Following Peter Lynch’s approach: Does TORM PLC-A (NASDAQ:TRMD) fit the bill?

Peter Lynch, one of the most successful investors of all time, focused on growth stocks with strong fundamentals and a business model that’s easy to understand. Let’s analyze whether TORM PLC-A (NASDAQ:TRMD) fits his legendary investment approach.

Applying Peter Lynch’s stock selection rules to TORM PLC-A (NASDAQ:TRMD)

• The Return on Equity (ROE) of TRMD stands at 29.53%, reflecting the company's strong profitability and effective utilization of shareholder equity. This metric signifies the company's ability to generate returns for its investors.
• TRMD exhibits a favorable Debt-to-Equity ratio at 0.51. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.
• TRMD has achieved 23.29 growth in EPS over the past 5 years, reflecting a sustained improvement in earnings performance.
• With a PEG ratio at 0.11, TRMD is priced attractively relative to its earnings expansion.
• A Current Ratio of 2.16 suggests that TRMD is in a solid financial position to handle short-term market fluctuations.

Fundamental analysis of TRMD

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Taking everything into account, TRMD scores 6 out of 10 in our fundamental rating. TRMD was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. While TRMD has a great profitability rating, there are some minor concerns on its financial health. TRMD has a bad growth rate and is valued cheaply. With these ratings, TRMD could be worth investigating further for value investing!.

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

Our Peter Lynch screener lists more Affordable Growth stocks and is updated daily.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.