The Most Important Facts About Trimble

Trimble logged a 2.3% change during today's morning session, and is now trading at a price of $61.56 per share. The S&P 500 index moved 0.9% and the Nasdaq posted a 2.6% change.

Trimble shares moved -14.9% over the last 52 weeks, with a high of $74.87 and a low of $47.52. During this time, the stock lagged the S&P 500 index by -6.9%. As of January 2022, the company's 50-day average price is $54.82. Trimble Inc. provides technology solutions that enable professionals and field mobile workers to enhance or transform their work processes worldwide. The large-cap Technology company has 11,931 full time employees and is based in Westminster, CO. Trimble has not offered any dividends in the last year.

Sustained EPS Growth with Healthy Leverage Levels:

2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $3,264 $3,148 $3,659
Revenue Growth n/a -3.57% 16.25%
Gross Margins 54.6% 55.8% 55.6%
Gross Margins Growth n/a 2.2% -0.36%
Operating Margins 12.3% 14.2% 15.6%
Operating Margins Growth n/a 15.45% 9.86%
Earnings Per Share $2.03 $1.55 $1.94
EPS Growth n/a -23.65% 25.16%
Free Cash Flow (MM) $516 $615 $704
FCF Growth n/a 19.22% 14.5%
Capital Expenditures (MM) -$69 -$57 -$46
Net Debt / EBITDA 2.5 1.88 1.17

Trimble Is Reasonably Valued:

Compared to the Technology sector's average of 26.5, Trimble has a trailing twelve month P/E ratio of 32.2 and, according to its EPS guidance of 2.93, an expected P/E ratio of 21.0. Trimble's PEG ratio is 1.86 based on its 17.33% annual average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued.

However, Trimble is likely undervalued in terms of its equity because its P/B ratio is 3.9 compared to its sector average of 5.57. The company's shares are currently trading 142.3% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 1.84 * 15.591) = $25.41

Despite Trimble's elevated earnings multiple, the company's decent P/B ratio, impressive cash flow trend and reasonable leverage indicate the company may be fairly valued.

Trimble Is the Subject of Mixed Market Indicators:

9 analysts are following Trimble and have set target prices ranging from $58 to $85 per share. On average, they have given the company a rating of buy. At the current price of $61.56, TRMB is trading -10.28% away from its average analyst target price of $68.61 per share, implying an analyst consensus of some upside potential for the stock.

The company has a very low short interest since 1.2% of the company's shares are tied to short positions. Institutions own 95.1% of Trimble's shares, while the insider ownership rate stands at 0.37%. The biggest shareholder is the Vanguard Group, Inc. with a 11% stake in the company worth approximately $1,713,550,401.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.