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 is valued quite cheap, but it does not seem to be growing. This makes TRMD very considerable for value investing!
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.
Each year in the past 5 years TRMD had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 21.06%, TRMD belongs to the best of the industry, outperforming 92.72% of the companies in the same industry.
With an excellent Return On Equity value of 35.25%, TRMD belongs to the best of the industry, outperforming 90.29% of the companies in the same industry.
TRMD has a better Return On Invested Capital (17.30%) than 88.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRMD is significantly below the industry average of 28.71%.
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
Looking at the Profit Margin, with a value of 43.81%, TRMD belongs to the top of the industry, outperforming 90.29% of the companies in the same industry.
In the last couple of years the Profit Margin of TRMD has grown nicely.
The Operating Margin of TRMD (41.79%) is better than 82.04% of its industry peers.
In the last couple of years the Operating Margin of TRMD has grown nicely.
TRMD's Gross Margin of 72.63% is fine compared to the rest of the industry. TRMD outperforms 79.13% of its industry peers.
In the last couple of years the Gross Margin of TRMD has grown nicely.
| 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
An Altman-Z score of 2.95 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 2.95. This is in the better half of the industry: TRMD outperforms 74.76% 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.
With a decent Debt to FCF ratio value of 3.89, TRMD is doing good in the industry, outperforming 65.53% of the companies in the same industry.
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 | 2.95 |
ROIC/WACC2.24
WACC7.71%
2.3 Liquidity
A Current Ratio of 2.47 indicates that TRMD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.47, TRMD is in the better half of the industry, outperforming 78.16% of the companies in the same industry.
A Quick Ratio of 2.24 indicates that TRMD has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.24, TRMD is in the better half of the industry, outperforming 77.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
TRMD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.45%.
TRMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 86.97% yearly.
The Revenue has been growing slightly by 3.91% in the past year.
TRMD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.07% yearly.
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
TRMD is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -18.44% yearly.
The Revenue is expected to decrease by -4.97% on average over the next years.
EPS Next Y-4.19%
EPS Next 2Y-19.32%
EPS Next 3Y-18.44%
EPS Next 5YN/A
Revenue Next Year3.6%
Revenue Next 2Y-3.18%
Revenue Next 3Y-4.97%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TRMD is valuated cheaply with a Price/Earnings ratio of 2.57.
Compared to the rest of the industry, the Price/Earnings ratio of TRMD indicates a rather cheap valuation: TRMD is cheaper than 98.06% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TRMD to the average of the S&P500 Index (28.51), we can say TRMD is valued rather cheaply.
TRMD is valuated cheaply with a Price/Forward Earnings ratio of 4.09.
Based on the Price/Forward Earnings ratio, TRMD is valued cheaper than 93.20% of the companies in the same industry.
TRMD is valuated cheaply when we compare the Price/Forward Earnings ratio to 93.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.57 | ||
| Fwd PE | 4.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRMD is valued cheaply inside the industry as 84.95% of the companies are valued more expensively.
TRMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TRMD is cheaper than 81.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.24 | ||
| EV/EBITDA | 3.16 |
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 -18.44% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.32%
EPS Next 3Y-18.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 30.92%, TRMD is a good candidate for dividend investing.
The stock price of TRMD dropped by -22.87% 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.
Compared to an average industry Dividend Yield of 6.55, TRMD pays a better dividend. On top of this TRMD pays more dividend than 99.51% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, TRMD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 30.92% |
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
TRMD pays out 77.98% of its income as dividend. This is not a sustainable payout ratio.
DP77.98%
EPS Next 2Y-19.32%
EPS Next 3Y-18.44%
TORM PLC-A
NASDAQ:TRMD (1/30/2025, 8:00:01 PM)
After market: 19.9 +0.04 (+0.2%)19.86
+0.34 (+1.74%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners67.89%
Inst Owner Change-0.35%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap1.94B
Analysts74
Price Target34.9 (75.73%)
Short Float %4.98%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 30.92% |
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)-1.77%
PT rev (3m)-18.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-60.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-24.72%
Revenue NY rev (1m)-1.42%
Revenue NY rev (3m)-10%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.57 | ||
| Fwd PE | 4.09 | ||
| P/S | 1.18 | ||
| P/FCF | 6.24 | ||
| P/OCF | 2.16 | ||
| P/B | 0.95 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 3.16 |
EPS(TTM)7.73
EY38.92%
EPS(NY)4.86
Fwd EY24.45%
FCF(TTM)3.18
FCFY16.03%
OCF(TTM)9.21
OCFY46.39%
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 | 2.95 |
F-Score5
WACC7.71%
ROIC/WACC2.24
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-4.19%
EPS Next 2Y-19.32%
EPS Next 3Y-18.44%
EPS Next 5YN/A
Revenue 1Y (TTM)3.91%
Revenue growth 3Y26.71%
Revenue growth 5Y19.07%
Sales Q2Q%3.91%
Revenue Next Year3.6%
Revenue Next 2Y-3.18%
Revenue Next 3Y-4.97%
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%