TOMRA SYSTEMS ASA (TOM.OL) Stock Fundamental Analysis
OSL:TOM - Euronext Oslo - NO0012470089 - Common Stock - Currency: NOK
Taking everything into account, TOM scores 6 out of 10 in our fundamental rating. TOM was compared to 107 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 not valued too expensively and it also shows 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.
TOM had positive earnings in each of the past 5 years.
In the past 5 years TOM always reported a positive cash flow from operatings.
1.2 Ratios
TOM's Return On Assets of 6.12% is fine compared to the rest of the industry. TOM outperforms 78.50% of its industry peers.
TOM has a better Return On Equity (16.86%) than 84.11% of its industry peers.
TOM has a Return On Invested Capital of 11.55%. This is amongst the best in the industry. TOM outperforms 84.11% 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 8.95%.
The last Return On Invested Capital (11.55%) for TOM is above the 3 year average (9.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 16.86% | ||
| ROIC | 11.55% |
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 7.40%. This is in the better half of the industry: TOM outperforms 76.64% 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 12.22%, TOM belongs to the top of the industry, outperforming 80.37% 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's Gross Margin of 60.05% is amongst the best of the industry. TOM outperforms 82.24% of its industry peers.
TOM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.22% | ||
| PM (TTM) | 7.4% | ||
| GM | 60.05% |
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
TOM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TOM remains at a similar level compared to 1 year ago.
TOM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TOM is higher compared to a year ago.
2.2 Solvency
TOM has an Altman-Z score of 3.61. This indicates that TOM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.61, TOM is doing good in the industry, outperforming 79.44% of the companies in the same industry.
The Debt to FCF ratio of TOM is 1.62, which is an excellent value as it means it would take TOM, only 1.62 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TOM (1.62) is better than 84.11% of its industry peers.
TOM has a Debt/Equity ratio of 0.75. This is a neutral value indicating TOM is somewhat dependend on debt financing.
TOM has a worse Debt to Equity ratio (0.75) than 69.16% of its industry peers.
Although TOM does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 3.61 |
ROIC/WACC1.34
WACC8.59%
2.3 Liquidity
A Current Ratio of 1.29 indicates that TOM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.29, TOM is not doing good in the industry: 70.09% of the companies in the same industry are doing better.
TOM has a Quick Ratio of 1.29. This is a bad value and indicates that TOM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TOM (0.85) is worse than 64.49% of its industry peers.
TOM does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for TOM have decreased strongly by -82.00% in the last year.
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 strong growth in Revenue. In the last year, the Revenue has grown by 46.30%.
The Revenue has been growing slightly by 7.25% on average over the past years.
EPS 1Y (TTM)-82%
EPS 3Y-55.56%
EPS 5Y-34.95%
EPS Q2Q%584.93%
Revenue 1Y (TTM)46.3%
Revenue growth 3Y7.86%
Revenue growth 5Y7.25%
Sales Q2Q%5.09%
3.2 Future
Based on estimates for the next years, TOM will show a very strong growth in Earnings Per Share. The EPS will grow by 33.08% on average per year.
Based on estimates for the next years, TOM will show a quite strong growth in Revenue. The Revenue will grow by 14.59% on average per year.
EPS Next Y35.63%
EPS Next 2Y32.76%
EPS Next 3Y33.08%
EPS Next 5YN/A
Revenue Next Year10.8%
Revenue Next 2Y13.99%
Revenue Next 3Y14.59%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 33.41, TOM can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TOM is valued a bit more expensive than 61.68% of the companies in the same industry.
TOM's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.48.
With a Price/Forward Earnings ratio of 20.46, TOM is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as TOM.
TOM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.41 | ||
| Fwd PE | 20.46 |
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 66.36% of the companies in the same industry.
74.77% of the companies in the same industry are more expensive than TOM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.03 | ||
| EV/EBITDA | 14.33 |
4.3 Compensation for Growth
TOM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 33.08% in the coming years.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y32.76%
EPS Next 3Y33.08%
5. Dividend
5.1 Amount
TOM has a Yearly Dividend Yield of 1.30%. Purely for dividend investing, there may be better candidates out there.
TOM's Dividend Yield is comparable with the industry average which is at 2.36.
With a Dividend Yield of 1.30, TOM pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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
49.40% of the earnings are spent on dividend by TOM. This is a bit on the high side, but may be sustainable.
DP49.4%
EPS Next 2Y32.76%
EPS Next 3Y33.08%
OSL:TOM (7/18/2025, 4:25:15 PM)
140
+0.5 (+0.36%)
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 Cap41.45B
Analysts70.59
Price Target170.54 (21.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend1.99
Dividend Growth(5Y)-5.95%
DP49.4%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.76%
Min EPS beat(2)-25.74%
Max EPS beat(2)20.23%
EPS beat(4)2
Avg EPS beat(4)0.63%
Min EPS beat(4)-25.74%
Max EPS beat(4)20.23%
EPS beat(8)2
Avg EPS beat(8)-24.55%
EPS beat(12)3
Avg EPS beat(12)-19.3%
EPS beat(16)6
Avg EPS beat(16)-13.18%
Revenue beat(2)1
Avg Revenue beat(2)1.18%
Min Revenue beat(2)-1.74%
Max Revenue beat(2)4.11%
Revenue beat(4)3
Avg Revenue beat(4)2.95%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)7.6%
Revenue beat(8)6
Avg Revenue beat(8)3.52%
Revenue beat(12)6
Avg Revenue beat(12)-27.61%
Revenue beat(16)6
Avg Revenue beat(16)-43.17%
PT rev (1m)0%
PT rev (3m)-8.38%
EPS NQ rev (1m)-9.68%
EPS NQ rev (3m)-15.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)27.86%
Revenue NQ rev (3m)959.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.41 | ||
| Fwd PE | 20.46 | ||
| P/S | 2.54 | ||
| P/FCF | 11.03 | ||
| P/OCF | 12.32 | ||
| P/B | 5.79 | ||
| P/tB | 22.34 | ||
| EV/EBITDA | 14.33 |
EPS(TTM)4.19
EY2.99%
EPS(NY)6.84
Fwd EY4.89%
FCF(TTM)12.69
FCFY9.06%
OCF(TTM)11.36
OCFY8.12%
SpS55.08
BVpS24.17
TBVpS6.27
PEG (NY)0.94
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 16.86% | ||
| ROCE | 15.25% | ||
| ROIC | 11.55% | ||
| ROICexc | 12.6% | ||
| ROICexgc | 22.6% | ||
| OM | 12.22% | ||
| PM (TTM) | 7.4% | ||
| GM | 60.05% | ||
| FCFM | 23.03% |
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 Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 1.62 | ||
| Debt/EBITDA | 1.65 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.1% | ||
| Profit Quality | 311.38% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 3.61 |
F-Score5
WACC8.59%
ROIC/WACC1.34
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)-82%
EPS 3Y-55.56%
EPS 5Y-34.95%
EPS Q2Q%584.93%
EPS Next Y35.63%
EPS Next 2Y32.76%
EPS Next 3Y33.08%
EPS Next 5YN/A
Revenue 1Y (TTM)46.3%
Revenue growth 3Y7.86%
Revenue growth 5Y7.25%
Sales Q2Q%5.09%
Revenue Next Year10.8%
Revenue Next 2Y13.99%
Revenue Next 3Y14.59%
Revenue Next 5YN/A
EBIT growth 1Y120.25%
EBIT growth 3Y1.26%
EBIT growth 5Y6.64%
EBIT Next Year81.59%
EBIT Next 3Y40.85%
EBIT Next 5YN/A
FCF growth 1Y-58.42%
FCF growth 3Y0.11%
FCF growth 5Y11.27%
OCF growth 1Y-81.17%
OCF growth 3Y10.38%
OCF growth 5Y12.04%