TORM PLC-A (TRMD) Stock Fundamental Analysis
USA - NASDAQ:TRMD - GB00BZ3CNK81 - Common Stock
20.7 USD
+0.26 (+1.27%)
20.7 USD
0 (0%)
Taking everything into account, TRMD scores 6 out of 10 in our fundamental rating. TRMD was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making TRMD a very profitable company, without any liquidiy or solvency issues. TRMD is cheap, but on the other hand it scores bad on growth. These ratings would make TRMD suitable 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.
TRMD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TRMD has a better Return On Assets (9.69%) than 86.73% of its industry peers.
TRMD's Return On Equity of 15.62% is fine compared to the rest of the industry. TRMD outperforms 75.36% of its industry peers.
TRMD has a better Return On Invested Capital (8.84%) than 77.25% of its industry peers.
TRMD had an Average Return On Invested Capital over the past 3 years of 18.07%. This is below the industry average of 21.53%.
The last Return On Invested Capital (8.84%) for TRMD is well below the 3 year average (18.07%), which needs to be investigated, but indicates that TRMD had better years and this may not be a problem.
| 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
Looking at the Profit Margin, with a value of 24.90%, TRMD belongs to the top of the industry, outperforming 81.04% of the companies in the same industry.
TRMD's Profit Margin has improved in the last couple of years.
The Operating Margin of TRMD (26.49%) is better than 64.93% of its industry peers.
In the last couple of years the Operating Margin of TRMD has grown nicely.
Looking at the Gross Margin, with a value of 68.89%, TRMD is in the better half of the industry, outperforming 77.25% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TRMD is creating value.
The number of shares outstanding for TRMD has been increased compared to 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 been reduced compared to a year ago.
2.2 Solvency
TRMD has an Altman-Z score of 2.68. 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.
TRMD's Altman-Z score of 2.68 is fine compared to the rest of the industry. TRMD outperforms 78.20% 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.
Looking at the Debt to FCF ratio, with a value of 4.97, TRMD is in the better half of the industry, outperforming 64.93% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that TRMD is not too dependend on debt financing.
TRMD has a Debt to Equity ratio (0.46) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.68 |
ROIC/WACC1.08
WACC8.15%
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.
TRMD has a Current ratio of 2.57. This is amongst the best in the industry. TRMD outperforms 81.04% 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.
Looking at the Quick ratio, with a value of 2.30, TRMD belongs to the top of the industry, outperforming 80.57% of the companies in the same industry.
| 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.
TRMD shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.79%.
TRMD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.62% yearly.
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
Based on estimates for the next years, TRMD will show a very negative growth in Earnings Per Share. The EPS will decrease by -39.70% on average per year.
The Revenue is expected to decrease by -17.48% on average over the next years. This is quite bad
EPS Next Y-56.2%
EPS Next 2Y-44.63%
EPS Next 3Y-39.7%
EPS Next 5YN/A
Revenue Next Year-25.21%
Revenue Next 2Y-19.9%
Revenue Next 3Y-17.48%
Revenue Next 5YN/A
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 decreasing.
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 6.27.
88.63% of the companies in the same industry are more expensive than TRMD, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.42. TRMD is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.58, which indicates a very decent valuation of TRMD.
TRMD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TRMD is cheaper than 63.98% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. TRMD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.27 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
TRMD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TRMD is cheaper than 74.88% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TRMD is valued a bit cheaper than the industry average as 78.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.96 | ||
| EV/EBITDA | 5.01 |
4.3 Compensation for Growth
The excellent profitability rating of TRMD may justify a higher PE ratio.
A cheap valuation may be justified as TRMD's earnings are expected to decrease with -39.70% in the coming years.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y-44.63%
EPS Next 3Y-39.7%
5. Dividend
5.1 Amount
TRMD has a Yearly Dividend Yield of 12.61%, which is a nice return.
Compared to an average industry Dividend Yield of 6.30, TRMD pays a better dividend. On top of this TRMD pays more dividend than 94.31% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.61% |
5.2 History
TRMD has been paying a dividend for over 5 years, so it has already some track record.
TRMD has decreased its dividend 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%
20.7
+0.26 (+1.27%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners60.41%
Inst Owner Change0.04%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.03B
Analysts68
Price Target19.95 (-3.62%)
Short Float %2.02%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.61% |
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)2.33%
PT rev (3m)-0.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)72.93%
EPS NY rev (1m)20.64%
EPS NY rev (3m)-8.65%
Revenue NQ rev (1m)-2.55%
Revenue NQ rev (3m)2.65%
Revenue NY rev (1m)-6.95%
Revenue NY rev (3m)-2.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.27 | ||
| Fwd PE | 10.58 | ||
| P/S | 1.53 | ||
| P/FCF | 8.96 | ||
| P/OCF | 3.36 | ||
| P/B | 0.96 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 5.01 |
EPS(TTM)3.3
EY15.94%
EPS(NY)1.96
Fwd EY9.45%
FCF(TTM)2.31
FCFY11.17%
OCF(TTM)6.15
OCFY29.73%
SpS13.49
BVpS21.51
TBVpS21.47
PEG (NY)N/A
PEG (5Y)0.27
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 | 2.68 |
F-Score4
WACC8.15%
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-56.2%
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-25.21%
Revenue Next 2Y-19.9%
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-16.09%
EBIT Next 3Y-16.87%
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%