TORM PLC-A (TRMD) Stock Fundamental Analysis
NASDAQ:TRMD - Nasdaq - GB00BZ3CNK81 - Common Stock - Currency: USD
TRMD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 213 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making TRMD a very profitable company, without any liquidiy or solvency issues. TRMD is valued quite cheap, but it does not seem to be growing. With these ratings, TRMD could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year TRMD was profitable.
TRMD had a positive operating cash flow in the past year.
Of the past 5 years TRMD 4 years were profitable.
In the past 5 years TRMD always reported a positive cash flow from operatings.
1.2 Ratios
TRMD has a Return On Assets of 13.34%. This is amongst the best in the industry. TRMD outperforms 91.08% of its industry peers.
The Return On Equity of TRMD (21.71%) is better than 86.39% of its industry peers.
The Return On Invested Capital of TRMD (11.67%) is better than 83.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRMD is significantly below the industry average of 23.55%.
The 3 year average ROIC (18.07%) for TRMD is well above the current ROIC(11.67%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.34% | ||
| ROE | 21.71% | ||
| ROIC | 11.67% |
ROA(3y)20.59%
ROA(5y)12.87%
ROE(3y)35.32%
ROE(5y)22.13%
ROIC(3y)18.07%
ROIC(5y)12.2%
1.3 Margins
TRMD has a Profit Margin of 32.20%. This is amongst the best in the industry. TRMD outperforms 84.04% of its industry peers.
TRMD's Profit Margin has improved in the last couple of years.
The Operating Margin of TRMD (32.87%) is better than 73.71% of its industry peers.
In the last couple of years the Operating Margin of TRMD has grown nicely.
Looking at the Gross Margin, with a value of 71.15%, TRMD belongs to the top of the industry, outperforming 81.22% of the companies in the same industry.
TRMD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.87% | ||
| PM (TTM) | 32.2% | ||
| GM | 71.15% |
OM growth 3Y240.77%
OM growth 5Y24.25%
PM growth 3YN/A
PM growth 5Y10.38%
GM growth 3Y6.18%
GM growth 5Y3.59%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TRMD is creating value.
Compared to 1 year ago, TRMD has more shares outstanding
The number of shares outstanding for TRMD has been increased compared to 5 years ago.
TRMD has a better debt/assets ratio than last year.
2.2 Solvency
TRMD has an Altman-Z score of 2.68. This is not the best score and indicates that TRMD is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.68, TRMD is in the better half of the industry, outperforming 77.93% of the companies in the same industry.
TRMD has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as TRMD would need 3.34 years to pay back of all of its debts.
TRMD has a Debt to FCF ratio of 3.34. This is in the better half of the industry: TRMD outperforms 76.53% of its industry peers.
TRMD has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
TRMD has a Debt to Equity ratio (0.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 2.68 |
ROIC/WACC1.43
WACC8.18%
2.3 Liquidity
TRMD has a Current Ratio of 2.55. This indicates that TRMD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TRMD (2.55) is better than 82.63% of its industry peers.
A Quick Ratio of 2.28 indicates that TRMD has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.28, TRMD belongs to the top of the industry, outperforming 81.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.55 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
The earnings per share for TRMD have decreased strongly by -40.15% in the last year.
The Earnings Per Share has been growing by 23.29% on average over the past years. This is a very strong growth
Looking at the last year, TRMD shows a decrease in Revenue. The Revenue has decreased by -8.26% in the last year.
Measured over the past years, TRMD shows a quite strong growth in Revenue. The Revenue has been growing by 17.62% on average per year.
EPS 1Y (TTM)-40.15%
EPS 3YN/A
EPS 5Y23.29%
EPS Q2Q%-72.57%
Revenue 1Y (TTM)-8.26%
Revenue growth 3Y36.02%
Revenue growth 5Y17.62%
Sales Q2Q%-25.9%
3.2 Future
TRMD is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -48.86% yearly.
Based on estimates for the next years, TRMD will show a very negative growth in Revenue. The Revenue will decrease by -19.98% on average per year.
EPS Next Y-52.06%
EPS Next 2Y-33.48%
EPS Next 3Y-48.86%
EPS Next 5YN/A
Revenue Next Year-23.44%
Revenue Next 2Y-19.33%
Revenue Next 3Y-19.98%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 3.93 indicates a rather cheap valuation of TRMD.
95.77% of the companies in the same industry are more expensive than TRMD, based on the Price/Earnings ratio.
TRMD is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.61, the valuation of TRMD can be described as very cheap.
Based on the Price/Forward Earnings ratio, TRMD is valued cheaply inside the industry as 86.85% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TRMD to the average of the S&P500 Index (22.13), we can say TRMD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.93 | ||
| Fwd PE | 6.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRMD indicates a rather cheap valuation: TRMD is cheaper than 80.28% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRMD indicates a rather cheap valuation: TRMD is cheaper than 88.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.19 | ||
| EV/EBITDA | 3.92 |
4.3 Compensation for Growth
The excellent profitability rating of TRMD may justify a higher PE ratio.
A cheap valuation may be justified as TRMD's earnings are expected to decrease with -48.86% in the coming years.
PEG (NY)N/A
PEG (5Y)0.17
EPS Next 2Y-33.48%
EPS Next 3Y-48.86%
5. Dividend
5.1 Amount
TRMD has a Yearly Dividend Yield of 22.21%, which is a nice return.
Compared to an average industry Dividend Yield of 6.58, TRMD pays a better dividend. On top of this TRMD pays more dividend than 98.59% of the companies listed in the same industry.
TRMD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 22.21% |
5.2 History
TRMD has been paying a dividend for over 5 years, so it has already some track record.
The dividend of TRMD decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
118.99% of the earnings are spent on dividend by TRMD. This is not a sustainable payout ratio.
DP118.99%
EPS Next 2Y-33.48%
EPS Next 3Y-48.86%
18.65
+0.5 (+2.75%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners60.03%
Inst Owner Change-4.3%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap1.84B
Analysts76
Price Target18.64 (-0.05%)
Short Float %3.7%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 22.21% |
Yearly Dividend6.05
Dividend Growth(5Y)N/A
DP118.99%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.92%
Min EPS beat(2)-3.58%
Max EPS beat(2)15.43%
EPS beat(4)1
Avg EPS beat(4)0.85%
Min EPS beat(4)-5.7%
Max EPS beat(4)15.43%
EPS beat(8)5
Avg EPS beat(8)4.58%
EPS beat(12)8
Avg EPS beat(12)3.7%
EPS beat(16)9
Avg EPS beat(16)7.53%
Revenue beat(2)2
Avg Revenue beat(2)25.53%
Min Revenue beat(2)23.74%
Max Revenue beat(2)27.31%
Revenue beat(4)4
Avg Revenue beat(4)27.6%
Min Revenue beat(4)23.74%
Max Revenue beat(4)30.54%
Revenue beat(8)8
Avg Revenue beat(8)29.77%
Revenue beat(12)12
Avg Revenue beat(12)34.25%
Revenue beat(16)16
Avg Revenue beat(16)34.55%
PT rev (1m)-2.71%
PT rev (3m)-40.02%
EPS NQ rev (1m)-20.48%
EPS NQ rev (3m)-20.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-21.54%
Revenue NQ rev (1m)-13.09%
Revenue NQ rev (3m)-26.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-14.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.93 | ||
| Fwd PE | 6.61 | ||
| P/S | 1.27 | ||
| P/FCF | 5.19 | ||
| P/OCF | 2.54 | ||
| P/B | 0.86 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 3.92 |
EPS(TTM)4.74
EY25.42%
EPS(NY)2.82
Fwd EY15.14%
FCF(TTM)3.59
FCFY19.26%
OCF(TTM)7.35
OCFY39.4%
SpS14.67
BVpS21.76
TBVpS21.71
PEG (NY)N/A
PEG (5Y)0.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.34% | ||
| ROE | 21.71% | ||
| ROCE | 14.77% | ||
| ROIC | 11.67% | ||
| ROICexc | 13.15% | ||
| ROICexgc | 13.17% | ||
| OM | 32.87% | ||
| PM (TTM) | 32.2% | ||
| GM | 71.15% | ||
| FCFM | 24.48% |
ROA(3y)20.59%
ROA(5y)12.87%
ROE(3y)35.32%
ROE(5y)22.13%
ROIC(3y)18.07%
ROIC(5y)12.2%
ROICexc(3y)20.28%
ROICexc(5y)13.6%
ROICexgc(3y)20.31%
ROICexgc(5y)13.62%
ROCE(3y)22.88%
ROCE(5y)15.44%
ROICexcg growth 3Y300.7%
ROICexcg growth 5Y32.05%
ROICexc growth 3Y300.53%
ROICexc growth 5Y32.02%
OM growth 3Y240.77%
OM growth 5Y24.25%
PM growth 3YN/A
PM growth 5Y10.38%
GM growth 3Y6.18%
GM growth 5Y3.59%
F-Score4
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.34 | ||
| Debt/EBITDA | 1.51 | ||
| Cap/Depr | 182.89% | ||
| Cap/Sales | 25.6% | ||
| Interest Coverage | 6.57 | ||
| Cash Conversion | 106.84% | ||
| Profit Quality | 76.02% | ||
| Current Ratio | 2.55 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 2.68 |
F-Score4
WACC8.18%
ROIC/WACC1.43
Cap/Depr(3y)243.97%
Cap/Depr(5y)223.64%
Cap/Sales(3y)26.43%
Cap/Sales(5y)30.81%
Profit Quality(3y)51.03%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.15%
EPS 3YN/A
EPS 5Y23.29%
EPS Q2Q%-72.57%
EPS Next Y-52.06%
EPS Next 2Y-33.48%
EPS Next 3Y-48.86%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.26%
Revenue growth 3Y36.02%
Revenue growth 5Y17.62%
Sales Q2Q%-25.9%
Revenue Next Year-23.44%
Revenue Next 2Y-19.33%
Revenue Next 3Y-19.98%
Revenue Next 5YN/A
EBIT growth 1Y-31.23%
EBIT growth 3Y363.52%
EBIT growth 5Y46.14%
EBIT Next Year-34%
EBIT Next 3Y-21.7%
EBIT Next 5YN/A
FCF growth 1Y-13.9%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.52%
OCF growth 3Y158.35%
OCF growth 5Y37.04%