TRIMBLE INC (TRMB) Stock Fundamental Analysis
NASDAQ:TRMB - Nasdaq - US8962391004 - Common Stock - Currency: USD
Overall TRMB gets a fundamental rating of 5 out of 10. We evaluated TRMB against 125 industry peers in the Electronic Equipment, Instruments & Components industry. While TRMB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TRMB is not valued too expensively and it also shows a decent 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.
TRMB had positive earnings in each of the past 5 years.
TRMB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 17.01%, TRMB belongs to the best of the industry, outperforming 94.40% of the companies in the same industry.
TRMB has a Return On Equity of 27.94%. This is amongst the best in the industry. TRMB outperforms 93.60% of its industry peers.
With a decent Return On Invested Capital value of 5.09%, TRMB is doing good in the industry, outperforming 63.20% of the companies in the same industry.
TRMB had an Average Return On Invested Capital over the past 3 years of 5.93%. This is below the industry average of 9.38%.
| 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.
With an excellent Operating Margin value of 12.96%, TRMB belongs to the best of the industry, outperforming 86.40% of the companies in the same industry.
TRMB's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 66.19%, TRMB belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
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
TRMB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TRMB has been reduced compared to 1 year ago.
TRMB has less shares outstanding than it did 5 years ago.
TRMB has a better debt/assets ratio than last year.
2.2 Solvency
TRMB has an Altman-Z score of 4.01. This indicates that TRMB is financially healthy and has little risk of bankruptcy at the moment.
TRMB has a Altman-Z score of 4.01. This is in the better half of the industry: TRMB outperforms 65.60% of its industry peers.
TRMB has a debt to FCF ratio of 3.31. This is a good value and a sign of high solvency as TRMB would need 3.31 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.31, TRMB is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
A Debt/Equity ratio of 0.26 indicates that TRMB is not too dependend on debt financing.
TRMB has a Debt to Equity ratio (0.26) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | 4.01 |
ROIC/WACC0.59
WACC8.57%
2.3 Liquidity
A Current Ratio of 0.84 indicates that TRMB may have some problems paying its short term obligations.
With a Current ratio value of 0.84, TRMB is not doing good in the industry: 96.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.72 indicates that TRMB may have some problems paying its short term obligations.
TRMB has a worse Quick ratio (0.72) than 88.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.88% 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.
Looking at the last year, TRMB shows a decrease in Revenue. The Revenue has decreased by -6.93% in the last year.
TRMB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.44% yearly.
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
Based on estimates for the next years, TRMB will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.99% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.78, TRMB can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TRMB is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TRMB to the average of the S&P500 Index (26.65), we can say TRMB is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.71, TRMB is valued on the expensive side.
TRMB's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.27. TRMB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.78 | ||
| Fwd PE | 21.71 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TRMB.
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 | 41.32 | ||
| EV/EBITDA | 26.78 |
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.
The excellent profitability rating of TRMB may justify a higher PE ratio.
PEG (NY)6.87
PEG (5Y)3.46
EPS Next 2Y8.39%
EPS Next 3Y10.99%
5. Dividend
5.1 Amount
No dividends for TRMB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
72.71
+0.9 (+1.25%)
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 Cap17.35B
Analysts86.32
Price Target85.39 (17.44%)
Short Float %2.4%
Short Ratio4.04
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 | 25.78 | ||
| Fwd PE | 21.71 | ||
| P/S | 4.86 | ||
| P/FCF | 41.32 | ||
| P/OCF | 38.28 | ||
| P/B | 3.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.78 |
EPS(TTM)2.82
EY3.88%
EPS(NY)3.35
Fwd EY4.61%
FCF(TTM)1.76
FCFY2.42%
OCF(TTM)1.9
OCFY2.61%
SpS14.97
BVpS22.71
TBVpS-2.83
PEG (NY)6.87
PEG (5Y)3.46
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 | 4.01 |
F-Score6
WACC8.57%
ROIC/WACC0.59
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%