5/02/2014

Micro Cap Potential Value to Watch: 05/02/14





TRC is an engineering, consulting and construction management firm founded in 1969. Government and industry use TRC for projects from concept to operations.Further, 3,000 technical and support professionals at more than 100 offices throughout the U.S. support clients to design solutions in the energy, environmental and infrastructure markets.  On June 6, 2011, the Company acquired environmental business unit of RMT. In January 2013, the Company acquired Heschong Mahone Group. In January
2014, the Company announced that it has acquired EMCOR Energy Services, Inc. (EES), a subsidiary of EMCOR Group, Inc. 

TRC Companies (TRR) is far from perfect. Unpredictable future contracts impact margins, ROIC, profits and the stock price. Also, the financial characteristics are more growth. Consider exploiting if the price continues to drop. One or two disappointing quarterly results could offer that potential better price opportunity. 


WHY mention: Trading at valuation discount to its industry with price and P/S near a 2 year low. ROE 34%,YOY quarterly revenue growth 19.80%,% held by insider 25.60%, profitable operations with growing FCF and GM% from 2009 to the TTM grew the BV per share from a 2010 balance of 1.43 to 3.94 for TTM, ROIC was stellar from 2012 58.27%, 2013 37.74% to the TTM 31.62%.
% Below 52-Week High was 38.19%,YTD price down 16.79%,under performing industry and market with a solid financial position.  



Market Cap: 172.46M , Enterprise Value:   162.43M
Price/Sales:   0.49 , Price/Book:  1.51
Enterprise Value/Revenue:0.46 ,Enterprise Value/EBITDA: 5.97
Profit Margin: 9.38% , Operating Margin: 5.33%
Qtrly Revenue Growth (yoy): 19.80%
Gross Profit:  56.61M , EBITDA:  27.20M
Total Cash Per Share:   0.29
Book Value Per Share (mrq):  3.94
52-Week Change:  7.59%
Shares Outstanding:  29.68M ,Float:  22.83M
% Held by Insiders:  25.60% ,% Held by Institutions:  52.10%
Short % of Float :1.50%