TORM PLC-A (TRMD)
GB00BZ3CNK81 - Common Stock
Taking everything into account, TRMD scores 6 out of 10 in our fundamental rating. TRMD was compared to 205 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 has a bad growth rate and is valued cheaply. These ratings would make TRMD suitable for value investing!
1. Profitability
1.1 Basic Checks
TRMD had positive earnings in the past year.
TRMD had a positive operating cash flow in the past year.
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
The Return On Assets of TRMD (20.58%) is better than 90.69% of its industry peers.
TRMD has a better Return On Equity (34.91%) than 90.69% of its industry peers.
TRMD's Return On Invested Capital of 17.10% is amongst the best of the industry. TRMD outperforms 88.24% of its industry peers.
TRMD had an Average Return On Invested Capital over the past 3 years of 13.13%. This is significantly below the industry average of 29.02%.
The last Return On Invested Capital (17.10%) for TRMD is above the 3 year average (13.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.58% | ||
| ROE | 34.91% | ||
| ROIC | 17.1% |
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
The Profit Margin of TRMD (43.81%) is better than 89.71% of its industry peers.
In the last couple of years the Profit Margin of TRMD has grown nicely.
Looking at the Operating Margin, with a value of 42.26%, TRMD belongs to the top of the industry, outperforming 81.37% of the companies in the same industry.
In the last couple of years the Operating Margin of TRMD has grown nicely.
The Gross Margin of TRMD (71.93%) is better than 79.41% of its industry peers.
TRMD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.26% | ||
| PM (TTM) | 43.81% | ||
| GM | 71.93% |
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.
Compared to 1 year ago, TRMD has more shares outstanding
The number of shares outstanding for TRMD has been increased compared to 5 years ago.
Compared to 1 year ago, TRMD has about the same debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.90 indicates that TRMD is not a great score, but indicates only limited risk for bankruptcy at the moment.
TRMD's Altman-Z score of 2.90 is fine compared to the rest of the industry. TRMD outperforms 75.98% of its industry peers.
The Debt to FCF ratio of TRMD is 2.95, which is a good value as it means it would take TRMD, 2.95 years of fcf income to pay off all of its debts.
TRMD has a Debt to FCF ratio of 2.95. This is in the better half of the industry: TRMD outperforms 71.08% of its industry peers.
TRMD has a Debt/Equity ratio of 0.53. This is a neutral value indicating TRMD is somewhat dependend on debt financing.
The Debt to Equity ratio of TRMD (0.53) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 2.9 |
ROIC/WACC2.28
WACC7.49%
2.3 Liquidity
TRMD has a Current Ratio of 3.18. This indicates that TRMD is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.18, TRMD belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
TRMD has a Quick Ratio of 2.94. This indicates that TRMD is financially healthy and has no problem in meeting its short term obligations.
TRMD has a better Quick ratio (2.94) than 83.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 2.94 |
3. Growth
3.1 Past
The earnings per share for TRMD have decreased by -4.45% in the last year.
Measured over the past years, TRMD shows a very strong growth in Earnings Per Share. The EPS has been growing by 86.97% on average per year.
Looking at the last year, TRMD shows a small growth in Revenue. The Revenue has grown by 5.34% in the last year.
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)5.34%
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.
TRMD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.28% yearly.
EPS Next Y-4.19%
EPS Next 2Y-19.32%
EPS Next 3Y-18.44%
EPS Next 5YN/A
Revenue Next Year5.09%
Revenue Next 2Y-1.82%
Revenue Next 3Y-7.28%
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
The Price/Earnings ratio is 2.34, which indicates a rather cheap valuation of TRMD.
Based on the Price/Earnings ratio, TRMD is valued cheaply inside the industry as 98.53% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TRMD to the average of the S&P500 Index (27.73), we can say TRMD is valued rather cheaply.
TRMD is valuated cheaply with a Price/Forward Earnings ratio of 3.72.
Based on the Price/Forward Earnings ratio, TRMD is valued cheaply inside the industry as 92.65% of the companies are valued more expensively.
TRMD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.34 | ||
| Fwd PE | 3.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRMD is valued cheaper than 85.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TRMD is valued cheaply inside the industry as 88.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.15 | ||
| EV/EBITDA | 2.9 |
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 -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 33.56%, TRMD is a good candidate for dividend investing.
The stock price of TRMD dropped by -48.50% 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.
TRMD's Dividend Yield is rather good when compared to the industry average which is at 7.08. TRMD pays more dividend than 99.51% of the companies in the same industry.
TRMD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 33.56% |
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
72.57% of the earnings are spent on dividend by TRMD. This is not a sustainable payout ratio.
DP72.57%
EPS Next 2Y-19.32%
EPS Next 3Y-18.44%
TORM PLC-A
NASDAQ:TRMD (12/20/2024, 8:00:01 PM)
After market: 18.08 0 (0%)18.08
+0.11 (+0.61%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners67.89%
Inst Owner Change-8.06%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap1.77B
Analysts74
Price Target35.53 (96.52%)
Short Float %3.81%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 33.56% |
Dividend Growth(5Y)N/A
DP72.57%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.02%
Min EPS beat(2)-2.72%
Max EPS beat(2)4.76%
EPS beat(4)3
Avg EPS beat(4)7.28%
Min EPS beat(4)-2.72%
Max EPS beat(4)15.01%
EPS beat(8)6
Avg EPS beat(8)3.89%
EPS beat(12)7
Avg EPS beat(12)-1.71%
EPS beat(16)9
Avg EPS beat(16)-5.98%
Revenue beat(2)2
Avg Revenue beat(2)31.85%
Min Revenue beat(2)30.54%
Max Revenue beat(2)33.17%
Revenue beat(4)4
Avg Revenue beat(4)36.4%
Min Revenue beat(4)29.71%
Max Revenue beat(4)52.18%
Revenue beat(8)8
Avg Revenue beat(8)33.09%
Revenue beat(12)12
Avg Revenue beat(12)37.83%
Revenue beat(16)16
Avg Revenue beat(16)38.89%
PT rev (1m)-10.28%
PT rev (3m)-17.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.34 | ||
| Fwd PE | 3.72 | ||
| P/S | 1.09 | ||
| P/FCF | 4.15 | ||
| P/OCF | 2.04 | ||
| P/B | 0.87 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 2.9 |
EPS(TTM)7.73
EY42.75%
EPS(NY)4.86
Fwd EY26.86%
FCF(TTM)4.36
FCFY24.12%
OCF(TTM)8.86
OCFY48.98%
SpS16.64
BVpS20.88
TBVpS20.84
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.58% | ||
| ROE | 34.91% | ||
| ROCE | 21.65% | ||
| ROIC | 17.1% | ||
| ROICexc | 20.54% | ||
| ROICexgc | 20.57% | ||
| OM | 42.26% | ||
| PM (TTM) | 43.81% | ||
| GM | 71.93% | ||
| FCFM | 26.21% |
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-Score4
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.95 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 263.06% | ||
| Cap/Sales | 27.01% | ||
| Interest Coverage | 10.78 | ||
| Cash Conversion | 101.3% | ||
| Profit Quality | 59.82% | ||
| Current Ratio | 3.18 | ||
| Quick Ratio | 2.94 | ||
| Altman-Z | 2.9 |
F-Score4
WACC7.49%
ROIC/WACC2.28
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)5.34%
Revenue growth 3Y26.71%
Revenue growth 5Y19.07%
Sales Q2Q%3.91%
Revenue Next Year5.09%
Revenue Next 2Y-1.82%
Revenue Next 3Y-7.28%
Revenue Next 5YN/A
EBIT growth 1Y-15.09%
EBIT growth 3Y63.18%
EBIT growth 5Y163.73%
EBIT Next Year22.8%
EBIT Next 3Y-0.7%
EBIT Next 5YN/A
FCF growth 1Y873.6%
FCF growth 3Y67.49%
FCF growth 5YN/A
OCF growth 1Y661.46%
OCF growth 3Y50.58%
OCF growth 5Y62.64%