TORM PLC-A (TRMD) Stock Fundamental Analysis
USA - NASDAQ:TRMD - GB00BZ3CNK81 - Common Stock
23.26 USD
+0.04 (+0.17%)
23.33 USD
+0.07 (+0.3%)
Overall TRMD gets a fundamental rating of 6 out of 10. We evaluated TRMD against 210 industry peers in the Oil, Gas & Consumable Fuels industry. TRMD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TRMD is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TRMD had positive earnings in the past year.
In the past year TRMD had a positive cash flow from operations.
Of the past 5 years TRMD 4 years were profitable.
In the past 5 years TRMD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.69%, TRMD belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
With a decent Return On Equity value of 15.62%, TRMD is doing good in the industry, outperforming 74.76% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.84%, TRMD is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRMD is below the industry average of 21.90%.
The 3 year average ROIC (18.07%) for TRMD is well above the current ROIC(8.84%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.69% | ||
| ROE | 15.62% | ||
| ROIC | 8.84% |
ROA(3y)20.59%
ROA(5y)12.87%
ROE(3y)35.32%
ROE(5y)22.13%
ROIC(3y)18.07%
ROIC(5y)12.2%
1.3 Margins
TRMD has a Profit Margin of 24.90%. This is amongst the best in the industry. TRMD outperforms 80.95% of its industry peers.
TRMD's Profit Margin has improved in the last couple of years.
TRMD has a Operating Margin of 26.49%. This is in the better half of the industry: TRMD outperforms 63.33% of its industry peers.
In the last couple of years the Operating Margin of TRMD has grown nicely.
TRMD has a Gross Margin of 68.89%. This is in the better half of the industry: TRMD outperforms 77.62% of its industry peers.
TRMD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.49% | ||
| PM (TTM) | 24.9% | ||
| GM | 68.89% |
OM growth 3Y240.77%
OM growth 5Y24.25%
PM growth 3YN/A
PM growth 5Y10.38%
GM growth 3Y6.18%
GM growth 5Y3.59%
2. Health
2.1 Basic Checks
TRMD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for TRMD has been increased compared to 1 year ago.
TRMD has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TRMD has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.80 indicates that TRMD is not a great score, but indicates only limited risk for bankruptcy at the moment.
TRMD has a Altman-Z score of 2.80. This is in the better half of the industry: TRMD outperforms 78.10% of its industry peers.
The Debt to FCF ratio of TRMD is 4.97, which is a neutral value as it means it would take TRMD, 4.97 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.97, TRMD is doing good in the industry, outperforming 65.24% of the companies in the same industry.
TRMD has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
TRMD has a Debt to Equity ratio (0.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.8 |
ROIC/WACC1.08
WACC8.2%
2.3 Liquidity
TRMD has a Current Ratio of 2.57. This indicates that TRMD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TRMD (2.57) is better than 80.95% of its industry peers.
TRMD has a Quick Ratio of 2.30. This indicates that TRMD is financially healthy and has no problem in meeting its short term obligations.
TRMD has a Quick ratio of 2.30. This is amongst the best in the industry. TRMD outperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.3 |
3. Growth
3.1 Past
TRMD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.69%.
Measured over the past years, TRMD shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.29% on average per year.
Looking at the last year, TRMD shows a very negative growth in Revenue. The Revenue has decreased by -18.79% in the last year.
Measured over the past years, TRMD shows a quite strong growth in Revenue. The Revenue has been growing by 17.62% on average per year.
EPS 1Y (TTM)-57.69%
EPS 3YN/A
EPS 5Y23.29%
EPS Q2Q%-71.29%
Revenue 1Y (TTM)-18.79%
Revenue growth 3Y36.02%
Revenue growth 5Y17.62%
Sales Q2Q%-27.99%
3.2 Future
TRMD is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -39.70% yearly.
The Revenue is expected to decrease by -17.48% on average over the next years. This is quite bad
EPS Next Y-63.69%
EPS Next 2Y-44.63%
EPS Next 3Y-39.7%
EPS Next 5YN/A
Revenue Next Year-19.63%
Revenue Next 2Y-17.76%
Revenue Next 3Y-17.48%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.05, the valuation of TRMD can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of TRMD indicates a rather cheap valuation: TRMD is cheaper than 88.10% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. TRMD is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.89, the valuation of TRMD can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as TRMD.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, TRMD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.05 | ||
| Fwd PE | 11.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRMD is valued a bit cheaper than 72.38% of the companies in the same industry.
76.67% of the companies in the same industry are more expensive than TRMD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.06 | ||
| EV/EBITDA | 5.45 |
4.3 Compensation for Growth
The excellent profitability rating of TRMD may justify a higher PE ratio.
TRMD's earnings are expected to decrease with -39.70% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y-44.63%
EPS Next 3Y-39.7%
5. Dividend
5.1 Amount
TRMD has a Yearly Dividend Yield of 11.76%, which is a nice return.
Compared to an average industry Dividend Yield of 6.18, TRMD pays a better dividend. On top of this TRMD pays more dividend than 93.33% of the companies listed in the same industry.
TRMD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.76% |
5.2 History
TRMD has been paying a dividend for over 5 years, so it has already some track record.
The dividend of TRMD decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
116.47% of the earnings are spent on dividend by TRMD. This is not a sustainable payout ratio.
DP116.47%
EPS Next 2Y-44.63%
EPS Next 3Y-39.7%
23.26
+0.04 (+0.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners60.03%
Inst Owner Change-2.04%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap2.28B
Analysts72
Price Target19.49 (-16.21%)
Short Float %1.92%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.76% |
Yearly Dividend6.05
Dividend Growth(5Y)N/A
DP116.47%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-3.58%
Max EPS beat(2)3.16%
EPS beat(4)2
Avg EPS beat(4)2.32%
Min EPS beat(4)-5.7%
Max EPS beat(4)15.43%
EPS beat(8)5
Avg EPS beat(8)4.8%
EPS beat(12)8
Avg EPS beat(12)3.37%
EPS beat(16)9
Avg EPS beat(16)-0.7%
Revenue beat(2)2
Avg Revenue beat(2)35.36%
Min Revenue beat(2)27.31%
Max Revenue beat(2)43.41%
Revenue beat(4)4
Avg Revenue beat(4)30.82%
Min Revenue beat(4)23.74%
Max Revenue beat(4)43.41%
Revenue beat(8)8
Avg Revenue beat(8)33.61%
Revenue beat(12)12
Avg Revenue beat(12)32.33%
Revenue beat(16)16
Avg Revenue beat(16)36.08%
PT rev (1m)-0.74%
PT rev (3m)4.58%
EPS NQ rev (1m)72.93%
EPS NQ rev (3m)-1.07%
EPS NY rev (1m)-24.28%
EPS NY rev (3m)-24.28%
Revenue NQ rev (1m)16.11%
Revenue NQ rev (3m)-19.74%
Revenue NY rev (1m)7.49%
Revenue NY rev (3m)4.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.05 | ||
| Fwd PE | 11.89 | ||
| P/S | 1.72 | ||
| P/FCF | 10.06 | ||
| P/OCF | 3.78 | ||
| P/B | 1.08 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 5.45 |
EPS(TTM)3.3
EY14.19%
EPS(NY)1.96
Fwd EY8.41%
FCF(TTM)2.31
FCFY9.94%
OCF(TTM)6.15
OCFY26.46%
SpS13.49
BVpS21.51
TBVpS21.47
PEG (NY)N/A
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.69% | ||
| ROE | 15.62% | ||
| ROCE | 11.19% | ||
| ROIC | 8.84% | ||
| ROICexc | 9.98% | ||
| ROICexgc | 10% | ||
| OM | 26.49% | ||
| PM (TTM) | 24.9% | ||
| GM | 68.89% | ||
| FCFM | 17.13% |
ROA(3y)20.59%
ROA(5y)12.87%
ROE(3y)35.32%
ROE(5y)22.13%
ROIC(3y)18.07%
ROIC(5y)12.2%
ROICexc(3y)20.28%
ROICexc(5y)13.6%
ROICexgc(3y)20.31%
ROICexgc(5y)13.62%
ROCE(3y)22.88%
ROCE(5y)15.44%
ROICexcg growth 3Y300.7%
ROICexcg growth 5Y32.05%
ROICexc growth 3Y300.53%
ROICexc growth 5Y32.02%
OM growth 3Y240.77%
OM growth 5Y24.25%
PM growth 3YN/A
PM growth 5Y10.38%
GM growth 3Y6.18%
GM growth 5Y3.59%
F-Score4
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.97 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 181.4% | ||
| Cap/Sales | 28.48% | ||
| Interest Coverage | 4.95 | ||
| Cash Conversion | 108.09% | ||
| Profit Quality | 68.79% | ||
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.3 | ||
| Altman-Z | 2.8 |
F-Score4
WACC8.2%
ROIC/WACC1.08
Cap/Depr(3y)243.97%
Cap/Depr(5y)223.64%
Cap/Sales(3y)26.43%
Cap/Sales(5y)30.81%
Profit Quality(3y)51.03%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-57.69%
EPS 3YN/A
EPS 5Y23.29%
EPS Q2Q%-71.29%
EPS Next Y-63.69%
EPS Next 2Y-44.63%
EPS Next 3Y-39.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.79%
Revenue growth 3Y36.02%
Revenue growth 5Y17.62%
Sales Q2Q%-27.99%
Revenue Next Year-19.63%
Revenue Next 2Y-17.76%
Revenue Next 3Y-17.48%
Revenue Next 5YN/A
EBIT growth 1Y-49.09%
EBIT growth 3Y363.52%
EBIT growth 5Y46.14%
EBIT Next Year-34%
EBIT Next 3Y-21.7%
EBIT Next 5YN/A
FCF growth 1Y-46.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-26.51%
OCF growth 3Y158.35%
OCF growth 5Y37.04%