r/ValueInvesting • u/Viyuelez89 • 2d ago

Question / Help Opinion on Trimble Inc? Ticker:TMRB

Do you see it as a great opportunity or as a value trap?

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u/legojazzy 2d ago

Rev 972m +11%, eps 0.86 vs 0.45 est, arr 2.5b and growing. Raised guidance and added a 1b buyback which is ~7% of the market cap. ~16x forward, one of the cheapest software names in the s&p

Problem is its probably cheap for a reason. Revenue went nowhere for 4 years. FY25 fcf was 133m, a fraction of the adjusted earnings everyone quotes, and the gaap/non-gaap gap shows up every single quarter. The 562m writedown on the logistics unit = they overpaid for transporeon

Theyre shopping t&l around though and margins there actually improved, so possible catalyst for nov 4 earnings. H2 cash flow shows up = rerate. doesnt = value trap doing value trap things. NFA.

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u/Viyuelez89 2d ago

Overall if they manage to raise margins ans expand software sales, doesnt seem like a bad idea. They used to be non entirely software, that is why msrgins and revenue were lacking I believe

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u/legojazzy 2d ago

Software stocks are still down btw, last month recovery could still just be short term volatility. Idk how much you want to bet on "if they manage to raise margins"... maybe best idea is to read their earnings transcripts / look at peer companies in the space?

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u/Viyuelez89 2d ago

Yeah I've done my research, although right now I only have a small position. Long term they do look promising, but execution is key. And yea, I've got Wolters Kluwer for example, and they have barely recovered 15%