Trimble (TRMB) AI Stock Analysis

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Trimble

(NASDAQ:TRMB)

Rating:77Outperform

Price Target:

$81.00

▲( 14.42% Upside)

Trimble's stock is supported by strong financial performance, particularly in profitability and balance sheet strength. Technical indicators show positive momentum, though caution is advised due to overbought signals. Valuation metrics suggest the stock is undervalued, enhancing its appeal. The earnings call provided positive insights on growth and innovation, despite caution due to macroeconomic risks.

Positive Factors

Business Strategy

TRMB's new long-term model provides improved visibility into strong execution and a focused go-to-market strategy, which will drive growth.

Earnings

Trimble delivered another solid quarter, beating Street consensus revenue by $29.7 million.

Market Position

Trimble Inc. is well-positioned in key markets transitioning to digitization, supporting future revenue growth.

Negative Factors

Customer Behavior

Larger contractors, who are 10% of the business, are slowing buying decisions amidst the uncertainty.

Tariffs

Trimble faces a $10 million headwind from tariffs, which has led to a 4% price increase passed on to customers.

Trimble (TRMB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$17.25B

Dividend YieldN/A

Average Volume (3M)1.40M

Price to Earnings (P/E)11.5

Beta (1Y)1.24

Revenue Growth-6.93%

EPS Growth537.94%

CountryUS

Employees12,100

SectorTechnology

Sector Strength75

IndustryHardware, Equipment & Parts

Share Statistics

EPS (TTM)0.61

Shares Outstanding238,586,910

10 Day Avg. Volume1,392,806

30 Day Avg. Volume1,396,943

Financial Highlights & Ratios

PEG Ratio5.66

Price to Book (P/B)2.97

Price to Sales (P/S)0.00

P/FCF Ratio32.65

Enterprise Value/Market Cap0.99

Enterprise Value/Revenue1.15

Enterprise Value/Gross Profit7.12

Enterprise Value/Ebitda6.41

Forecast

1Y Price Target

$84.00

Price Target Upside18.66% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering4

Trimble Business Overview & Revenue Model

Company DescriptionTrimble 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. Its Geospatial segment provides surveying and geospatial products, and geographic information systems. The company's Resources and Utilities segment offers precision agriculture products and services, such as guidance and positioning systems, including autonomous steering systems, automated and variable-rate application and technology systems, and information management solutions; manual and automated navigation guidance for tractors and other farm equipment; solutions to automate application of pesticide and seeding; water solutions; and agricultural software. Its Transportation segment offers solutions for long haul trucking and freight shipper markets; mobility solutions comprising route management, safety and compliance, end-to-end vehicle management, video intelligence, and supply chain communications; and fleet and transportation management systems, analytics, routing, mapping, reporting, and predictive modeling solutions. The company was formerly known as Trimble Navigation Limited and changed its name to Trimble Inc. in October 2016. Trimble Inc. was founded in 1978 and is headquartered in Sunnyvale, California.

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 Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Shows how much each business unit contributes to total sales, indicating which segments are leading growth and which may need strategic adjustments.

Chart InsightsTrimble's Buildings and Infrastructure segment shows a recent decline, but the earnings call highlights strong overall financial performance, driven by a 16% growth in ARR and improved gross margins. The Transportation segment demonstrates resilience with record bookings despite a challenging freight market. Strategic initiatives, including AI adoption and a focus on software and services, are boosting recurring revenue. However, geographical variability and accounting delays present headwinds. Trimble's increased share repurchase authorization and focus on acquisitions suggest a proactive approach to capital allocation and growth opportunities.

Data provided by:

Main Street Data

Trimble Financial Statement Overview

Summary

Trimble's financial performance is solid, with strong profit margins and reduced leverage. The income statement indicates robust profitability with a significant rise in net profit margin. The balance sheet shows improved financial stability with a decreased debt-to-equity ratio. Cash flow remains positive, although there are concerns about free cash flow volatility due to capital expenditure fluctuations.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Mar 2025	Dec 2023	Dec 2022	Dec 2021	Mar 2021
Breakdown
Income Statement		Total Revenue
3.68B	3.80B	3.68B	3.66B	3.15B
	Gross Profit
2.40B	2.23B	2.11B	2.03B	1.75B
	EBIT
460.70M	494.40M	510.90M	561.00M	419.80M
	EBITDA
712.20M	768.60M	747.40M	845.80M	692.90M
	Net Income Common Stockholders
1.50B	311.30M	449.70M	492.80M	389.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
738.80M	229.80M	271.00M	325.70M	237.70M
	Total Assets
9.49B	9.54B	7.27B	7.10B	6.88B
	Total Debt
1.51B	3.22B	1.63B	1.41B	1.66B
	Net Debt
775.20M	2.99B	1.35B	1.09B	1.42B
	Total Liabilities
3.74B	5.04B	3.22B	3.15B	3.28B
	Stockholders Equity
5.75B	4.50B	4.05B	3.94B	3.60B
Cash Flow		Free Cash Flow
497.80M	555.10M	348.00M	704.40M	615.20M
	Operating Cash Flow
531.40M	597.10M	391.20M	750.50M	672.00M
	Investing Cash Flow
1.86B	-2.07B	-226.30M	-203.50M	-231.80M
	Financing Cash Flow
-1.86B	1.43B	-199.00M	-447.70M	-400.30M

Trimble Technical Analysis

Technical Analysis Sentiment

Positive

Last Price70.79

Price Trends

50DMA

65.07

Positive

100DMA

68.80

Positive

200DMA

66.03

Positive

Market Momentum

MACD

2.38

Negative

RSI

64.17

Neutral

STOCH

64.88

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRMB, the sentiment is Positive. The current price of 70.79 is above the 20-day moving average (MA) of 67.27, above the 50-day MA of 65.07, and above the 200-day MA of 66.03, indicating a bullish trend. The MACD of 2.38 indicates Negative momentum. The RSI at 64.17 is Neutral, neither overbought nor oversold. The STOCH value of 64.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSY	80 Outperform	$14.58B	61.10	25.20%	0.53%	10.71%	-27.64%
UMC	79 Outperform	$20.65B	14.64	11.65%	4.35%	2.22%	-22.39%
TRMB	77 Outperform	$17.25B	11.52	31.00%	―	-6.93%	537.94%
NTAP	73 Outperform	$20.86B	18.70	114.33%	2.06%	5.46%	23.49%
STM	70 Outperform	$22.76B	21.46	6.33%	1.21%	-25.35%	-70.00%
ON	69 Neutral	$17.67B	29.33	7.85%	―	-18.28%	-70.98%
Sector *	61 Neutral	$11.41B	10.19	-7.05%	2.95%	7.46%	-10.52%

* Technology Sector Average

Performance Comparison

TRMB

Trimble

70.79

13.99

24.63%

NTAP

NetApp

99.78

-13.70

-12.07%

ON Semiconductor

42.29

-30.27

-41.72%

STM

STMicroelectronics

25.18

-16.26

-39.24%

UMC

United Micro

8.07

-0.14

-1.71%

BSY

Bentley Systems

47.65

-5.36

-10.11%

Trimble Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: 11.80%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Positive

Trimble posted strong Q1 results with significant growth in key segments and advancements in AI initiatives. However, macroeconomic uncertainties, including tariffs and extended sales cycles, present challenges. The company's cautious guidance reflects these potential risks.

Q1-2025 Updates

Positive Updates

Strong Revenue Growth

Revenue at $841 million was up 3% organically and up 10% after adjusting for the timing of January 1. ARR at $2.11 billion was up 17% organically, with EPS at $0.61 ahead of expectations.

Field Systems Segment Performance

Field Systems outperformed with particular strength in civil construction and advanced positioning. ARR growth was up 25% to a record $358 million.

AECO Segment Success

AECO delivered a record $1.29 billion of ARR, posting 19% ARR growth for the quarter. Operating income increased, with margins expanding.

Transportation and Logistics Growth

ARR in Transportation grew 7% to a record $459 million, with operating margins expected to improve in the coming quarters.

AI Initiatives

Trimble is advancing its AI journey with internal summits and integrating AI into customer-facing solutions, aiding in efficiency and growth.

Negative Updates

Macroeconomic Uncertainty

The uncertainty of tariffs and trade policy poses potential risks, with the company maintaining a cautious outlook despite strong Q1 results.

Tariff-Related Cost Increases

Tariffs add approximately $10 million per quarter to the cost of goods in the Field Systems segment, requiring pricing adjustments to offset.

Longer Sales Cycles in AECO

Observed slightly longer sales cycles with enterprise customers, indicating a cautious approach amidst macroeconomic uncertainties.

Company Guidance

During Trimble's First Quarter 2025 Financial Results Conference Call, the company provided guidance focusing on several key metrics that illustrate its performance and strategic direction. Revenue in the first quarter of 2025 reached $841 million, representing a 3% organic increase and a 10% rise after accounting for the timing of January 1st license revenue. The Annual Recurring Revenue (ARR) grew by 17% organically to $2.11 billion, surpassing expectations across segments. Earnings per share (EPS) exceeded forecasts at $0.61. Despite a strong start, Trimble maintained its full-year guidance, with projected revenue at $3.42 billion and EPS at $2.87. They also anticipate an organic ARR growth midpoint of 14%. Gross margins were reported at 69.9%, an expansion of 180 basis points year-over-year, and EBITDA margins at 25.9%, a 100 basis point increase. The company highlighted the durability of its business model, with a strong balance sheet featuring a leverage ratio below 1.3 times. Capital deployment included a share repurchase of $627 million in the first quarter, with $373 million still authorized. Trimble remains focused on leveraging AI to enhance operations and customer solutions, emphasizing its commitment to innovation and efficiency.

Trimble Corporate Events

Delistings and Listing ChangesRegulatory Filings and Compliance

Trimble Receives Nasdaq Deficiency Notice for 10-K Delay

Neutral

Mar 26, 2025

Trimble Inc. announced that it received a deficiency notice from Nasdaq due to a delay in filing its 2024 Form 10-K, which is required for compliance with Nasdaq Listing Rule 5250(c)(1). The notice does not immediately affect the trading of Trimble’s stock, and the company has 60 days to submit a compliance plan. The delay was attributed to the time needed to amend the 2023 Form 10-K and file quarterly reports for 2024. Trimble expects no discrepancies in its financial results and aims to file the 2024 Form 10-K promptly.

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.