NASDAQ:TRMD is an undervalued gem with solid fundamentals.

Last update: Jan 12, 2024

Uncover the potential of TORM PLC-A (NASDAQ:TRMD) as our stock screener's choice for an undervalued stock. NASDAQ:TRMD maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Valuation Insights: NASDAQ:TRMD

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:TRMD was assigned a score of 8 for valuation:

TRMD is valuated cheaply with a Price/Earnings ratio of 3.96.
Based on the Price/Earnings ratio, TRMD is valued cheaper than 84.26% of the companies in the same industry.
TRMD is valuated cheaply when we compare the Price/Earnings ratio to 25.87, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.90, which indicates a rather cheap valuation of TRMD.
TRMD's Price/Forward Earnings ratio is rather cheap when compared to the industry. TRMD is cheaper than 87.50% of the companies in the same industry.
TRMD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.79.
Based on the Enterprise Value to EBITDA ratio, TRMD is valued a bit cheaper than the industry average as 64.81% of the companies are valued more expensively.
79.63% of the companies in the same industry are more expensive than TRMD, based on the Price/Free Cash Flow ratio.
TRMD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of TRMD may justify a higher PE ratio.

Profitability Examination for NASDAQ:TRMD

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:TRMD has earned a 8 out of 10:

Looking at the Return On Assets, with a value of 24.66%, TRMD belongs to the top of the industry, outperforming 84.26% of the companies in the same industry.
With an excellent Return On Equity value of 44.18%, TRMD belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
TRMD has a better Return On Invested Capital (22.72%) than 84.26% of its industry peers.
The 3 year average ROIC (8.75%) for TRMD is below the current ROIC(22.72%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 43.82%, TRMD belongs to the best of the industry, outperforming 82.87% of the companies in the same industry.
In the last couple of years the Profit Margin of TRMD has grown nicely.
The Operating Margin of TRMD (45.84%) is better than 78.70% of its industry peers.
In the last couple of years the Operating Margin of TRMD has grown nicely.
TRMD has a Gross Margin of 73.18%. This is in the better half of the industry: TRMD outperforms 77.31% of its industry peers.
TRMD's Gross Margin has improved in the last couple of years.

Health Analysis for NASDAQ:TRMD

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:TRMD has achieved a 8 out of 10:

TRMD has an Altman-Z score of 3.67. This indicates that TRMD is financially healthy and has little risk of bankruptcy at the moment.
TRMD's Altman-Z score of 3.67 is amongst the best of the industry. TRMD outperforms 81.02% of its industry peers.
TRMD has a debt to FCF ratio of 2.24. This is a good value and a sign of high solvency as TRMD would need 2.24 years to pay back of all of its debts.
The Debt to FCF ratio of TRMD (2.24) is better than 69.44% of its industry peers.
Even though the debt/equity ratio score it not favorable for TRMD, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
TRMD has a Current Ratio of 2.33. This indicates that TRMD is financially healthy and has no problem in meeting its short term obligations.
TRMD has a Current ratio of 2.33. This is in the better half of the industry: TRMD outperforms 77.78% of its industry peers.
A Quick Ratio of 2.09 indicates that TRMD has no problem at all paying its short term obligations.
TRMD has a Quick ratio of 2.09. This is in the better half of the industry: TRMD outperforms 77.31% of its industry peers.

Analyzing Growth Metrics

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:TRMD has achieved a 6 out of 10:

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%.
The Revenue has been growing by 17.05% on average over the past years. This is quite good.
Based on estimates for the next years, TRMD will show a quite strong growth in Revenue. The Revenue will grow by 8.93% on average per year.

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For an up to date full fundamental analysis you can check the fundamental report of TRMD

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.