TORM PLC-A (TRMD) Stock Fundamental Analysis
NASDAQ:TRMD - Nasdaq - GB00BZ3CNK81 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to TRMD. TRMD was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. TRMD has an excellent profitability rating, but there are some minor concerns on its financial health. TRMD has a bad growth rate and is valued cheaply. This makes TRMD very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year TRMD was profitable.
TRMD had a positive operating cash flow in the past year.
Of the past 5 years TRMD 4 years were profitable.
TRMD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 21.06%, TRMD belongs to the top of the industry, outperforming 93.81% of the companies in the same industry.
TRMD's Return On Equity of 35.25% is amongst the best of the industry. TRMD outperforms 91.43% of its industry peers.
The Return On Invested Capital of TRMD (17.30%) is better than 90.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRMD is significantly below the industry average of 28.54%.
The last Return On Invested Capital (17.30%) for TRMD is above the 3 year average (13.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.06% | ||
| ROE | 35.25% | ||
| ROIC | 17.3% |
ROA(3y)14.1%
ROA(5y)11%
ROE(3y)24.15%
ROE(5y)19.52%
ROIC(3y)13.13%
ROIC(5y)9.98%
1.3 Margins
TRMD has a better Profit Margin (43.81%) than 91.43% of its industry peers.
TRMD's Profit Margin has improved in the last couple of years.
TRMD has a Operating Margin of 41.79%. This is amongst the best in the industry. TRMD outperforms 83.81% of its industry peers.
In the last couple of years the Operating Margin of TRMD has grown nicely.
TRMD has a better Gross Margin (72.63%) than 81.90% of its industry peers.
TRMD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.79% | ||
| PM (TTM) | 43.81% | ||
| GM | 72.63% |
OM growth 3Y28.78%
OM growth 5Y121.5%
PM growth 3Y53.49%
PM growth 5YN/A
GM growth 3Y1.04%
GM growth 5Y5.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TRMD is creating value.
TRMD has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TRMD has been increased compared to 5 years ago.
The debt/assets ratio for TRMD has remained at the same level compared to a year ago.
2.2 Solvency
TRMD has an Altman-Z score of 2.86. This is not the best score and indicates that TRMD is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of TRMD (2.86) is better than 79.52% of its industry peers.
TRMD has a debt to FCF ratio of 3.89. This is a good value and a sign of high solvency as TRMD would need 3.89 years to pay back of all of its debts.
TRMD has a better Debt to FCF ratio (3.89) than 68.57% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that TRMD is somewhat dependend on debt financing.
The Debt to Equity ratio of TRMD (0.51) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.89 | ||
| Altman-Z | 2.86 |
ROIC/WACC2.15
WACC8.03%
2.3 Liquidity
A Current Ratio of 2.47 indicates that TRMD has no problem at all paying its short term obligations.
The Current ratio of TRMD (2.47) is better than 79.05% of its industry peers.
TRMD has a Quick Ratio of 2.24. This indicates that TRMD is financially healthy and has no problem in meeting its short term obligations.
TRMD has a better Quick ratio (2.24) than 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
The earnings per share for TRMD have decreased by -4.45% in the last year.
The Earnings Per Share has been growing by 86.97% on average over the past years. This is a very strong growth
TRMD shows a small growth in Revenue. In the last year, the Revenue has grown by 3.91%.
The Revenue has been growing by 19.07% on average over the past years. This is quite good.
EPS 1Y (TTM)-4.45%
EPS 3Y86.97%
EPS 5YN/A
EPS Q2Q%-4.93%
Revenue 1Y (TTM)3.91%
Revenue growth 3Y26.71%
Revenue growth 5Y19.07%
Sales Q2Q%3.91%
3.2 Future
Based on estimates for the next years, TRMD will show a very negative growth in Earnings Per Share. The EPS will decrease by -18.30% on average per year.
TRMD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.99% yearly.
EPS Next Y-18.46%
EPS Next 2Y-27.71%
EPS Next 3Y-18.3%
EPS Next 5YN/A
Revenue Next Year3.37%
Revenue Next 2Y-3.91%
Revenue Next 3Y-5.99%
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
With a Price/Earnings ratio of 2.24, 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 99.05% of the companies listed in the same industry.
TRMD is valuated cheaply when we compare the Price/Earnings ratio to 29.71, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 4.45 indicates a rather cheap valuation of TRMD.
90.48% of the companies in the same industry are more expensive than TRMD, based on the Price/Forward Earnings ratio.
TRMD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.24 | ||
| Fwd PE | 4.45 |
4.2 Price Multiples
TRMD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TRMD is cheaper than 85.24% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRMD indicates a rather cheap valuation: TRMD is cheaper than 84.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.45 | ||
| EV/EBITDA | 2.91 |
4.3 Compensation for Growth
TRMD has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TRMD's earnings are expected to decrease with -18.30% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-27.71%
EPS Next 3Y-18.3%
5. Dividend
5.1 Amount
TRMD has a Yearly Dividend Yield of 34.22%, which is a nice return.
TRMD's Dividend Yield is rather good when compared to the industry average which is at 7.07. TRMD pays more dividend than 99.52% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, TRMD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 34.22% |
5.2 History
TRMD has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
77.98% of the earnings are spent on dividend by TRMD. This is not a sustainable payout ratio.
DP77.98%
EPS Next 2Y-27.71%
EPS Next 3Y-18.3%
17.35
-0.27 (-1.53%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners62.97%
Inst Owner Change-3%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap1.70B
Analysts74
Price Target34.62 (99.54%)
Short Float %5.63%
Short Ratio4.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 34.22% |
Yearly Dividend7
Dividend Growth(5Y)N/A
DP77.98%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.21%
Min EPS beat(2)-5.7%
Max EPS beat(2)-2.72%
EPS beat(4)2
Avg EPS beat(4)2.1%
Min EPS beat(4)-5.7%
Max EPS beat(4)12.09%
EPS beat(8)5
Avg EPS beat(8)2.25%
EPS beat(12)7
Avg EPS beat(12)-1.41%
EPS beat(16)9
Avg EPS beat(16)-0.97%
Revenue beat(2)2
Avg Revenue beat(2)29.68%
Min Revenue beat(2)28.82%
Max Revenue beat(2)30.54%
Revenue beat(4)4
Avg Revenue beat(4)30.56%
Min Revenue beat(4)28.82%
Max Revenue beat(4)33.17%
Revenue beat(8)8
Avg Revenue beat(8)33.73%
Revenue beat(12)12
Avg Revenue beat(12)37.23%
Revenue beat(16)16
Avg Revenue beat(16)37.29%
PT rev (1m)0%
PT rev (3m)-3.94%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)-1.48%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-14.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.88%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.24 | ||
| Fwd PE | 4.45 | ||
| P/S | 1.03 | ||
| P/FCF | 5.45 | ||
| P/OCF | 1.88 | ||
| P/B | 0.83 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | 2.91 |
EPS(TTM)7.73
EY44.55%
EPS(NY)3.9
Fwd EY22.47%
FCF(TTM)3.18
FCFY18.35%
OCF(TTM)9.21
OCFY53.1%
SpS16.78
BVpS20.86
TBVpS20.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.06% | ||
| ROE | 35.25% | ||
| ROCE | 21.89% | ||
| ROIC | 17.3% | ||
| ROICexc | 19.78% | ||
| ROICexgc | 19.81% | ||
| OM | 41.79% | ||
| PM (TTM) | 43.81% | ||
| GM | 72.63% | ||
| FCFM | 18.97% |
ROA(3y)14.1%
ROA(5y)11%
ROE(3y)24.15%
ROE(5y)19.52%
ROIC(3y)13.13%
ROIC(5y)9.98%
ROICexc(3y)14.87%
ROICexc(5y)11.12%
ROICexgc(3y)14.9%
ROICexgc(5y)11.14%
ROCE(3y)16.62%
ROCE(5y)12.63%
ROICexcg growth 3Y47.15%
ROICexcg growth 5Y138.74%
ROICexc growth 3Y47.07%
ROICexc growth 5Y138.67%
OM growth 3Y28.78%
OM growth 5Y121.5%
PM growth 3Y53.49%
PM growth 5YN/A
GM growth 3Y1.04%
GM growth 5Y5.42%
F-Score5
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.89 | ||
| Debt/EBITDA | 1.21 | ||
| Cap/Depr | 330.65% | ||
| Cap/Sales | 35.91% | ||
| Interest Coverage | 10.11 | ||
| Cash Conversion | 104.24% | ||
| Profit Quality | 43.3% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.24 | ||
| Altman-Z | 2.86 |
F-Score5
WACC8.03%
ROIC/WACC2.15
Cap/Depr(3y)224.13%
Cap/Depr(5y)232.67%
Cap/Sales(3y)31.16%
Cap/Sales(5y)34.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.45%
EPS 3Y86.97%
EPS 5YN/A
EPS Q2Q%-4.93%
EPS Next Y-18.46%
EPS Next 2Y-27.71%
EPS Next 3Y-18.3%
EPS Next 5YN/A
Revenue 1Y (TTM)3.91%
Revenue growth 3Y26.71%
Revenue growth 5Y19.07%
Sales Q2Q%3.91%
Revenue Next Year3.37%
Revenue Next 2Y-3.91%
Revenue Next 3Y-5.99%
Revenue Next 5YN/A
EBIT growth 1Y-5.26%
EBIT growth 3Y63.18%
EBIT growth 5Y163.73%
EBIT Next Year22.8%
EBIT Next 3Y-0.7%
EBIT Next 5YN/A
FCF growth 1Y175.97%
FCF growth 3Y67.49%
FCF growth 5YN/A
OCF growth 1Y237.41%
OCF growth 3Y50.58%
OCF growth 5Y62.64%