Trend Micro Incorporated
Trend Micro Incorporated Fundamental Analysis
Trend Micro Incorporated (TMICY) shows moderate financial fundamentals with a PE ratio of 19.31, profit margin of 12.52%, and ROE of 29.38%. The company generates $280.5B in annual revenue with moderate year-over-year growth of 9.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.0/100 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 TMICY's fundamental strength across five key dimensions:
Efficiency Score
WeakTMICY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTMICY trades at attractive valuation levels.
Growth Score
ModerateTMICY shows steady but slowing expansion.
Financial Health Score
ExcellentTMICY maintains a strong and stable balance sheet.
Profitability Score
ModerateTMICY maintains healthy but balanced margins.
Key Financial Metrics
Is TMICY Expensive or Cheap?
P/E Ratio
TMICY trades at 19.31 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TMICY's PEG of -0.13 indicates potential undervaluation.
Price to Book
The market values Trend Micro Incorporated at 5.15 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.25 times EBITDA. This signals the market has high growth expectations.
How Well Does TMICY Make Money?
Net Profit Margin
For every $100 in sales, Trend Micro Incorporated keeps $12.52 as profit after all expenses.
Operating Margin
Core operations generate 20.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.38 in profit for every $100 of shareholder equity.
ROA
Trend Micro Incorporated generates $8.26 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 $66.00B, showing steady but balanced cash generation.
Free Cash Flow
Trend Micro Incorporated generates strong free cash flow of $64.81B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $488.65 in free cash annually.
FCF Yield
TMICY converts 9.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.41
vs 25 benchmark
How TMICY Stacks Against Its Sector Peers
| Metric | TMICY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.31 | 35.62 | Better (Cheaper) |
| ROE | 29.38% | 1160.00% | Weak |
| Net Margin | 12.52% | -136515.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.39 | Strong (Low Leverage) |
| Current Ratio | 1.19 | 4.79 | Neutral |
| ROA | 8.26% | -311498.00% (disorted) | Weak |
TMICY 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
73.06%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
28.92%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
8.75%
Industry Style: Growth, Innovation, High Beta
Growing