ScoreWhy is Trend Micro, Inc. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 18.52%
- Healthy long term growth as Net Sales has grown by an annual rate of 9.85%
- Company has very low debt and has enough cash to service the debt requirements
2
Positive results in Jun 26
- OPERATING CASH FLOW(Y) Highest at JPY 65,118 MM
- ROCE(HY) Highest at 30.66%
- NET SALES(Q) Highest at JPY 74,740 MM
3
With ROE of 33.06%, it has a attractive valuation with a 7.09 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -22.70%, its profits have risen by 16.1% ; the PEG ratio of the company is 1.3
4
Majority shareholders : FIIs
5
Underperformed the market in the last 1 year
- Even though the market (Japan Nikkei 225) has generated returns of 43.52% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.70% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Trend Micro, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Trend Micro, Inc. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Trend Micro, Inc.
-22.7%
304.49
46.35%
Japan Nikkei 225
43.52%
1.48
29.43%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.85%
EBIT Growth (5y)
7.01%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-1.90
Sales to Capital Employed (avg)
2.26
Tax Ratio
36.08%
Dividend Payout Ratio
60.97%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
0
ROE (avg)
18.52%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
7.09
EV to EBIT
9.96
EV to EBITDA
6.81
EV to Capital Employed
-5.06
EV to Sales
2.06
PEG Ratio
1.33
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
33.06%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 65,118 MM
ROCE(HY)
Highest at 30.66%
NET SALES(Q)
Highest at JPY 74,740 MM
RAW MATERIAL COST(Y)
Fallen by -0.37% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 5.43 times
-6What is not working for the Company
OPERATING PROFIT(Q)
Lowest at JPY 12,992 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 17.38 %
PRE-TAX PROFIT(Q)
Lowest at JPY 7,173 MM
NET PROFIT(Q)
Lowest at JPY 3,443.7 MM
EPS(Q)
Lowest at JPY 26.62
Here's what is working for Trend Micro, Inc.
Operating Cash Flow
Highest at JPY 65,118 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Net Sales
Highest at JPY 74,740 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Debtors Turnover Ratio
Highest at 5.43 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -0.37% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Trend Micro, Inc.
Operating Profit
Lowest at JPY 12,992 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 17.38 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 7,173 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 3,443.7 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Net Profit
Fallen at -37.14%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY 26.62
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
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