TORM PLC-A (TRMD) Stock Fundamental Analysis
NASDAQ:TRMD - Nasdaq - GB00BZ3CNK81 - Common Stock - Currency: USD
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. This makes TRMD very considerable for value investing!
1. Profitability
1.1 Basic Checks
TRMD had positive earnings in the past year.
In the past year TRMD had a positive cash flow from operations.
Of the past 5 years TRMD 4 years were profitable.
TRMD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.34%, TRMD belongs to the top of the industry, outperforming 91.83% of the companies in the same industry.
The Return On Equity of TRMD (21.71%) is better than 87.02% of its industry peers.
TRMD has a Return On Invested Capital of 11.67%. This is amongst the best in the industry. TRMD outperforms 86.06% 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 23.92%.
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 83.65% of its industry peers.
In the last couple of years the Profit Margin of TRMD has grown nicely.
Looking at the Operating Margin, with a value of 32.87%, TRMD is in the better half of the industry, outperforming 74.52% of the companies in the same industry.
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 81.25% 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.
The debt/assets ratio for TRMD has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.73 indicates that TRMD is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TRMD (2.73) is better than 79.33% of its industry peers.
The Debt to FCF ratio of TRMD is 3.34, which is a good value as it means it would take TRMD, 3.34 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.34, TRMD is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that TRMD is not too dependend on debt financing.
TRMD has a Debt to Equity ratio of 0.48. This is comparable to the rest of the industry: TRMD outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 2.73 |
ROIC/WACC1.42
WACC8.24%
2.3 Liquidity
A Current Ratio of 2.55 indicates that TRMD has no problem at all paying its short term obligations.
TRMD has a Current ratio of 2.55. This is amongst the best in the industry. TRMD outperforms 82.69% of its industry peers.
TRMD has a Quick Ratio of 2.28. This indicates that TRMD is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TRMD (2.28) is better than 81.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.55 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
TRMD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.15%.
Measured over the past years, TRMD shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.29% on average per year.
The Revenue has decreased by -8.26% in the past 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
The Earnings Per Share is expected to decrease by -48.86% on average over the next years. This is quite bad
TRMD is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -16.38% yearly.
EPS Next Y-52.06%
EPS Next 2Y-33.48%
EPS Next 3Y-48.86%
EPS Next 5YN/A
Revenue Next Year-25.23%
Revenue Next 2Y-16.32%
Revenue Next 3Y-16.38%
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 4.16 indicates a rather cheap valuation of TRMD.
TRMD's Price/Earnings ratio is rather cheap when compared to the industry. TRMD is cheaper than 94.23% of the companies in the same industry.
TRMD is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.99, which indicates a rather cheap valuation of TRMD.
Based on the Price/Forward Earnings ratio, TRMD is valued cheaper than 84.13% of the companies in the same industry.
TRMD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.16 | ||
| Fwd PE | 6.99 |
4.2 Price Multiples
TRMD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TRMD is cheaper than 77.88% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TRMD is valued cheaply inside the industry as 87.98% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.47 | ||
| EV/EBITDA | 4.08 |
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)0.18
EPS Next 2Y-33.48%
EPS Next 3Y-48.86%
5. Dividend
5.1 Amount
TRMD has a Yearly Dividend Yield of 21.61%, which is a nice return.
TRMD's Dividend Yield is rather good when compared to the industry average which is at 6.33. TRMD pays more dividend than 99.04% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, TRMD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 21.61% |
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
TRMD pays out 118.99% of its income as dividend. This is not a sustainable payout ratio.
DP118.99%
EPS Next 2Y-33.48%
EPS Next 3Y-48.86%
19.74
-0.07 (-0.35%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners60.03%
Inst Owner Change-0.47%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap1.93B
Analysts76
Price Target19.82 (0.41%)
Short Float %2.2%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 21.61% |
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)-0.65%
PT rev (3m)1.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.48%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-9.47%
Revenue NQ rev (3m)-13.09%
Revenue NY rev (1m)-2.33%
Revenue NY rev (3m)-1.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.16 | ||
| Fwd PE | 6.99 | ||
| P/S | 1.34 | ||
| P/FCF | 5.47 | ||
| P/OCF | 2.67 | ||
| P/B | 0.9 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 4.08 |
EPS(TTM)4.74
EY24.01%
EPS(NY)2.82
Fwd EY14.3%
FCF(TTM)3.61
FCFY18.28%
OCF(TTM)7.38
OCFY37.41%
SpS14.75
BVpS21.86
TBVpS21.82
PEG (NY)N/A
PEG (5Y)0.18
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 | 2.73 |
F-Score4
WACC8.24%
ROIC/WACC1.42
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-25.23%
Revenue Next 2Y-16.32%
Revenue Next 3Y-16.38%
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%