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Trend Micro Incorporated

TMICY
60
Software - Infrastructure · Technology
Price
$34.56
-0.83 (-2.35%)
Market Cap
$4.48B
Exchange
Other OTC
Winston Score
60
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Strong
Growth
Good
Cash Flow
Exceptional
Stability
Good
Valuation
Good
Dividends
Strong

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)

Winston Score History

The full picture

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.

Growth Profile

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

Revenue Growth

+14.0% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-36.1% YoY

YoY Growth Rate

Earnings declining

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

¥236.5B 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 14%. 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.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
75.9%
Premium pricing power — 75.9% gross margin
Profit after running costs
Operating Margin
8.3%
Modest — 8.3% operating margin
Return on the money invested
ROCE
43.7%
Exceptional — 43.7% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
+8.6%
Steady sales growth (+8.6% YoY)
Profit growth
EPS YoY
+16.5%
Earnings growing fast (+16.5% YoY)

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

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
185%
Turns 185% of profit into real cash
Spare cash per sale
FCF Margin
22.1%
Converts sales into free cash efficiently (22.1%)

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

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
100.00x
Comfortably covers interest (100.0x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
20.3x
Growth-priced — P/E 20.3

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+4.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (20.3 → 16.2)

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Dividends

Dividend
Dividend Yield
2.86%
Moderate income — 2.86% yield

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

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

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