OTCPK:TMIC.Y

Stock Analysis Report

Executive Summary

Trend Micro Incorporated develops and sells security solutions primarily in Japan.


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Trend Micro's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TMIC.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.8%

TMIC.Y

-9.9%

US Software

-10.6%

US Market


1 Year Return

1.6%

TMIC.Y

20.4%

US Software

5.2%

US Market

Return vs Industry: TMIC.Y underperformed the US Software industry which returned 20.4% over the past year.

Return vs Market: TMIC.Y underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

TMIC.YIndustryMarket
7 Day-4.8%-9.9%-10.6%
30 Day-4.0%-5.5%-8.5%
90 Dayn/a1.9%-4.6%
1 Year1.6%1.6%21.7%20.4%7.4%5.2%
3 Year16.4%16.4%122.5%112.9%31.7%23.2%
5 Year48.5%48.5%190.9%169.8%56.4%39.3%

Price Volatility Vs. Market

How volatile is Trend Micro's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Trend Micro undervalued compared to its fair value and its price relative to the market?

28.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TMIC.Y ($50.49) is trading above our estimate of fair value ($39.19)

Significantly Below Fair Value: TMIC.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TMIC.Y is good value based on its PE Ratio (28.1x) compared to the Software industry average (43.4x).

PE vs Market: TMIC.Y is poor value based on its PE Ratio (28.1x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: TMIC.Y is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: TMIC.Y is good value based on its PB Ratio (4.2x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

How is Trend Micro forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TMIC.Y's forecast earnings growth (9.2% per year) is above the savings rate (1.7%).

Earnings vs Market: TMIC.Y's earnings (9.2% per year) are forecast to grow slower than the US market (13% per year).

High Growth Earnings: TMIC.Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: TMIC.Y's revenue (5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: TMIC.Y's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TMIC.Y's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has Trend Micro performed over the past 5 years?

7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TMIC.Y has high quality earnings.

Growing Profit Margin: TMIC.Y's current net profit margins (16.9%) are lower than last year (17.7%).


Past Earnings Growth Analysis

Earnings Trend: TMIC.Y's earnings have grown by 7.3% per year over the past 5 years.

Accelerating Growth: TMIC.Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TMIC.Y had negative earnings growth (-1.3%) over the past year, making it difficult to compare to the Software industry average (18.4%).


Return on Equity

High ROE: TMIC.Y's Return on Equity (14.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Trend Micro's financial position?


Financial Position Analysis

Short Term Liabilities: TMIC.Y's short term assets (¥227.3B) exceed its short term liabilities (¥119.6B).

Long Term Liabilities: TMIC.Y's short term assets (¥227.3B) exceed its long term liabilities (¥52.7B).


Debt to Equity History and Analysis

Debt Level: TMIC.Y is debt free.

Reducing Debt: TMIC.Y has not had any debt for past 5 years.

Debt Coverage: TMIC.Y has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TMIC.Y has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: TMIC.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if TMIC.Y's debt is covered by short term assets.


Next Steps

Dividend

What is Trend Micro's current dividend yield, its reliability and sustainability?

2.89%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.6%markettop25%4.1%industryaverage1.3%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: TMIC.Y's dividend (2.89%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: TMIC.Y's dividend (2.89%) is low compared to the top 25% of dividend payers in the US market (4.09%).


Stability and Growth of Payments

Stable Dividend: TMIC.Y's dividend payments have been volatile in the past 10 years.

Growing Dividend: TMIC.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.6%), TMIC.Y's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Eva Chen (60yo)

15.1yrs

Tenure

JP¥125,000,000

Compensation

Ms. Eva Chen founded Trend Micro Inc., in 1988 and has been its Chief Executive Officer since January 1, 2005. Ms. Chen served as President of Trend Micro Inc., until June 6, 2016. She served as Chief Tech ...


CEO Compensation Analysis

Compensation vs Market: Eva's total compensation ($USD1.14M) is below average for companies of similar size in the US market ($USD6.47M).

Compensation vs Earnings: Insufficient data to compare Eva's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Eva Chen
Co-Founder15.1yrsJP¥125.00m1.12% ¥79.9m
Mahendra Negi
Group CFO17.9yrsJP¥155.00m0.12% ¥8.3m
Akihiko Omikawa
Executive VP11.9yrsJP¥153.00m0.0029% ¥204.7k
Kevin Simzer
Chief Operating Officer1.1yrsno datano data
Max Cheng
Executive VP of Core Technology & CIO0yrsno datano data
Felix Sterling
Chief Legal Officer and Executive VP Global Policy & Compliance2.1yrsno datano data
Leah MacMillan
Chief Marketing Officer0.3yrsno datano data
Steve Quane
Executive Vice President of Network Defense & Hybrid Cloud Security2.6yrsno datano data
Oscar Chang
Executive Vice President of Research & Development15.3yrsno datano data
Dhanya Thakkar
Managing Director for India & SAARC6.6yrsno datano data

3.7yrs

Average Tenure

59.5yo

Average Age

Experienced Management: TMIC.Y's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eva Chen
Co-Founder15.1yrsJP¥125.00m1.12% ¥79.9m
Mahendra Negi
Group CFO17.9yrsJP¥155.00m0.12% ¥8.3m
Akihiko Omikawa
Executive VP11.9yrsJP¥153.00m0.0029% ¥204.7k
Ming-Jang Chang
Chairman of the Board15.1yrsno data3.86% ¥275.1m
Wael Mohamed
Director4.9yrsJP¥316.00mno data
Koji Fujita
Outside Corporate Auditor17.9yrsno datano data
Fumio Hasegawa
Outside Corporate Auditor8.1yrsno datano data
Yasuo Kameoka
Outside Corporate Auditor18.9yrsno datano data
Ikujiro Nonaka
Outside Director8.9yrsno datano data
Tetsuo Koga
Outside Director2.9yrsno datano data

13.5yrs

Average Tenure

61.5yo

Average Age

Experienced Board: TMIC.Y's board of directors are seasoned and experienced ( 13.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Trend Micro Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Trend Micro Incorporated
  • Ticker: TMIC.Y
  • Exchange: OTCPK
  • Founded: 1988
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: JP¥784.791b
  • Listing Market Cap: JP¥7.133b
  • Shares outstanding: 139.15m
  • Website: https://www.trendmicro.com

Number of Employees


Location

  • Trend Micro Incorporated
  • Shinjuku MAYNDS Tower
  • 2-1-1 Yoyogi
  • Tokyo
  • 151-0053
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TMIC.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 1998
4704TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYOct 1998
TMIDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1998
TMIC.YOTCPK (Pink Sheets LLC)SPONS ADR NEWUSUSDJul 1999

Biography

Trend Micro Incorporated develops and sells security solutions primarily in Japan. The company offers hybrid cloud security solutions, such as data center, cloud, and virtualization security products; network security solutions, including integrated advanced threat prevention and advanced threat detection solutions; user protection solutions comprising endpoint and gateway suites, endpoint security, email security, Web security, SaaS application security, and endpoint detection and response; and support services. It serves finance, insurance, and retail industries, as well as government institutions. Trend Micro Incorporated has a partnership with Moxa Inc. to develop solutions to protect industrial Internet of Things environments; and strategic partnership with Luxoft Holding, Inc. to offer intrusion detection systems and intrusion prevention systems to detect, mitigate, and respond to cyber-attacks on connected cars. The company was founded in 1988 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:23
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.