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Trimble (TRMB)
NASDAQ:TRMB
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Trimble
(NASDAQ:TRMB)66Neutral
Positive Factors
Business Strategy
TRMB has divested its more macro-sensitive and underperforming Ag and mobility business to focus on faster-growing segments with better margin expansion opportunities.
Financial Performance
The company is expected to see organic revenue growth of 7-9% and ARR growth in the low-to-mid-teens.
Negative Factors
Risks and Challenges
The business faces risks from the ongoing re-audit process and potential shortfalls in organic growth and operating leverage.
Trimble (TRMB) vs. S&P 500 (SPY)
Market Cap
$16.82B
Dividend YieldN/A
Average Volume (3M)1.56M
Price to Earnings (P/E)11.4
Beta (1Y)1.35
Revenue Growth-3.04%
EPS Growth388.42%
CountryUS
Employees12,700
SectorTechnology
Sector Strength48
IndustryHardware & Equipment
Share Statistics
EPS (TTM)6.10
Shares Outstanding245,792,050
10 Day Avg. Volume1,990,802
30 Day Avg. Volume1,556,213
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)N/A
Price to Sales (P/S)4.63
Price to Cash Flow (P/CF)44.30
P/FCF Ratio44.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$90.00Price Target Upside33.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Trimble Business Overview & Revenue Model
Company DescriptionTrimble Inc. (TRMB) is a technology company that serves a wide range of industries by providing advanced positioning solutions. The company operates in sectors such as agriculture, construction, geospatial, and transportation, offering products and services that include GPS systems, software for data management, and analytics solutions. Trimble’s core offerings focus on improving productivity, safety, and sustainability through innovative technology that enables precise location and data analysis.
How the Company Makes MoneyTrimble makes money through the sale of its hardware and software products, as well as from recurring revenue streams such as subscription services and software maintenance contracts. The company’s revenue model is diversified across different sectors, with significant contributions from construction and agriculture. Trimble sells its products directly to customers and through a network of dealers and distributors. Additionally, strategic partnerships with other technology providers and integration of its solutions into broader enterprise systems play a crucial role in expanding its market reach and enhancing its product offerings, thereby contributing to its earnings.
Trimble Financial Statement Overview
Summary
Trimble's financial performance is strong, with increasing profit margins and reduced leverage. The company demonstrates robust profitability and a healthy balance sheet, although revenue growth has been moderate.Income Statement
Trimble's income statement shows a robust performance with a consistent increase in gross profit margin and net profit margin over recent years. The gross profit margin improved from 55.8% in 2021 to 67.7% in 2025, and net profit margin significantly rose from 8.7% in 2023 to 40.8% in 2025, indicating strong cost management and profitability. However, revenue growth has been moderate, with some fluctuations. EBIT and EBITDA margins remain stable, suggesting consistent operating efficiency.78
Positive
Balance Sheet
The balance sheet reflects a solid equity position with an increasing stockholders' equity, enhancing financial stability. The debt-to-equity ratio decreased from 0.71 in 2023 to 0.26 in 2025, indicating reduced leverage. Return on Equity (ROE) improved significantly from 6.9% in 2023 to 26.2% in 2025, reflecting strong profitability relative to equity. However, the equity ratio slightly decreased, suggesting a need to monitor asset management efficiency.72
Positive
Cash Flow
Trimble's cash flow statement shows a positive trajectory, with operating cash flow exceeding net income, indicating strong cash generation. The operating cash flow to net income ratio was 0.35 in 2025, and free cash flow remained positive, demonstrating good cash management. However, the free cash flow growth rate was negative due to fluctuations in capital expenditures, suggesting potential volatility in future cash flows.70
Positive
| Breakdown | |||||
| TTM | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 | Mar 2021 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.68B | 3.68B | 3.80B | 3.68B | 3.66B | 3.15B | Gross Profit |
| 2.39B | 2.49B | 2.23B | 2.11B | 2.03B | 1.75B | EBIT |
| 467.30M | 460.70M | 494.40M | 510.90M | 561.00M | 419.80M | EBITDA |
| 683.20M | 712.20M | 768.60M | 747.40M | 845.80M | 692.90M | Net Income Common Stockholders |
| 1.50B | 1.50B | 311.30M | 449.70M | 492.80M | 389.90M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 738.80M | 738.80M | 229.80M | 271.00M | 325.70M | 237.70M | Total Assets |
| 9.49B | 9.49B | 9.54B | 7.27B | 7.10B | 6.88B | Total Debt |
| 1.51B | 1.51B | 3.22B | 1.63B | 1.41B | 1.66B | Net Debt |
| 775.20M | 775.20M | 2.99B | 1.35B | 1.09B | 1.42B | Total Liabilities |
| 3.74B | 3.74B | 5.04B | 3.22B | 3.15B | 3.28B | Stockholders Equity |
| 5.75B | 5.75B | 4.50B | 4.05B | 3.94B | 3.60B |
| Cash Flow | Free Cash Flow | ||||
| 497.80M | 497.80M | 555.10M | 348.00M | 704.40M | 615.20M | Operating Cash Flow |
| 531.40M | 531.40M | 597.10M | 391.20M | 750.50M | 672.00M | Investing Cash Flow |
| 1.86B | 1.86B | -2.07B | -226.30M | -203.50M | -231.80M | Financing Cash Flow |
| -1.86B | -1.86B | 1.43B | -199.00M | -447.70M | -400.30M |
Trimble Technical Analysis
Negative
67.65
Price Trends
72.87
Negative
70.63
Negative
63.44
Positive
Market Momentum
-1.34
Positive
32.88
Neutral
18.74
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRMB, the sentiment is Negative. The current price of 67.65 is below the 20-day moving average (MA) of 72.31, below the 50-day MA of 72.87, and above the 200-day MA of 63.44, indicating a neutral trend. The MACD of -1.34 indicates Positive momentum. The RSI at 32.88 is Neutral, neither overbought nor oversold. The STOCH value of 18.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRMB.
Trimble Risk Analysis
Trimble disclosed 30 risk factors in its most recent earnings report. Trimble reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Trimble Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $42.35B | 30.14 | 19.00% | 1.35% | 20.44% | 9.05% | |
81 Outperform | $2.98T | 32.30 | 34.29% | 0.79% | 15.04% | 12.38% | |
76 Outperform | $3.54T | 37.48 | 136.52% | 0.53% | 2.61% | -2.14% | |
66 Neutral | $16.82B | 11.40 | 29.37% | ― | -3.04% | 388.42% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
49 Neutral | $592.42M | ― | -3.50% | ― | -4.57% | 84.12% |
* Technology Sector Average
Performance Comparison
TRMB
Trimble
67.65
5.15
8.24%
AAPL
Apple
235.33
67.13
39.91%
FARO
Faro Technologies
29.75
8.21
38.12%
GRMN
Garmin
221.91
82.90
59.64%
MSFT
Microsoft
396.89
-9.15
-2.25%
Trimble Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -9.97% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
Trimble's earnings call reflects strong financial performance with significant growth in ARR and gross margins, driven by strategic initiatives and resilience in the transportation segment. However, challenges such as accounting filing delays, a tough freight market, and variability in geographical performance present notable headwinds.Highlights
Strong Financial Performance
Fourth quarter revenue at $983 million, ARR at $2.26 billion, and EPS at $0.89 all exceeded the midpoint of guidance. ARR increased by 16%, and gross margins reached 71.7% for the first time.
Strategic Progress in Technology and Innovation
Trimble's Connect and Scale strategy has transformed the business model, delivering recurring revenue growth to 62% and software and services to 76% of revenue. AI adoption has increased productivity and customer value.
Transportation Segment Resilience
Transporeon business achieved record bookings despite challenging freight market conditions, indicating strong potential when the market rebounds.
Capital Allocation Strategy
The Board increased share repurchase authorization to $1 billion, and Trimble plans to continue playing offense in acquisitions, focusing on tuck-ins and potential larger opportunities.
Lowlights
Accounting Filing Delays
Trimble expects to file its 2024 10-K after the due date, with hopes to file within the 15-day SEC extension, due to compressed timeline from 2023 filing delays.
Challenging Freight Market
While Transporeon bookings were strong, the overall freight market remains challenged, impacting potential growth.
Geographical Performance Variability
While North America remains strong, markets like China and Japan are facing challenges, impacting overall global performance.
Company Guidance
During the Trimble Fourth Quarter 2024 Earnings Conference Call, the company reported strong financial performance, exceeding the midpoint of their guidance with fourth-quarter revenue of $983 million, annual recurring revenue (ARR) of $2.26 billion, and earnings per share (EPS) of $0.89. On an as-adjusted basis, revenue increased by 9% for the quarter and 6% for the year, with a notable 16% growth in ARR. The company achieved a gross margin of 71.7%, marking the first time it surpassed the 70% level. Over the period from 2019 to 2024, Trimble's ARR grew from $1.2 billion to over $2.26 billion, with recurring revenue doubling to 62% of total revenue and overall software and services rising to 76% of revenue. Gross margins in 2024 were at 68.2%, representing an increase of over 1000 basis points, and EBITDA improved by more than 400 basis points to 27.2%. For fiscal 2025, Trimble guided for as-reported revenue of $3.42 billion and EPS of $2.87, with expectations for low-to-mid teens EPS growth on an as-adjusted basis. The company also announced an increased share repurchase authorization to $1 billion, indicating a commitment to capital allocation alongside potential M&A opportunities, particularly in construction software.Trimble Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Trimble Faces Nasdaq Delisting and Compliance Challenges
Negative
Nov 14, 2024
Trimble Inc. faces potential delisting from Nasdaq due to failing to timely file quarterly financial reports, as required by Nasdaq’s rules. Despite receiving a staff determination notice, the company is working with Ernst & Young to address internal control issues and intends to appeal the decision, aiming for an extension to meet compliance. Management asserts no errors in financial statements so far, but uncertainties remain regarding future filings and compliance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.