Trimble Inc. (NasdaqGS:TRMB) Target Weight of 0.04820 According to Quant

A recent look at ownership and volatility brings us to a 0.04820 target portfolio weight (as a decimal) for Trimble Inc. (NasdaqGS:TRMB) Target weight is the volatility adjusted recommended stock position size for a position in your portfolio.  The maximum target weight is 7% for any given stock.  The indicator is based off of the 100 day volatility reading and calculates a target weight accordingly.  If a stock has been more volatile of late, the lower the target weight will be.  The 3-month volatility stands at 32.388000 (decimal).  This is the normal returns and standard deviation of the stock price over three months annualized. 

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.

When it comes to investing, people are generally told to make sure that they don’t put all their eggs in one basket. This saying can apply to investing in the stock market as well. Keeping the stock portfolio diversified can greatly behoove the individual investor. When hard earned money is on the line, individuals may want to pay extra attention as to how their equity holdings are spread out. Many investors will choose to pick stocks that combine large cap, small cap, and even international stocks. Although stock portfolio diversification does not eliminate risk, it can help reduce it during tumultuous market conditions.

Trimble Inc. (NasdaqGS:TRMB) of the Electronic & Electrical Equipment sector closed the recent session at 40.820000 with a market value of $10278063.

Taking look at some key returns data we can note the following:

So how has Trimble Inc. (NasdaqGS:TRMB) performed in terms of returns?  The ROIC quality score stands at 10.225012 whilet he actual return on invested capital holds at  0.735632.  Trimble Inc.’s book to market ratio is at 0.271141 while the book to market mean difference is -0.03864. This indicator tells you how a company is currently valued in terms of Book to Market compared to its average Book to Market over the past 10 years. It’s important to note that BM is the inverse of the Price to book ratio. Thus a high BM ratio means a company is undervalued. Trimble Inc. (NasdaqGS:TRMB) has seen free cash flow growth of 0.196343 and has a free cash flow score of 0.802557.  Free Cash Flow Score (FCF Score) is a value that is calculated by combining Free cash flow growth with free cash flow stability. It thus gives you a combined indication of free cash flow quality.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.190516 for Trimble Inc. (NasdaqGS:TRMB).  The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.

Accumulating knowledge about the stock market can be a big part of the investment planning process. Proper allocation of equity investments is also an important factor. Finding the proper mix of stocks may end up being more important than the single stocks added to the portfolio. Determining the correct asset allocation can depend on variables such as risk appetite and financial goals. These goals may be short-term, medium term, or longer-term. Investors will often have to determine how aggressive they will be when buying stocks. This can also depend on the overall time horizon and risk tolerance. Some investors might be unfazed by continuous market fluctuations. Others may be much more sensitive, and they may need to adjust their plans accordingly. 

In addition to Capex to PPE we can look at cash Flow to Capex.  This ration compares a stock’s operating cash flow to its capital expenditure and can identify if a firm can generate enough cash to meet investment needs.  Investors are looking for a ratio greater than one, which indicates that the firm can meet that need. Comparing to other firms in the same industry is relevant for this ratio. Trimble Inc. (NasdaqGS:TRMB)’s Cash Flow to Capex stands at 8.172214.

Debt

In looking at some Debt ratios, Trimble Inc. (NasdaqGS:TRMB) has a debt to equity ratio of 0.66718 and a Free Cash Flow to Debt ratio of 0.266552.  This ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated.  In terms of Net Debt to EBIT, that ratio stands at 3.90555.  This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt.  The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio.  Trimble Inc.’s ND to MV current stands at 0.162939. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

As many veteran investors have already seen, market movements are extremely hard to accurately predict. Financial news outlets are always producing headlines and offering predictions for future market performance. Sometimes the predictions are right, and sometimes the predictions are wrong. Investors may have a hard time separating fact from fiction when it comes to bullish and bearish sentiment. Adjusting the portfolio based strictly on headlines can be tempting for the amateur investor. Filtering out the noise and focusing on the pertinent data can help keep the individual focused and on track. Straying from the plan and basing investment decisions on news headlines may lead to portfolio confusion down the road. Crunching the numbers and paying attention to the important economic data can greatly help the investor see through the smoke when markets get muddled.

Near-Term Growth Drilldown

Now we’ll take a look at some key growth data as decimals. One year cash flow growth ratio is calculated on a trailing 12 months basis and is a one year percentage growth of a firm’s cash flow from operations.  This number stands at 0.19110 for Trimble Inc. (NasdaqGS:TRMB).  The one year Growth EBIT ratio stands at 0.35696 and is a calculation of one year growth in earnings before interest and taxes.  The one year EBITDA growth number stands at 0.22983 which is calculated similarly to EBIT Growth with just the addition of amortization.

Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at 0.16400.  The one year growth in Net Profit after Tax is 0.97118 and lastly sales growth was 0.06448.

50/200 Simple Moving Average Cross

Trimble Inc. (NasdaqGS:TRMB) has a 0.96378 50/200 day moving average cross value. Cross SMA 50/200 (SMA = Simple Moving Average) and is calculated as follows:

Cross SMA 50/200 = 50 day moving average / 200day moving average. If the Cross SMA 50/200 value is greater than 1, it tell us that the 50 day moving average is above the 200 day moving average (golden cross), indicating an upward moving share price.

On the other hand if the Cross SMA 50/200 value is less than 1, this shows that the 50 day moving average is below the 200 day moving average (a death cross), and tells us that share prices has fallen recently and may continue to do so.

As we move closer towards the end of the year, investors may be undertaking a portfolio review. Reviewing trades over the past six months, investors should be able to see what has worked and what has not. There might be some stocks that have outperformed the market, and there might be some underperformers as well. Focusing on what has worked so far this year may help provide a clearer picture for future moves. Pinpointing what went wrong can also help the investor see which areas of the portfolio need improvement. If the stock market continues on to reach new heights, investors might be looking to lock in some profits before making the next big trade.   

Leave a Reply

Your email address will not be published. Required fields are marked *

*