TOMRA SYSTEMS ASA (TOM.OL) Stock Fundamental Analysis
OSL:TOM - Euronext Oslo - NO0012470089 - Common Stock - Currency: NOK
Taking everything into account, TOM scores 6 out of 10 in our fundamental rating. TOM was compared to 108 industry peers in the Machinery industry. While TOM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TOM has a correct valuation and a medium growth rate.
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 (6.12%) is better than 79.82% of its industry peers.
The Return On Equity of TOM (16.86%) is better than 85.32% of its industry peers.
TOM has a better Return On Invested Capital (11.55%) than 86.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TOM is in line with the industry average of 8.48%.
The last Return On Invested Capital (11.55%) for TOM is above the 3 year average (9.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 16.86% | ||
| ROIC | 11.55% |
ROA(3y)5.79%
ROA(5y)6.71%
ROE(3y)14.13%
ROE(5y)14.86%
ROIC(3y)9.98%
ROIC(5y)11.24%
1.3 Margins
With a decent Profit Margin value of 7.40%, TOM is doing good in the industry, outperforming 78.90% of the companies in the same industry.
In the last couple of years the Profit Margin of TOM has declined.
TOM has a Operating Margin of 12.22%. This is amongst the best in the industry. TOM outperforms 80.73% of its industry peers.
In the last couple of years the Operating Margin of TOM has remained more or less at the same level.
Looking at the Gross Margin, with a value of 60.05%, TOM belongs to the top of the industry, outperforming 84.40% of the companies in the same industry.
In the last couple of years the Gross Margin of TOM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.22% | ||
| PM (TTM) | 7.4% | ||
| GM | 60.05% |
OM growth 3Y-6.12%
OM growth 5Y-0.57%
PM growth 3Y-11.39%
PM growth 5Y-4.58%
GM growth 3Y-0.18%
GM growth 5Y-0.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TOM is still 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
The debt/assets ratio for TOM is higher compared to a year ago.
2.2 Solvency
TOM has an Altman-Z score of 4.00. This indicates that TOM is financially healthy and has little risk of bankruptcy at the moment.
TOM has a Altman-Z score of 4.00. This is amongst the best in the industry. TOM outperforms 83.49% of its industry peers.
The Debt to FCF ratio of TOM is 1.62, which is an excellent value as it means it would take TOM, only 1.62 years of fcf income to pay off all of its debts.
TOM has a Debt to FCF ratio of 1.62. This is amongst the best in the industry. TOM outperforms 86.24% of its industry peers.
TOM has a Debt/Equity ratio of 0.75. This is a neutral value indicating TOM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.75, TOM is doing worse than 67.89% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for TOM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 4 |
ROIC/WACC1.34
WACC8.6%
2.3 Liquidity
A Current Ratio of 1.29 indicates that TOM should not have too much problems paying its short term obligations.
TOM's Current ratio of 1.29 is on the low side compared to the rest of the industry. TOM is outperformed by 69.72% of its industry peers.
A Quick Ratio of 0.85 indicates that TOM may have some problems paying its short term obligations.
TOM's Quick ratio of 0.85 is on the low side compared to the rest of the industry. TOM is outperformed by 65.14% of its industry peers.
TOM does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for TOM have decreased strongly by -82.00% in the last year.
TOM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -34.95% yearly.
The Revenue has grown by 46.30% in the past year. This is a very strong growth!
TOM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.25% yearly.
EPS 1Y (TTM)-82%
EPS 3Y-55.56%
EPS 5Y-34.95%
EPS Q2Q%584.93%
Revenue 1Y (TTM)46.3%
Revenue growth 3Y7.86%
Revenue growth 5Y7.25%
Sales Q2Q%5.09%
3.2 Future
The Earnings Per Share is expected to grow by 33.08% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 14.59% on average over the next years. This is quite good.
EPS Next Y35.63%
EPS Next 2Y32.76%
EPS Next 3Y33.08%
EPS Next 5YN/A
Revenue Next Year10.8%
Revenue Next 2Y13.99%
Revenue Next 3Y14.59%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
TOM is valuated quite expensively with a Price/Earnings ratio of 39.95.
Compared to the rest of the industry, the Price/Earnings ratio of TOM indicates a slightly more expensive valuation: TOM is more expensive than 60.55% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, TOM is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 24.46, the valuation of TOM can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TOM indicates a slightly more expensive valuation: TOM is more expensive than 68.81% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TOM to the average of the S&P500 Index (21.76), we can say TOM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.95 | ||
| Fwd PE | 24.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TOM indicates a slightly more expensive valuation: TOM is more expensive than 68.81% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TOM is valued a bit cheaper than the industry average as 68.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.19 | ||
| EV/EBITDA | 16.88 |
4.3 Compensation for Growth
TOM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of TOM may justify a higher PE ratio.
A more expensive valuation may be justified as TOM's earnings are expected to grow with 33.08% in the coming years.
PEG (NY)1.12
PEG (5Y)N/A
EPS Next 2Y32.76%
EPS Next 3Y33.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.30%, TOM has a reasonable but not impressive dividend return.
TOM's Dividend Yield is comparable with the industry average which is at 2.77.
Compared to an average S&P500 Dividend Yield of 2.35, TOM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
The dividend of TOM decreases each year by -5.95%.
Dividend Growth(5Y)-5.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
49.40% of the earnings are spent on dividend by TOM. This is a bit on the high side, but may be sustainable.
DP49.4%
EPS Next 2Y32.76%
EPS Next 3Y33.08%
OSL:TOM (7/11/2025, 7:00:00 PM)
165.4
-0.2 (-0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners86.65%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap48.97B
Analysts70.59
Price Target170.54 (3.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend1.99
Dividend Growth(5Y)-5.95%
DP49.4%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.76%
Min EPS beat(2)-25.74%
Max EPS beat(2)20.23%
EPS beat(4)2
Avg EPS beat(4)0.63%
Min EPS beat(4)-25.74%
Max EPS beat(4)20.23%
EPS beat(8)2
Avg EPS beat(8)-24.55%
EPS beat(12)3
Avg EPS beat(12)-19.3%
EPS beat(16)6
Avg EPS beat(16)-13.18%
Revenue beat(2)1
Avg Revenue beat(2)1.18%
Min Revenue beat(2)-1.74%
Max Revenue beat(2)4.11%
Revenue beat(4)3
Avg Revenue beat(4)2.95%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)7.6%
Revenue beat(8)6
Avg Revenue beat(8)3.52%
Revenue beat(12)6
Avg Revenue beat(12)-27.61%
Revenue beat(16)6
Avg Revenue beat(16)-43.17%
PT rev (1m)0%
PT rev (3m)-8.38%
EPS NQ rev (1m)-9.68%
EPS NQ rev (3m)-15.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)27.86%
Revenue NQ rev (3m)959.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.95 | ||
| Fwd PE | 24.46 | ||
| P/S | 3.04 | ||
| P/FCF | 13.19 | ||
| P/OCF | 14.72 | ||
| P/B | 6.92 | ||
| P/tB | 26.7 | ||
| EV/EBITDA | 16.88 |
EPS(TTM)4.14
EY2.5%
EPS(NY)6.76
Fwd EY4.09%
FCF(TTM)12.54
FCFY7.58%
OCF(TTM)11.23
OCFY6.79%
SpS54.45
BVpS23.9
TBVpS6.19
PEG (NY)1.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 16.86% | ||
| ROCE | 15.25% | ||
| ROIC | 11.55% | ||
| ROICexc | 12.6% | ||
| ROICexgc | 22.6% | ||
| OM | 12.22% | ||
| PM (TTM) | 7.4% | ||
| GM | 60.05% | ||
| FCFM | 23.03% |
ROA(3y)5.79%
ROA(5y)6.71%
ROE(3y)14.13%
ROE(5y)14.86%
ROIC(3y)9.98%
ROIC(5y)11.24%
ROICexc(3y)10.99%
ROICexc(5y)12.25%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)13.18%
ROCE(5y)14.84%
ROICexcg growth 3Y-10.82%
ROICexcg growth 5Y1.85%
ROICexc growth 3Y-8.67%
ROICexc growth 5Y1.89%
OM growth 3Y-6.12%
OM growth 5Y-0.57%
PM growth 3Y-11.39%
PM growth 5Y-4.58%
GM growth 3Y-0.18%
GM growth 5Y-0.26%
F-Score5
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 1.62 | ||
| Debt/EBITDA | 1.65 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.1% | ||
| Profit Quality | 311.38% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 4 |
F-Score5
WACC8.6%
ROIC/WACC1.34
Cap/Depr(3y)104.67%
Cap/Depr(5y)90.87%
Cap/Sales(3y)7.6%
Cap/Sales(5y)6.88%
Profit Quality(3y)76.57%
Profit Quality(5y)96.08%
High Growth Momentum
Growth
EPS 1Y (TTM)-82%
EPS 3Y-55.56%
EPS 5Y-34.95%
EPS Q2Q%584.93%
EPS Next Y35.63%
EPS Next 2Y32.76%
EPS Next 3Y33.08%
EPS Next 5YN/A
Revenue 1Y (TTM)46.3%
Revenue growth 3Y7.86%
Revenue growth 5Y7.25%
Sales Q2Q%5.09%
Revenue Next Year10.8%
Revenue Next 2Y13.99%
Revenue Next 3Y14.59%
Revenue Next 5YN/A
EBIT growth 1Y120.25%
EBIT growth 3Y1.26%
EBIT growth 5Y6.64%
EBIT Next Year81.59%
EBIT Next 3Y40.85%
EBIT Next 5YN/A
FCF growth 1Y-58.42%
FCF growth 3Y0.11%
FCF growth 5Y11.27%
OCF growth 1Y-81.17%
OCF growth 3Y10.38%
OCF growth 5Y12.04%