TOMRA SYSTEMS ASA (TOM.OL) Stock Fundamental Analysis
OSL:TOM - Euronext Oslo - NO0012470089 - Common Stock - Currency: NOK
Overall TOM gets a fundamental rating of 5 out of 10. We evaluated TOM against 105 industry peers in the Machinery industry. TOM has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, TOM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TOM was profitable.
In the past year TOM had a positive cash flow from operations.
In the past 5 years TOM has always been profitable.
In the past 5 years TOM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TOM (6.38%) is better than 78.85% of its industry peers.
TOM has a Return On Equity of 17.58%. This is amongst the best in the industry. TOM outperforms 87.50% of its industry peers.
With an excellent Return On Invested Capital value of 10.47%, TOM belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TOM is above the industry average of 8.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 17.58% | ||
| ROIC | 10.47% |
ROA(3y)6.13%
ROA(5y)6.98%
ROE(3y)15.07%
ROE(5y)15.54%
ROIC(3y)12.94%
ROIC(5y)13.09%
1.3 Margins
TOM has a better Profit Margin (7.87%) than 84.62% of its industry peers.
In the last couple of years the Profit Margin of TOM has declined.
Looking at the Operating Margin, with a value of 11.58%, TOM belongs to the top of the industry, outperforming 85.58% of the companies in the same industry.
In the last couple of years the Operating Margin of TOM has remained more or less at the same level.
With a Gross Margin value of 43.36%, TOM perfoms like the industry average, outperforming 56.73% of the companies in the same industry.
TOM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.58% | ||
| PM (TTM) | 7.87% | ||
| GM | 43.36% |
OM growth 3Y-6.64%
OM growth 5Y-0.9%
PM growth 3Y-8.01%
PM growth 5Y-2.41%
GM growth 3Y-10.36%
GM growth 5Y-6.49%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TOM is creating some value.
TOM has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TOM has more shares outstanding
Compared to 1 year ago, TOM has a worse debt to assets ratio.
2.2 Solvency
TOM has a debt to FCF ratio of 2.31. This is a good value and a sign of high solvency as TOM would need 2.31 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.31, TOM belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
TOM has a Debt/Equity ratio of 0.79. This is a neutral value indicating TOM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.79, TOM is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
Although TOM 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | N/A |
ROIC/WACC1.3
WACC8.03%
2.3 Liquidity
A Current Ratio of 1.38 indicates that TOM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.38, TOM is in line with its industry, outperforming 42.31% of the companies in the same industry.
A Quick Ratio of 0.96 indicates that TOM may have some problems paying its short term obligations.
TOM's Quick ratio of 0.96 is in line compared to the rest of the industry. TOM outperforms 45.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for TOM have decreased strongly by -86.58% in the last year.
Measured over the past years, TOM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -35.12% on average per year.
TOM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -88.70%.
The Revenue for TOM have been decreasing by -32.11% on average. This is quite bad
EPS 1Y (TTM)-86.58%
EPS 3Y0.55%
EPS 5Y-35.12%
EPS Q2Q%-27.23%
Revenue 1Y (TTM)-88.7%
Revenue growth 3Y13.21%
Revenue growth 5Y-32.11%
Sales Q2Q%-90.35%
3.2 Future
TOM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.01% yearly.
TOM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.12% yearly.
EPS Next Y39.81%
EPS Next 2Y37.59%
EPS Next 3Y39.01%
EPS Next 5YN/A
Revenue Next Year11.47%
Revenue Next 2Y13.99%
Revenue Next 3Y15.12%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 41.40, which means the current valuation is very expensive for TOM.
TOM's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.35. TOM is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 32.35, the valuation of TOM can be described as expensive.
Based on the Price/Forward Earnings ratio, TOM is valued a bit more expensive than 71.15% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, TOM is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.4 | ||
| Fwd PE | 32.35 |
4.2 Price Multiples
69.23% of the companies in the same industry are cheaper than TOM, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as TOM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.71 | ||
| EV/EBITDA | 17.97 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TOM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TOM's earnings are expected to grow with 39.01% in the coming years.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y37.59%
EPS Next 3Y39.01%
5. Dividend
5.1 Amount
TOM has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.07, TOM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, TOM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
The dividend of TOM decreases each year by -38.83%.
Dividend Growth(5Y)-38.83%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TOM pays out 53.77% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP53.77%
EPS Next 2Y37.59%
EPS Next 3Y39.01%
OSL:TOM (3/7/2025, 7:00:00 PM)
166
-1.6 (-0.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners83.26%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap49.14B
Analysts65.33
Price Target180.17 (8.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend2.27
Dividend Growth(5Y)-38.83%
DP53.77%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.22%
Min Revenue beat(2)1.82%
Max Revenue beat(2)4.62%
Revenue beat(4)4
Avg Revenue beat(4)4.4%
Min Revenue beat(4)1.82%
Max Revenue beat(4)7.6%
Revenue beat(8)7
Avg Revenue beat(8)4.52%
Revenue beat(12)10
Avg Revenue beat(12)4.14%
Revenue beat(16)13
Avg Revenue beat(16)3.48%
PT rev (1m)8.73%
PT rev (3m)10.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.34%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-0.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-50%
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.4 | ||
| Fwd PE | 32.35 | ||
| P/S | 3.1 | ||
| P/FCF | 17.71 | ||
| P/OCF | 17.71 | ||
| P/B | 6.93 | ||
| P/tB | 26.12 | ||
| EV/EBITDA | 17.97 |
EPS(TTM)4.01
EY2.42%
EPS(NY)5.13
Fwd EY3.09%
FCF(TTM)9.37
FCFY5.65%
OCF(TTM)9.37
OCFY5.65%
SpS53.5
BVpS23.95
TBVpS6.36
PEG (NY)1.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 17.58% | ||
| ROCE | 13.88% | ||
| ROIC | 10.47% | ||
| ROICexc | 11.76% | ||
| ROICexgc | 21.09% | ||
| OM | 11.58% | ||
| PM (TTM) | 7.87% | ||
| GM | 43.36% | ||
| FCFM | 17.52% |
ROA(3y)6.13%
ROA(5y)6.98%
ROE(3y)15.07%
ROE(5y)15.54%
ROIC(3y)12.94%
ROIC(5y)13.09%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.15%
ROCE(5y)17.35%
ROICexcg growth 3YN/A
ROICexcg growth 5Y2.12%
ROICexc growth 3Y-57.36%
ROICexc growth 5Y1.9%
OM growth 3Y-6.64%
OM growth 5Y-0.9%
PM growth 3Y-8.01%
PM growth 5Y-2.41%
GM growth 3Y-10.36%
GM growth 5Y-6.49%
F-Score4
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.19% | ||
| Profit Quality | 222.64% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | N/A |
F-Score4
WACC8.03%
ROIC/WACC1.3
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-86.58%
EPS 3Y0.55%
EPS 5Y-35.12%
EPS Q2Q%-27.23%
EPS Next Y39.81%
EPS Next 2Y37.59%
EPS Next 3Y39.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-88.7%
Revenue growth 3Y13.21%
Revenue growth 5Y-32.11%
Sales Q2Q%-90.35%
Revenue Next Year11.47%
Revenue Next 2Y13.99%
Revenue Next 3Y15.12%
Revenue Next 5YN/A
EBIT growth 1Y-85.82%
EBIT growth 3Y5.69%
EBIT growth 5Y-32.72%
EBIT Next Year91.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y125.26%
FCF growth 3Y32.67%
FCF growth 5Y-18.99%
OCF growth 1Y72.26%
OCF growth 3Y15.92%
OCF growth 5Y-29.05%