Investors should take notice of NASDAQ:TRMD—it offers a great deal for the fundamentals it presents.

Last update: Dec 20, 2023

Consider TORM PLC-A (NASDAQ:TRMD) as a top value stock, identified by our stock screening tool. NASDAQ:TRMD shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Exploring NASDAQ:TRMD's Valuation

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:TRMD has earned a 9 for valuation:

The Price/Earnings ratio is 3.68, which indicates a rather cheap valuation of TRMD.
Based on the Price/Earnings ratio, TRMD is valued cheaper than 88.02% of the companies in the same industry.
TRMD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.74.
TRMD is valuated cheaply with a Price/Forward Earnings ratio of 4.55.
Based on the Price/Forward Earnings ratio, TRMD is valued cheaper than 89.40% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.31. TRMD is valued rather cheaply when compared to this.
TRMD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TRMD is cheaper than 72.81% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRMD indicates a rather cheap valuation: TRMD is cheaper than 82.03% of the companies listed in the same industry.
TRMD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TRMD has an outstanding profitability rating, which may justify a higher PE ratio.

How do we evaluate the Profitability for NASDAQ:TRMD?

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:TRMD was assigned a score of 8 for profitability:

TRMD has a better Return On Assets (24.66%) than 84.33% of its industry peers.
TRMD has a Return On Equity of 44.18%. This is amongst the best in the industry. TRMD outperforms 85.71% of its industry peers.
With an excellent Return On Invested Capital value of 22.72%, TRMD belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
The 3 year average ROIC (8.75%) for TRMD is below the current ROIC(22.72%), indicating increased profibility in the last year.
The Profit Margin of TRMD (43.82%) is better than 83.41% of its industry peers.
In the last couple of years the Profit Margin of TRMD has grown nicely.
With a decent Operating Margin value of 45.84%, TRMD is doing good in the industry, outperforming 78.80% of the companies in the same industry.
TRMD's Operating Margin has improved in the last couple of years.
TRMD's Gross Margin of 73.18% is fine compared to the rest of the industry. TRMD outperforms 76.96% of its industry peers.
In the last couple of years the Gross Margin of TRMD has grown nicely.

Health Examination for NASDAQ:TRMD

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:TRMD was assigned a score of 7 for health:

An Altman-Z score of 3.57 indicates that TRMD is not in any danger for bankruptcy at the moment.
The Altman-Z score of TRMD (3.57) is better than 77.42% of its industry peers.
The Debt to FCF ratio of TRMD is 2.24, which is a good value as it means it would take TRMD, 2.24 years of fcf income to pay off all of its debts.
TRMD has a better Debt to FCF ratio (2.24) than 69.59% of its industry peers.
Although TRMD does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
A Current Ratio of 2.33 indicates that TRMD has no problem at all paying its short term obligations.
The Current ratio of TRMD (2.33) is better than 77.88% of its industry peers.
A Quick Ratio of 2.09 indicates that TRMD has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.09, TRMD is in the better half of the industry, outperforming 77.42% of the companies in the same industry.

What does the Growth looks like for NASDAQ:TRMD

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:TRMD was assigned a score of 6 for growth:

TRMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 104.29%, which is quite impressive.
The Earnings Per Share has been growing by 157.48% on average over the past years. This is a very strong growth
TRMD shows a strong growth in Revenue. In the last year, the Revenue has grown by 33.31%.
TRMD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.05% yearly.
TRMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.93% yearly.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of TRMD contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.