TORM PLC-A (TRMD)
GB00BZ3CNK81 - Common Stock
Overall TRMD gets a fundamental rating of 6 out of 10. We evaluated TRMD against 204 industry peers in the Oil, Gas & Consumable Fuels industry. TRMD gets an excellent profitability rating and is at the same time showing great financial health properties. TRMD is cheap, but on the other hand it scores bad on growth. These ratings could make TRMD a good candidate 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.
In the past 5 years TRMD always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TRMD (20.58%) is better than 91.13% of its industry peers.
TRMD has a better Return On Equity (34.91%) than 89.66% of its industry peers.
The Return On Invested Capital of TRMD (17.10%) is better than 86.21% 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 22.54%.
The 3 year average ROIC (13.13%) for TRMD is below the current ROIC(17.10%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 43.81%, TRMD belongs to the best of the industry, outperforming 89.16% of the companies in the same industry.
TRMD's Profit Margin has improved in the last couple of years.
TRMD has a Operating Margin of 42.26%. This is amongst the best in the industry. TRMD outperforms 81.28% of its industry peers.
TRMD's Operating Margin has improved in the last couple of years.
TRMD's Gross Margin of 71.93% is fine compared to the rest of the industry. TRMD outperforms 79.31% of its industry peers.
In the last couple of years the Gross Margin of TRMD has grown nicely.
| 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
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.
TRMD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TRMD has about the same debt to assets ratio.
2.2 Solvency
TRMD has an Altman-Z score of 3.13. This indicates that TRMD is financially healthy and has little risk of bankruptcy at the moment.
TRMD has a Altman-Z score of 3.13. This is in the better half of the industry: TRMD outperforms 74.88% of its industry peers.
TRMD has a debt to FCF ratio of 2.95. This is a good value and a sign of high solvency as TRMD would need 2.95 years to pay back of all of its debts.
TRMD has a better Debt to FCF ratio (2.95) than 69.95% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that TRMD is somewhat dependend on debt financing.
TRMD has a Debt to Equity ratio (0.53) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 3.13 |
ROIC/WACC2.22
WACC7.71%
2.3 Liquidity
A Current Ratio of 3.18 indicates that TRMD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.18, TRMD belongs to the top of the industry, outperforming 80.79% 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's Quick ratio of 2.94 is amongst the best of the industry. TRMD outperforms 81.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 2.94 |
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%.
The Earnings Per Share has been growing by 86.97% on average over the past years. This is a very strong growth
Looking at the last year, TRMD shows a small growth in Revenue. The Revenue has grown by 5.34% in the last 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)5.34%
Revenue growth 3Y26.71%
Revenue growth 5Y19.07%
Sales Q2Q%3.91%
3.2 Future
The Earnings Per Share is expected to decrease by -18.44% on average over the next years. This is quite bad
The Revenue is expected to decrease by -7.28% 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 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.
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
A Price/Earnings ratio of 2.80 indicates a rather cheap valuation of TRMD.
TRMD's Price/Earnings ratio is rather cheap when compared to the industry. TRMD is cheaper than 98.03% of the companies in the same industry.
When comparing the Price/Earnings ratio of TRMD to the average of the S&P500 Index (28.65), we can say TRMD is valued rather cheaply.
A Price/Forward Earnings ratio of 4.46 indicates a rather cheap valuation of TRMD.
Based on the Price/Forward Earnings ratio, TRMD is valued cheaper than 90.64% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, TRMD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.8 | ||
| Fwd PE | 4.46 |
4.2 Price Multiples
80.79% of the companies in the same industry are more expensive than TRMD, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TRMD is valued cheaply inside the industry as 84.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.89 | ||
| EV/EBITDA | 3.53 |
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 25.40%, TRMD is a good candidate for dividend investing.
In the last 3 months the price of TRMD has falen by -37.87%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
TRMD's Dividend Yield is rather good when compared to the industry average which is at 6.45. TRMD pays more dividend than 99.01% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, TRMD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 25.4% |
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 72.57% of its income as dividend. This is not a sustainable payout ratio.
DP72.57%
EPS Next 2Y-19.32%
EPS Next 3Y-18.44%
TORM PLC-A
NASDAQ:TRMD (11/21/2024, 12:56:10 PM)
21.67
-2.14 (-8.99%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.09B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 25.4% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.8 | ||
| Fwd PE | 4.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.58% | ||
| ROE | 34.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.26% | ||
| PM (TTM) | 43.81% | ||
| GM | 71.93% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.18 | ||
| Quick Ratio | 2.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-4.45%
EPS 3Y86.97%
EPS 5Y
EPS Q2Q%
EPS Next Y-4.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.34%
Revenue growth 3Y26.71%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y