance Sheet

Operating Cash Flow$39M
Free Cash Flow$26M
Total Debt$58M
Debt-to-Equity45.2
Current Ratio2.2
Total Assets$385M

Price & Trading

Last Close$73.24
50-Day MA$71.75
200-Day MA$71.77
Avg Volume143K
Beta0.7
52-Week Range
$50.23
$97.08

About TRANSCAT INC (TRNS)

CEO
Mr. Thomas L. Barbato
Employees
1,245
Sector
Industrials
Industry
Specialty Business Services
Country
United States
Exchange
NASDAQ
Market Cap
$666M
Currency
USD

Transcat, Inc. provides calibration and laboratory instrument services in the United States, Canada, and internationally. It operates through two segments, Service and Distribution. The Service segment offers calibration, repair, inspection, analytical qualification, preventative maintenance, consulting, and other related services. This segment also provides CalTrak, a proprietary document and asset management system that is used to manage the workflow of its calibration service centers and customers' assets; and Compliance, Control, and Cost, an online customer portal that provides its customers with web-based asset management capability, as well as a safe and secure off-site archive of calibration and other service records. The Distribution segment sells and rents test, measurement, and control instruments for customers' test and measurement instrumentation needs, as well as value-added services, such as calibration/certification of equipment purchase, equipment rental, used equipment for sale, and equipment kitting. This segment markets and sells its products through website, digital and print advertising, proactive outbound sales, and an inbound call center. The company provides services and products to highly regulated industries, principally life science, which includes companies in the pharmaceutical, biotechnology, medical device, and other FDA-regulated industries; and additional industries, including aerospace and defense, industrial manufacturing, energy and utilities, chemical manufacturing, and other industries that require accuracy in processes and confirmation of the capabilities of their equipment. Transcat, Inc. was incorporated in 1964 and is headquartered in Rochester, New York.

Purification Calculator

As a halal stock with 0.30% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is TRANSCAT INC (TRNS) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), TRANSCAT INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is TRANSCAT INC's debt ratio?

TRANSCAT INC's debt ratio is 8.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 15.0%.

Does TRANSCAT INC require dividend purification?

Yes, TRANSCAT INC has an impermissible income ratio of 0.30%, which means 0.30% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are TRANSCAT INC's key financial metrics?

TRANSCAT INC has a market capitalization of $666M, trailing P/E ratio of 83.9, and revenue of $278M. The company maintains a gross margin of 32.5% and a net margin of 2.5%. Return on equity stands at 2.7%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.