Trend Micro (4704) AI Stock Analysis

• Market Cap: ¥872.73B
• Dividend Yield: 2.57%
• Average Volume (3M): 775.08K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.48
• Revenue Growth: 1.91%
• EPS Growth: 44.78%
• Country: JP
• Employees: 6,869
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 95.72
• Shares Outstanding: 140,901,610
• 10 Day Avg. Volume: 999,720
• 30 Day Avg. Volume: 775,083
• PEG Ratio: 0.14
• Price to Book (P/B): 9.51
• Price to Sales (P/S): 4.17
• P/FCF Ratio: 24.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥7,201.00 ▲(11.35% Upside)

The score is driven primarily by strong financial fundamentals (rapid TTM growth, high margins, debt-free balance sheet, and solid recent cash conversion). This is meaningfully offset by weak technicals (below major moving averages with negative momentum), while valuation is mid-range with a moderate P/E and a supportive dividend yield.

Positive Factors

Strong Revenue Growth

Consistent revenue growth indicates robust demand for Trend Micro's cybersecurity solutions, enhancing its market position and long-term growth prospects.

Debt-Free Balance Sheet

A debt-free balance sheet provides financial flexibility, reduces risk, and allows Trend Micro to invest in growth opportunities without the burden of interest payments.

High Profit Margins

High profit margins reflect efficient operations and strong pricing power, supporting sustainable earnings and competitive advantage in the cybersecurity market.

Negative Factors

Earnings Volatility

Earnings volatility can undermine investor confidence and complicate financial planning, potentially affecting Trend Micro's ability to consistently deliver shareholder value.

Equity Decline

A decline in equity may indicate underlying financial challenges or strategic shifts, which could impact Trend Micro's long-term financial stability and growth capacity.

Cash Flow Variability

Variability in cash flow can affect Trend Micro's ability to fund operations and growth initiatives consistently, posing a risk to its financial health and strategic execution.

Trend Micro Business Overview & Revenue Model

Company Description

Trend Micro Incorporated develops and sells security-related software for computers and the Internet primarily in Japan. The company offers hybrid cloud security solutions, such conformity, workload, container, file storage, application, network, and open-source security products. It also provides intrusion prevention, threat protection, industrial and mobile network security products, as well as offers email, mobile, web, and industrial endpoint security products. In addition, the company offers cloud migration, cloud-native app development, cloud operational, data center security, and SaaS application solutions. Further, it provides ICS/OT, connected car, and 5G security solutions, as well as offers ransomware, end-of-support systems, compliance, detection, and response solutions. It serves oil and gas, healthcare, manufacturing, and electric utility industries. The company was incorporated in 1965 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Trend Micro makes money primarily through the sale of its security software and services. The company generates revenue from licensing its software products to a wide range of customers, including individuals, small to medium businesses, and large enterprises. Its key revenue streams include subscription fees for its software as a service (SaaS) offerings, which provide ongoing protection and threat intelligence updates. Additionally, Trend Micro partners with major technology companies to integrate its security solutions into their platforms, expanding its reach and customer base. Professional services, such as cybersecurity consulting and support, also contribute to its revenue. The company's strategic partnerships and continuous innovation in threat detection and response technologies are significant factors that enhance its earnings potential.

Trend Micro Financial Statement Overview

Summary

Trend Micro exhibits strong financial performance with consistent revenue and profit growth. The company's healthy profit margins and solid balance sheet with no debt underscore its financial stability. Strong cash flow management further enhances its growth potential, though there is room for improvement in net profit margins.

Income Statement

Trend Micro demonstrates strong financial performance with consistent revenue growth, evident from a 9.64% increase in 2024 compared to 2023. The company maintains healthy profit margins, with a gross profit margin of 76.18% and a net profit margin of 12.60% for 2024. The EBIT margin stands at 17.65%, indicating efficient operational management. These metrics highlight the company's robust profitability and growth trajectory, although the net profit margin suggests room for improvement in cost management.

Balance Sheet

The company maintains a solid balance sheet with no debt, showcasing financial discipline and stability. The equity ratio of 29.84% indicates a strong equity base relative to total assets. Return on Equity (ROE) is healthy at 28.76%, reflecting efficient use of shareholders' equity to generate profits. The absence of debt reduces financial risk, providing a stable foundation for future growth.

Cash Flow

Trend Micro has strong cash flow generation capabilities, with a free cash flow increase of 47.63% from 2023 to 2024, highlighting effective cash management and potential for reinvestment. The operating cash flow to net income ratio of 1.36 suggests robust cash flow relative to reported earnings. The company's ability to generate free cash flow consistently reinforces its financial flexibility and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	272.73B	272.64B	248.69B	223.79B	190.36B	174.06B
Gross Profit	208.84B	207.66B	185.03B	169.50B	148.34B	135.90B
EBITDA	75.24B	77.03B	60.30B	67.13B	73.28B	62.14B
Net Income	34.88B	34.36B	10.73B	29.84B	38.37B	26.90B
Balance Sheet
Total Assets	387.77B	400.32B	492.63B	470.80B	420.46B	376.70B
Cash, Cash Equivalents and Short-Term Investments	226.55B	210.90B	299.03B	242.85B	256.80B	212.27B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	260.35B	280.87B	278.21B	242.12B	199.03B	187.34B
Stockholders Equity	126.90B	119.44B	214.39B	228.66B	220.64B	188.53B
Cash Flow
Free Cash Flow	63.27B	45.56B	30.87B	35.92B	36.48B	42.47B
Operating Cash Flow	64.30B	46.78B	57.23B	56.90B	55.27B	54.31B
Investing Cash Flow	-928.00M	5.04B	31.00B	-67.72B	2.58B	-5.78B
Financing Cash Flow	-19.69B	-130.90B	-43.43B	-30.44B	-16.45B	-21.14B

Trend Micro Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6467.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4704, the sentiment is Neutral. The current price of 6467 is below the 20-day moving average (MA) of 6569.21, below the 50-day MA of 7033.22, and below the 200-day MA of 8514.56, indicating a neutral trend. The MACD of -116.14 indicates Negative momentum. The RSI at 46.71 is Neutral, neither overbought nor oversold. The STOCH value of 76.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4704.

Trend Micro Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3040	78 Outperform	¥40.16B	16.66	19.71%	3.09%	3.44%	79.35%
4493	78 Outperform	¥20.03B	29.07	―	0.17%	31.39%	13.12%
4704	68 Neutral	¥872.73B	25.06	29.20%	2.57%	1.91%	44.78%
3914	67 Neutral	¥18.74B	45.02	―	―	3.17%	-16.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4417	60 Neutral	¥55.48B	46.47	―	0.90%	25.06%	37.24%
3778	52 Neutral	¥112.02B	70.02	―	0.14%	36.42%	28.23%

Trend Micro Corporate Events

Trend Micro Finalizes Terms for New Executive and Employee Stock Options

Trend Micro has set the final terms for issuing 3,700 stock acquisition rights as stock options, covering up to 370,000 ordinary shares, to 18 directors and employees of the company and its subsidiaries. The options, which do not require a cash payment for allocation and are not being granted on specially advantageous terms, carry an exercise price of 692,100 yen per option (6,921 yen per share), aligning management and employee incentives with shareholder interests and reinforcing long-term commitment to the cybersecurity group’s growth.

The most recent analyst rating on (JP:4704) stock is a Hold with a Yen8100.00 price target. To see the full list of analyst forecasts on Trend Micro stock, see the JP:4704 Stock Forecast page.

Trend Micro Nears Full Execution of ¥10 Billion Share Buyback Program

Trend Micro has completed a share repurchase program authorized under Japan’s Company Law, buying back a total of 1,322,500 shares of its common stock for approximately 9.999 billion yen through open-market transactions on the Tokyo Stock Exchange. The latest tranche, conducted between December 1 and December 17, 2025, accounted for 525,300 shares at a cost of about 3.77 billion yen, bringing the program—initially approved for up to 1.67 million shares and 10 billion yen—to a near-full execution level, a move that is likely to support shareholder returns and optimize capital structure.

The most recent analyst rating on (JP:4704) stock is a Hold with a Yen8100.00 price target. To see the full list of analyst forecasts on Trend Micro stock, see the JP:4704 Stock Forecast page.

Trend Micro Announces Share Repurchase to Enhance Shareholder Value

Trend Micro announced the repurchase of 797,200 shares of its common stock, totaling a cost of 6,232,402,800 yen, as part of a previously approved plan by its Board of Directors. This strategic move is aimed at optimizing capital structure and enhancing shareholder value, reflecting the company’s robust financial position and commitment to its investors.

The most recent analyst rating on (JP:4704) stock is a Hold with a Yen8100.00 price target. To see the full list of analyst forecasts on Trend Micro stock, see the JP:4704 Stock Forecast page.

Trend Micro Allocates Stock Options to Align Interests and Boost Performance

Trend Micro has announced the allocation of stock options to its directors and employees, as well as those of its subsidiaries, to align their interests with the company’s stock performance. This move aims to enhance motivation and morale, ultimately improving the company’s performance and shareholder value.

The most recent analyst rating on (JP:4704) stock is a Hold with a Yen8100.00 price target. To see the full list of analyst forecasts on Trend Micro stock, see the JP:4704 Stock Forecast page.

Trend Micro Initiates Share Buyback Program to Enhance Shareholder Returns

Trend Micro has announced a share buyback program approved by its Board of Directors, aimed at enhancing shareholder returns and improving equity efficiency. The program involves purchasing up to 1,670,000 shares, representing 1.27% of the total outstanding shares, with a total purchase price of up to 10,000 million yen, to be executed on the Tokyo Stock Exchange between November 13 and December 23, 2025.

The most recent analyst rating on (JP:4704) stock is a Hold with a Yen8100.00 price target. To see the full list of analyst forecasts on Trend Micro stock, see the JP:4704 Stock Forecast page.

Trend Micro Announces Third Quarter 2025 Financial Results

Trend Micro reported its consolidated financial results for the third quarter of the fiscal year ending December 31, 2025. The company achieved net sales of 202,753 million yen, with a slight increase in operating income and ordinary income compared to the previous year. Despite stable net sales, the company’s equity ratio improved, reflecting a stronger financial position. The dividend projection for the fiscal year 2025 remains undetermined, indicating potential strategic financial planning.

The most recent analyst rating on (JP:4704) stock is a Hold with a Yen8100.00 price target. To see the full list of analyst forecasts on Trend Micro stock, see the JP:4704 Stock Forecast page.