Trend Micro Incorporated Fundamental Analysis (JPX: 4704.T)
Trend Micro Incorporated Fundamental Analysis (JPX: 4704.T)
Trend Micro Incorporated (JPX: 4704.T) shows moderate financial fundamentals with a PE ratio of 20.71, profit margin of 12.18%, and ROE of 28.87%. The company generates $290.6B in annual revenue with weak year-over-year growth of 1.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 4704.T's fundamental strength across five key dimensions:
Efficiency Score
Weak4704.T struggles to generate sufficient returns from assets.
Valuation Score
Excellent4704.T trades at attractive valuation levels.
Growth Score
Weak4704.T faces weak or negative growth trends.
Financial Health Score
Excellent4704.T maintains a strong and stable balance sheet.
Profitability Score
Moderate4704.T maintains healthy but balanced margins.
Key Financial Metrics
Is 4704.T Expensive or Cheap?
P/E Ratio
4704.T trades at 20.71 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 4704.T's PEG of 1.39 indicates fair valuation.
Price to Book
The market values Trend Micro Incorporated at 6.10 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.44 times EBITDA. This signals the market has high growth expectations.
How Well Does 4704.T Make Money?
Net Profit Margin
For every $100 in sales, Trend Micro Incorporated keeps $12.18 as profit after all expenses.
Operating Margin
Core operations generate 17.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.87 in profit for every $100 of shareholder equity.
ROA
Trend Micro Incorporated generates $8.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Trend Micro Incorporated produces operating cash flow of $65.11B, showing steady but balanced cash generation.
Free Cash Flow
Trend Micro Incorporated generates strong free cash flow of $63.84B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $491.92 in free cash annually.
FCF Yield
4704.T converts 8.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.38
vs 25 benchmark
How 4704.T Stacks Against Its Sector Peers
| Metric | 4704.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.71 | 34.93 | Better (Cheaper) |
| ROE | 28.87% | 750.00% | Weak |
| Net Margin | 12.18% | -3058.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.65 | Strong (Low Leverage) |
| Current Ratio | 1.16 | 6.21 | Neutral |
| ROA | 8.74% | 308.00% | Weak |
4704.T outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Trend Micro Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
67.67%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
35.69%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
25.86%
Industry Style: Growth, Innovation, High Beta
High Growth