Trimble Inc. (TRMB) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA below its 5-year median

Trimble's EV/EBITDA of 17.3 is below its 5-year median of 27.1.

P/B below the industry

Trimble's price-to-book of 2.65 is below the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 3.17.

Trading below fair value

The share price of $56.48 is below our fair value estimate of $81.46.

Margin of safety over 20%

The price is 30.7% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -0.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -0.7% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -144% over the last twelve months, against a 5-year average of 1.7% a year.

Growing slower than the industry

Revenue grew 6.9% over the last twelve months; the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median is 8.4%.

Guidance raised

Trimble raised its full-year 2026 revenue outlook on Aug 12, 2026.

Gross margin improving

Gross margin was 69.6% over the last twelve months, against 68.3% a year earlier.

Return on equity under 15%

Return on equity was -2.9% over the last twelve months and averaged 13.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 7.6%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Trimble's return on equity of -2.9% is below the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 1.1%.

Earnings grew over 5 years

Net income grew 1.7% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was -4.1% over the last twelve months, against a 5-year average of 17.3%.

Net margin below the industry

Trimble's net margin of -4.1% is below the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of -1.3%.

Low debt

Debt is 30.8% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 50.1% five years ago to 30.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 53.8% of total debt.

Interest well covered

Operating income covers interest expense 8.0 times.

Short-term assets don't cover short-term debts

Current assets are 0.93 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.32; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Trimble has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.