TORM plc
TORM plc Fundamental Analysis
TORM plc (TRMD) shows moderate financial fundamentals with a PE ratio of 9.69, profit margin of 21.42%, and ROE of 13.08%. The company generates $1.3B in annual revenue with weak year-over-year growth of 2.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TRMD's fundamental strength across five key dimensions:
Efficiency Score
WeakTRMD struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTRMD trades at attractive valuation levels.
Growth Score
WeakTRMD faces weak or negative growth trends.
Financial Health Score
ExcellentTRMD maintains a strong and stable balance sheet.
Profitability Score
ModerateTRMD maintains healthy but balanced margins.
Key Financial Metrics
Is TRMD Expensive or Cheap?
P/E Ratio
TRMD trades at 9.69 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TRMD's PEG of -0.56 indicates potential undervaluation.
Price to Book
The market values TORM plc at 1.25 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.70 times EBITDA. This is generally considered low.
How Well Does TRMD Make Money?
Net Profit Margin
For every $100 in sales, TORM plc keeps $21.42 as profit after all expenses.
Operating Margin
Core operations generate 26.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.08 in profit for every $100 of shareholder equity.
ROA
TORM plc generates $8.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TORM plc generates strong operating cash flow of $495.72M, reflecting robust business health.
Free Cash Flow
TORM plc generates strong free cash flow of $250.18M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.47 in free cash annually.
FCF Yield
TRMD converts 8.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How TRMD Stacks Against Its Sector Peers
| Metric | TRMD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.69 | 20.19 | Better (Cheaper) |
| ROE | 13.08% | 1019.00% | Weak |
| Net Margin | 21.42% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.42 | -0.65 (disorted) | Distorted |
| Current Ratio | 2.37 | 4.60 | Strong Liquidity |
| ROA | 8.69% | -11655350.00% (disorted) | Weak |
TRMD outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TORM plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
77.98%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
191.67%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
282.06%
Industry Style: Cyclical, Value, Commodity
High Growth