TORM PLC-A (TRMD) Stock Fundamental Analysis
USA - NASDAQ:TRMD - GB00BZ3CNK81 - Common Stock
22.57 USD
-0.64 (-2.76%)
22.57 USD
0 (0%)
Taking everything into account, TRMD scores 6 out of 10 in our fundamental rating. TRMD was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. TRMD gets an excellent profitability rating and is at the same time showing great financial health properties. TRMD has a valuation in line with the averages, but it does not seem to be growing.
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 9.69%, TRMD belongs to the top of the industry, outperforming 85.71% 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 74.76% of its industry peers.
TRMD has a Return On Invested Capital of 8.84%. This is in the better half of the industry: TRMD outperforms 76.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRMD is below the industry average of 21.66%.
The 3 year average ROIC (18.07%) for TRMD is well above the current ROIC(8.84%). The reason for the recent decline needs to be investigated.
| 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
TRMD has a Profit Margin of 24.90%. This is amongst the best in the industry. TRMD outperforms 80.95% of its industry peers.
In the last couple of years the Profit Margin of TRMD has grown nicely.
With a decent Operating Margin value of 26.49%, TRMD is doing good in the industry, outperforming 63.33% of the companies in the same industry.
TRMD's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 68.89%, TRMD is doing good in the industry, outperforming 77.62% of the companies in the same industry.
In the last couple of years the Gross Margin of TRMD has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TRMD is creating value.
TRMD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TRMD has more shares outstanding
The debt/assets ratio for TRMD has been reduced compared to a year ago.
2.2 Solvency
TRMD has an Altman-Z score of 2.80. 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.
With a decent Altman-Z score value of 2.80, TRMD is doing good in the industry, outperforming 78.10% of the companies in the same industry.
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.
The Debt to FCF ratio of TRMD (4.97) is better than 64.76% of its industry peers.
TRMD has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
TRMD has a Debt to Equity ratio (0.46) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.8 |
ROIC/WACC1.08
WACC8.2%
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 80.95% of its industry peers.
TRMD has a Quick Ratio of 2.30. This indicates that TRMD is financially healthy and has no problem in meeting its short term obligations.
TRMD's Quick ratio of 2.30 is amongst the best of the industry. TRMD outperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.3 |
3. Growth
3.1 Past
TRMD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.69%.
TRMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.29% yearly.
Looking at the last year, TRMD shows a very negative growth in Revenue. The Revenue has decreased by -18.79% in the last year.
TRMD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.62% yearly.
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-19.63%
Revenue Next 2Y-17.76%
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.
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
With a Price/Earnings ratio of 6.84, the valuation of TRMD can be described as very cheap.
TRMD's Price/Earnings ratio is rather cheap when compared to the industry. TRMD is cheaper than 88.57% of the companies in the same industry.
TRMD is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.54, the valuation of TRMD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TRMD is valued a bit cheaper than 61.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TRMD to the average of the S&P500 Index (22.88), we can say TRMD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.84 | ||
| Fwd PE | 11.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRMD is valued a bit cheaper than 72.86% of the companies in the same industry.
TRMD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TRMD is cheaper than 77.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.76 | ||
| EV/EBITDA | 5.45 |
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 -39.70% in the coming years.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-44.63%
EPS Next 3Y-39.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.76%, TRMD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.17, TRMD pays a better dividend. On top of this TRMD pays more dividend than 93.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, TRMD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.76% |
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
116.47% of the earnings are spent on dividend by TRMD. This is not a sustainable payout ratio.
DP116.47%
EPS Next 2Y-44.63%
EPS Next 3Y-39.7%
22.57
-0.64 (-2.76%)
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 Cap2.21B
Analysts72
Price Target19.49 (-13.65%)
Short Float %1.92%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.76% |
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)-0.74%
PT rev (3m)4.58%
EPS NQ rev (1m)72.93%
EPS NQ rev (3m)-1.07%
EPS NY rev (1m)-24.28%
EPS NY rev (3m)-24.28%
Revenue NQ rev (1m)16.11%
Revenue NQ rev (3m)-19.74%
Revenue NY rev (1m)7.49%
Revenue NY rev (3m)4.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.84 | ||
| Fwd PE | 11.54 | ||
| P/S | 1.67 | ||
| P/FCF | 9.76 | ||
| P/OCF | 3.67 | ||
| P/B | 1.05 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 5.45 |
EPS(TTM)3.3
EY14.62%
EPS(NY)1.96
Fwd EY8.67%
FCF(TTM)2.31
FCFY10.24%
OCF(TTM)6.15
OCFY27.27%
SpS13.49
BVpS21.51
TBVpS21.47
PEG (NY)N/A
PEG (5Y)0.29
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 | 2.8 |
F-Score4
WACC8.2%
ROIC/WACC1.08
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-19.63%
Revenue Next 2Y-17.76%
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%