Trimble Inc.
Trimble Inc. Fundamental Analysis
Trimble Inc. (TRMB) shows weak financial fundamentals with a PE ratio of 36.61, profit margin of 11.82%, and ROE of 7.46%. The company generates $3.6B in annual revenue with weak year-over-year growth of -3.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TRMB's fundamental strength across five key dimensions:
Efficiency Score
WeakTRMB struggles to generate sufficient returns from assets.
Valuation Score
ModerateTRMB shows balanced valuation metrics.
Growth Score
WeakTRMB faces weak or negative growth trends.
Financial Health Score
ExcellentTRMB maintains a strong and stable balance sheet.
Profitability Score
WeakTRMB struggles to sustain strong margins.
Key Financial Metrics
Is TRMB Expensive or Cheap?
P/E Ratio
TRMB trades at 36.61 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TRMB's PEG of 1.87 indicates fair valuation.
Price to Book
The market values Trimble Inc. at 2.66 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 18.26 times EBITDA. This signals the market has high growth expectations.
How Well Does TRMB Make Money?
Net Profit Margin
For every $100 in sales, Trimble Inc. keeps $11.82 as profit after all expenses.
Operating Margin
Core operations generate 16.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.46 in profit for every $100 of shareholder equity.
ROA
Trimble Inc. generates $4.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Trimble Inc. produces operating cash flow of $387.05M, showing steady but balanced cash generation.
Free Cash Flow
Trimble Inc. produces free cash flow of $133.49M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.56 in free cash annually.
FCF Yield
TRMB converts 0.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How TRMB Stacks Against Its Sector Peers
| Metric | TRMB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.61 | 34.79 | Neutral |
| ROE | 7.46% | 1185.00% | Weak |
| Net Margin | 11.82% | -133093.00% (disorted) | Strong |
| Debt/Equity | 0.24 | 0.43 | Strong (Low Leverage) |
| Current Ratio | 1.09 | 4.90 | Neutral |
| ROA | 4.55% | -324805.00% (disorted) | Weak |
TRMB outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Trimble Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
15.27%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
198.83%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-7.20%
Industry Style: Growth, Innovation, High Beta
Declining