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 has a great profitability rating, 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
TRMB had positive earnings in the past year.
In the past year TRMB had a positive cash flow from operations.
Each year in the past 5 years TRMB has been profitable.
TRMB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TRMB has a better Return On Assets (17.01%) than 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.
Looking at the Return On Invested Capital, with a value of 5.09%, TRMB is in the better half of the industry, outperforming 63.20% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRMB is below the industry average of 9.21%.
| 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
The Profit Margin of TRMB (42.40%) is better than 99.20% of its industry peers.
TRMB's Profit Margin has improved in the last couple of years.
TRMB has a Operating Margin of 12.96%. This is amongst the best in the industry. TRMB outperforms 86.40% of its industry peers.
In the last couple of years the Operating Margin of TRMB has remained more or less at the same level.
TRMB has a Gross Margin of 66.19%. This is amongst the best in the industry. TRMB outperforms 96.00% of its industry peers.
In the last couple of years the Gross Margin of TRMB has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
TRMB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.99 indicates that TRMB is not in any danger for bankruptcy at the moment.
The Altman-Z score of TRMB (3.99) is better than 66.40% of its industry peers.
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.
The Debt to FCF ratio of TRMB (3.31) is better than 67.20% of its industry peers.
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 | 3.99 |
ROIC/WACC0.56
WACC9.14%
2.3 Liquidity
TRMB has a Current Ratio of 0.84. This is a bad value and indicates that TRMB is not financially healthy enough and could expect problems in meeting its short term obligations.
TRMB has a worse Current ratio (0.84) than 96.00% of its industry peers.
A Quick Ratio of 0.72 indicates that TRMB may have some problems paying its short term obligations.
The Quick ratio of TRMB (0.72) is worse than 88.80% of its industry peers.
| 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.
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 -6.93% in the past 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
TRMB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.99% yearly.
TRMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.71% yearly.
EPS Next Y3.5%
EPS Next 2Y8.28%
EPS Next 3Y10.99%
EPS Next 5YN/A
Revenue Next Year-5.62%
Revenue Next 2Y0.74%
Revenue Next 3Y5.71%
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 25.27, which means the current valuation is very expensive for TRMB.
62.40% of the companies in the same industry are more expensive than TRMB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.25, TRMB is valued at the same level.
With a Price/Forward Earnings ratio of 21.33, TRMB is valued on the expensive side.
TRMB's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, TRMB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.27 | ||
| Fwd PE | 21.33 |
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.
61.60% of the companies in the same industry are more expensive than TRMB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.51 | ||
| EV/EBITDA | 26.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TRMB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.21
PEG (5Y)3.39
EPS Next 2Y8.28%
EPS Next 3Y10.99%
5. Dividend
5.1 Amount
No dividends for TRMB!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
71.27
-0.39 (-0.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners97.71%
Inst Owner Change-0.69%
Ins Owners0.27%
Ins Owner Change-3.24%
Market Cap17.00B
Analysts86.32
Price Target87.66 (23%)
Short Float %1.92%
Short Ratio2.65
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)-2.14%
PT rev (3m)-1.44%
EPS NQ rev (1m)2.43%
EPS NQ rev (3m)-4.15%
EPS NY rev (1m)0.61%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)1.07%
Revenue NQ rev (3m)-2.19%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.27 | ||
| Fwd PE | 21.33 | ||
| P/S | 4.76 | ||
| P/FCF | 40.51 | ||
| P/OCF | 37.52 | ||
| P/B | 3.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.59 |
EPS(TTM)2.82
EY3.96%
EPS(NY)3.34
Fwd EY4.69%
FCF(TTM)1.76
FCFY2.47%
OCF(TTM)1.9
OCFY2.67%
SpS14.97
BVpS22.71
TBVpS-2.83
PEG (NY)7.21
PEG (5Y)3.39
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 | 3.99 |
F-Score6
WACC9.14%
ROIC/WACC0.56
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 Y3.5%
EPS Next 2Y8.28%
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-5.62%
Revenue Next 2Y0.74%
Revenue Next 3Y5.71%
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%