In a market where value is scarce, NASDAQ:TRMD offers a refreshing opportunity with its solid fundamentals.

Last update: Apr 2, 2024

Uncover the potential of TORM PLC-A (NASDAQ:TRMD) as our stock screener's choice for an undervalued stock. NASDAQ:TRMD maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Valuation Assessment of NASDAQ:TRMD

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:TRMD has earned a 7 for valuation:

A Price/Earnings ratio of 4.72 indicates a rather cheap valuation of TRMD.
Based on the Price/Earnings ratio, TRMD is valued cheaply inside the industry as 90.14% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TRMD to the average of the S&P500 Index (26.31), we can say TRMD is valued rather cheaply.
A Price/Forward Earnings ratio of 5.29 indicates a rather cheap valuation of TRMD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRMD indicates a rather cheap valuation: TRMD is cheaper than 91.08% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.62. TRMD is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, TRMD is valued a bit cheaper than 63.38% of the companies in the same industry.
TRMD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TRMD is cheaper than 61.50% of the companies in the same industry.
The excellent profitability rating of TRMD may justify a higher PE ratio.

Understanding NASDAQ:TRMD's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:TRMD, the assigned 8 is a significant indicator of profitability:

Looking at the Return On Assets, with a value of 22.59%, TRMD belongs to the top of the industry, outperforming 88.73% of the companies in the same industry.
TRMD has a Return On Equity of 38.96%. This is amongst the best in the industry. TRMD outperforms 85.45% of its industry peers.
TRMD's Return On Invested Capital of 19.66% is amongst the best of the industry. TRMD outperforms 84.98% of its industry peers.
The last Return On Invested Capital (19.66%) for TRMD is above the 3 year average (13.13%), which is a sign of increasing profitability.
The Profit Margin of TRMD (42.64%) is better than 85.92% of its industry peers.
In the last couple of years the Profit Margin of TRMD has grown nicely.
The Operating Margin of TRMD (42.64%) is better than 77.46% of its industry peers.
In the last couple of years the Operating Margin of TRMD has grown nicely.
TRMD has a Gross Margin of 71.70%. This is in the better half of the industry: TRMD outperforms 76.53% of its industry peers.
In the last couple of years the Gross Margin of TRMD has grown nicely.

Deciphering NASDAQ:TRMD's Health Rating

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:TRMD has earned a 7 out of 10:

TRMD has an Altman-Z score of 3.86. This indicates that TRMD is financially healthy and has little risk of bankruptcy at the moment.
TRMD has a better Altman-Z score (3.86) than 82.16% of its industry peers.
The Debt to FCF ratio of TRMD is 3.59, which is a good value as it means it would take TRMD, 3.59 years of fcf income to pay off all of its debts.
TRMD has a better Debt to FCF ratio (3.59) than 63.38% of its industry peers.
TRMD has a Current Ratio of 2.60. This indicates that TRMD is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.60, TRMD is in the better half of the industry, outperforming 79.81% of the companies in the same industry.
TRMD has a Quick Ratio of 2.37. This indicates that TRMD is financially healthy and has no problem in meeting its short term obligations.
TRMD has a better Quick ratio (2.37) than 79.81% of its industry peers.

How We Gauge Growth for NASDAQ:TRMD

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:TRMD, the assigned 4 reflects its growth potential:

The Earnings Per Share has grown by an nice 9.87% over the past year.
The Earnings Per Share has been growing by 86.97% on average over the past years. This is a very strong growth
TRMD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.07% yearly.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of TRMD for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.