TOMRA SYSTEMS ASA (TOM.OL) Stock Fundamental Analysis
OSL:TOM - NO0012470089 - Common Stock
152.8 NOK
+0.6 (+0.39%)
TOM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 106 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
TOM had positive earnings in the past year.
In the past year TOM had a positive cash flow from operations.
Each year in the past 5 years TOM has been profitable.
Each year in the past 5 years TOM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.98%, TOM belongs to the top of the industry, outperforming 80.19% of the companies in the same industry.
TOM has a Return On Equity of 18.28%. This is amongst the best in the industry. TOM outperforms 85.85% of its industry peers.
TOM has a better Return On Invested Capital (11.10%) than 84.91% of its industry peers.
TOM had an Average Return On Invested Capital over the past 3 years of 9.98%. This is in line with the industry average of 8.53%.
The last Return On Invested Capital (11.10%) for TOM is above the 3 year average (9.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 18.28% | ||
| ROIC | 11.1% |
ROA(3y)5.79%
ROA(5y)6.71%
ROE(3y)14.13%
ROE(5y)14.86%
ROIC(3y)9.98%
ROIC(5y)11.24%
1.3 Margins
TOM has a Profit Margin of 7.37%. This is amongst the best in the industry. TOM outperforms 81.13% of its industry peers.
In the last couple of years the Profit Margin of TOM has declined.
Looking at the Operating Margin, with a value of 12.51%, TOM belongs to the top of the industry, outperforming 81.13% of the companies in the same industry.
In the last couple of years the Operating Margin of TOM has remained more or less at the same level.
TOM has a Gross Margin of 60.25%. This is amongst the best in the industry. TOM outperforms 83.96% of its industry peers.
TOM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.51% | ||
| PM (TTM) | 7.37% | ||
| GM | 60.25% |
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.
TOM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TOM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.69 indicates that TOM is not in any danger for bankruptcy at the moment.
TOM has a better Altman-Z score (3.69) than 81.13% of its industry peers.
TOM has a debt to FCF ratio of 2.30. This is a good value and a sign of high solvency as TOM would need 2.30 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.30, TOM is doing good in the industry, outperforming 79.25% of the companies in the same industry.
A Debt/Equity ratio of 1.03 is on the high side and indicates that TOM has dependencies on debt financing.
TOM's Debt to Equity ratio of 1.03 is on the low side compared to the rest of the industry. TOM is outperformed by 80.19% of its industry peers.
Even though the debt/equity ratio score it not favorable for TOM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 3.69 |
ROIC/WACC1.31
WACC8.47%
2.3 Liquidity
TOM has a Current Ratio of 1.47. This is a normal value and indicates that TOM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.47, TOM is doing worse than 60.38% of the companies in the same industry.
TOM has a Quick Ratio of 1.00. This is a normal value and indicates that TOM is financially healthy and should not expect problems in meeting its short term obligations.
TOM has a Quick ratio of 1.00. This is comparable to the rest of the industry: TOM outperforms 47.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
TOM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -63.43%.
TOM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -34.95% yearly.
TOM shows a strong growth in Revenue. In the last year, the Revenue has grown by 45.28%.
TOM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.25% yearly.
EPS 1Y (TTM)-63.43%
EPS 3Y-55.56%
EPS 5Y-34.95%
EPS Q2Q%12.56%
Revenue 1Y (TTM)45.28%
Revenue growth 3Y7.86%
Revenue growth 5Y7.25%
Sales Q2Q%-2.4%
3.2 Future
TOM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.59% yearly.
Based on estimates for the next years, TOM will show a quite strong growth in Revenue. The Revenue will grow by 14.21% on average per year.
EPS Next Y19.11%
EPS Next 2Y32.74%
EPS Next 3Y30.88%
EPS Next 5Y22.59%
Revenue Next Year7.82%
Revenue Next 2Y13.1%
Revenue Next 3Y14.46%
Revenue Next 5Y14.21%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 36.12, which means the current valuation is very expensive for TOM.
The rest of the industry has a similar Price/Earnings ratio as TOM.
When comparing the Price/Earnings ratio of TOM to the average of the S&P500 Index (27.08), we can say TOM is valued slightly more expensively.
TOM is valuated rather expensively with a Price/Forward Earnings ratio of 22.76.
Based on the Price/Forward Earnings ratio, TOM is valued a bit more expensive than 62.26% of the companies in the same industry.
TOM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.12 | ||
| Fwd PE | 22.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TOM is valued a bit more expensive than the industry average as 67.92% of the companies are valued more cheaply.
TOM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TOM is cheaper than 66.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.5 | ||
| EV/EBITDA | 15.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TOM may justify a higher PE ratio.
A more expensive valuation may be justified as TOM's earnings are expected to grow with 30.88% in the coming years.
PEG (NY)1.89
PEG (5Y)N/A
EPS Next 2Y32.74%
EPS Next 3Y30.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.38%, TOM has a reasonable but not impressive dividend return.
TOM's Dividend Yield is comparable with the industry average which is at 2.82.
Compared to an average S&P500 Dividend Yield of 2.34, TOM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
The dividend of TOM decreases each year by -5.95%.
Dividend Growth(5Y)-5.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
54.91% of the earnings are spent on dividend by TOM. This is a bit on the high side, but may be sustainable.
DP54.91%
EPS Next 2Y32.74%
EPS Next 3Y30.88%
OSL:TOM (8/29/2025, 7:00:00 PM)
152.8
+0.6 (+0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners86.65%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap45.23B
Analysts71.76
Price Target168.91 (10.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend1.99
Dividend Growth(5Y)-5.95%
DP54.91%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.45%
Min EPS beat(2)-25.74%
Max EPS beat(2)4.83%
EPS beat(4)2
Avg EPS beat(4)-2.07%
Min EPS beat(4)-25.74%
Max EPS beat(4)20.23%
EPS beat(8)3
Avg EPS beat(8)-23.11%
EPS beat(12)4
Avg EPS beat(12)-18.26%
EPS beat(16)7
Avg EPS beat(16)-12.86%
Revenue beat(2)0
Avg Revenue beat(2)-4.77%
Min Revenue beat(2)-6.56%
Max Revenue beat(2)-2.97%
Revenue beat(4)2
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-6.56%
Max Revenue beat(4)4.11%
Revenue beat(8)5
Avg Revenue beat(8)1.82%
Revenue beat(12)6
Avg Revenue beat(12)-20.83%
Revenue beat(16)6
Avg Revenue beat(16)-38.03%
PT rev (1m)0%
PT rev (3m)-6.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.92%
EPS NY rev (1m)-12.18%
EPS NY rev (3m)-12.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.5%
Revenue NY rev (1m)-2.69%
Revenue NY rev (3m)-2.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.12 | ||
| Fwd PE | 22.76 | ||
| P/S | 2.84 | ||
| P/FCF | 14.5 | ||
| P/OCF | 14.5 | ||
| P/B | 7.05 | ||
| P/tB | 35.99 | ||
| EV/EBITDA | 15.76 |
EPS(TTM)4.23
EY2.77%
EPS(NY)6.71
Fwd EY4.39%
FCF(TTM)10.54
FCFY6.9%
OCF(TTM)10.54
OCFY6.9%
SpS53.76
BVpS21.67
TBVpS4.25
PEG (NY)1.89
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 18.28% | ||
| ROCE | 14.65% | ||
| ROIC | 11.1% | ||
| ROICexc | 12.37% | ||
| ROICexgc | 21.43% | ||
| OM | 12.51% | ||
| PM (TTM) | 7.37% | ||
| GM | 60.25% | ||
| FCFM | 19.6% |
ROA(3y)5.79%
ROA(5y)6.71%
ROE(3y)14.13%
ROE(5y)14.86%
ROIC(3y)9.98%
ROIC(5y)11.24%
ROICexc(3y)10.99%
ROICexc(5y)12.25%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)13.18%
ROCE(5y)14.84%
ROICexcg growth 3Y-10.82%
ROICexcg growth 5Y1.85%
ROICexc growth 3Y-8.67%
ROICexc growth 5Y1.89%
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-Score5
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 2.3 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.72% | ||
| Profit Quality | 266.03% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 3.69 |
F-Score5
WACC8.47%
ROIC/WACC1.31
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)-63.43%
EPS 3Y-55.56%
EPS 5Y-34.95%
EPS Q2Q%12.56%
EPS Next Y19.11%
EPS Next 2Y32.74%
EPS Next 3Y30.88%
EPS Next 5Y22.59%
Revenue 1Y (TTM)45.28%
Revenue growth 3Y7.86%
Revenue growth 5Y7.25%
Sales Q2Q%-2.4%
Revenue Next Year7.82%
Revenue Next 2Y13.1%
Revenue Next 3Y14.46%
Revenue Next 5Y14.21%
EBIT growth 1Y120.54%
EBIT growth 3Y1.26%
EBIT growth 5Y6.64%
EBIT Next Year81.59%
EBIT Next 3Y40.85%
EBIT Next 5YN/A
FCF growth 1Y-31.45%
FCF growth 3Y0.11%
FCF growth 5Y11.27%
OCF growth 1Y-78.3%
OCF growth 3Y10.38%
OCF growth 5Y12.04%