Trimble Inc (TRMB) Stock

Trimble Inc trades at a P/E ratio of 56.31, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 24.04 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.40 indicates a premium valuation even accounting for growth.

With a beta of 1.60, Trimble Inc is significantly more volatile than the market. For every 10% market move, this stock tends to move 16% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 3.42 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Trimble Inc achieves a profit margin of 9.93%, meaning it retains $9.93 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 18.40% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 6.13% and ROA at 3.81%, the company achieves moderate returns on invested capital.

Trimble Inc's revenue grew by 2.90% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 187.50% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SCIENTIFIC & TECHNICAL INSTRUMENTS industry averages for proper context.

Trimble Inc has a market capitalization of $19.8B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 237.92M shares outstanding, the company's ownership is relatively concentrated. As a participant in the SCIENTIFIC & TECHNICAL INSTRUMENTS industry, it competes with other firms in this sector.

Trimble Inc's book value per share is $24.34, while the current stock price is $80.17, resulting in a price-to-book (P/B) ratio of 3.29. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

13 analysts cover TRMB with 92% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $98.45 implies 22.8% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:4 Strong Buy, 8 Buy, 1 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.