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1. Company Snapshot

1.a. Company Description

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.


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.

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1.b. Last Insights on TRMB

Trimble Inc.'s recent performance has been negatively impacted by decreased institutional investor holdings. QRG Capital Management Inc. and Chilton Capital Management LLC reduced their stakes in the company by 75.1% and 95.6%, respectively. Additionally, Bank of New York Mellon Corp trimmed its holdings by 11.2%. Despite a recent earnings beat, with Q3 earnings of $0.81 per share exceeding estimates, the company's growth prospects may be viewed skeptically by investors. A conference call for the Q4 and full-year 2025 earnings is scheduled.

1.c. Company Highlights

2. Trimble's Q3 2025 Earnings: A Strong Beat on Revenue and EPS

Trimble delivered a robust third quarter, with revenue of $901 million, up 11% year-over-year, and EPS of $0.81, beating estimates of $0.72. The company's non-GAAP EPS growth was 16%, driven by its Connect & Scale strategy, which continues to drive transformation and deliver value to customers. The structural quality of Trimble's model is evident, with recurring revenue accounting for 63% of third quarter revenue and software and services for 78% of total revenue. As Phillip Sawarynski noted, the company's ARR growth is driven by new customer acquisition and net expansion, with a consistent 15% ARR growth over the past few quarters.

Publication Date: Nov -13

📋 Highlights

Segment Performance

Trimble's segments performed well, with AECO delivering a record $1.42 billion of ARR, posting 17% ARR and revenue growth for the quarter. Field Systems outperformed in the quarter, with revenue up 8% and ARR growth of 18%. Transportation & Logistics delivered revenue growth of 4% and ARR growth of 7%. The company's confidence in achieving its fiscal 2027 targets is reinforced by its execution in 2025.

Guidance and Outlook

The company raised its full-year guidance, with revenue expected to be $3.565 billion, up $45 million from the previous estimate. EPS is expected to be $3.08, up $0.10 from the previous estimate. Trimble's guidance for 2026 revenue growth is expected to be in the mid- to high single-digit range. Analysts estimate next year's revenue growth at -2.3%, indicating a potential slowdown.

Valuation and Metrics

Trimble's current valuation metrics are as follows: P/E Ratio of 54.75, P/B Ratio of 3.38, P/S Ratio of 5.43, EV/EBITDA of 29.63, and ROE of 6.32%. These metrics indicate that the market is pricing in a premium for Trimble's growth prospects. With a strong track record of execution and a solid strategy in place, the company's ability to deliver on its 2027 financial commitments remains intact.

Capital Allocation and M&A Strategy

Trimble repurchased $50 million worth of shares in the third quarter, leaving approximately $273 million under its current repurchase authorization. The company's M&A strategy remains focused on strengthening its core market positions, with a particular emphasis on tuck-in acquisitions. Phillip Sawarynski mentioned that the company will focus on investing in the business and returning cash to shareholders through share buybacks.

AI Adoption and Data Moat

Trimble is seeing increasing interest in AI adoption, with customers using AI to solve problems and unlock their data. The company's data moat is significant, with trillions of dollars of construction, tens of billions of freight, and millions of users of their software. This corpus of data enables them to connect users, stakeholders, and data across the industry life cycle continuum.

3. NewsRoom

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3 Industrial Stocks Set to Outpace Q4 Earnings Estimates

Feb -03

Source: zacks.com

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AlphaQuest LLC Takes $960,000 Position in Trimble Inc. $TRMB

Feb -03

Source: defenseworld.net

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Trimble Inc. $TRMB Shares Sold by Bank of New York Mellon Corp

Feb -01

Source: defenseworld.net

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The AI Stock Wall Street Insiders Are Quietly Buying

Feb -01

Source: fool.com

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Head-To-Head Comparison: Morgan Advanced Materials (OTCMKTS:MCRUF) & Trimble (NASDAQ:TRMB)

Jan -28

Source: defenseworld.net

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Trimble Fourth Quarter and Full Year 2025 Earnings Call and Webcast

Jan -27

Source: prnewswire.com

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Chilton Capital Management LLC Has $1.38 Million Holdings in Trimble Inc. $TRMB

Jan -27

Source: defenseworld.net

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QRG Capital Management Inc. Has $2.45 Million Holdings in Trimble Inc. $TRMB

Jan -20

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.67%)

6. Segments

Buildings and Infrastructure

Expected Growth: 3.8%

Trimble's Buildings and Infrastructure segment growth of 3.8% is driven by increasing adoption of digital construction methods, rising demand for sustainable infrastructure, and growing need for efficient project management. Additionally, investments in transportation infrastructure and urbanization initiatives contribute to the segment's growth.

Resources and Utilities

Expected Growth: 3.5%

Trimble Inc.'s Resources and Utilities segment growth of 3.5% is driven by increasing adoption of digital technologies in construction, agriculture, and government sectors, leading to higher demand for precision agriculture, infrastructure management, and geospatial solutions. Additionally, growing investments in renewable energy and infrastructure development projects also contribute to the segment's growth.

Transportation

Expected Growth: 4.0%

Trimble Inc.'s Transportation segment growth is driven by increasing adoption of telematics and fleet management solutions, rising demand for autonomous vehicles, and growing need for efficient logistics and supply chain management. Additionally, the segment benefits from the company's strategic acquisitions and partnerships, expanding its presence in the transportation industry.

Geospatial

Expected Growth: 3.2%

Trimble Inc.'s Geospatial segment growth of 3.2% is driven by increasing adoption of precision agriculture, infrastructure development, and urban planning. Rising demand for autonomous vehicles, drones, and IoT devices also fuels growth. Additionally, the need for accurate mapping and monitoring in industries like construction, mining, and environmental monitoring contributes to the segment's expansion.

7. Detailed Products

Trimble Buildings

A suite of software solutions for architecture, engineering, and construction (AEC) industries, providing 3D modeling, collaboration, and data management tools.

Trimble Geospatial

A range of GNSS receivers, inertial navigation systems, and software solutions for surveying, mapping, and geographic information systems (GIS).

Trimble Transportation

Fleet management and logistics solutions for transportation companies, including route optimization, vehicle tracking, and supply chain management.

Trimble Field Inspector

A mobile inspection and data collection platform for utilities, telecommunications, and government agencies.

Trimble Agriculture

Precision agriculture solutions for farmers, including guidance systems, yield monitoring, and crop management software.

Trimble Forestry

Forest management and wood processing solutions for forestry companies, including harvest planning, log tracking, and wood products manufacturing.

Trimble Rail

Rail asset management and optimization solutions for rail companies, including track maintenance, signaling, and rolling stock management.

8. Trimble Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Trimble Inc. operates in a niche market with specialized products, reducing the threat of substitutes. However, the increasing adoption of digital technologies and IoT could lead to the development of alternative solutions.

Bargaining Power Of Customers

Trimble Inc.'s customers are primarily professionals and businesses, which reduces their bargaining power. The company's products are often critical to its customers' operations, making it difficult for them to negotiate prices or switch to alternative suppliers.

Bargaining Power Of Suppliers

Trimble Inc. relies on a diverse supplier base, which reduces its dependence on individual suppliers. However, the company's need for specialized components and technologies could give its suppliers some bargaining power.

Threat Of New Entrants

The barriers to entry in Trimble Inc.'s markets are relatively high, due to the need for significant investments in R&D, technology, and expertise. This makes it difficult for new entrants to compete with the company.

Intensity Of Rivalry

Trimble Inc. operates in a competitive market with several established players, leading to a high intensity of rivalry. The company must continually innovate and invest in R&D to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.76%
Debt Cost 5.74%
Equity Weight 59.24%
Equity Cost 11.44%
WACC 9.11%
Leverage 68.79%

11. Quality Control: Trimble Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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ESCO Technologies

A-Score: 5.8/10

Value: 3.0

Growth: 7.7

Quality: 7.6

Yield: 0.0

Momentum: 9.0

Volatility: 7.3

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Sanmina

A-Score: 4.9/10

Value: 4.2

Growth: 6.2

Quality: 5.7

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

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Trimble

A-Score: 4.7/10

Value: 1.3

Growth: 5.2

Quality: 6.9

Yield: 0.0

Momentum: 7.0

Volatility: 7.7

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Value: 3.4

Growth: 5.0

Quality: 6.9

Yield: 1.0

Momentum: 8.0

Volatility: 3.3

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Itron

A-Score: 4.5/10

Value: 5.4

Growth: 5.8

Quality: 7.1

Yield: 0.0

Momentum: 3.5

Volatility: 5.3

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Littelfuse

A-Score: 4.5/10

Value: 3.3

Growth: 4.2

Quality: 6.1

Yield: 1.0

Momentum: 6.0

Volatility: 6.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

64.62$

Current Price

64.62$

Potential

-0.00%

Expected Cash-Flows