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Trend Micro Incorporated (ADR) (TMICY)
OTHER OTC:TMICY
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Trend Micro
(OTC:TMICY)
Rating:78Outperform
Price Target:―
Trend Micro (TMICY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.92B
Dividend Yield1.42%
Average Volume (3M)38.00
Price to Earnings (P/E)41.3
Beta (1Y)0.84
Revenue Growth1.75%
EPS Growth194.40%
CountryUS
Employees6,869
SectorTechnology
Sector Strength86
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.47
Shares Outstanding140,901,610
10 Day Avg. Volume0
30 Day Avg. Volume38
Financial Highlights & Ratios
PEG Ratio6.77
Price to Book (P/B)13.48
Price to Sales (P/S)0.00
P/FCF Ratio58.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Trend Micro Business Overview & Revenue Model
Company DescriptionTrend Micro Incorporated develops and sells security-related software for computers and the Internet primarily in Japan. The company offers hybrid cloud security solutions, such conformity, workload, container, file storage, application, network, and open-source security products. It also provides intrusion prevention, threat protection, industrial and mobile network security products, as well as offers email, mobile, web, and industrial endpoint security products. In addition, the company offers cloud migration, cloud-native app development, cloud operational, data center security, and SaaS application solutions. Further, it provides ICS/OT, connected car, and 5G security solutions, as well as offers ransomware, end-of-support systems, compliance, detection, and response solutions. It serves oil and gas, healthcare, manufacturing, and electric utility industries. The company was incorporated in 1965 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyTrend Micro makes money primarily through the sale of its cybersecurity software and services. The company generates revenue from licensing its products, which are available for both individual consumers and enterprise clients. Enterprise solutions often involve subscription-based models, where customers pay regular fees for continued access to Trend Micro's security services and updates. Additionally, the company offers managed security services, which provide organizations with outsourced monitoring and management of their security systems. Key revenue streams include endpoint security, hybrid cloud security, and network defense. Trend Micro also engages in strategic partnerships with other technology companies and cloud service providers, which help expand its market reach and enhance its service offerings.
Trend Micro Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -3.13%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong performance in operating profit and enterprise growth, countered by notable challenges in the consumer division and U.S. market due to government budget impacts. While the company continues to innovate and strengthen its strategic partnerships, the decline in consumer sales and pre-GAAP figures highlight areas of concern.Q1-2025 Updates
Positive Updates
Record-Breaking Operating Profit
Achieved a record high quarter for operating profit with a 24% increase, surpassing internal plan metrics and driving operating margin up to 22%.
Enterprise ARR Growth
Enterprise ARR saw a double-digit growth, with recurring revenue at $1.3 billion, primarily driven by large enterprise segment and Vision One platform adoption.
Improvement in SME and UTM Sales
Domestic SME business achieved a 22% increase in net sales, with UTM sales up by 39% year-over-year.
Vision One Platform Adoption
Vision One platform was adopted by over 10,600 enterprise customers, with average modules deployed at 4.8, enhancing retention and ARR impact.
Strategic Alliances and Industry Recognition
Further cemented strategic alliance with NVIDIA and received The Partners Choice award from Canalys for partner ecosystem efforts.
Negative Updates
Consumer Division Sales Decline
Consumer division saw a net sales decline of 8% year-over-year, primarily due to e-commerce platform issues and fewer multiyear transactions.
Impact of U.S. Government Budget Cuts
U.S. government budget cuts affected enterprise transactions, leading to project pauses and cancellations, impacting overall U.S. business.
Pre-GAAP Decline
Pre-GAAP results declined by 8%, influenced by the U.S. market conditions and a high-performing Q4 pull-forward effect.
Company Guidance
In the first quarter of fiscal year 2025, the company reported a 2% increase in revenue and an impressive 24% rise in operating profit, with an operating margin reaching 22%, significantly exceeding internal expectations. The growth, however, was affected by a 9% decline in recurring profit due to exchange rate losses, primarily from the lower dollar and higher yen. The consumer division experienced a notable 27% drop, attributed to an e-commerce platform transition that temporarily halted sales. In contrast, the enterprise segment showed robust performance with a 5% increase in net sales and a double-digit growth in enterprise ARR. Despite macroeconomic uncertainties, the overall forecast remains aligned with the company's strategic goals, focusing on enhancing profitability and expanding their comprehensive cybersecurity platform. The company also emphasized a shift towards a flatter organizational structure, reducing headcount slightly, and highlighted significant cost management improvements, especially in cloud utilization.Trend Micro Financial Statement Overview
Summary
Trend Micro demonstrates strong financial performance with consistent revenue growth, high profitability, a robust balance sheet, and efficient cash flow management. The decline in net income and free cash flow requires attention, but overall financial stability remains solid.Income Statement
Trend Micro has demonstrated solid financial performance with a consistent increase in total revenue over the years, showing a healthy revenue growth rate from 2022 to 2023. The company maintains strong profitability with a high gross profit margin and a respectable net profit margin. However, the net income has decreased compared to previous years, which slightly impacts the overall score.82
Very Positive
Balance Sheet
The balance sheet is robust, with a strong equity base and zero debt, leading to a favorable debt-to-equity ratio. The equity ratio is also healthy, indicating financial stability. Stockholders' equity has seen a slight decrease, which is a minor concern. Overall, the company's balance sheet reflects financial strength and stability.88
Very Positive
Cash Flow
Trend Micro's cash flow statement shows a stable operating cash flow with a high operating cash flow to net income ratio, indicating efficient cash generation relative to net income. Free cash flow has seen a decline, which is a concern, but the company still maintains a positive free cash flow. The free cash flow to net income ratio is strong, highlighting effective cash management despite the recent dip in free cash flow.75
Positive
| Breakdown | TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 263.69B | 248.69B | 223.79B | 190.36B | 174.06B | 165.19B |
| Gross Profit | 197.02B | 185.03B | 169.50B | 148.34B | 135.90B | 132.90B |
| EBITDA | 68.59B | 60.29B | 56.53B | 64.54B | 62.14B | 53.50B |
| Net Income | 16.77B | 10.73B | 29.84B | 38.37B | 26.90B | 27.95B |
Balance Sheet | ||||||
| Total Assets | 346.24B | 492.63B | 470.80B | 420.46B | 376.70B | 359.71B |
| Cash, Cash Equivalents and Short-Term Investments | 177.78B | 299.03B | 242.85B | 256.80B | 212.27B | 172.60B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 159.16B | 278.21B | 242.12B | 199.03B | 187.34B | 172.28B |
| Stockholders Equity | 187.01B | 214.39B | 228.66B | 220.64B | 188.53B | 187.27B |
Cash Flow | ||||||
| Free Cash Flow | 22.89B | 30.87B | 35.92B | 36.48B | 42.47B | 34.42B |
| Operating Cash Flow | 51.17B | 57.23B | 56.90B | 55.27B | 54.31B | 45.11B |
| Investing Cash Flow | 29.60B | 31.00B | -67.72B | 2.58B | -5.78B | -1.47B |
| Financing Cash Flow | -137.03B | -43.43B | -30.44B | -16.45B | -21.14B | -25.96B |
Trend Micro Technical Analysis
Negative
67.85
Price Trends
72.21
Negative
70.14
Negative
62.88
Positive
Market Momentum
-0.84
Positive
36.64
Neutral
4.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMICY, the sentiment is Negative. The current price of 67.85 is below the 20-day moving average (MA) of 74.31, below the 50-day MA of 72.21, and above the 200-day MA of 62.88, indicating a neutral trend. The MACD of -0.84 indicates Positive momentum. The RSI at 36.64 is Neutral, neither overbought nor oversold. The STOCH value of 4.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TMICY.
Trend Micro Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $16.95B | 28.10 | 19.89% | ― | 5.61% | 26.65% | |
81 Outperform | $2.31B | 18.10 | 24.65% | 0.55% | 17.39% | 100.46% | |
78 Outperform | $5.10B | 28.61 | 40.23% | ― | 9.58% | 12.41% | |
78 Outperform | $8.92B | 41.32 | 29.09% | 1.42% | 1.75% | 194.40% | |
67 Neutral | $4.09B | ― | -12.09% | ― | 11.79% | 35.35% | |
64 Neutral | $5.48B | ― | -22.21% | ― | 13.34% | 13.71% | |
63 Neutral | $32.30B | 6.54 | -12.31% | 1.93% | 5.64% | -21.98% |
* Technology Sector Average
Performance Comparison
TMICY
Trend Micro
68.09
27.88
69.34%
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294.41
123.21
71.97%
EVTC
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36.30
3.27
9.90%
QLYS
Qualys
141.19
-1.09
-0.77%
VRNS
Varonis Systems
50.15
4.19
9.12%
TENB
Tenable Holdings
33.52
-9.37
-21.85%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.