Trimble logged a -0.2% change during today's morning session, and is now trading at a price of $48.83 per share.
Trimble shares moved -27.0% over the last 52 weeks, with a high of $72.24 and a low of $47.09. During this time, the stock lagged the S&P 500 index by -21.0%. As of January 2022, the company's 50-day average price is $52.11. Trimble Inc. provides technology solutions that enable professionals and field mobile workers to enhance or transform their work processes worldwide. The large-cap Industrials company has 11,825 full time employees and is based in Westminster, CO. Trimble has not offered any dividends in the last year.
a Declining EPS Growth Trend with Healthy Leverage Levels:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $3,264 | $3,148 | $3,659 | $3,676 |
| Revenue Growth | n/a | -3.57% | 16.25% | 0.47% |
| Gross Margins | 54.6% | 55.8% | 55.6% | 57.3% |
| Gross Margins Growth | n/a | 2.2% | -0.36% | 3.06% |
| Operating Margins | 12.3% | 14.2% | 15.6% | 14.7% |
| Operating Margins Growth | n/a | 15.45% | 9.86% | -5.77% |
| Net Margins | 15.76% | 12.39% | 13.47% | 12.23% |
| Net Margins Growth | n/a | -21.38% | 8.72% | -9.21% |
| Earnings Per Share | $2.03 | $1.55 | $1.94 | $1.77 |
| EPS Growth | n/a | -23.65% | 25.16% | -8.76% |
| Diluted Shares (MM) | 253 | 252 | 254 | 247 |
| Free Cash Flow (MM) | $516 | $615 | $704 | $348 |
| FCF Growth | n/a | 19.22% | 14.5% | -50.6% |
| Capital Expenditures (MM) | -$69 | -$57 | -$46 | -$43 |
| Net Debt / EBITDA | 2.5 | 1.88 | 1.17 | 1.68 |
Trimble Is Overpriced:
Compared to the Industrials sector's average of 20.49, Trimble has a trailing twelve month P/E ratio of 27.6 and, according to its EPS guidance of 2.92, an expected P/E ratio of 16.7. Trimble's PEG ratio is 3.09 based on its 9.5% compound 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 3.0 compared to its sector average of 3.78. The company's shares are currently trading 88.4% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 1.82 * 16.404) = $25.92
Trimble Benefits From Positive Market Indicators:
8 analysts are following Trimble and have set target prices ranging from $40.0 to $71.0 per share. On average, they have given the company a rating of buy. At the current price of $48.83, TRMB is trading -20.85% away from its average analyst target price of $61.69 per share, implying an analyst consensus of strong 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 96.3% 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 $1,369,677,742.
