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Trend Micro Incorporated (ADR) (TMICY)
OTHER OTC:TMICY
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Trend Micro
(OTC:TMICY)
78Outperform
Trend Micro (TMICY) vs. S&P 500 (SPY)
Market Cap
$9.58B
Dividend Yield1.39%
Average Volume (3M)325.00
Price to Earnings (P/E)42.4
Beta (1Y)0.90
Revenue Growth1.75%
EPS Growth194.40%
CountryUS
Employees6,869
SectorTechnology
Sector Strength65
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.47
Shares Outstanding140,901,610
10 Day Avg. Volume0
30 Day Avg. Volume325
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
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 Inc. (TMICY) is a global leader in cybersecurity solutions, providing advanced security software and services to individuals, businesses, and government organizations. The company operates in the technology sector, focusing on protecting endpoints, networks, servers, and cloud environments. Its core products include antivirus software, internet security, and solutions for cloud security, network defense, and threat intelligence, designed to safeguard against cyber threats and data breaches.
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 Financial Statement Overview
Summary
Trend Micro demonstrates strong financial performance with consistent revenue growth, high profitability, a robust balance sheet, and efficient cash flow management. The decline in net income and free cash flow requires attention, but overall financial stability remains solid.Income Statement
Trend Micro has demonstrated solid financial performance with a consistent increase in total revenue over the years, showing a healthy revenue growth rate from 2022 to 2023. The company maintains strong profitability with a high gross profit margin and a respectable net profit margin. However, the net income has decreased compared to previous years, which slightly impacts the overall score.82
Very Positive
Balance Sheet
The balance sheet is robust, with a strong equity base and zero debt, leading to a favorable debt-to-equity ratio. The equity ratio is also healthy, indicating financial stability. Stockholders' equity has seen a slight decrease, which is a minor concern. Overall, the company's balance sheet reflects financial strength and stability.88
Very Positive
Cash Flow
Trend Micro's cash flow statement shows a stable operating cash flow with a high operating cash flow to net income ratio, indicating efficient cash generation relative to net income. Free cash flow has seen a decline, which is a concern, but the company still maintains a positive free cash flow. The free cash flow to net income ratio is strong, highlighting effective cash management despite the recent dip in free cash flow.75
Positive
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 248.69B | 223.79B | 190.36B | 174.06B | 165.19B | Gross Profit |
| 185.03B | 169.50B | 148.34B | 135.90B | 132.90B | EBIT |
| 32.60B | 31.34B | 43.64B | 39.46B | 37.69B | EBITDA |
| 60.29B | 56.53B | 64.54B | 62.14B | 53.50B | Net Income Common Stockholders |
| 10.73B | 29.84B | 38.37B | 26.90B | 27.95B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 299.03B | 242.85B | 256.80B | 212.27B | 172.60B | Total Assets |
| 492.63B | 470.80B | 420.46B | 376.70B | 359.71B | Total Debt |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Debt |
| -247.86B | -191.54B | -197.73B | -155.74B | -124.98B | Total Liabilities |
| 278.21B | 242.12B | 199.03B | 187.34B | 172.28B | Stockholders Equity |
| 214.39B | 228.66B | 220.64B | 188.53B | 187.27B |
| Cash Flow | Free Cash Flow | |||
| 30.87B | 35.92B | 36.48B | 42.47B | 34.42B | Operating Cash Flow |
| 57.23B | 56.90B | 55.27B | 54.31B | 45.11B | Investing Cash Flow |
| 31.00B | -67.72B | 2.58B | -5.78B | -1.47B | Financing Cash Flow |
| -43.43B | -30.44B | -16.45B | -21.14B | -25.96B |
Trend Micro Technical Analysis
Neutral
68.46
Price Trends
68.84
Negative
64.35
Positive
59.76
Positive
Market Momentum
0.71
Positive
47.25
Neutral
13.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMICY, the sentiment is Neutral. The current price of 68.46 is below the 20-day moving average (MA) of 69.44, below the 50-day MA of 68.84, and above the 200-day MA of 59.76, indicating a neutral trend. The MACD of 0.71 indicates Positive momentum. The RSI at 47.25 is Neutral, neither overbought nor oversold. The STOCH value of 13.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TMICY.
Trend Micro Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $15.27B | 25.14 | 19.89% | ― | 5.61% | 26.65% | |
78 Outperform | $4.61B | 27.25 | 40.23% | ― | 9.58% | 12.41% | |
78 Outperform | $9.58B | 42.45 | 19.95% | 1.39% | 1.75% | 194.40% | |
77 Outperform | $2.21B | 19.92 | 24.65% | 0.56% | 17.39% | 100.46% | |
64 Neutral | $4.81B | ― | -22.21% | ― | 13.34% | 13.71% | |
60 Neutral | $10.96B | 10.28 | -6.73% | 2.97% | 7.74% | -12.45% | |
60 Neutral | $3.74B | ― | -12.09% | ― | 11.79% | 35.35% |
* Technology Sector Average
Performance Comparison
TMICY
Trend Micro
68.46
20.54
42.86%
FFIV
F5 Networks
270.07
98.67
57.57%
EVTC
Evertec
35.73
-1.36
-3.67%
QLYS
Qualys
132.31
-16.49
-11.08%
VRNS
Varonis Systems
45.30
1.19
2.70%
TENB
Tenable Holdings
31.52
-13.38
-29.80%
Trend Micro Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2024)
| % Change Since: -2.26%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong performance in the enterprise segment and significant advancements in AI and cybersecurity. However, challenges in the consumer business and issues with accounts receivable present notable concerns.Q4-2024 Updates
Positive Updates
Strong Pre-GAAP Performance
Pre-GAAP net sales increased by 20% year-on-year, indicating strong performance and resilience in the market.
Record Pre-GAAP Organic Growth
The company achieved its highest-ever pre-GAAP organic growth, without the impact of acquisitions, marking a significant milestone.
Enterprise Business Growth
Enterprise business grew by 24% year-over-year in Q4, driven by strong performance in the Vision One platform.
Dividend Increase
The annual dividend increased to ¥184 per share, compared to ¥56 in the previous year, reflecting a strong shareholder return policy.
AI and Cybersecurity Innovations
Significant advancements in AI and proactive cybersecurity, positioning the company as a leader in AI-enabled edge computing and cybersecurity solutions.
Negative Updates
Challenges in Consumer Business
Consumer business faced challenges due to the switch from Digital River, resulting in a negative impact on net sales.
Decline in Perpetual Renewable Growth
Perpetual renewable growth declined to single digits, indicating challenges in sustaining previous growth levels.
Impact of Unrecoverable Accounts Receivable
A problem with the outsourcer Digital River led to a JPY 1.7 billion loss, affecting pre-GAAP revenue.
Headcount Reduction
The company saw a decrease in headcount from 7,400 in 2023 to 6,869 in 2024, although it was framed as an efficiency improvement.
Company Guidance
In the recent call, Trend Micro provided guidance highlighting several key financial metrics for their fiscal year 2024. They reported an 8% increase in net sales for the fourth quarter, with operating income between 8.8% and 13%, albeit lower than the previous quarter. The pre-GAAP net sales saw a significant 20% year-on-year growth, amounting to more than JPY 100 billion, while the pre-GAAP operating income was JPY 41.1 billion. The company's enterprise subscription business grew by 15%, although perpetual renewals experienced single-digit growth. Trend Micro also noted a headcount reduction to 6,869 from 7,400 the previous year, aiming to improve efficiency through AI investments. The company anticipates a 6% net sales growth, with a 25% increase in operating income, despite a JPY 1.7 billion deduction due to a payment issue with Digital River. The dividend for the year is set at ¥184 per share, with a 70% payout ratio, and the company plans to buy back shares worth approximately ¥10 billion. For the consumer segment, challenges were noted due to issues with the online settlement outsourcer, leading to a potential JPY 20 million negative impact on net sales. Overall, Trend Micro is focusing on leveraging AI to enhance productivity and cybersecurity offerings, aligning with their strategy to achieve proactive cybersecurity in the AI era.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.