TRIMBLE INC (TRMB) Stock Fundamental Analysis
NASDAQ:TRMB - Nasdaq - US8962391004 - Common Stock - Currency: USD
Taking everything into account, TRMB scores 5 out of 10 in our fundamental rating. TRMB was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. TRMB scores excellent on profitability, but there are some minor concerns on its financial health. TRMB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TRMB had positive earnings in the past year.
TRMB had a positive operating cash flow in the past year.
TRMB had positive earnings in each of the past 5 years.
In the past 5 years TRMB always reported a positive cash flow from operatings.
1.2 Ratios
TRMB has a better Return On Assets (15.86%) than 94.35% of its industry peers.
Looking at the Return On Equity, with a value of 26.18%, TRMB belongs to the top of the industry, outperforming 92.74% of the companies in the same industry.
TRMB has a Return On Invested Capital of 5.02%. This is in the better half of the industry: TRMB outperforms 64.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRMB is below the industry average of 9.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.86% | ||
| ROE | 26.18% | ||
| ROIC | 5.02% |
ROA(3y)8.44%
ROA(5y)7.58%
ROE(3y)14.74%
ROE(5y)13.51%
ROIC(3y)5.93%
ROIC(5y)6.42%
1.3 Margins
Looking at the Profit Margin, with a value of 40.84%, TRMB belongs to the top of the industry, outperforming 98.39% of the companies in the same industry.
In the last couple of years the Profit Margin of TRMB has grown nicely.
TRMB has a Operating Margin of 12.94%. This is amongst the best in the industry. TRMB outperforms 87.90% of its industry peers.
TRMB's Operating Margin has been stable in the last couple of years.
TRMB's Gross Margin of 65.06% is amongst the best of the industry. TRMB outperforms 96.77% of its industry peers.
In the last couple of years the Gross Margin of TRMB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.94% | ||
| PM (TTM) | 40.84% | ||
| GM | 65.06% |
OM growth 3Y-6.07%
OM growth 5Y0.96%
PM growth 3Y44.76%
PM growth 5Y20.99%
GM growth 3Y5.37%
GM growth 5Y3.58%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRMB is destroying value.
TRMB has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TRMB has been reduced compared to 5 years ago.
TRMB has a better debt/assets ratio than last year.
2.2 Solvency
TRMB has an Altman-Z score of 3.46. This indicates that TRMB is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TRMB (3.46) is better than 64.52% of its industry peers.
TRMB has a debt to FCF ratio of 2.79. This is a good value and a sign of high solvency as TRMB would need 2.79 years to pay back of all of its debts.
TRMB has a better Debt to FCF ratio (2.79) than 70.97% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that TRMB is not too dependend on debt financing.
The Debt to Equity ratio of TRMB (0.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.79 | ||
| Altman-Z | 3.46 |
ROIC/WACC0.58
WACC8.65%
2.3 Liquidity
A Current Ratio of 1.27 indicates that TRMB should not have too much problems paying its short term obligations.
TRMB has a Current ratio of 1.27. This is amonst the worse of the industry: TRMB underperforms 83.87% of its industry peers.
TRMB has a Quick 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.
TRMB's Quick ratio of 1.16 is on the low side compared to the rest of the industry. TRMB is outperformed by 70.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.74% over the past year.
Measured over the past 5 years, TRMB shows a small growth in Earnings Per Share. The EPS has been growing by 7.45% on average per year.
The Revenue has decreased by -3.04% in the past year.
The Revenue has been growing slightly by 2.44% on average over the past years.
EPS 1Y (TTM)6.74%
EPS 3Y2.33%
EPS 5Y7.45%
EPS Q2Q%41.27%
Revenue 1Y (TTM)-3.04%
Revenue growth 3Y0.22%
Revenue growth 5Y2.44%
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 10.40% on average per year.
TRMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.25% yearly.
EPS Next Y2.98%
EPS Next 2Y8.47%
EPS Next 3Y10.4%
EPS Next 5YN/A
Revenue Next Year-5.78%
Revenue Next 2Y0.62%
Revenue Next 3Y3.25%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.43, the valuation of TRMB can be described as rather expensive.
Based on the Price/Earnings ratio, TRMB is valued a bit cheaper than 66.94% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, TRMB is valued a bit cheaper.
TRMB is valuated rather expensively with a Price/Forward Earnings ratio of 19.84.
TRMB's Price/Forward Earnings ratio is in line with the industry average.
TRMB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.43 | ||
| Fwd PE | 19.84 |
4.2 Price Multiples
TRMB's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, TRMB is valued a bit cheaper than the industry average as 62.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.75 | ||
| EV/EBITDA | 21.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TRMB may justify a higher PE ratio.
PEG (NY)6.87
PEG (5Y)2.74
EPS Next 2Y8.47%
EPS Next 3Y10.4%
5. Dividend
5.1 Amount
TRMB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
58.23
-0.05 (-0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners97.71%
Inst Owner Change0.01%
Ins Owners0.27%
Ins Owner Change-0.3%
Market Cap14.31B
Analysts86.32
Price Target89.85 (54.3%)
Short Float %1.21%
Short Ratio1.93
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)1
Avg EPS beat(2)4.84%
Min EPS beat(2)-1.36%
Max EPS beat(2)11.03%
EPS beat(4)3
Avg EPS beat(4)3.88%
Min EPS beat(4)-1.36%
Max EPS beat(4)11.03%
EPS beat(8)7
Avg EPS beat(8)5.42%
EPS beat(12)9
Avg EPS beat(12)3.7%
EPS beat(16)12
Avg EPS beat(16)5.43%
Revenue beat(2)1
Avg Revenue beat(2)0.7%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)2.09%
Revenue beat(4)2
Avg Revenue beat(4)0.7%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)2.42%
Revenue beat(8)3
Avg Revenue beat(8)-0.4%
Revenue beat(12)4
Avg Revenue beat(12)-1.04%
Revenue beat(16)8
Avg Revenue beat(16)0.06%
PT rev (1m)0%
PT rev (3m)2.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.13%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)-0.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.88%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.43 | ||
| Fwd PE | 19.84 | ||
| P/S | 3.89 | ||
| P/FCF | 28.75 | ||
| P/OCF | 26.93 | ||
| P/B | 2.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.12 |
EPS(TTM)2.85
EY4.89%
EPS(NY)2.93
Fwd EY5.04%
FCF(TTM)2.03
FCFY3.48%
OCF(TTM)2.16
OCFY3.71%
SpS14.99
BVpS23.37
TBVpS-0.98
PEG (NY)6.87
PEG (5Y)2.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.86% | ||
| ROE | 26.18% | ||
| ROCE | 6.19% | ||
| ROIC | 5.02% | ||
| ROICexc | 5.55% | ||
| ROICexgc | 39.64% | ||
| OM | 12.94% | ||
| PM (TTM) | 40.84% | ||
| GM | 65.06% | ||
| FCFM | 13.52% |
ROA(3y)8.44%
ROA(5y)7.58%
ROE(3y)14.74%
ROE(5y)13.51%
ROIC(3y)5.93%
ROIC(5y)6.42%
ROICexc(3y)6.28%
ROICexc(5y)6.78%
ROICexgc(3y)44.55%
ROICexgc(5y)43.47%
ROCE(3y)7.31%
ROCE(5y)7.92%
ROICexcg growth 3Y-2.08%
ROICexcg growth 5Y1.83%
ROICexc growth 3Y-12.53%
ROICexc growth 5Y-2.21%
OM growth 3Y-6.07%
OM growth 5Y0.96%
PM growth 3Y44.76%
PM growth 5Y20.99%
GM growth 3Y5.37%
GM growth 5Y3.58%
F-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.79 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 14.48% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.99% | ||
| Profit Quality | 33.09% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 3.46 |
F-Score7
WACC8.65%
ROIC/WACC0.58
Cap/Depr(3y)18.8%
Cap/Depr(5y)22.15%
Cap/Sales(3y)1.06%
Cap/Sales(5y)1.25%
Profit Quality(3y)96.26%
Profit Quality(5y)117.91%
High Growth Momentum
Growth
EPS 1Y (TTM)6.74%
EPS 3Y2.33%
EPS 5Y7.45%
EPS Q2Q%41.27%
EPS Next Y2.98%
EPS Next 2Y8.47%
EPS Next 3Y10.4%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.04%
Revenue growth 3Y0.22%
Revenue growth 5Y2.44%
Sales Q2Q%5.47%
Revenue Next Year-5.78%
Revenue Next 2Y0.62%
Revenue Next 3Y3.25%
Revenue Next 5YN/A
EBIT growth 1Y-3.6%
EBIT growth 3Y-5.86%
EBIT growth 5Y3.43%
EBIT Next Year6.2%
EBIT Next 3Y6.8%
EBIT Next 5YN/A
FCF growth 1Y-10.32%
FCF growth 3Y-10.93%
FCF growth 5Y-0.72%
OCF growth 1Y-11%
OCF growth 3Y-10.87%
OCF growth 5Y-1.9%