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 210 industry peers in the Oil, Gas & Consumable Fuels industry. TRMD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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
TRMD had positive earnings in the past year.
TRMD had a positive operating cash flow in the past year.
TRMD had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TRMD had a positive operating cash flow.
1.2 Ratios
TRMD's Return On Assets of 13.34% is amongst the best of the industry. TRMD outperforms 90.95% of its industry peers.
TRMD has a better Return On Equity (21.71%) than 86.19% of its industry peers.
With an excellent Return On Invested Capital value of 11.67%, TRMD belongs to the best of the industry, outperforming 83.81% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TRMD is significantly below the industry average of 23.80%.
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 better Profit Margin (32.20%) than 83.81% of its industry peers.
TRMD's Profit Margin has improved in the last couple of years.
TRMD has a Operating Margin of 32.87%. This is in the better half of the industry: TRMD outperforms 74.29% of its industry peers.
TRMD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 71.15%, TRMD belongs to the top of the industry, outperforming 81.43% 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 | 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
TRMD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, TRMD has more shares outstanding
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 2.64. 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.
TRMD's Altman-Z score of 2.64 is fine compared to the rest of the industry. TRMD outperforms 77.14% of its industry peers.
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's Debt to FCF ratio of 3.34 is fine compared to the rest of the industry. TRMD outperforms 76.67% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that TRMD is not too dependend on debt financing.
TRMD's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. TRMD outperforms 49.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 2.64 |
ROIC/WACC1.4
WACC8.31%
2.3 Liquidity
A Current Ratio of 2.55 indicates that TRMD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.55, TRMD belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
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.
TRMD has a Quick ratio of 2.28. This is amongst the best in the industry. TRMD outperforms 81.90% of its industry peers.
| 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.
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.
The Revenue has been growing by 17.62% on average over the past years. This is quite good.
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.
TRMD is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -19.98% yearly.
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.
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
A Price/Earnings ratio of 3.68 indicates a rather cheap valuation of TRMD.
TRMD's Price/Earnings ratio is rather cheap when compared to the industry. TRMD is cheaper than 95.24% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. TRMD is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.19, which indicates a rather cheap valuation of TRMD.
Based on the Price/Forward Earnings ratio, TRMD is valued cheaply inside the industry as 87.14% of the companies are valued more expensively.
TRMD is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.68 | ||
| Fwd PE | 6.19 |
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 80.48% of the companies listed in the same industry.
TRMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TRMD is cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.84 | ||
| EV/EBITDA | 3.77 |
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)0.16
EPS Next 2Y-33.48%
EPS Next 3Y-48.86%
5. Dividend
5.1 Amount
TRMD has a Yearly Dividend Yield of 22.57%, which is a nice return.
TRMD's Dividend Yield is rather good when compared to the industry average which is at 6.41. TRMD pays more dividend than 99.05% of the companies in the same industry.
TRMD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 22.57% |
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%
17.46
-0.26 (-1.47%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners60.03%
Inst Owner Change0%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap1.71B
Analysts76
Price Target19.95 (14.26%)
Short Float %2.92%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 22.57% |
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)7.05%
PT rev (3m)6.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.85%
Revenue NQ rev (1m)10.46%
Revenue NQ rev (3m)-4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-14.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.68 | ||
| Fwd PE | 6.19 | ||
| P/S | 1.18 | ||
| P/FCF | 4.84 | ||
| P/OCF | 2.36 | ||
| P/B | 0.8 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | 3.77 |
EPS(TTM)4.74
EY27.15%
EPS(NY)2.82
Fwd EY16.17%
FCF(TTM)3.61
FCFY20.67%
OCF(TTM)7.38
OCFY42.29%
SpS14.75
BVpS21.86
TBVpS21.82
PEG (NY)N/A
PEG (5Y)0.16
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 | 2.64 |
F-Score4
WACC8.31%
ROIC/WACC1.4
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%