Trimble Inc.TRMBNASDAQ
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Executive Summary

Latest Data: Dec 2025
TechnologyHardware, Equipment & Parts
$15.6BLarge Cap

A mid-sized company, with solid profitability, with revenues declining priced at a premium.

Key Investment Themes
Declining revenues (-3%)
Solid 12% profitability
Premium valuation (36.7x P/E)

Business Narrative

Trimble Inc. provides technology solutions that enable professionals and field mobile workers to enhance or transform their work processes worldwide. The company's Buildings and Infrastructure segment offers field and office software for route selection and design; systems to guide and control construction equipment; software for 3D design and data sharing; systems to monitor, track, and manage assets, equipment, and workers; software to share and communicate data; program management solutions for construction owners; 3D conceptual design and modeling software; building information modeling software; enterprise resource planning, project management, and project collaboration solutions; integrated site layout and measurement systems; cost estimating, scheduling, and project controls solutions; and applications for sub-contractors and trades.

TechnologyHardware, Equipment & Parts
Recurring Revenue
Revenue Mix
Single segment business
Bull Case
  • +Solid profitability with room for margin expansion
Bear Case
  • -Declining revenues signal potential market share erosion

Company at a Glance

Revenue Growth
-3%
Profit Margin
12%
Free Cash Flow
$133M
P/E Ratio
36.7x
+8% vs 5Y avg
IN-LINE

Business Performance

Business Scale
Revenue$3.6B
Net Income$424M
Profitability Quality
Gross Margin68%
Operating Margin17%
Net Margin12%
Growth Trajectory
Revenue Growth
-3%
EPS Growth
-72%
FCF Growth
-73%

Key Highlights

Positive Signals

  • Conservative balance sheet with low debt levels

Watch Areas

  • Free cash flow declining despite positive earnings

Financial Health

Liquidity
Watch
Current Ratio1.09
1.0-2.0 = Adequate
Cash & Equivalents$253M
Leverage
Strong
Debt / Equity0.24
<1.0 = Low leverage
Interest Coverage8.17x
≥5x = Comfortable
Efficiency
Concern
Return on Equity7.3%
<8% = Weak
Return on Capital6.5%
<8% = Weak

Valuation Assessment

Market Cap
$15.6B
Large Cap
P/E (TTM)
36.7x
Elevated
vs 5Y avg: 34.0x (+8%)
P/S (TTM)
4.4x
In-line
vs 5Y avg: 4.6x (-4%)
EV/EBITDA
21.2x
Elevated
vs 5Y avg: 20.1x
(+6%)
P/E Historical Range (5Y)
Min: 11.5xAvg: 34.0xNow: 36.7xMax: 44.5x
P/S Historical Range (5Y)
Min: 3.4xAvg: 4.6xNow: 4.4xMax: 6.0x
EV/EBITDA Historical Range (5Y)
Min: 7.8xAvg: 20.1xNow: 21.2xMax: 28.1x

Valuation Corridor

EXPENSIVE
FCF Yield
0.9%
vs Cost of Capital ~8.0% = Weak
P/E Corridor (5Y)36.7x
11.5xFair: 19.7x-44.5x44.5x
P/S Corridor (5Y)4.4x
3.4xFair: 3.4x-5.7x6.0x
EV/EBITDA Corridor (5Y)21.2x
7.8xFair: 12.3x-27.9x28.1x

Detailed Financials

Comprehensive financial statement data for deep analysis

MetricDec 21Dec 22Dec 23Jan 25Dec 25
Return on Equity
-
-
-
-
-
Return on Invested Capital
-
-
-
-
-
Gross Margin
55.6%
57.3%3.0%
61.4%7.2%
65.1%5.9%
68.3%5.0%
Operating Margin
15.3%
13.9%9.4%
11.8%15.0%
12.5%5.9%
16.9%35.4%
Net Margin
13.5%
12.2%9.2%
8.2%33.0%
40.8%398.4%
11.8%71.1%
Earnings Yield
-
-
-
-
-
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