TRIMBLE INC (TRMB) Stock Fundamental Analysis
NASDAQ:TRMB - Nasdaq - US8962391004 - Common Stock - Currency: USD
TRMB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. TRMB has an excellent profitability rating, but there are some minor concerns on its financial health. TRMB has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TRMB had positive earnings in the past year.
In the past year TRMB had a positive cash flow from operations.
TRMB had positive earnings in 4 of the past 5 years.
Of the past 5 years TRMB 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TRMB (14.97%) is better than 95.00% of its industry peers.
TRMB has a Return On Equity of 25.14%. This is amongst the best in the industry. TRMB outperforms 94.17% of its industry peers.
TRMB's Return On Invested Capital of 4.41% is fine compared to the rest of the industry. TRMB outperforms 60.83% of its industry peers.
TRMB had an Average Return On Invested Capital over the past 3 years of 7.04%. This is in line with the industry average of 8.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.97% | ||
| ROE | 25.14% | ||
| ROIC | 4.41% |
ROA(3y)5.46%
ROA(5y)5.96%
ROE(3y)10.17%
ROE(5y)11.57%
ROIC(3y)7.04%
ROIC(5y)6.78%
1.3 Margins
The Profit Margin of TRMB (40.67%) is better than 98.33% of its industry peers.
TRMB's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.50%, TRMB belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
TRMB's Operating Margin has improved in the last couple of years.
The Gross Margin of TRMB (63.11%) is better than 97.50% of its industry peers.
TRMB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.5% | ||
| PM (TTM) | 40.67% | ||
| GM | 63.11% |
OM growth 3Y-2.76%
OM growth 5Y4.23%
PM growth 3Y-12.86%
PM growth 5Y-2.07%
GM growth 3Y3.27%
GM growth 5Y2.58%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRMB is destroying value.
There is no outstanding debt for TRMB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.77 indicates that TRMB is not in any danger for bankruptcy at the moment.
The Altman-Z score of TRMB (3.77) is better than 61.67% of its industry peers.
The Debt to FCF ratio of TRMB is 3.75, which is a good value as it means it would take TRMB, 3.75 years of fcf income to pay off all of its debts.
TRMB has a Debt to FCF ratio of 3.75. This is comparable to the rest of the industry: TRMB outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that TRMB is not too dependend on debt financing.
TRMB has a Debt to Equity ratio (0.24) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.75 | ||
| Altman-Z | 3.77 |
ROIC/WACC0.51
WACC8.57%
2.3 Liquidity
TRMB has a Current Ratio of 1.16. This is a normal value and indicates that TRMB is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TRMB (1.16) is worse than 90.00% of its industry peers.
A Quick Ratio of 1.07 indicates that TRMB should not have too much problems paying its short term obligations.
TRMB has a worse Quick ratio (1.07) than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.74% over the past year.
The Earnings Per Share has been growing slightly by 7.45% on average over the past years.
EPS 1Y (TTM)6.74%
EPS 3Y2.33%
EPS 5Y7.45%
EPS Q2Q%41.27%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.47%
3.2 Future
Based on estimates for the next years, TRMB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.53% on average per year.
TRMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.71% yearly.
EPS Next Y3.33%
EPS Next 2Y8.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.86%
Revenue Next 2Y0.71%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.08, the valuation of TRMB can be described as expensive.
Based on the Price/Earnings ratio, TRMB is valued a bit cheaper than the industry average as 65.83% of the companies are valued more expensively.
TRMB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 24.27, the valuation of TRMB can be described as rather expensive.
Based on the Price/Forward Earnings ratio, TRMB is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
TRMB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.08 | ||
| Fwd PE | 24.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRMB is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, TRMB is valued a bit cheaper than 60.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.76 | ||
| EV/EBITDA | 28.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TRMB does not grow enough to justify the current Price/Earnings ratio.
TRMB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)7.52
PEG (5Y)3.37
EPS Next 2Y8.53%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TRMB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
71.47
-1.74 (-2.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners97.02%
Inst Owner Change0.35%
Ins Owners0.27%
Ins Owner Change0.15%
Market Cap17.57B
Analysts85.26
Price Target88.93 (24.43%)
Short Float %1.16%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.77%
Min EPS beat(2)4.51%
Max EPS beat(2)11.03%
EPS beat(4)4
Avg EPS beat(4)5.27%
Min EPS beat(4)1.35%
Max EPS beat(4)11.03%
EPS beat(8)7
Avg EPS beat(8)5.09%
EPS beat(12)9
Avg EPS beat(12)3.58%
EPS beat(16)13
Avg EPS beat(16)6.59%
Revenue beat(2)0
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-0.68%
Revenue beat(4)2
Avg Revenue beat(4)0.31%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)2.42%
Revenue beat(8)2
Avg Revenue beat(8)-1.19%
Revenue beat(12)4
Avg Revenue beat(12)-1.1%
Revenue beat(16)8
Avg Revenue beat(16)0.15%
PT rev (1m)1.29%
PT rev (3m)23.06%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.08 | ||
| Fwd PE | 24.27 | ||
| P/S | 4.84 | ||
| P/FCF | 36.76 | ||
| P/OCF | 34.1 | ||
| P/B | 2.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.31 |
EPS(TTM)2.85
EY3.99%
EPS(NY)2.95
Fwd EY4.12%
FCF(TTM)1.94
FCFY2.72%
OCF(TTM)2.1
OCFY2.93%
SpS14.78
BVpS23.9
TBVpS-1.5
PEG (NY)7.52
PEG (5Y)3.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.97% | ||
| ROE | 25.14% | ||
| ROCE | 5.3% | ||
| ROIC | 4.41% | ||
| ROICexc | 5.07% | ||
| ROICexgc | 58.02% | ||
| OM | 11.5% | ||
| PM (TTM) | 40.67% | ||
| GM | 63.11% | ||
| FCFM | 13.16% |
ROA(3y)5.46%
ROA(5y)5.96%
ROE(3y)10.17%
ROE(5y)11.57%
ROIC(3y)7.04%
ROIC(5y)6.78%
ROICexc(3y)7.37%
ROICexc(5y)7.09%
ROICexgc(3y)46.54%
ROICexgc(5y)43.85%
ROCE(3y)8.47%
ROCE(5y)8.16%
ROICexcg growth 3Y2.95%
ROICexcg growth 5Y-14.82%
ROICexc growth 3Y-7.55%
ROICexc growth 5Y-1.78%
OM growth 3Y-2.76%
OM growth 5Y4.23%
PM growth 3Y-12.86%
PM growth 5Y-2.07%
GM growth 3Y3.27%
GM growth 5Y2.58%
F-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.75 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 15.25% | ||
| Cap/Sales | 1.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.79% | ||
| Profit Quality | 32.35% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 3.77 |
F-Score6
WACC8.57%
ROIC/WACC0.51
Cap/Depr(3y)22.51%
Cap/Depr(5y)25.92%
Cap/Sales(3y)1.18%
Cap/Sales(5y)1.49%
Profit Quality(3y)132.89%
Profit Quality(5y)131.36%
High Growth Momentum
Growth
EPS 1Y (TTM)6.74%
EPS 3Y2.33%
EPS 5Y7.45%
EPS Q2Q%41.27%
EPS Next Y3.33%
EPS Next 2Y8.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.47%
Revenue Next Year-5.86%
Revenue Next 2Y0.71%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-13.77%
EBIT growth 3Y3.52%
EBIT growth 5Y8.49%
EBIT Next Year8.62%
EBIT Next 3Y4.88%
EBIT Next 5YN/A
FCF growth 1Y22.82%
FCF growth 3Y-3.37%
FCF growth 5Y5.78%
OCF growth 1Y16.98%
OCF growth 3Y-3.86%
OCF growth 5Y4.17%