TORM PLC-A (TRMD)
GB00BZ3CNK81 - Common Stock
Taking everything into account, TRMD scores 6 out of 10 in our fundamental rating. TRMD was compared to 214 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 may be a bit undervalued, certainly considering the very reasonable score 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.
In the past year TRMD had a positive cash flow from operations.
TRMD had positive earnings in 4 of the past 5 years.
TRMD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TRMD's Return On Assets of 22.59% is amongst the best of the industry. TRMD outperforms 90.19% of its industry peers.
TRMD has a better Return On Equity (38.96%) than 87.85% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.66%, TRMD belongs to the top of the industry, outperforming 86.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRMD is significantly below the industry average of 44.14%.
The 3 year average ROIC (13.13%) for TRMD is below the current ROIC(19.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.59% | ||
| ROE | 38.96% | ||
| ROIC | 19.66% |
ROA(3y)14.1%
ROA(5y)11%
ROE(3y)24.15%
ROE(5y)19.52%
ROIC(3y)13.13%
ROIC(5y)9.98%
1.3 Margins
TRMD's Profit Margin of 42.64% is amongst the best of the industry. TRMD outperforms 86.45% of its industry peers.
TRMD's Profit Margin has improved in the last couple of years.
TRMD's Operating Margin of 42.64% is amongst the best of the industry. TRMD outperforms 80.37% 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 71.70%, TRMD is in the better half of the industry, outperforming 77.57% of the companies in the same industry.
TRMD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.64% | ||
| PM (TTM) | 42.64% | ||
| GM | 71.7% |
OM growth 3Y28.78%
OM growth 5Y121.5%
PM growth 3Y53.49%
PM growth 5YN/A
GM growth 3Y1.04%
GM growth 5Y5.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TRMD is creating value.
The number of shares outstanding for TRMD has been increased compared to 1 year ago.
TRMD has more shares outstanding than it did 5 years ago.
TRMD has about the same debt/assets ratio as last year.
2.2 Solvency
TRMD has an Altman-Z score of 3.86. This indicates that TRMD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TRMD (3.86) is better than 82.24% of its industry peers.
The Debt to FCF ratio of TRMD is 3.59, which is a good value as it means it would take TRMD, 3.59 years of fcf income to pay off all of its debts.
TRMD has a Debt to FCF ratio of 3.59. This is in the better half of the industry: TRMD outperforms 63.08% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that TRMD is somewhat dependend on debt financing.
TRMD has a Debt to Equity ratio of 0.53. This is comparable to the rest of the industry: TRMD outperforms 46.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.59 | ||
| Altman-Z | 3.86 |
ROIC/WACC2.51
WACC7.84%
2.3 Liquidity
A Current Ratio of 2.60 indicates that TRMD has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.60, TRMD is doing good in the industry, outperforming 79.91% of the companies in the same industry.
A Quick Ratio of 2.37 indicates that TRMD has no problem at all paying its short term obligations.
TRMD has a better Quick ratio (2.37) than 79.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 2.37 |
3. Growth
3.1 Past
TRMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.87%, which is quite good.
TRMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 86.97% yearly.
TRMD shows a small growth in Revenue. In the last year, the Revenue has grown by 5.34%.
TRMD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.07% yearly.
EPS 1Y (TTM)9.87%
EPS 3Y86.97%
EPS 5YN/A
EPS growth Q2Q-23.08%
Revenue 1Y (TTM)5.34%
Revenue growth 3Y26.71%
Revenue growth 5Y19.07%
Revenue growth Q2Q-13.31%
3.2 Future
The Earnings Per Share is expected to decrease by -13.50% on average over the next years. This is quite bad
TRMD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.61% yearly.
EPS Next Y-5.43%
EPS Next 2Y-12.5%
EPS Next 3Y-13.5%
EPS Next 5YN/A
Revenue Next Year8.54%
Revenue Next 2Y-0.98%
Revenue Next 3Y-5.61%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 4.68, the valuation of TRMD can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of TRMD indicates a rather cheap valuation: TRMD is cheaper than 89.72% of the companies listed in the same industry.
TRMD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.11.
The Price/Forward Earnings ratio is 4.95, which indicates a rather cheap valuation of TRMD.
93.46% of the companies in the same industry are more expensive than TRMD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TRMD to the average of the S&P500 Index (20.39), we can say TRMD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.68 | ||
| Fwd PE | 4.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRMD is valued a bit cheaper than the industry average as 65.42% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRMD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.04 | ||
| EV/EBITDA | 5.05 |
4.3 Compensation for Growth
TRMD has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TRMD's earnings are expected to decrease with -13.50% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.5%
EPS Next 3Y-13.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 16.92%, TRMD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.88, TRMD pays a better dividend. On top of this TRMD pays more dividend than 98.13% of the companies listed 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 | 16.92% |
5.2 History
TRMD has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
90.45% of the earnings are spent on dividend by TRMD. This is not a sustainable payout ratio.
DP90.45%
EPS Next 2Y-12.5%
EPS Next 3Y-13.5%
TORM PLC-A
NASDAQ:TRMD (5/7/2024, 7:27:18 PM)
After market: 34.93 0 (0%)34.93
+0.21 (+0.6%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.92% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.68 | ||
| Fwd PE | 4.95 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.59% | ||
| ROE | 38.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.64% | ||
| PM (TTM) | 42.64% | ||
| GM | 71.7% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.6 | ||
| Quick Ratio | 2.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)9.87%
EPS 3Y86.97%
EPS 5Y
EPS growth Q2Q
EPS Next Y-5.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.34%
Revenue growth 3Y26.71%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y