TOMRA SYSTEMS ASA (TOM.OL) Stock Fundamental Analysis
Europe - OSL:TOM - NO0012470089 - Common Stock
117.7 NOK
-0.4 (-0.34%)
We assign a fundamental rating of 6 out of 10 to TOM. TOM was compared to 107 industry peers in the Machinery industry. TOM scores excellent on profitability, but 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
TOM had positive earnings in the past year.
In the past year TOM had a positive cash flow from operations.
TOM had positive earnings in each of the past 5 years.
TOM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TOM's Return On Assets of 5.98% is fine compared to the rest of the industry. TOM outperforms 78.50% of its industry peers.
TOM has a Return On Equity of 18.28%. This is amongst the best in the industry. TOM outperforms 84.11% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.10%, TOM belongs to the top of the industry, outperforming 85.05% of the companies in the same industry.
TOM had an Average Return On Invested Capital over the past 3 years of 9.98%. This is in line with the industry average of 8.77%.
The last Return On Invested Capital (11.10%) for TOM is above the 3 year average (9.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 18.28% | ||
| ROIC | 11.1% |
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
Looking at the Profit Margin, with a value of 7.37%, TOM belongs to the top of the industry, outperforming 80.37% of the companies in the same industry.
TOM's Profit Margin has declined in the last couple of years.
TOM has a better Operating Margin (12.51%) than 80.37% of its industry peers.
TOM's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 60.25%, TOM belongs to the top of the industry, outperforming 83.18% of the companies in the same industry.
TOM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.51% | ||
| PM (TTM) | 7.37% | ||
| GM | 60.25% |
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.
Compared to 1 year ago, TOM has about the same amount of shares outstanding.
The number of shares outstanding for TOM has been increased compared to 5 years ago.
Compared to 1 year ago, TOM has a worse debt to assets ratio.
2.2 Solvency
TOM has an Altman-Z score of 3.24. This indicates that TOM is financially healthy and has little risk of bankruptcy at the moment.
TOM has a better Altman-Z score (3.24) than 76.64% of its industry peers.
TOM has a debt to FCF ratio of 2.30. This is a good value and a sign of high solvency as TOM would need 2.30 years to pay back of all of its debts.
TOM's Debt to FCF ratio of 2.30 is fine compared to the rest of the industry. TOM outperforms 78.50% of its industry peers.
TOM has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TOM (1.03) is worse than 75.70% of its industry peers.
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 | 1.03 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 3.24 |
ROIC/WACC1.31
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.47 indicates that TOM should not have too much problems paying its short term obligations.
TOM has a Current ratio (1.47) which is in line with its industry peers.
TOM has a Quick Ratio of 1.00. This is a normal value and indicates that TOM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TOM (1.00) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
TOM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -63.43%.
Measured over the past years, TOM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -34.95% on average per year.
TOM shows a strong growth in Revenue. In the last year, the Revenue has grown by 45.28%.
The Revenue has been growing slightly by 7.25% on average over the past years.
EPS 1Y (TTM)-63.43%
EPS 3Y-55.56%
EPS 5Y-34.95%
EPS Q2Q%12.56%
Revenue 1Y (TTM)45.28%
Revenue growth 3Y7.86%
Revenue growth 5Y7.25%
Sales Q2Q%-2.4%
3.2 Future
Based on estimates for the next years, TOM will show a very strong growth in Earnings Per Share. The EPS will grow by 22.80% on average per year.
TOM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.84% yearly.
EPS Next Y16.78%
EPS Next 2Y33.23%
EPS Next 3Y32.08%
EPS Next 5Y22.8%
Revenue Next Year6.33%
Revenue Next 2Y12.54%
Revenue Next 3Y14.41%
Revenue Next 5Y11.84%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TOM is valuated quite expensively with a Price/Earnings ratio of 27.89.
The rest of the industry has a similar Price/Earnings ratio as TOM.
TOM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.43, the valuation of TOM can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as TOM.
The average S&P500 Price/Forward Earnings ratio is at 32.68. TOM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.89 | ||
| Fwd PE | 17.43 |
4.2 Price Multiples
TOM's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TOM is valued a bit cheaper than the industry average as 73.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.19 | ||
| EV/EBITDA | 12.65 |
4.3 Compensation for Growth
TOM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TOM has an outstanding profitability rating, which may justify a higher PE ratio.
TOM's earnings are expected to grow with 32.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.66
PEG (5Y)N/A
EPS Next 2Y33.23%
EPS Next 3Y32.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, TOM has a reasonable but not impressive dividend return.
The stock price of TOM dropped by -22.10% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
TOM's Dividend Yield is comparable with the industry average which is at 2.62.
TOM's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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
54.91% of the earnings are spent on dividend by TOM. This is a bit on the high side, but may be sustainable.
DP54.91%
EPS Next 2Y33.23%
EPS Next 3Y32.08%
OSL:TOM (11/7/2025, 7:00:00 PM)
117.7
-0.4 (-0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners83.01%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap34.84B
Revenue(TTM)1.35B
Net Income(TTM)99.80M
Analysts74.67
Price Target162.37 (37.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend1.96
Dividend Growth(5Y)-5.95%
DP54.91%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.45%
Min EPS beat(2)-25.74%
Max EPS beat(2)4.83%
EPS beat(4)2
Avg EPS beat(4)-2.07%
Min EPS beat(4)-25.74%
Max EPS beat(4)20.23%
EPS beat(8)3
Avg EPS beat(8)-23.11%
EPS beat(12)4
Avg EPS beat(12)-18.26%
EPS beat(16)7
Avg EPS beat(16)-12.86%
Revenue beat(2)0
Avg Revenue beat(2)-4.77%
Min Revenue beat(2)-6.56%
Max Revenue beat(2)-2.97%
Revenue beat(4)2
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-6.56%
Max Revenue beat(4)4.11%
Revenue beat(8)5
Avg Revenue beat(8)1.82%
Revenue beat(12)6
Avg Revenue beat(12)-20.83%
Revenue beat(16)6
Avg Revenue beat(16)-38.03%
PT rev (1m)-3.96%
PT rev (3m)-3.88%
EPS NQ rev (1m)-33.33%
EPS NQ rev (3m)-36.84%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.9%
Revenue NQ rev (1m)-10%
Revenue NQ rev (3m)-11.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.89 | ||
| Fwd PE | 17.43 | ||
| P/S | 2.19 | ||
| P/FCF | 11.19 | ||
| P/OCF | 11.19 | ||
| P/B | 5.44 | ||
| P/tB | 27.77 | ||
| EV/EBITDA | 12.65 |
EPS(TTM)4.22
EY3.59%
EPS(NY)6.75
Fwd EY5.74%
FCF(TTM)10.52
FCFY8.94%
OCF(TTM)10.52
OCFY8.94%
SpS53.66
BVpS21.63
TBVpS4.24
PEG (NY)1.66
PEG (5Y)N/A
Graham Number45.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 18.28% | ||
| ROCE | 14.65% | ||
| ROIC | 11.1% | ||
| ROICexc | 12.37% | ||
| ROICexgc | 21.43% | ||
| OM | 12.51% | ||
| PM (TTM) | 7.37% | ||
| GM | 60.25% | ||
| FCFM | 19.6% |
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%
ROICexgc growth 3Y-10.82%
ROICexgc 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 Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 2.3 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.72% | ||
| Profit Quality | 266.03% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 3.24 |
F-Score5
WACC8.5%
ROIC/WACC1.31
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)-63.43%
EPS 3Y-55.56%
EPS 5Y-34.95%
EPS Q2Q%12.56%
EPS Next Y16.78%
EPS Next 2Y33.23%
EPS Next 3Y32.08%
EPS Next 5Y22.8%
Revenue 1Y (TTM)45.28%
Revenue growth 3Y7.86%
Revenue growth 5Y7.25%
Sales Q2Q%-2.4%
Revenue Next Year6.33%
Revenue Next 2Y12.54%
Revenue Next 3Y14.41%
Revenue Next 5Y11.84%
EBIT growth 1Y120.54%
EBIT growth 3Y1.26%
EBIT growth 5Y6.64%
EBIT Next Year77.48%
EBIT Next 3Y42.19%
EBIT Next 5YN/A
FCF growth 1Y-31.45%
FCF growth 3Y0.11%
FCF growth 5Y11.27%
OCF growth 1Y-78.3%
OCF growth 3Y10.38%
OCF growth 5Y12.04%
TOMRA SYSTEMS ASA / TOM.OL FAQ
What is the ChartMill fundamental rating of TOMRA SYSTEMS ASA (TOM.OL) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TOM.OL.
What is the valuation status for TOM stock?
ChartMill assigns a valuation rating of 5 / 10 to TOMRA SYSTEMS ASA (TOM.OL). This can be considered as Fairly Valued.
What is the profitability of TOM stock?
TOMRA SYSTEMS ASA (TOM.OL) has a profitability rating of 8 / 10.
What is the financial health of TOMRA SYSTEMS ASA (TOM.OL) stock?
The financial health rating of TOMRA SYSTEMS ASA (TOM.OL) is 5 / 10.
Is the dividend of TOMRA SYSTEMS ASA sustainable?
The dividend rating of TOMRA SYSTEMS ASA (TOM.OL) is 2 / 10 and the dividend payout ratio is 54.91%.