MeritValue

TRANSACT TECHNOLOGIES INC

TACTdata completeness 88%17 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

TRANSACT TECHNOLOGIES INC earns about -11% on invested capital, below its ~9% cost of capital, but has diluted owners by 8% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $10.13 and $10.82 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$39.4M1$58.1M2$72.6M3$43.4M4$51.5M4
Net income−$4.04M5−$5.94M6$4.75M7−$9.86M8−$1.24M8
Operating cash flow−$2.51M9−$12.2M10$5.51M11$1.86M12$7.67M12
Capital expenditure$1.38M13$1.3M14$901,00015$322,00016$109,00016
Free cash flow (derived)−$3.89M9−$13.5M10$4.61M11$1.54M12$7.56M12
Total debt—————
Cash & equivalents$19.5M17$7.95M18$12.3M19$14.4M20$20.4M20
Diluted shares9.3M9.9M10.0M10.0M10.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$30.85
your share of equity
Profit it earned you last year
−$1.23
Free cash flow it threw off
$7.5
Debt you’d be carrying
—

10 shares is a claim on $30.85 of net worth that earned you −$1.23 and generated $7.5 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-11% avg · 5y
FY21 -24%FY22 -23%FY23 18%FY24 -17%FY25 -8%

It earned about -11% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+8% shares · 5y

Share count is up 8% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $10.13 and $10.82 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$10.82
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$4.61M
DCF · Growth Exit 5Y
$10.13
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$4.61M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $10.13
The three cases
Bear0.0%$8.55
Base5.0%$10.13
Bull10.0%$12.02

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001140361-23-014061 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001140361-24-013040 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001140361-25-010065 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001140361-26-009238 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001140361-23-014061 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001140361-24-013040 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001140361-25-010065 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001140361-26-009238 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001140361-23-014061 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001140361-24-013040 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001140361-25-010065 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001140361-26-009238 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001140361-23-014061 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001140361-24-013040 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001140361-25-010065 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001140361-26-009238 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001140361-23-014061 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001140361-24-013040 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001140361-25-010065 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001140361-26-009238 (CashAndCashEquivalentsAtCarryingValue)