TORM PLC-A (TRMD) Stock Fundamental Analysis
NASDAQ:TRMD - GB00BZ3CNK81 - Common Stock
21.24 USD
+0.73 (+3.56%)
21.5995 USD
+0.36 (+1.69%)
Taking everything into account, TRMD scores 6 out of 10 in our fundamental rating. TRMD was compared to 208 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 cheap, but on the other hand it scores bad on growth. These ratings would make TRMD suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year TRMD was profitable.
In the past year TRMD had a positive cash flow from operations.
TRMD had positive earnings in 4 of the past 5 years.
In the past 5 years TRMD always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.69%, TRMD belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
TRMD's Return On Equity of 15.62% is fine compared to the rest of the industry. TRMD outperforms 74.52% of its industry peers.
TRMD has a better Return On Invested Capital (8.84%) than 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRMD is significantly below the industry average of 23.39%.
The last Return On Invested Capital (8.84%) for TRMD is well below the 3 year average (18.07%), which needs to be investigated, but indicates that TRMD had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.69% | ||
| ROE | 15.62% | ||
| ROIC | 8.84% |
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
The Profit Margin of TRMD (24.90%) is better than 80.29% of its industry peers.
TRMD's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 26.49%, TRMD is in the better half of the industry, outperforming 61.06% of the companies in the same industry.
In the last couple of years the Operating Margin of TRMD has grown nicely.
The Gross Margin of TRMD (68.89%) is better than 77.88% of its industry peers.
TRMD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.49% | ||
| PM (TTM) | 24.9% | ||
| GM | 68.89% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
The debt/assets ratio for TRMD has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.71 indicates that TRMD is not a great score, but indicates only limited risk for bankruptcy at the moment.
TRMD has a Altman-Z score of 2.71. This is in the better half of the industry: TRMD outperforms 78.85% of its industry peers.
The Debt to FCF ratio of TRMD is 4.97, which is a neutral value as it means it would take TRMD, 4.97 years of fcf income to pay off all of its debts.
TRMD has a Debt to FCF ratio of 4.97. This is in the better half of the industry: TRMD outperforms 63.94% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that TRMD is not too dependend on debt financing.
TRMD has a Debt to Equity ratio of 0.46. This is comparable to the rest of the industry: TRMD outperforms 51.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.71 |
ROIC/WACC1.07
WACC8.24%
2.3 Liquidity
A Current Ratio of 2.57 indicates that TRMD has no problem at all paying its short term obligations.
The Current ratio of TRMD (2.57) is better than 81.73% of its industry peers.
A Quick Ratio of 2.30 indicates that TRMD has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.30, TRMD belongs to the top of the industry, outperforming 82.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.3 |
3. Growth
3.1 Past
The earnings per share for TRMD have decreased strongly by -57.69% 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 very negative growth in Revenue. The Revenue has decreased by -18.79% in the last year.
The Revenue has been growing by 17.62% on average over the past years. This is quite good.
EPS 1Y (TTM)-57.69%
EPS 3YN/A
EPS 5Y23.29%
EPS Q2Q%-71.29%
Revenue 1Y (TTM)-18.79%
Revenue growth 3Y36.02%
Revenue growth 5Y17.62%
Sales Q2Q%-27.99%
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 -39.70% yearly.
Based on estimates for the next years, TRMD will show a very negative growth in Revenue. The Revenue will decrease by -17.48% on average per year.
EPS Next Y-63.69%
EPS Next 2Y-44.63%
EPS Next 3Y-39.7%
EPS Next 5YN/A
Revenue Next Year-25.95%
Revenue Next 2Y-19.48%
Revenue Next 3Y-17.48%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.44, the valuation of TRMD can be described as very cheap.
Based on the Price/Earnings ratio, TRMD is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.14, TRMD is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.86, the valuation of TRMD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TRMD is valued a bit cheaper than the industry average as 64.90% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.80. TRMD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.44 | ||
| Fwd PE | 10.86 |
4.2 Price Multiples
75.48% of the companies in the same industry are more expensive than TRMD, based on the Enterprise Value to EBITDA ratio.
TRMD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TRMD is cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.19 | ||
| EV/EBITDA | 5.1 |
4.3 Compensation for Growth
The excellent profitability rating of TRMD may justify a higher PE ratio.
TRMD's earnings are expected to decrease with -39.70% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y-44.63%
EPS Next 3Y-39.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.62%, TRMD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.33, TRMD pays a better dividend. On top of this TRMD pays more dividend than 94.23% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, TRMD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.62% |
5.2 History
TRMD has been paying a dividend for over 5 years, so it has already some track record.
TRMD has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TRMD pays out 116.47% of its income as dividend. This is not a sustainable payout ratio.
DP116.47%
EPS Next 2Y-44.63%
EPS Next 3Y-39.7%
21.24
+0.73 (+3.56%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners60.03%
Inst Owner Change-2.04%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap2.08B
Analysts76
Price Target20.25 (-4.66%)
Short Float %2.16%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.62% |
Yearly Dividend6.05
Dividend Growth(5Y)N/A
DP116.47%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-3.58%
Max EPS beat(2)3.16%
EPS beat(4)2
Avg EPS beat(4)2.32%
Min EPS beat(4)-5.7%
Max EPS beat(4)15.43%
EPS beat(8)5
Avg EPS beat(8)4.8%
EPS beat(12)8
Avg EPS beat(12)3.37%
EPS beat(16)9
Avg EPS beat(16)-0.7%
Revenue beat(2)2
Avg Revenue beat(2)35.36%
Min Revenue beat(2)27.31%
Max Revenue beat(2)43.41%
Revenue beat(4)4
Avg Revenue beat(4)30.82%
Min Revenue beat(4)23.74%
Max Revenue beat(4)43.41%
Revenue beat(8)8
Avg Revenue beat(8)33.61%
Revenue beat(12)12
Avg Revenue beat(12)32.33%
Revenue beat(16)16
Avg Revenue beat(16)36.08%
PT rev (1m)2.16%
PT rev (3m)5.71%
EPS NQ rev (1m)23.31%
EPS NQ rev (3m)-29.46%
EPS NY rev (1m)-24.28%
EPS NY rev (3m)-24.28%
Revenue NQ rev (1m)-14.15%
Revenue NQ rev (3m)-34.58%
Revenue NY rev (1m)-3.28%
Revenue NY rev (3m)-3.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.44 | ||
| Fwd PE | 10.86 | ||
| P/S | 1.57 | ||
| P/FCF | 9.19 | ||
| P/OCF | 3.45 | ||
| P/B | 0.99 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 5.1 |
EPS(TTM)3.3
EY15.54%
EPS(NY)1.96
Fwd EY9.21%
FCF(TTM)2.31
FCFY10.88%
OCF(TTM)6.15
OCFY28.97%
SpS13.49
BVpS21.51
TBVpS21.47
PEG (NY)N/A
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.69% | ||
| ROE | 15.62% | ||
| ROCE | 11.19% | ||
| ROIC | 8.84% | ||
| ROICexc | 9.98% | ||
| ROICexgc | 10% | ||
| OM | 26.49% | ||
| PM (TTM) | 24.9% | ||
| GM | 68.89% | ||
| FCFM | 17.13% |
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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.97 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 181.4% | ||
| Cap/Sales | 28.48% | ||
| Interest Coverage | 4.95 | ||
| Cash Conversion | 108.09% | ||
| Profit Quality | 68.79% | ||
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.3 | ||
| Altman-Z | 2.71 |
F-Score4
WACC8.24%
ROIC/WACC1.07
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)-57.69%
EPS 3YN/A
EPS 5Y23.29%
EPS Q2Q%-71.29%
EPS Next Y-63.69%
EPS Next 2Y-44.63%
EPS Next 3Y-39.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-18.79%
Revenue growth 3Y36.02%
Revenue growth 5Y17.62%
Sales Q2Q%-27.99%
Revenue Next Year-25.95%
Revenue Next 2Y-19.48%
Revenue Next 3Y-17.48%
Revenue Next 5YN/A
EBIT growth 1Y-49.09%
EBIT growth 3Y363.52%
EBIT growth 5Y46.14%
EBIT Next Year-34%
EBIT Next 3Y-21.7%
EBIT Next 5YN/A
FCF growth 1Y-46.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-26.51%
OCF growth 3Y158.35%
OCF growth 5Y37.04%