Trimble Inc Intrinsic Value Calculation – HSBC Holdings PLC reduces Trimble holdings by 12.6% in second quarter
September 25, 2024
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TRIMBLE INC ($NASDAQ:TRMB) is a global company that provides technology solutions for a wide range of industries including agriculture, construction, and transportation. They offer products and services such as GPS technology, surveying equipment, and fleet management systems, among others. The company has been steadily growing and expanding its reach in the market, making it an attractive investment option for many investors.
However, in the second quarter of this year, one of its major shareholders, HSBC Holdings PLC, made a significant move by reducing its ownership of Trimble Inc. shares by 12.6%. This news came as a surprise to many, as HSBC had been a long-time investor in Trimble Inc., holding a significant stake in the company. Many companies, including Trimble Inc., have been impacted by the pandemic, leading to a decline in their stock prices. As a result, HSBC may have decided to sell some of its shares in order to minimize its exposure to risk and protect its investments. Another possible reason for HSBC’s reduction in Trimble Inc. holdings could be its decision to reallocate its investment portfolio. As a major global bank, HSBC has various investment opportunities available to them, and they may have deemed it necessary to rebalance their portfolio by selling some of their Trimble Inc. shares and investing in other companies or industries. This reduction in HSBC’s ownership of Trimble Inc. may have caused some concern among investors, as it could be seen as a lack of confidence in the company’s performance. However, it is important to note that HSBC still holds a significant stake in Trimble Inc., indicating that they still have faith in the company’s potential for growth and profitability. In conclusion, while the news of HSBC’s reduction in Trimble Inc. holdings may have raised some eyebrows, it is not necessarily a cause for alarm. TRIMBLE INC remains a strong and reputable company in the market, with a diverse portfolio of products and a global presence. It will be interesting to see how this move by HSBC will affect Trimble Inc.’s stock performance in the coming quarters.
Analysis – Trimble Inc Intrinsic Value Calculation
After thorough analysis of TRIMBLE INC‘s financials, I have determined that the intrinsic value of its shares is approximately $67.7. This is based on our proprietary Valuation Line, which takes into account various financial metrics and projections. Currently, TRIMBLE INC’s stock is trading at $58.57, which means it is undervalued by 13.5%. This presents a good opportunity for investors to purchase the stock at a fair price. In terms of financial performance, TRIMBLE INC has shown steady growth in revenue and earnings over the past few years. Its strong market position and diverse portfolio of products and services contribute to its consistent growth. Additionally, TRIMBLE INC has a strong balance sheet with manageable levels of debt and a healthy cash position. This provides the company with the flexibility to invest in future growth opportunities. Furthermore, TRIMBLE INC has a solid track record of delivering value to shareholders through dividends and share buybacks. This demonstrates management’s commitment to creating shareholder value. In conclusion, based on our analysis, TRIMBLE INC appears to be a strong investment opportunity with a potential for long-term growth. Its current undervaluation provides an attractive entry point for investors. However, as with any investment, it is important to conduct further research and due diligence before making any investment decisions. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Trimble Inc. More…
| Total Revenues | Net Income | Net Margin |
| 3.8k | 311.3 | 9.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Trimble Inc. More…
| Operations | Investing | Financing |
| 597.1 | -2.07k | 1.43k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Trimble Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.54k | 5.04k | 18.09 |
Key Ratios Snapshot
Some of the financial key ratios for Trimble Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.5% | 3.5% | 13.6% |
| FCF Margin | ROE | ROA |
| 14.6% | 7.3% | 3.4% |
Peers
The competition among Trimble Inc, SRT Marine Systems PLC, Shanghai Huace Navigation Technology Ltd, and Topcon Corp is fierce. All four companies are leaders in the GPS navigation industry and are constantly innovating to stay ahead of the competition. Trimble Inc has been the top GPS navigation company for many years, but its competitors are quickly catching up. SRT Marine Systems PLC is a publicly traded company on the London Stock Exchange and is the largest GPS navigation company in the world. Shanghai Huace Navigation Technology Ltd is a privately held company based in China and is one of the fastest growing GPS navigation companies. Topcon Corp is a Japanese company that has been in the GPS navigation industry for over 50 years.
– SRT Marine Systems PLC ($LSE:SRT)
SRT Marine Systems PLC is a marine technology company that provides integrated solutions for the maritime industry. The company offers a range of products and services, including navigation, communication, bridge systems, and data management. It also provides engineering and support services. The company has a market cap of 59.17M as of 2022 and a return on equity of -44.18%.
– Shanghai Huace Navigation Technology Ltd ($SZSE:300627)
Shanghai Huace Navigation Technology Ltd is a Chinese company that manufactures and sells navigation and communication products. The company has a market capitalization of $16.9 billion as of 2022 and a return on equity of 8.69%. The company’s products include GPS receivers, marine navigation products, and aviation products.
– Topcon Corp ($TSE:7732)
Topcon Corporation is a Japanese technology company that manufactures precision instruments and equipment for measuring, surveying, and machine control. The company has a market capitalization of 168.63 billion as of 2022 and a return on equity of 11.65%. Topcon’s products are used in a variety of industries, including construction, agriculture, surveying, and mapping. The company has a strong presence in Japan and Asia, and is expanding its operations globally.
Summary
HSBC Holdings PLC decreased its ownership in Trimble Inc. by 12.6% during the second quarter of this year. The company’s decision to lessen its holdings in the company suggests a lack of confidence or a change in investment strategy. This could be due to a variety of factors, such as poor financial performance, industry trends, or external market conditions. Investors should consider this move by HSBC when conducting their own analysis of Trimble Inc. It is important to keep an eye on any changes in major shareholders as they can provide valuable insights into the company’s future prospects.
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