TOMRA SYSTEMS ASA (TOM.OL) Stock Fundamental Analysis
OSL:TOM - Euronext Oslo - NO0012470089 - Common Stock - Currency: NOK
Overall TOM gets a fundamental rating of 4 out of 10. We evaluated TOM against 103 industry peers in the Machinery industry. While TOM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TOM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TOM was profitable.
In the past year TOM had a positive cash flow from operations.
In the past 5 years TOM has always been profitable.
Each year in the past 5 years TOM had a positive operating cash flow.
1.2 Ratios
TOM has a Return On Assets of 5.65%. This is in the better half of the industry: TOM outperforms 74.53% of its industry peers.
With an excellent Return On Equity value of 15.55%, TOM belongs to the best of the industry, outperforming 83.96% of the companies in the same industry.
The Return On Invested Capital of TOM (10.44%) is better than 77.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TOM is in line with the industry average of 8.41%.
The last Return On Invested Capital (10.44%) for TOM is above the 3 year average (9.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.65% | ||
| ROE | 15.55% | ||
| ROIC | 10.44% |
ROA(3y)5.69%
ROA(5y)6.71%
ROE(3y)13.91%
ROE(5y)14.85%
ROIC(3y)9.84%
ROIC(5y)11.25%
1.3 Margins
TOM has a better Profit Margin (6.97%) than 77.36% of its industry peers.
In the last couple of years the Profit Margin of TOM has declined.
TOM has a Operating Margin of 11.62%. This is amongst the best in the industry. TOM outperforms 82.08% of its industry peers.
TOM's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 59.72%, TOM belongs to the top of the industry, outperforming 85.85% of the companies in the same industry.
In the last couple of years the Gross Margin of TOM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.62% | ||
| PM (TTM) | 6.97% | ||
| GM | 59.72% |
OM growth 3Y-6.12%
OM growth 5Y-0.57%
PM growth 3Y-11.39%
PM growth 5Y-4.58%
GM growth 3Y-0.18%
GM growth 5Y-0.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TOM is creating some value.
TOM has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TOM has more shares outstanding
The debt/assets ratio for TOM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.01 indicates that TOM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.01, TOM belongs to the best of the industry, outperforming 87.74% of the companies in the same industry.
The Debt to FCF ratio of TOM is 4.45, which is a neutral value as it means it would take TOM, 4.45 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TOM (4.45) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.72 indicates that TOM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.72, TOM is doing worse than 65.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.45 | ||
| Altman-Z | 4.01 |
ROIC/WACC1.29
WACC8.1%
2.3 Liquidity
TOM has a Current Ratio of 1.41. This is a normal value and indicates that TOM is financially healthy and should not expect problems in meeting its short term obligations.
TOM's Current ratio of 1.41 is in line compared to the rest of the industry. TOM outperforms 41.51% of its industry peers.
A Quick Ratio of 0.98 indicates that TOM may have some problems paying its short term obligations.
TOM's Quick ratio of 0.98 is in line compared to the rest of the industry. TOM outperforms 48.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
TOM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -86.26%.
Measured over the past years, TOM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -34.95% on average per year.
TOM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -88.70%.
Measured over the past years, TOM shows a very negative growth in Revenue. The Revenue has been decreasing by -32.11% on average per year.
EPS 1Y (TTM)-86.26%
EPS 3Y-55.56%
EPS 5Y-34.95%
EPS Q2Q%-43.33%
Revenue 1Y (TTM)-88.7%
Revenue growth 3Y13.19%
Revenue growth 5Y-32.11%
Sales Q2Q%-90.35%
3.2 Future
TOM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.08% yearly.
The Revenue is expected to grow by 15.29% on average over the next years. This is quite good.
EPS Next Y35.63%
EPS Next 2Y32.76%
EPS Next 3Y33.08%
EPS Next 5YN/A
Revenue Next Year11.54%
Revenue Next 2Y13.99%
Revenue Next 3Y15.29%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TOM is valuated quite expensively with a Price/Earnings ratio of 43.81.
64.15% of the companies in the same industry are cheaper than TOM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TOM to the average of the S&P500 Index (28.18), we can say TOM is valued expensively.
TOM is valuated quite expensively with a Price/Forward Earnings ratio of 32.27.
67.92% of the companies in the same industry are cheaper than TOM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.81, TOM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.81 | ||
| Fwd PE | 32.27 |
4.2 Price Multiples
TOM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TOM is more expensive than 72.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TOM is valued a bit more expensive than the industry average as 64.15% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.85 | ||
| EV/EBITDA | 18.01 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TOM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TOM's earnings are expected to grow with 33.08% in the coming years.
PEG (NY)1.23
PEG (5Y)N/A
EPS Next 2Y32.76%
EPS Next 3Y33.08%
5. Dividend
5.1 Amount
TOM has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.96, TOM has a dividend in line with its industry peers.
With a Dividend Yield of 1.32, TOM pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
The dividend of TOM decreases each year by -40.47%.
Dividend Growth(5Y)-40.47%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
53.09% of the earnings are spent on dividend by TOM. This is a bit on the high side, but may be sustainable.
DP53.09%
EPS Next 2Y32.76%
EPS Next 3Y33.08%
OSL:TOM (5/2/2025, 7:00:00 PM)
166.9
+4.4 (+2.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners83.26%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap49.41B
Analysts67.5
Price Target181.56 (8.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend1.98
Dividend Growth(5Y)-40.47%
DP53.09%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.32%
Min EPS beat(2)-7.59%
Max EPS beat(2)20.23%
EPS beat(4)2
Avg EPS beat(4)-15.16%
Min EPS beat(4)-88.88%
Max EPS beat(4)20.23%
EPS beat(8)2
Avg EPS beat(8)-25.52%
EPS beat(12)4
Avg EPS beat(12)-16.28%
EPS beat(16)6
Avg EPS beat(16)-12.62%
Revenue beat(2)2
Avg Revenue beat(2)2.97%
Min Revenue beat(2)1.82%
Max Revenue beat(2)4.11%
Revenue beat(4)4
Avg Revenue beat(4)4.27%
Min Revenue beat(4)1.82%
Max Revenue beat(4)7.6%
Revenue beat(8)7
Avg Revenue beat(8)4.46%
Revenue beat(12)10
Avg Revenue beat(12)4.1%
Revenue beat(16)13
Avg Revenue beat(16)3.45%
PT rev (1m)-0.28%
PT rev (3m)9.57%
EPS NQ rev (1m)-38.46%
EPS NQ rev (3m)-7.69%
EPS NY rev (1m)-0.78%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)-3.94%
Revenue NQ rev (3m)-3.04%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.81 | ||
| Fwd PE | 32.27 | ||
| P/S | 3.12 | ||
| P/FCF | 35.85 | ||
| P/OCF | 17.84 | ||
| P/B | 6.96 | ||
| P/tB | 26.25 | ||
| EV/EBITDA | 18.01 |
EPS(TTM)3.81
EY2.28%
EPS(NY)5.17
Fwd EY3.1%
FCF(TTM)4.66
FCFY2.79%
OCF(TTM)9.35
OCFY5.6%
SpS53.49
BVpS23.97
TBVpS6.36
PEG (NY)1.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.65% | ||
| ROE | 15.55% | ||
| ROCE | 13.78% | ||
| ROIC | 10.44% | ||
| ROICexc | 11.71% | ||
| ROICexgc | 20.83% | ||
| OM | 11.62% | ||
| PM (TTM) | 6.97% | ||
| GM | 59.72% | ||
| FCFM | 8.7% |
ROA(3y)5.69%
ROA(5y)6.71%
ROE(3y)13.91%
ROE(5y)14.85%
ROIC(3y)9.84%
ROIC(5y)11.25%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)12.99%
ROCE(5y)14.85%
ROICexcg growth 3YN/A
ROICexcg growth 5Y2.05%
ROICexc growth 3Y-57.28%
ROICexc growth 5Y2%
OM growth 3Y-6.12%
OM growth 5Y-0.57%
PM growth 3Y-11.39%
PM growth 5Y-4.58%
GM growth 3Y-0.18%
GM growth 5Y-0.26%
F-Score4
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.45 | ||
| Debt/EBITDA | 1.7 | ||
| Cap/Depr | 119.5% | ||
| Cap/Sales | 8.79% | ||
| Interest Coverage | 7.63 | ||
| Cash Conversion | 92.17% | ||
| Profit Quality | 124.95% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 4.01 |
F-Score4
WACC8.1%
ROIC/WACC1.29
Cap/Depr(3y)104.67%
Cap/Depr(5y)90.87%
Cap/Sales(3y)7.6%
Cap/Sales(5y)6.88%
Profit Quality(3y)76.57%
Profit Quality(5y)96.08%
High Growth Momentum
Growth
EPS 1Y (TTM)-86.26%
EPS 3Y-55.56%
EPS 5Y-34.95%
EPS Q2Q%-43.33%
EPS Next Y35.63%
EPS Next 2Y32.76%
EPS Next 3Y33.08%
EPS Next 5YN/A
Revenue 1Y (TTM)-88.7%
Revenue growth 3Y13.19%
Revenue growth 5Y-32.11%
Sales Q2Q%-90.35%
Revenue Next Year11.54%
Revenue Next 2Y13.99%
Revenue Next 3Y15.29%
Revenue Next 5YN/A
EBIT growth 1Y-85.78%
EBIT growth 3Y6.27%
EBIT growth 5Y-32.5%
EBIT Next Year91.35%
EBIT Next 3Y41.36%
EBIT Next 5YN/A
FCF growth 1Y166.97%
FCF growth 3Y5.06%
FCF growth 5Y-29.57%
OCF growth 1Y72.15%
OCF growth 3Y15.84%
OCF growth 5Y-29.08%