TORM PLC-A (TRMD) Stock Fundamental Analysis
USA - NASDAQ:TRMD - GB00BZ3CNK81 - Common Stock
21.95 USD
+0.31 (+1.43%)
21.69 USD
-0.26 (-1.18%)
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TRMD has a bad growth rate and is valued cheaply. This makes TRMD very considerable 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.
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
TRMD has a Return On Assets of 9.69%. This is amongst the best in the industry. TRMD outperforms 86.60% of its industry peers.
TRMD has a better Return On Equity (15.62%) than 76.08% of its industry peers.
TRMD's Return On Invested Capital of 8.84% is fine compared to the rest of the industry. TRMD outperforms 77.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRMD is below the industry average of 21.93%.
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
With an excellent Profit Margin value of 24.90%, TRMD belongs to the best of the industry, outperforming 80.86% of the companies in the same industry.
In the last couple of years the Profit Margin of TRMD has grown nicely.
TRMD has a Operating Margin of 26.49%. This is in the better half of the industry: TRMD outperforms 64.11% 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 68.89%, TRMD is in the better half of the industry, outperforming 77.03% 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.
The number of shares outstanding for TRMD has been increased compared to 1 year ago.
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
TRMD has an Altman-Z score of 2.74. 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.
The Altman-Z score of TRMD (2.74) is better than 78.47% of its industry peers.
TRMD has a debt to FCF ratio of 4.97. This is a neutral value as TRMD would need 4.97 years to pay back of all of its debts.
TRMD's Debt to FCF ratio of 4.97 is fine compared to the rest of the industry. TRMD outperforms 63.64% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that TRMD is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, TRMD is in line with its industry, outperforming 50.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.74 |
ROIC/WACC1.06
WACC8.3%
2.3 Liquidity
A Current Ratio of 2.57 indicates that TRMD has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.57, TRMD belongs to the best of the industry, outperforming 80.86% of the companies in the same industry.
A Quick Ratio of 2.30 indicates that TRMD has no problem at all paying its short term obligations.
TRMD's Quick ratio of 2.30 is amongst the best of the industry. TRMD outperforms 80.38% of its industry peers.
| 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.
TRMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.29% yearly.
The Revenue for TRMD has decreased by -18.79% in the past year. This is quite bad
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
The Earnings Per Share is expected to decrease by -39.70% on average over the next years. This is quite bad
The Revenue is expected to decrease by -17.48% on average over the next years. This is quite bad
EPS Next Y-56.2%
EPS Next 2Y-44.63%
EPS Next 3Y-39.7%
EPS Next 5YN/A
Revenue Next Year-25.21%
Revenue Next 2Y-19.9%
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 6.65, the valuation of TRMD can be described as very cheap.
88.52% 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 26.11, which is the current average of the S&P500 Index.
TRMD is valuated reasonably with a Price/Forward Earnings ratio of 11.22.
64.59% of the companies in the same industry are more expensive than TRMD, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.55. TRMD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.65 | ||
| Fwd PE | 11.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRMD indicates a somewhat cheap valuation: TRMD is cheaper than 74.16% of the companies listed in the same industry.
TRMD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TRMD is cheaper than 79.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.5 | ||
| EV/EBITDA | 5.23 |
4.3 Compensation for Growth
TRMD has an outstanding profitability rating, which 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)0.29
EPS Next 2Y-44.63%
EPS Next 3Y-39.7%
5. Dividend
5.1 Amount
TRMD has a Yearly Dividend Yield of 11.96%, which is a nice return.
Compared to an average industry Dividend Yield of 6.83, TRMD pays a better dividend. On top of this TRMD pays more dividend than 94.26% 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.96% |
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 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%
21.95
+0.31 (+1.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners60.41%
Inst Owner Change-0.12%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.15B
Revenue(TTM)1.32B
Net Income(TTM)329.10M
Analysts68
Price Target19.78 (-9.89%)
Short Float %1.48%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.96% |
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)1.49%
PT rev (3m)-0.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)72.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.65 | ||
| Fwd PE | 11.22 | ||
| P/S | 1.63 | ||
| P/FCF | 9.5 | ||
| P/OCF | 3.57 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)3.3
EY15.03%
EPS(NY)1.96
Fwd EY8.91%
FCF(TTM)2.31
FCFY10.53%
OCF(TTM)6.15
OCFY28.04%
SpS13.49
BVpS21.51
TBVpS21.47
PEG (NY)N/A
PEG (5Y)0.29
Graham Number39.97
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%
ROICexgc growth 3Y300.7%
ROICexgc 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 | 2.74 |
F-Score4
WACC8.3%
ROIC/WACC1.06
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-56.2%
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-25.21%
Revenue Next 2Y-19.9%
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-16.09%
EBIT Next 3Y-16.87%
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%
TORM PLC-A / TRMD FAQ
What is the fundamental rating for TRMD stock?
ChartMill assigns a fundamental rating of 6 / 10 to TRMD.
Can you provide the valuation status for TORM PLC-A?
ChartMill assigns a valuation rating of 7 / 10 to TORM PLC-A (TRMD). This can be considered as Undervalued.
Can you provide the profitability details for TORM PLC-A?
TORM PLC-A (TRMD) has a profitability rating of 8 / 10.
What is the valuation of TORM PLC-A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TORM PLC-A (TRMD) is 6.65 and the Price/Book (PB) ratio is 1.02.
What is the earnings growth outlook for TORM PLC-A?
The Earnings per Share (EPS) of TORM PLC-A (TRMD) is expected to decline by -56.2% in the next year.