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Trimble (TRMB): analysis traps
Where its figures could mislead a reader, and what to check before taking them at face value · Data: Q3 2026, to Oct 2, 2026, filed Nov 4, 2026; rules v1.1
Trimble (TRMB): 0 rules of 10 triggered on the filings to Oct 2, 2026. 1 to review; 2 with insufficient data; 3 not applicable. Each is a question to verify, with the normal explanation that would produce the same figures.
Check these first
A precise DCF value = the true value To review · confidence high
The DCF's point value is 25.08 a share (price 54.11); 59% of it is the terminal value, a number about years no one has seen. Moving revenue growth (each year) by ±5 pts alone takes it from 19.88 to 31.26; across every method the research ran the range is 1 to 106. The value is a range; the decimals are not information.
Innocent reading: A stable, mature business with a narrow range of outcomes, where the point value is a fair summary.
Every rule
A01 FCF growth = the business improved Not triggered confidence high
Free cash flow did not rise ($498M → $361M): the trap does not arise.
The figures and how they are read
| Fiscal year before | FY2024 |
| Fiscal year | FY2025 |
| Operating cash flow, year before | $531M |
| Operating cash flow | $386M |
| Capex, year before | $34M |
| Capex | $25M |
| Free cash flow, year before | $498M |
| Free cash flow | $361M |
| Change in FCF | −$137M |
| Change in capex | −$8M |
| Working capital: change in its cash contribution | −$675M |
FCF = operating cash flow − cash capex; ΔFCF = ΔOCF − ΔCapEx; the working-capital part is the change in the cash-bridge items (receivables, inventory, payables, accruals), with the sign of the cash flow statement
Source: FY2025 (cash flow statement, fiscal year) · FY2024 (cash flow statement, fiscal year before)
A07 Stock compensation added back = no economic cost Not triggered confidence high
Stock compensation is 4.1% of revenue, but buybacks of $863M covered it (5.9×) and the diluted share count fell 2.3%: the dilution has been paid for in cash.
The figures and how they are read
| Fiscal year | FY2025 |
| Stock compensation | $146M |
| Revenue | $3.6B |
| SBC / revenue | +4.1% |
| Buybacks | $863M |
| Buybacks / SBC | 5.9 |
| Diluted shares, year before | 247.2M shares |
| Diluted shares | 241.5M shares |
| Diluted shares: change | -2.3% |
SBC / revenue from the cash flow statement's add-back; the diluted weighted share count year over year; buybacks from the financing section
Source: FY2025 (stock compensation, buybacks and the diluted share count, fiscal year)
B02 Receivables growing = future cash is certain Not triggered confidence medium
Receivables grew 13% against revenue 7% in Q3 2026; DSO 57 against a median of 62: collections are keeping pace with sales.
The figures and how they are read
| Quarter | Q3 2026 |
| Revenue, year over year | +7.3% |
| Receivables, year over year | +12.6% |
| Quarter before | Q2 2026 |
| Revenue y/y, quarter before | +11.0% |
| Receivables y/y, quarter before | +10.9% |
| Days sales outstanding | 56.9 |
| DSO, median of eight quarters | 62.4 |
| Receivables | $611M |
| Revenue | $967M |
receivables and revenue against the same quarter a year earlier; DSO = receivables / quarterly revenue × days, against the median of the eight quarters before
Source: Q3 2026 (receivables and revenue) · Q3 2025 (the same quarter a year earlier)
B08 Adjusted profit = economic profit Insufficient data
no reconciliation table read from the releases yet and fewer than three quarters with both an adjusted and a GAAP EPS
C02 Low net debt = no refinancing risk Insufficient data
neither a maturity table nor the current portion of debt is on file
D03 EPS growth = profit growth Not triggered confidence high
EPS fell 45% and net income fell 47% in Q3 2026; the share count fell 3.0%: EPS growth follows profit growth.
The figures and how they are read
| Quarter | Q3 2026 |
| Quarter before | Q3 2025 |
| EPS, year before | $0.46 |
| EPS | $0.25 |
| Net income, year before | $112M |
| Net income | $59M |
| Diluted shares, year before | 240.4M shares |
| Diluted shares | 233.2M shares |
| EPS growth | -45.5% |
| Net income growth | -47.0% |
| Diluted shares: change | -3.0% |
| eps from profit | -$0.22 |
| eps from share count | $0.01 |
EPS and net income against the same quarter a year earlier; the EPS bridge attributes the change to profit first, then to the share count (the order is fixed and disclosed)
Source: Q3 2026 (net income, diluted shares, EPS) · Q3 2025 (the same quarter a year earlier)
E02 Low P/E at a cyclical peak = undervalued Not applicable
a loss on a trailing or mid-cycle basis: the P/E has no meaning
E07 A precise DCF value = the true value To review confidence high
The DCF's point value is 25.08 a share (price 54.11); 59% of it is the terminal value, a number about years no one has seen. Moving revenue growth (each year) by ±5 pts alone takes it from 19.88 to 31.26; across every method the research ran the range is 1 to 106. The value is a range; the decimals are not information.
The figures and how they are read
| dcf value | 25.08 |
| price | 54.11 |
| terminal value share | +58.8% |
| swing by input | Revenue growth (each year) / ±5 pts / 19.88 / 31.26; Operating margin / ±3 pts / 20.07 / 30.1; WACC / ±1 pt / 21.92 / 29.21; Tax rate / ±5 pts / 23.34 / 26.83 |
| range all methods | 0.9; 105.67 |
the DCF's point value against the share of it that is the terminal value and the value at each input moved by one step (growth ±5 pts, WACC ±1 pt, margin ±3 pts …); the range across every method the research ran
Source: 2026-11-08 (valuation research)
What would explain it innocently
- A stable, mature business with a narrow range of outcomes, where the point value is a fair summary
- The inputs that matter most are themselves well known (a regulated return, a long contract)
What to look for in the filing
- Which input you believe differs from the research's and why
- What the price implies for growth (the reverse DCF on the fair-value page)
What would show the trap does not apply
- The DCF's value is robust to the terminal growth and discount rate (the range's low end is still above the price)
- The company's cash flows over the next three years track the DCF's early years
Look again: next filing.
J06 A bank's low P/E and high profit = safe Not applicable
not a bank
J08 A REIT's low net income = the dividend is unsafe Not applicable
not a REIT
What the statuses mean
Triggered: the filings show the pattern; read the normal explanations and the missing evidence before concluding anything. To review: one quarter or a weak signal; a reader's judgement, not a pattern. Not triggered: the pattern is absent on these figures. Insufficient data: the filings read so far do not hold what the rule needs; this is not a clean bill. Not applicable: the rule is not meant for this kind of company (a bank's working capital, a loss-making quarter's EPS growth). Out of date: the latest filing is more than fifteen months old.
Severity is what the pattern could mean for cash, value or solvency; confidence is how reliable the inputs and the reading are. The two are kept apart.
Record a view
A reader's judgement, grounds, what would change it and the next review; kept in the browser (needs JavaScript).
Every rule and the companies it triggers on → Trimble: cash flow → Earnings quality score →
Each rule reads the company's own filings by a fixed formula and says what would explain the same figures innocently. A triggered rule is a question to verify, not a finding of manipulation, and not a view on the stock. Missing data is shown as missing, never as clear. Not investment advice.