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Trimble Breaks Out to New All-Time Highs

I bet you have no idea what this company does. Neither did we. But it's making all-time highs and throws off tons of cash.

Caleb Dismuke

Last updated: 8/25/2020.


After two and a half years of trading sideways, Trimble ($TRMB) broke out to new all-time highs. They've gained 27% YTD vs. 8% for the S&P 500.

What they do:

They provide products and services that connect the digital and physical worlds. They operate across various industries: agriculture, architecture, civil engineering, survey, construction, geospatial, government, natural resources, transportation, and utilities.

For example, they provide back-office software, truck telematics, digital mapping, and freight visibility for the trucking industry.

🔥Deal Flow🔥

In January, they acquired Kuebix. Kuebix helps shippers with supply chains of all sizes and complexities and connects them directly to their carriers for the pricing, service levels, and visibility they need to run their businesses.

The acquisition enables Trimble to mesh its private fleet and commercial carrier network, comprised of more than 1.3 million North America-based commercial trucks, with Kuebix’s community of more than 21,000 shipping companies. This combo provides a powerful new platform for planning, executing, and freight demand capacity-matching.

For more details, read its August 2020 investor presentation.


What's its chart telling us?

  • The price broke above its two-year range top at $46.25. For upside momentum to continue, $46.25 should hold on a retest.

KEY FACTS
Ticker $TRMB
Headquarters Sunnyvale, CA
# of Employees 11,500 (as of 2018)
Market Cap. $13.2 billion
TTM Revenue $3.1 billion
Date Founded 1978
IPO Date 1990
Short Interest 1.6%
52-Week Range $21-$52

KEY FINANCIALS TTM, $ in millions
Revenue $3,133
Gross Margin 58.2%
EBITDA $626.8
EBITDA Margin 20.0%
Net Income $482.3
Net Income Margin 15.4%
Free Cash Flow $510.0
Free Cash Flow Margin 16.2%

RETURNS TTM
Return on Assets 4.3%
Return on Invested Capital (ROIC) 5.4%
Return on Equity 16.0%

VALUATION METRICS
Forward Price/Revenues 4.2x
Trailing Price/Revenues 4.2x
Forward Price/Earnings 26.5x
Trailing Price/Earnings 27.5x

Additional information: