TORM PLC-A (TRMD) Stock Fundamental Analysis
NASDAQ:TRMD - Nasdaq - GB00BZ3CNK81 - Common Stock - Currency: USD
TRMD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. TRMD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TRMD is cheap, but on the other hand it scores bad on growth. With these ratings, TRMD could be worth investigating further 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 Return On Assets of 13.34%. This is amongst the best in the industry. TRMD outperforms 91.00% of its industry peers.
TRMD has a better Return On Equity (21.71%) than 86.26% of its industry peers.
With an excellent Return On Invested Capital value of 11.67%, TRMD belongs to the best of the industry, outperforming 83.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRMD is significantly below the industry average of 23.70%.
The 3 year average ROIC (18.07%) for TRMD is well above the current ROIC(11.67%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.34% | ||
| ROE | 21.71% | ||
| ROIC | 11.67% |
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's Profit Margin of 32.20% is amongst the best of the industry. TRMD outperforms 83.89% of its industry peers.
In the last couple of years the Profit Margin of TRMD has grown nicely.
With a decent Operating Margin value of 32.87%, TRMD is doing good in the industry, outperforming 73.93% of the companies in the same industry.
In the last couple of years the Operating Margin of TRMD has grown nicely.
TRMD has a better Gross Margin (71.15%) than 81.52% of its industry peers.
TRMD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.87% | ||
| PM (TTM) | 32.2% | ||
| GM | 71.15% |
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.
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.
Compared to 1 year ago, TRMD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.62 indicates that TRMD is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TRMD (2.62) is better than 77.25% of its industry peers.
The Debt to FCF ratio of TRMD is 3.34, which is a good value as it means it would take TRMD, 3.34 years of fcf income to pay off all of its debts.
TRMD has a better Debt to FCF ratio (3.34) than 77.25% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that TRMD is not too dependend on debt financing.
TRMD's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. TRMD outperforms 49.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.38
WACC8.43%
2.3 Liquidity
A Current Ratio of 2.55 indicates that TRMD has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.55, TRMD belongs to the best of the industry, outperforming 82.46% of the companies in the same industry.
TRMD has a Quick Ratio of 2.28. This indicates that TRMD is financially healthy and has no problem in meeting its short term obligations.
TRMD has a Quick ratio of 2.28. This is amongst the best in the industry. TRMD outperforms 81.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.55 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
The earnings per share for TRMD have decreased strongly by -40.15% in the last year.
TRMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.29% yearly.
The Revenue has decreased by -8.26% in the past year.
The Revenue has been growing by 17.62% on average over the past years. This is quite good.
EPS 1Y (TTM)-40.15%
EPS 3YN/A
EPS 5Y23.29%
EPS Q2Q%-72.57%
Revenue 1Y (TTM)-8.26%
Revenue growth 3Y36.02%
Revenue growth 5Y17.62%
Sales Q2Q%-25.9%
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 -48.86% on average per year.
Based on estimates for the next years, TRMD will show a very negative growth in Revenue. The Revenue will decrease by -19.98% on average per year.
EPS Next Y-52.06%
EPS Next 2Y-33.48%
EPS Next 3Y-48.86%
EPS Next 5YN/A
Revenue Next Year-23.44%
Revenue Next 2Y-19.33%
Revenue Next 3Y-19.98%
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
The Price/Earnings ratio is 3.65, which indicates a rather cheap valuation of TRMD.
Compared to the rest of the industry, the Price/Earnings ratio of TRMD indicates a rather cheap valuation: TRMD is cheaper than 95.73% of the companies listed in the same industry.
TRMD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 6.13, which indicates a rather cheap valuation of TRMD.
TRMD's Price/Forward Earnings ratio is rather cheap when compared to the industry. TRMD is cheaper than 88.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. TRMD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.65 | ||
| Fwd PE | 6.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRMD indicates a rather cheap valuation: TRMD is cheaper than 81.99% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRMD indicates a rather cheap valuation: TRMD is cheaper than 90.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.82 | ||
| EV/EBITDA | 3.7 |
4.3 Compensation for Growth
TRMD has an outstanding profitability rating, which may justify a higher PE ratio.
TRMD's earnings are expected to decrease with -48.86% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-33.48%
EPS Next 3Y-48.86%
5. Dividend
5.1 Amount
TRMD has a Yearly Dividend Yield of 22.93%, which is a nice return.
Compared to an average industry Dividend Yield of 6.66, TRMD pays a better dividend. On top of this TRMD pays more dividend than 99.05% 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 22.93% |
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 118.99% of its income as dividend. This is not a sustainable payout ratio.
DP118.99%
EPS Next 2Y-33.48%
EPS Next 3Y-48.86%
17.31
+0.2 (+1.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners60.03%
Inst Owner Change-4.3%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap1.70B
Analysts76
Price Target19.95 (15.25%)
Short Float %3.67%
Short Ratio4.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 22.93% |
Yearly Dividend6.05
Dividend Growth(5Y)N/A
DP118.99%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.92%
Min EPS beat(2)-3.58%
Max EPS beat(2)15.43%
EPS beat(4)1
Avg EPS beat(4)0.85%
Min EPS beat(4)-5.7%
Max EPS beat(4)15.43%
EPS beat(8)5
Avg EPS beat(8)4.58%
EPS beat(12)8
Avg EPS beat(12)3.7%
EPS beat(16)9
Avg EPS beat(16)7.53%
Revenue beat(2)2
Avg Revenue beat(2)25.53%
Min Revenue beat(2)23.74%
Max Revenue beat(2)27.31%
Revenue beat(4)4
Avg Revenue beat(4)27.6%
Min Revenue beat(4)23.74%
Max Revenue beat(4)30.54%
Revenue beat(8)8
Avg Revenue beat(8)29.77%
Revenue beat(12)12
Avg Revenue beat(12)34.25%
Revenue beat(16)16
Avg Revenue beat(16)34.55%
PT rev (1m)4.14%
PT rev (3m)-35.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-21.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-26.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-14.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.65 | ||
| Fwd PE | 6.13 | ||
| P/S | 1.18 | ||
| P/FCF | 4.82 | ||
| P/OCF | 2.36 | ||
| P/B | 0.8 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | 3.7 |
EPS(TTM)4.74
EY27.38%
EPS(NY)2.82
Fwd EY16.31%
FCF(TTM)3.59
FCFY20.75%
OCF(TTM)7.35
OCFY42.45%
SpS14.67
BVpS21.76
TBVpS21.71
PEG (NY)N/A
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.34% | ||
| ROE | 21.71% | ||
| ROCE | 14.77% | ||
| ROIC | 11.67% | ||
| ROICexc | 13.15% | ||
| ROICexgc | 13.17% | ||
| OM | 32.87% | ||
| PM (TTM) | 32.2% | ||
| GM | 71.15% | ||
| FCFM | 24.48% |
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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.34 | ||
| Debt/EBITDA | 1.51 | ||
| Cap/Depr | 182.89% | ||
| Cap/Sales | 25.6% | ||
| Interest Coverage | 6.57 | ||
| Cash Conversion | 106.84% | ||
| Profit Quality | 76.02% | ||
| Current Ratio | 2.55 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 2.62 |
F-Score4
WACC8.43%
ROIC/WACC1.38
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)-40.15%
EPS 3YN/A
EPS 5Y23.29%
EPS Q2Q%-72.57%
EPS Next Y-52.06%
EPS Next 2Y-33.48%
EPS Next 3Y-48.86%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.26%
Revenue growth 3Y36.02%
Revenue growth 5Y17.62%
Sales Q2Q%-25.9%
Revenue Next Year-23.44%
Revenue Next 2Y-19.33%
Revenue Next 3Y-19.98%
Revenue Next 5YN/A
EBIT growth 1Y-31.23%
EBIT growth 3Y363.52%
EBIT growth 5Y46.14%
EBIT Next Year-34%
EBIT Next 3Y-21.7%
EBIT Next 5YN/A
FCF growth 1Y-13.9%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.52%
OCF growth 3Y158.35%
OCF growth 5Y37.04%