Breaking Down TransAct Technologies Incorporated (TACT) Financial Health: Key Insights for Investors

Breaking Down TransAct Technologies Incorporated (TACT) Financial Health: Key Insights for Investors

US | Technology | Computer Hardware | NASDAQ

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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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