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Trend Micro Incorporated (ADR) (TMICY)
OTHER OTC:TMICY
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Trend Micro
(OTC:TMICY)
Rating:78Outperform
Price Target:―
Trend Micro (TMICY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.20B
Dividend Yield1.74%
Average Volume (3M)205.00
Price to Earnings (P/E)35.1
Beta (1Y)0.72
Revenue Growth2.87%
EPS Growth89.83%
CountryUS
Employees6,869
SectorTechnology
Sector Strength89
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.28
Shares Outstanding140,901,610
10 Day Avg. Volume356
30 Day Avg. Volume205
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue0.03
Enterprise Value/Gross Profit0.04
Enterprise Value/Ebitda0.11
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Trend Micro Business Overview & Revenue Model
Company DescriptionTrend 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 MoneyTrend Micro makes money primarily through the sale of its cybersecurity software and services. The company generates revenue from licensing its products, which are available for both individual consumers and enterprise clients. Enterprise solutions often involve subscription-based models, where customers pay regular fees for continued access to Trend Micro's security services and updates. Additionally, the company offers managed security services, which provide organizations with outsourced monitoring and management of their security systems. Key revenue streams include endpoint security, hybrid cloud security, and network defense. Trend Micro also engages in strategic partnerships with other technology companies and cloud service providers, which help expand its market reach and enhance its service offerings.
Trend Micro Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: -9.85%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
While the company has seen significant advancements in AI integration, partnerships, and platform growth, it has faced challenges due to macroeconomic factors and currency impacts, leading to mixed financial results.Q2-2025 Updates
Positive Updates
Enterprise Business Growth in Japan
The Japanese enterprise business saw a 12% year-over-year growth, driven by an increasing number of multiyear comprehensive contracts and the adoption of Trend Vision One.
Vision One Platform Expansion
Vision One platform saw a significant increase in adoption, with large enterprise ARR growing 94% YoY and small business ARR growing 148% in two quarters.
AI Integration and Transformation
Trend Micro has focused on integrating AI across its operations, leading to increased productivity and the launch of new AI-powered security solutions.
Consumer Business Beyond Device Protection Growth
The consumer segment saw growth in anti-scam solutions, with a 55% YoY increase in gross sales for these services.
Strategic Partnerships and New Product Launches
Trend Micro has forged partnerships with Dell and NVIDIA and launched new AI security packages, showcasing its commitment to AI-driven cybersecurity solutions.
Negative Updates
Revenue Decline and FX Impact
Net sales decreased by 3%, with a significant impact from foreign exchange resulting in a 29% decrease in ordinary income.
Challenges in the Consumer Segment
The consumer segment faced a 10% YoY decline, partially due to the transition to a new credit card transaction partner and delays in PayPal integration.
Macroeconomic Uncertainty and Sales Cycle Delays
Global macroeconomic uncertainty has led to delayed deals and elongated sales cycles, impacting performance, particularly in midsized enterprises and government projects.
Vision One Platform Attach Rate Challenges
Despite growth, the Vision One platform's attach rate in Japan is lower compared to other regions, indicating room for improvement in customer transition.
Company Guidance
In the recent call, Trend Micro provided guidance on several key financial metrics and strategic initiatives, highlighting a complex business environment influenced by macroeconomic uncertainties and currency fluctuations. In Q2 2025, net sales decreased by 3%, while operating income increased by 9%, and total operating expenses were reduced by 6%. The company reported a significant foreign exchange (FX) loss, impacting ordinary income by 29%, although without FX effects, growth would have been 1%. Trend Micro's annual recurring revenue (ARR) grew to USD1.6 billion, with a notable focus on shifting cloud-type subscriptions to their Vision One platform, which boasts an impressive net revenue retention (NRR) rate of over 140%. The Japanese enterprise segment saw a strong 12% growth year-on-year (YoY). Despite challenges, the company maintained a positive outlook, with an operating profit expected to increase by 11% and efforts to improve productivity through AI-driven initiatives. The forecast for H2 remains cautious, with a flat net sales outlook of JPY274 billion. The company also emphasized its strategic focus on AI, with partnerships with NVIDIA and Dell, and a comprehensive AI security package launch scheduled for August.Trend Micro Financial Statement Overview
Summary
Trend Micro demonstrates solid financial health with strong revenue growth, robust profitability, and efficient cash flow management. The zero-debt position enhances financial stability, though attention to declining free cash flow and equity levels could further strengthen the company's financial position.Income Statement
Trend Micro exhibits strong profitability with a consistent gross profit margin above 70% and improving net profit margins, reaching 12.6% in the latest year. Revenue has shown steady growth, with a notable increase of around 9.6% from 2023 to 2024. EBIT and EBITDA margins reflect solid operational efficiency. However, the net income growth has been inconsistent, impacting overall profitability scores.85
Very Positive
Balance Sheet
The company maintains a robust balance sheet with zero debt, indicating financial stability and low leverage risk. A strong equity ratio above 25% and healthy ROE highlight efficient use of equity capital. However, a decline in stockholders' equity over the most recent period suggests potential areas for improvement in equity retention or growth.80
Positive
Cash Flow
While operating cash flow remains strong, there has been a decrease in free cash flow, impacting growth rates. The company maintains a favorable operating cash flow to net income ratio, indicating efficient cash conversion. However, the drop in free cash flow from 2023 to 2024 points to increased capital expenditures or other cash outflows that need addressing.78
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 272.64B | 248.69B | 223.79B | 190.36B | 174.06B |
| Gross Profit | 207.66B | 185.03B | 169.50B | 148.34B | 135.90B |
| EBITDA | 77.03B | 60.92B | 56.53B | 64.54B | 62.14B |
| Net Income | 34.36B | 10.73B | 29.84B | 38.37B | 26.90B |
Balance Sheet | |||||
| Total Assets | 400.32B | 492.63B | 470.80B | 420.46B | 376.70B |
| Cash, Cash Equivalents and Short-Term Investments | 210.90B | 299.03B | 242.85B | 256.80B | 212.27B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 280.87B | 278.21B | 242.12B | 199.03B | 187.34B |
| Stockholders Equity | 119.44B | 214.39B | 228.66B | 220.64B | 188.53B |
Cash Flow | |||||
| Free Cash Flow | 21.84B | 30.87B | 35.92B | 36.48B | 42.47B |
| Operating Cash Flow | 46.78B | 57.23B | 56.90B | 55.27B | 54.31B |
| Investing Cash Flow | 5.04B | 31.00B | -67.72B | 2.58B | -5.78B |
| Financing Cash Flow | -130.90B | -43.43B | -30.44B | -16.45B | -21.14B |
Trend Micro Technical Analysis
Negative
54.99
Price Trends
65.66
Negative
68.09
Negative
63.78
Negative
Market Momentum
-2.78
Positive
23.12
Positive
4.56
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMICY, the sentiment is Negative. The current price of 54.99 is below the 20-day moving average (MA) of 60.51, below the 50-day MA of 65.66, and below the 200-day MA of 63.78, indicating a bearish trend. The MACD of -2.78 indicates Positive momentum. The RSI at 23.12 is Positive, neither overbought nor oversold. The STOCH value of 4.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TMICY.
Trend Micro Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $18.12B | 27.81 | 20.58% | ― | 8.94% | 22.30% | |
79 Outperform | $2.35B | 17.26 | 25.17% | 0.54% | 12.92% | 101.57% | |
78 Outperform | $7.20B | 35.12 | 29.23% | 1.74% | 2.87% | 89.83% | |
75 Outperform | $4.66B | 25.73 | 39.53% | ― | 9.69% | 9.50% | |
72 Outperform | $6.54B | ― | -25.73% | ― | 14.29% | -14.42% | |
61 Neutral | $36.05B | 7.25 | -7.27% | 1.99% | 8.06% | -7.48% | |
60 Neutral | $3.61B | ― | -12.60% | ― | 11.41% | 33.76% |
* Technology Sector Average
Performance Comparison
TMICY
Trend Micro
54.99
-1.65
-2.91%
FFIV
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315.34
118.98
60.59%
EVTC
Evertec
36.75
3.60
10.86%
QLYS
Qualys
129.15
5.52
4.46%
VRNS
Varonis Systems
58.41
2.43
4.34%
TENB
Tenable Holdings
29.79
-12.91
-30.23%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.