TOMRA SYSTEMS ASA (TOM.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:TOM - NO0012470089 - Common Stock
130 NOK
+0.8 (+0.62%)
We assign a fundamental rating of 5 out of 10 to TOM. TOM was compared to 111 industry peers in the Machinery industry. Both the profitability and the financial health of TOM get a neutral evaluation. Nothing too spectacular is happening here. TOM shows excellent growth, but is valued quite expensive already.
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.
- 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 has a better Return On Assets (5.42%) than 69.57% of its industry peers.
- TOM has a Return On Equity of 17.51%. This is in the better half of the industry: TOM outperforms 80.00% of its industry peers.
- With a decent Return On Invested Capital value of 9.51%, TOM is doing good in the industry, outperforming 80.00% 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 9.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.42% | ||
| ROE | 17.51% | ||
| ROIC | 9.51% |
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
- The Profit Margin of TOM (7.18%) is better than 72.17% of its industry peers.
- In the last couple of years the Profit Margin of TOM has declined.
- TOM's Operating Margin of 11.65% is fine compared to the rest of the industry. TOM outperforms 73.91% of its industry peers.
- TOM's Operating Margin has been stable in the last couple of years.
- The Gross Margin of TOM (60.71%) is better than 85.22% of its industry peers.
- TOM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.65% | ||
| PM (TTM) | 7.18% | ||
| GM | 60.71% |
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
- TOM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, TOM has about the same amount of shares outstanding.
- 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 an Altman-Z score of 3.17. This indicates that TOM is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of TOM (3.17) is better than 69.57% of its industry peers.
- The Debt to FCF ratio of TOM is 3.03, which is a good value as it means it would take TOM, 3.03 years of fcf income to pay off all of its debts.
- TOM has a better Debt to FCF ratio (3.03) than 72.17% of its industry peers.
- A Debt/Equity ratio of 1.18 is on the high side and indicates that TOM has dependencies on debt financing.
- TOM has a Debt to Equity ratio of 1.18. This is in the lower half of the industry: TOM underperforms 79.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 3.17 |
ROIC/WACC1.12
WACC8.5%
2.3 Liquidity
- A Current Ratio of 1.48 indicates that TOM should not have too much problems paying its short term obligations.
- TOM has a Current ratio (1.48) which is in line with its industry peers.
- A Quick Ratio of 0.99 indicates that TOM may have some problems paying its short term obligations.
- TOM has a Quick ratio (0.99) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
- TOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 88.75%, which is quite impressive.
- Measured over the past 5 years, TOM shows a small growth in Earnings Per Share. The EPS has been growing by 2.83% on average per year.
- Looking at the last year, TOM shows a very strong growth in Revenue. The Revenue has grown by 40.48%.
- The Revenue has been growing slightly by 7.25% on average over the past years.
EPS 1Y (TTM)88.75%
EPS 3Y-3.82%
EPS 5Y2.83%
EPS Q2Q%-28.57%
Revenue 1Y (TTM)40.48%
Revenue growth 3Y7.86%
Revenue growth 5Y7.25%
Sales Q2Q%-6.13%
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.
- The Revenue is expected to grow by 12.66% on average over the next years. This is quite good.
EPS Next Y-12.81%
EPS Next 2Y21.24%
EPS Next 3Y31.49%
EPS Next 5Y22.8%
Revenue Next Year0.22%
Revenue Next 2Y9.69%
Revenue Next 3Y13.16%
Revenue Next 5Y12.66%
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
- Based on the Price/Earnings ratio of 33.16, the valuation of TOM can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as TOM.
- The average S&P500 Price/Earnings ratio is at 27.21. TOM is valued slightly more expensive when compared to this.
- With a Price/Forward Earnings ratio of 23.63, TOM is valued on the expensive side.
- 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 63.48% 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 (25.98), we can say TOM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.16 | ||
| Fwd PE | 23.63 |
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 61.74% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, TOM is valued a bit cheaper than 68.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.66 | ||
| EV/EBITDA | 14.74 |
4.3 Compensation for Growth
- 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 31.49% in the coming years.
PEG (NY)N/A
PEG (5Y)11.72
EPS Next 2Y21.24%
EPS Next 3Y31.49%
5. Dividend
5.1 Amount
- TOM has a Yearly Dividend Yield of 1.66%.
- Compared to an average industry Dividend Yield of 1.48, TOM pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, TOM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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
- 60.33% of the earnings are spent on dividend by TOM. This is not a sustainable payout ratio.
DP60.33%
EPS Next 2Y21.24%
EPS Next 3Y31.49%
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 5 / 10 to TOM.OL.
What is the valuation status of TOMRA SYSTEMS ASA (TOM.OL) stock?
ChartMill assigns a valuation rating of 3 / 10 to TOMRA SYSTEMS ASA (TOM.OL). This can be considered as Overvalued.
Can you provide the profitability details for TOMRA SYSTEMS ASA?
TOMRA SYSTEMS ASA (TOM.OL) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for TOM stock?
The Price/Earnings (PE) ratio for TOMRA SYSTEMS ASA (TOM.OL) is 33.16 and the Price/Book (PB) ratio is 6.1.
Can you provide the dividend sustainability for TOM stock?
The dividend rating of TOMRA SYSTEMS ASA (TOM.OL) is 3 / 10 and the dividend payout ratio is 60.33%.