TORM PLC-A (TRMD) Stock Fundamental Analysis
NASDAQ:TRMD - Nasdaq - GB00BZ3CNK81 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to TRMD. TRMD was compared to 213 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 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.
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 91.55% of the companies in the same industry.
With an excellent Return On Equity value of 21.71%, TRMD belongs to the best of the industry, outperforming 85.92% of the companies in the same industry.
The Return On Invested Capital of TRMD (11.67%) is better than 82.63% 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 25.87%.
The last Return On Invested Capital (11.67%) 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 | 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
Looking at the Profit Margin, with a value of 32.20%, TRMD belongs to the top of the industry, outperforming 84.04% of the companies in the same industry.
In the last couple of years the Profit Margin of TRMD has grown nicely.
The Operating Margin of TRMD (32.87%) is better than 73.24% of its industry peers.
TRMD's Operating Margin has improved in the last couple of years.
The Gross Margin of TRMD (71.15%) is better than 79.81% of its industry peers.
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
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.
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 2.61. 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 has a Altman-Z score of 2.61. This is in the better half of the industry: TRMD outperforms 77.93% 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 76.06% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that TRMD is not too dependend on debt financing.
The Debt to Equity ratio of TRMD (0.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 2.61 |
ROIC/WACC1.45
WACC8.02%
2.3 Liquidity
A Current Ratio of 2.55 indicates that TRMD has no problem at all paying its short term obligations.
TRMD's Current ratio of 2.55 is amongst the best of the industry. TRMD outperforms 81.69% of its industry peers.
A Quick Ratio of 2.28 indicates that TRMD has no problem at all paying its short term obligations.
TRMD has a Quick ratio of 2.28. This is amongst the best in the industry. TRMD outperforms 81.22% 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.
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 decrease in Revenue. The Revenue has decreased by -8.26% in the last 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
Based on estimates for the next years, TRMD will show a very negative growth in Earnings Per Share. The EPS will decrease by -48.86% on average per year.
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
Based on the Price/Earnings ratio of 3.57, the valuation of TRMD can be described as very cheap.
94.84% of the companies in the same industry are more expensive than TRMD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.82, TRMD is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.00, the valuation of TRMD can be described as very cheap.
86.85% 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 21.76. TRMD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.57 | ||
| Fwd PE | 6 |
4.2 Price Multiples
79.34% of the companies in the same industry are more expensive than TRMD, based on the Enterprise Value to EBITDA ratio.
89.67% of the companies in the same industry are more expensive than TRMD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.71 | ||
| EV/EBITDA | 3.67 |
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 -48.86% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.15
EPS Next 2Y-33.48%
EPS Next 3Y-48.86%
5. Dividend
5.1 Amount
TRMD has a Yearly Dividend Yield of 22.64%, which is a nice return.
Compared to an average industry Dividend Yield of 6.84, TRMD pays a better dividend. On top of this TRMD pays more dividend than 98.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, TRMD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 22.64% |
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 recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
118.99% of the earnings are spent on dividend by TRMD. This is not a sustainable payout ratio.
DP118.99%
EPS Next 2Y-33.48%
EPS Next 3Y-48.86%
16.93
+0.15 (+0.89%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners62.97%
Inst Owner Change-4.3%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap1.67B
Analysts68
Price Target19.16 (13.17%)
Short Float %4.58%
Short Ratio4.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 22.64% |
Yearly Dividend6.05
Dividend Growth(5Y)N/A
DP118.99%
Div Incr Years1
Div Non Decr Years1
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)2.57%
PT rev (3m)-44.66%
EPS NQ rev (1m)-20.48%
EPS NQ rev (3m)-20.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-21.54%
Revenue NQ rev (1m)-13.09%
Revenue NQ rev (3m)-26.73%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)-16.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.57 | ||
| Fwd PE | 6 | ||
| P/S | 1.15 | ||
| P/FCF | 4.71 | ||
| P/OCF | 2.3 | ||
| P/B | 0.78 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 3.67 |
EPS(TTM)4.74
EY28%
EPS(NY)2.82
Fwd EY16.67%
FCF(TTM)3.59
FCFY21.21%
OCF(TTM)7.35
OCFY43.4%
SpS14.67
BVpS21.76
TBVpS21.71
PEG (NY)N/A
PEG (5Y)0.15
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 | 2.61 |
F-Score4
WACC8.02%
ROIC/WACC1.45
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%