22.41 USD
-0.26 (-1.15%)
22.36 USD
-0.05 (-0.22%)
We assign a fundamental rating of 6 out of 10 to TRMD. TRMD was compared to 207 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year TRMD was profitable.
- TRMD had a positive operating cash flow in the past year.
- TRMD had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years TRMD had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.64%, TRMD belongs to the top of the industry, outperforming 85.99% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 12.83%, TRMD is in the better half of the industry, outperforming 71.98% of the companies in the same industry.
- TRMD has a better Return On Invested Capital (8.40%) than 77.29% 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 21.94%.
- The 3 year average ROIC (18.07%) for TRMD is well above the current ROIC(8.40%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.64% | ||
| ROE | 12.83% | ||
| ROIC | 8.4% |
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 better Profit Margin (21.37%) than 78.74% of its industry peers.
- In the last couple of years the Profit Margin of TRMD has grown nicely.
- TRMD's Operating Margin of 24.51% is fine compared to the rest of the industry. TRMD outperforms 64.25% of its industry peers.
- TRMD's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 68.19%, TRMD is in the better half of the industry, outperforming 75.36% of the companies in the same industry.
- TRMD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.51% | ||
| PM (TTM) | 21.37% | ||
| GM | 68.19% |
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
- 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
- TRMD has more shares outstanding than it did 5 years ago.
- TRMD has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.10 indicates that TRMD is not in any danger for bankruptcy at the moment.
- TRMD has a Altman-Z score of 3.10. This is amongst the best in the industry. TRMD outperforms 83.09% of its industry peers.
- TRMD has a debt to FCF ratio of 3.66. This is a good value and a sign of high solvency as TRMD would need 3.66 years to pay back of all of its debts.
- TRMD has a better Debt to FCF ratio (3.66) than 70.53% of its industry peers.
- TRMD has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.36, TRMD perfoms like the industry average, outperforming 57.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | 3.1 |
ROIC/WACC1.04
WACC8.04%
2.3 Liquidity
- TRMD has a Current Ratio of 2.37. This indicates that TRMD is financially healthy and has no problem in meeting its short term obligations.
- TRMD has a Current ratio of 2.37. This is in the better half of the industry: TRMD outperforms 79.71% of its industry peers.
- A Quick Ratio of 2.07 indicates that TRMD has no problem at all paying its short term obligations.
- The Quick ratio of TRMD (2.07) is better than 79.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.07 |
3. Growth
3.1 Past
- TRMD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.81%.
- 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 -21.28% 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)-64.81%
EPS 3YN/A
EPS 5Y23.29%
EPS Q2Q%-42.96%
Revenue 1Y (TTM)-21.28%
Revenue growth 3Y36.02%
Revenue growth 5Y17.62%
Sales Q2Q%-7.93%
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 -55.79% on average per year.
- TRMD is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -16.57% yearly.
EPS Next Y-56.02%
EPS Next 2Y-54.78%
EPS Next 3Y-55.79%
EPS Next 5YN/A
Revenue Next Year-15.98%
Revenue Next 2Y-17.07%
Revenue Next 3Y-16.57%
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 8.24, which indicates a very decent valuation of TRMD.
- Based on the Price/Earnings ratio, TRMD is valued cheaper than 86.47% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.32. TRMD is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 17.18 indicates a rather expensive valuation of TRMD.
- TRMD's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. TRMD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 17.18 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TRMD is valued a bit cheaper than 72.95% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TRMD is valued cheaper than 82.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.25 | ||
| EV/EBITDA | 5.66 |
4.3 Compensation for Growth
- The decent 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 -55.79% in the coming years.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-54.78%
EPS Next 3Y-55.79%
5. Dividend
5.1 Amount
- TRMD has a Yearly Dividend Yield of 8.94%, which is a nice return.
- TRMD's Dividend Yield is rather good when compared to the industry average which is at 3.75. TRMD pays more dividend than 88.41% of the companies in the same industry.
- TRMD's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.94% |
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
- TRMD pays out 91.42% of its income as dividend. This is not a sustainable payout ratio.
DP91.42%
EPS Next 2Y-54.78%
EPS Next 3Y-55.79%
TORM PLC-A / TRMD FAQ
What is the fundamental rating for TRMD stock?
ChartMill assigns a fundamental rating of 6 / 10 to TRMD.
What is the valuation status of TORM PLC-A (TRMD) stock?
ChartMill assigns a valuation rating of 6 / 10 to TORM PLC-A (TRMD). This can be considered as Fairly Valued.
Can you provide the profitability details for TORM PLC-A?
TORM PLC-A (TRMD) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for TRMD stock?
The Earnings per Share (EPS) of TORM PLC-A (TRMD) is expected to decline by -56.02% in the next year.
Can you provide the dividend sustainability for TRMD stock?
The dividend rating of TORM PLC-A (TRMD) is 5 / 10 and the dividend payout ratio is 91.42%.