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Trend Micro Incorporated logo

Trend Micro Incorporated

TMICY
61
Software - Infrastructure · Technology
Price
$43.10
+0.68 (+1.60%)
Market Cap
$5.59B
Exchange
Other OTC
Winston Score
61
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 9, 2026 · filings through Mar 31, 2026

Share count falling — buybacks

5.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 139.5M (2021) → 132.3M (2025)

Trend Micro is a cybersecurity company that helps businesses and individuals protect their computers, networks, and cloud systems from hackers and malware. Its main products include antivirus software, cloud security tools, and network defense systems, sold mostly to large corporations, governments, and small businesses. Founded in 1988 and headquartered in Tokyo, it is one of the largest dedicated cybersecurity companies in the world.

Trend Micro makes money primarily by selling software subscriptions and licenses, meaning customers pay recurring fees to keep their protection active. The company operates globally, with strong presence in Japan, North America, Europe, and Asia-Pacific, generating billions in annual revenue. Its moat comes from decades of threat intelligence data and deep integration into enterprise IT environments, which makes switching costly for customers. The main risk is intense competition from larger rivals like Microsoft and CrowdStrike, which are aggressively expanding their own cybersecurity offerings.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+11.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+35.0% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

0.0%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$234.6B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Trend Micro Incorporated is a rare growth stock that's already generating positive cash flow while growing at 11%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
77.4%
Premium pricing power — 77.4% gross margin
Operating Margin
21.1%
Excellent — 21.1% operating margin
ROCE
13.8%
Good — 13.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+4.4%
Slow sales growth (+4.4% YoY)
EPS YoY
+17.1%
Earnings growing fast (+17.1% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Cash Conversion
202%
Turns 202% of profit into real cash
FCF Margin
26.4%
Converts sales into free cash efficiently (26.4%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
100.00x
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
0.1x
Attractive valuation — P/E 0.1

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
+0.0
GROWING
Earnings roughly flat

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Dividends

Dividend Yield
2.86%
Moderate income — 2.86% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+40.0%
Dividend growing fast (40.0% YoY)

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