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TORM

DB:1T4
Snowflake Description

Good value with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1T4
DB
DKK4B
Market Cap
  1. Home
  2. DE
  3. Energy
Company description

TORM plc, a product tanker company, engages in the transportation of refined oil products worldwide. The last earnings update was 19 days ago. More info.


Add to Portfolio Compare Print
  • TORM has significant price volatility in the past 3 months.
1T4 Share Price and Events
7 Day Returns
1.3%
DB:1T4
18.1%
DE Oil and Gas
7.3%
DE Market
1 Year Returns
2.1%
DB:1T4
21.9%
DE Oil and Gas
-17.7%
DE Market
1T4 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
TORM (1T4) 1.3% 5.1% -31.1% 2.1% - -
DE Oil and Gas 18.1% -15.9% -28.7% 21.9% -25.6% 137.4%
DE Market 7.3% -17.9% -25.8% -17.7% -25.6% -29%
1 Year Return vs Industry and Market
  • 1T4 underperformed the Oil and Gas industry which returned 21.9% over the past year.
  • 1T4 outperformed the Market in Germany which returned -17.7% over the past year.
Price Volatility
1T4
Industry
5yr Volatility vs Market

1T4 Value

 Is TORM undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of TORM to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for TORM.

DB:1T4 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in USD $ 1.0533333333333
Payout Ratio Company Filings (2019-12-31) -1379.4%
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:1T4
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.808 (1 + (1- 19%) (143.76%))
1.502
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.5
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.502 * 6.07%)
8.73%

Discounted Cash Flow Calculation for DB:1T4 using Dividend Discount Model Model

The calculations below outline how an intrinsic value for TORM is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

DB:1T4 Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= $1.05 / (8.73% - -0.39%)
$1.09
DB:1T4 Discount to Share Price
Calculation Result
Exchange Rate USD/DKK
(Reporting currency to currency of CPSE:TRMD A)
6.769
Value per Share
(DKK)
= Value per Share in USD x Exchange Rate (USD/DKK)
= $10.21 x 6.769
DKK69.12
Non-primary Listing Adjustment Factor 1 share in DB:1T4 represents 0.12532x of CPSE:TRMD A
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.12532x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (DKK) x Listing Adjustment Factor
= DKK 69.12 x 0.12532
€8.66
Value per share (EUR) From above. €8.66
Current discount Discount to share price of €6.78
= -1 x (€6.78 - €8.66) / €8.66
21.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price TORM is available for.
Intrinsic value
22%
Share price is €6.78 vs Future cash flow value of €8.66
Current Discount Checks
For TORM to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • TORM's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • TORM's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for TORM's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TORM's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:1T4 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $2.24
CPSE:TRMD A Share Price ** CPSE (2020-03-30) in DKK DKK54.1
CPSE:TRMD A Share Price converted to USD reporting currency Exchange rate (DKK/ USD) 0.148 $7.99
Europe Oil and Gas Industry PE Ratio Median Figure of 105 Publicly-Listed Oil and Gas Companies 5.67x
Germany Market PE Ratio Median Figure of 400 Publicly-Listed Companies 16.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of TORM.

DB:1T4 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= CPSE:TRMD A Share Price ÷ EPS (both in USD)

= 7.99 ÷ 2.24

3.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TORM is good value based on earnings compared to the Europe Oil and Gas industry average.
  • TORM is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does TORM's expected growth come at a high price?
Raw Data
DB:1T4 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.56x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
-2.9%per year
Europe Oil and Gas Industry PEG Ratio Median Figure of 65 Publicly-Listed Oil and Gas Companies 0.17x
Germany Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

DB:1T4 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 3.56x ÷ -2.9%

-1.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TORM earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on TORM's assets?
Raw Data
DB:1T4 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $13.54
CPSE:TRMD A Share Price * CPSE (2020-03-30) in DKK DKK54.1
CPSE:TRMD A Share Price converted to USD reporting currency Exchange rate (DKK/ USD) 0.148 $7.99
Germany Oil and Gas Industry PB Ratio Median Figure of 6 Publicly-Listed Oil and Gas Companies 0.94x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.43x
DB:1T4 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= CPSE:TRMD A Share Price ÷ Book Value per Share (both in USD)

= 7.99 ÷ 13.54

0.59x

* Primary Listing of TORM.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TORM is good value based on assets compared to the DE Oil and Gas industry average.
X
Value checks
We assess TORM's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. TORM has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

1T4 Future Performance

 How is TORM expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-2.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TORM expected to grow at an attractive rate?
  • TORM's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • TORM's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • TORM's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:1T4 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:1T4 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts -2.9%
DB:1T4 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 6.2%
Europe Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 13%
Europe Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 2.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:1T4 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:1T4 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 857 272 126 1
2021-12-31 1,044 368 256 2
2020-12-31 985 313 227 2
2020-03-30
DB:1T4 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 693 171 166
2019-09-30 668 135 18
2019-06-30 662 121 2
2019-03-31 659 108 -12
2018-12-31 635 71 -35
2018-09-30 638 88 -29
2018-06-30 653 88 -9
2018-03-31 647 101 -1
2017-12-31 657 110 2
2017-09-30 639 100 -191
2017-06-30 639 121 -185
2017-03-31 659 127 -169

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • TORM's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • TORM's revenue is expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:1T4 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from TORM Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:1T4 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 1.70 1.70 1.70 1.00
2021-12-31 2.26 2.26 2.26 1.00
2020-12-31 2.18 2.18 2.18 1.00
2020-03-30
DB:1T4 Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 2.24
2019-09-30 0.24
2019-06-30 0.02
2019-03-31 -0.16
2018-12-31 -0.48
2018-09-30 -0.42
2018-06-30 -0.14
2018-03-31 -0.02
2017-12-31 0.04
2017-09-30 -3.04
2017-06-30 -2.95
2017-03-31 -2.70

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if TORM will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess TORM's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
TORM has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

1T4 Past Performance

  How has TORM performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare TORM's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • TORM's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • TORM has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • TORM has become profitable in the last year making it difficult to compare the Europe Oil and Gas industry average.
Earnings and Revenue History
TORM's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from TORM Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:1T4 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 692.61 166.02 47.72
2019-09-30 667.97 17.72 47.63
2019-06-30 661.77 1.82 48.23
2019-03-31 658.67 -12.28 48.03
2018-12-31 635.37 -34.78 47.83
2018-09-30 638.19 -29.49 47.91
2018-06-30 653.49 -8.79 47.11
2018-03-31 647.29 -1.49 46.61
2017-12-31 656.99 2.41 45.01
2017-09-30 639.34 -191.09 42.31
2017-06-30 639.34 -185.39 42.01
2017-03-31 659.24 -168.79 41.31
2016-12-31 680.14 -142.49 41.41
2016-09-30 712.60 74.08 42.39
2016-06-30 772.30 137.38 40.79
2016-03-31 666.90 141.78 30.09
2015-12-31 540.40 125.98 19.49
2015-09-30 418.90 109.10 8.60
2014-12-31 180.00 13.00 1.00
2013-12-31 34.50 3.00 1.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • TORM has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • TORM used its assets more efficiently than the Europe Oil and Gas industry average last year based on Return on Assets.
  • TORM's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess TORM's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
TORM has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

1T4 Health

 How is TORM's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up TORM's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TORM is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • TORM's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of TORM's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from TORM Company Filings, last reported 2 months ago.

DB:1T4 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,007.69 824.78 56.85
2019-09-30 851.80 665.60 120.80
2019-06-30 864.30 691.50 106.40
2019-03-31 866.50 698.90 155.30
2018-12-31 847.21 724.29 124.09
2018-09-30 858.70 728.60 163.20
2018-06-30 882.20 725.30 159.10
2018-03-31 892.20 718.40 173.60
2017-12-31 791.05 720.92 134.21
2017-09-30 784.10 741.80 145.10
2017-06-30 787.80 723.60 213.80
2017-03-31 786.20 774.40 214.80
2016-12-31 780.58 669.56 75.97
2016-09-30 963.10 671.20 77.40
2016-06-30 984.90 703.70 117.00
2016-03-31 1,000.70 713.80 122.70
2015-12-31 975.98 766.26 168.26
2015-09-30 947.00 689.60 169.70
2014-12-31 470.00 141.50 38.10
2013-12-31 201.00 0.00 1.60
  • TORM's level of debt (81.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (30.4% vs 81.8% today).
  • Debt is well covered by operating cash flow (20.7%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess TORM's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. TORM has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

1T4 Dividends

 What is TORM's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.25%
Current annual income from TORM dividends. Estimated to be 13.18% next year.
If you bought €2,000 of TORM shares you are expected to receive €25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • TORM's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.7%).
  • TORM's dividend is below the markets top 25% of dividend payers in Germany (4.97%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:1T4 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Europe Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 68 Stocks 9.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 1%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:1T4 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.88 1.00
2021-12-31 1.16 1.00
2020-12-31 1.12 1.00
2020-03-30
DB:1T4 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2016-11-15 0.800 8.919
2016-08-16 0.800 9.065

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TORM has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • TORM has only been paying a dividend for 4 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of TORM's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (22.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess TORM's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can TORM afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. TORM has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

1T4 Management

 What is the CEO of TORM's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jacob Meldgaard
COMPENSATION $2,208,000
AGE 51
TENURE AS CEO 9.9 years
CEO Bio

Mr. Jacob Balslev Meldgaard has been the Chief Executive Officer of Torm Plc since April 2010 and has been its Executive Director since December 14, 2015. Mr. Meldgaard has 25+ years of shipping experience. He served as the Chief Executive Officer of TORM A/S since April 1, 2010. He served as the Chief Executive Officer of Aktieselskabet Dampskibsselskabet Torm. He joined Dampskibsselskabet Norden A/S in 1997 and served as its Executive Vice President until September 2008, Member of the Management Board from April 1, 2008 to September 2008, Senior Vice President since 2004, Head of Dry Cargo Department from 2004 to April 1, 2008 and General Manager since January 1, 2002. He served for five years with A.P. Møller-Mærsk, where he received his shipping training. He served at J. Lauritzen A/S for two years. He served as an Executive Director of TORM A/S. He has been Independent Director of Danmarks Skibskredit A/S since June 16, 2017. Mr. Meldgaard holds a Bachelors of Commerce degree in International Trade from the Copenhagen Business School and has completed management programmes at INSEAD in France and at the Wharton Business School in the USA. He completed Advanced Management Program at Harvard Business School, USA.

CEO Compensation
  • Jacob's compensation has increased in line with TORM recently becoming profitable.
  • Jacob's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the TORM management team in years:

8.8
Average Tenure
50.5
Average Age
  • The average tenure for the TORM management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jacob Meldgaard

TITLE
CEO & Executive Director
COMPENSATION
$2M
AGE
51
TENURE
9.9 yrs

Kim Balle

TITLE
Chief Financial Officer
AGE
50
TENURE
0.3 yrs

Jesper Jensen

TITLE
Senior VP & Head of Technical Division
AGE
50

Mark Poulsen

TITLE
Investor Relations

Lars Christensen

TITLE
Senior VP & Head of Projects
AGE
53
TENURE
8.8 yrs

Morten Agdrup

TITLE
VP and Head of Corporate Finance & Strategy
Board of Directors Tenure

Average tenure and age of the TORM board of directors in years:

4.3
Average Tenure
54
Average Age
  • The tenure for the TORM board of directors is about average.
Board of Directors

Christopher Boehringer

TITLE
Chairman
COMPENSATION
$252K
AGE
48
TENURE
5.2 yrs

Jacob Meldgaard

TITLE
CEO & Executive Director
COMPENSATION
$2M
AGE
51
TENURE
4.3 yrs

David Weinstein

TITLE
Deputy Chairman & Senior Independent Director
COMPENSATION
$198K
AGE
60
TENURE
5.2 yrs

Pär Trapp

TITLE
Non-Executive Independent Director
COMPENSATION
$170K
AGE
57
TENURE
4.4 yrs

Torben Janholt

TITLE
Former Observer to the Board
COMPENSATION
$170K
AGE
73
TENURE
4.3 yrs

Jeffrey Stein

TITLE
Board Observer
AGE
50
TENURE
4.3 yrs

Rasmus Johannes Hoffmann

TITLE
Board Observer
AGE
42
TENURE
3.9 yrs

Lars Rasmussen

TITLE
Board Observer
AGE
54
TENURE
2.7 yrs

Annette Justad

TITLE
Former Director
AGE
60
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess TORM's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. TORM has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

1T4 News

Simply Wall St News

1T4 Company Info

Description

TORM plc, a product tanker company, engages in the transportation of refined oil products worldwide. The company transports gasoline, jet fuel, naphtha, and diesel oil. As of March 13, 2020, it operated a fleet of approximately 80 vessels. The company was founded in 1889 and is based in London, the United Kingdom. TORM PLC is a subsidiary of Njord Luxco.

Details
Name: TORM plc
1T4
Exchange: DB
Founded: 1889
DKK539,307,031
74,447,784
Website: http://www.torm.com
Address: TORM plc
Birchin Court,
20 Birchin Lane,
London,
Greater London, EC3V 9DU,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
CPSE TRMD A Class A Common Shares OMX Nordic Exchange Copenhagen DK DKK 19. Apr 2016
NasdaqGS TRMD Class A Common Shares Nasdaq Global Select US USD 19. Apr 2016
DB 1T4 Class A Common Shares Deutsche Boerse AG DE EUR 19. Apr 2016
LSE 0RG4 Class A Common Shares London Stock Exchange GB DKK 19. Apr 2016
BATS-CHIXE TRMDAC Class A Common Shares BATS 'Chi-X Europe' GB DKK 19. Apr 2016
Number of employees
Current staff
Staff numbers
455
TORM employees.
Industry
Oil and Gas Storage and Transportation
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/30 23:44
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2020/03/23
Last earnings filing: 2020/03/11
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.