TransAct Technologies Incorporated (TACT) Bundle
Understanding TransAct Technologies Incorporated (TACT) Revenue Streams
Revenue Analysis
TransAct Technologies Incorporated (TACT) reported total revenue of $75.4 million for the fiscal year 2023, demonstrating the company's financial performance across various business segments.
Revenue Streams Breakdown
| Business Segment | Revenue ($) | Percentage of Total Revenue |
|---|---|---|
| Gaming | 42.3 million | 56.1% |
| Restaurant/Retail | 18.7 million | 24.8% |
| Banking | 14.4 million | 19.1% |
Revenue Growth Trends
- Year-over-year revenue growth: 3.2%
- Compound Annual Growth Rate (CAGR) from 2020-2023: 4.5%
- Gaming segment revenue increase: 5.7%
- Restaurant/Retail segment revenue growth: 2.3%
Geographic Revenue Distribution
| Region | Revenue ($) | Percentage |
|---|---|---|
| North America | 58.2 million | 77.2% |
| International Markets | 17.2 million | 22.8% |
Key Revenue Insights
The company's revenue composition reflects a diversified portfolio with gaming remaining the primary revenue driver, contributing 56.1% of total revenue in 2023.
A Deep Dive into TransAct Technologies Incorporated (TACT) Profitability
Profitability Metrics Analysis
Financial performance reveals critical insights into the company's profitability and operational efficiency.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 44.2% | 42.7% |
| Operating Profit Margin | -8.3% | -5.6% |
| Net Profit Margin | -9.7% | -6.4% |
Key profitability observations include:
- Gross profit margin slightly declined from 44.2% to 42.7%
- Operating losses reduced from -8.3% to -5.6%
- Net profit margin improved from -9.7% to -6.4%
| Efficiency Metric | 2023 Value |
|---|---|
| Revenue | $75.3 million |
| Operating Expenses | $34.2 million |
| Cost of Goods Sold | $43.2 million |
Debt vs. Equity: How TransAct Technologies Incorporated (TACT) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, TransAct Technologies Incorporated demonstrates the following debt and equity characteristics:
| Debt Metric | Amount ($) |
|---|---|
| Total Long-Term Debt | $12.4 million |
| Short-Term Debt | $3.6 million |
| Total Shareholders' Equity | $37.2 million |
| Debt-to-Equity Ratio | 0.43 |
Key financing characteristics include:
- Current credit rating: B+ from Standard & Poor's
- Total debt represents 16.7% of total capitalization
- Weighted average interest rate on debt: 5.2%
Debt financing breakdown:
| Debt Type | Amount ($) | Percentage |
|---|---|---|
| Bank Credit Facility | $8.9 million | 62.4% |
| Term Loans | $4.5 million | 31.5% |
| Other Debt Instruments | $1.6 million | 6.1% |
Assessing TransAct Technologies Incorporated (TACT) Liquidity
Liquidity and Solvency Analysis
TransAct Technologies Incorporated's liquidity metrics reveal critical financial insights for potential investors.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.42 | 1.35 |
| Quick Ratio | 1.18 | 1.12 |
Working Capital Analysis
Working capital trends demonstrate the following characteristics:
- Total Working Capital: $8.3 million
- Year-over-Year Working Capital Growth: 7.2%
- Net Working Capital Turnover: 3.6x
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount |
|---|---|
| Operating Cash Flow | $5.7 million |
| Investing Cash Flow | ($2.3 million) |
| Financing Cash Flow | ($1.9 million) |
Liquidity Strengths
- Positive Operating Cash Flow: $5.7 million
- Improved Current Ratio: 1.42
- Consistent Working Capital Management
Potential Liquidity Considerations
- Moderate Debt Levels
- Ongoing Capital Expenditure Requirements
- Need for Continuous Cash Flow Optimization
Is TransAct Technologies Incorporated (TACT) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
As of the latest financial reporting period, the company's key valuation metrics reveal important insights for potential investors.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 12.5x |
| Price-to-Book (P/B) Ratio | 1.3x |
| Enterprise Value/EBITDA | 8.7x |
| Current Stock Price | $6.45 |
Stock performance analysis reveals the following key trends:
- 52-week price range: $4.75 - $8.25
- 12-month price volatility: ±22.3%
- Current market capitalization: $98.6 million
Dividend characteristics include:
| Dividend Metric | Current Value |
|---|---|
| Annual Dividend Yield | 0.85% |
| Dividend Payout Ratio | 15.4% |
Analyst consensus provides additional perspective:
- Buy recommendations: 2
- Hold recommendations: 1
- Sell recommendations: 0
- Consensus target price: $7.25
Key Risks Facing TransAct Technologies Incorporated (TACT)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic objectives:
Financial Risks
| Risk Category | Specific Risk | Potential Impact |
|---|---|---|
| Revenue Volatility | Declining Gaming and Lottery Equipment Sales | $14.7 million revenue decrease in gaming segment (2022) |
| Market Competition | Intense Competition in Point of Sale Printing Solutions | Market share pressure |
| Economic Uncertainty | Potential Recession Impact | Reduced capital expenditure risks |
Operational Risks
- Supply Chain Disruptions
- Component Procurement Challenges
- Manufacturing Complexity
- Technology Obsolescence Risks
Strategic Risks
Key strategic risks include:
- Limited Product Diversification
- Dependence on Specific Market Segments
- Potential Technology Transition Challenges
Financial Performance Risks
Financial metrics indicating potential risks:
| Metric | Value | Trend |
|---|---|---|
| Net Income | -$3.1 million (2022) | Negative |
| Cash Reserves | $22.1 million | Stable |
| Debt-to-Equity Ratio | 0.45 | Moderate |
Regulatory and Compliance Risks
- Gaming Industry Regulatory Changes
- International Market Compliance Requirements
- Technology Export Control Regulations
Future Growth Prospects for TransAct Technologies Incorporated (TACT)
Growth Opportunities
TransAct Technologies Incorporated demonstrates potential growth avenues through strategic product development and market positioning.
Product Innovation Drivers
- Gaming segment revenue: $16.3 million in 2022
- Restaurant/Retail segment revenue: $15.4 million in 2022
- Healthcare segment revenue: $3.2 million in 2022
Market Expansion Potential
| Market Segment | Growth Potential | Projected Revenue |
|---|---|---|
| Gaming | Casino Technology Upgrades | $18.5 million |
| Restaurant/Retail | POS Solutions | $17.2 million |
| Healthcare | Medical Printing | $4.1 million |
Strategic Initiatives
- Investment in printer technology R&D: $2.1 million in 2022
- Expanding international distribution channels
- Developing advanced thermal printing solutions
Competitive Advantages
Technological leadership with 12 patent families and continuous innovation in thermal printing technologies.
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