TRIMBLE INC (TRMB) Stock Fundamental Analysis
NASDAQ:TRMB - Nasdaq - US8962391004 - Common Stock - Currency: USD
TRMB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. While TRMB has a great profitability rating, 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
In the past year TRMB was profitable.
In the past year TRMB had a positive cash flow from operations.
In the past 5 years TRMB has always been profitable.
In the past 5 years TRMB always reported a positive cash flow from operatings.
1.2 Ratios
TRMB has a Return On Assets of 17.01%. This is amongst the best in the industry. TRMB outperforms 94.40% of its industry peers.
With an excellent Return On Equity value of 27.94%, TRMB belongs to the best of the industry, outperforming 93.60% of the companies in the same industry.
TRMB's Return On Invested Capital of 5.09% is fine compared to the rest of the industry. TRMB outperforms 63.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRMB is below the industry average of 9.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.01% | ||
| ROE | 27.94% | ||
| ROIC | 5.09% |
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
With an excellent Profit Margin value of 42.40%, TRMB belongs to the best of the industry, outperforming 99.20% of the companies in the same industry.
TRMB's Profit Margin has improved in the last couple of years.
The Operating Margin of TRMB (12.96%) is better than 86.40% of its industry peers.
TRMB's Operating Margin has been stable in the last couple of years.
TRMB has a better Gross Margin (66.19%) than 96.00% of its industry peers.
TRMB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.96% | ||
| PM (TTM) | 42.4% | ||
| GM | 66.19% |
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.
The number of shares outstanding for TRMB has been reduced compared to 1 year ago.
Compared to 5 years ago, TRMB has less shares outstanding
Compared to 1 year ago, TRMB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.20 indicates that TRMB is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.20, TRMB is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
The Debt to FCF ratio of TRMB is 3.31, which is a good value as it means it would take TRMB, 3.31 years of fcf income to pay off all of its debts.
TRMB has a better Debt to FCF ratio (3.31) than 68.00% of its industry peers.
TRMB has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
TRMB has a Debt to Equity ratio (0.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | 4.2 |
ROIC/WACC0.6
WACC8.51%
2.3 Liquidity
A Current Ratio of 0.84 indicates that TRMB may have some problems paying its short term obligations.
TRMB's Current ratio of 0.84 is on the low side compared to the rest of the industry. TRMB is outperformed by 96.00% of its industry peers.
A Quick Ratio of 0.72 indicates that TRMB may have some problems paying its short term obligations.
With a Quick ratio value of 0.72, TRMB is not doing good in the industry: 88.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
TRMB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.88%, which is quite good.
The Earnings Per Share has been growing slightly by 7.45% on average over the past years.
TRMB shows a decrease in Revenue. In the last year, the revenue decreased by -6.93%.
Measured over the past years, TRMB shows a small growth in Revenue. The Revenue has been growing by 2.44% on average per year.
EPS 1Y (TTM)8.88%
EPS 3Y2.33%
EPS 5Y7.45%
EPS Q2Q%-4.69%
Revenue 1Y (TTM)-6.93%
Revenue growth 3Y0.22%
Revenue growth 5Y2.44%
Sales Q2Q%-11.82%
3.2 Future
The Earnings Per Share is expected to grow by 10.99% on average over the next years. This is quite good.
TRMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.84% yearly.
EPS Next Y3.75%
EPS Next 2Y8.39%
EPS Next 3Y10.99%
EPS Next 5YN/A
Revenue Next Year-5.68%
Revenue Next 2Y0.71%
Revenue Next 3Y4.84%
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
The Price/Earnings ratio is 27.11, which means the current valuation is very expensive for TRMB.
Based on the Price/Earnings ratio, TRMB is valued a bit cheaper than 64.00% of the companies in the same industry.
TRMB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
TRMB is valuated rather expensively with a Price/Forward Earnings ratio of 22.83.
TRMB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TRMB is cheaper than 60.80% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.70. TRMB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.11 | ||
| Fwd PE | 22.83 |
4.2 Price Multiples
TRMB's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TRMB is valued a bit cheaper than the industry average as 61.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.46 | ||
| EV/EBITDA | 28.41 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.22
PEG (5Y)3.64
EPS Next 2Y8.39%
EPS Next 3Y10.99%
5. Dividend
5.1 Amount
TRMB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
76.46
+0.48 (+0.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners100.15%
Inst Owner Change-0.69%
Ins Owners0.27%
Ins Owner Change-1.56%
Market Cap18.24B
Analysts86.32
Price Target85.39 (11.68%)
Short Float %2.35%
Short Ratio4.18
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)0.44%
Min EPS beat(2)-1.36%
Max EPS beat(2)2.23%
EPS beat(4)3
Avg EPS beat(4)4.1%
Min EPS beat(4)-1.36%
Max EPS beat(4)11.03%
EPS beat(8)7
Avg EPS beat(8)4.99%
EPS beat(12)9
Avg EPS beat(12)3.39%
EPS beat(16)12
Avg EPS beat(16)4.38%
Revenue beat(2)2
Avg Revenue beat(2)1.86%
Min Revenue beat(2)1.63%
Max Revenue beat(2)2.09%
Revenue beat(4)2
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)2.09%
Revenue beat(8)4
Avg Revenue beat(8)0.25%
Revenue beat(12)4
Avg Revenue beat(12)-0.95%
Revenue beat(16)8
Avg Revenue beat(16)-0.17%
PT rev (1m)-2.59%
PT rev (3m)-4.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.43%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.11 | ||
| Fwd PE | 22.83 | ||
| P/S | 5.11 | ||
| P/FCF | 43.46 | ||
| P/OCF | 40.25 | ||
| P/B | 3.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.41 |
EPS(TTM)2.82
EY3.69%
EPS(NY)3.35
Fwd EY4.38%
FCF(TTM)1.76
FCFY2.3%
OCF(TTM)1.9
OCFY2.48%
SpS14.97
BVpS22.71
TBVpS-2.83
PEG (NY)7.22
PEG (5Y)3.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.01% | ||
| ROE | 27.94% | ||
| ROCE | 6.27% | ||
| ROIC | 5.09% | ||
| ROICexc | 5.3% | ||
| ROICexgc | 37.8% | ||
| OM | 12.96% | ||
| PM (TTM) | 42.4% | ||
| GM | 66.19% | ||
| FCFM | 11.76% |
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-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.31 | ||
| Debt/EBITDA | 2.04 | ||
| Cap/Depr | 15.32% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.57% | ||
| Profit Quality | 27.73% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 4.2 |
F-Score6
WACC8.51%
ROIC/WACC0.6
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)8.88%
EPS 3Y2.33%
EPS 5Y7.45%
EPS Q2Q%-4.69%
EPS Next Y3.75%
EPS Next 2Y8.39%
EPS Next 3Y10.99%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.93%
Revenue growth 3Y0.22%
Revenue growth 5Y2.44%
Sales Q2Q%-11.82%
Revenue Next Year-5.68%
Revenue Next 2Y0.71%
Revenue Next 3Y4.84%
Revenue Next 5YN/A
EBIT growth 1Y-0.79%
EBIT growth 3Y-5.86%
EBIT growth 5Y3.43%
EBIT Next Year-8.07%
EBIT Next 3Y9%
EBIT Next 5YN/A
FCF growth 1Y1.94%
FCF growth 3Y-10.93%
FCF growth 5Y-0.72%
OCF growth 1Y1.41%
OCF growth 3Y-10.87%
OCF growth 5Y-1.9%