This Growth Stock Is Trading at Value Prices
Workflow technology company Trimble (NASDAQ: TRMB) is a rare breed. It's a highly cash-generative company growing its key metric at a mid-teens pace, and with ongoing margin expansion and market growth opportunities. Yet, it trades on highly attractive valuation multiples. As such, it's an excellent growth-at-a-reasonable-price (GARP) stock for investors willing to look beyond the headline numbers.
The company's origins lie in hardware and precision technology, helping construction/infrastructure, geospatial, agriculture, and transportation customers with precise positioning. However, its present and future lie in combining those products with software that consolidates the positioning data, analyzes it, and produces actionable insights that improve its customers' daily workflow.
It's a growth opportunity driven by its customers' increasing adoption of digital technologies. The transition to a more software- and services-based model has steadily increased its profit margins and driven consistent mid-teens annualized recurring revenue (ARR) growth.
Source Fool.com
