TORM plc Class A Common Stock (TRMD)

FairStock Score: 72/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a disciple of Graham and Buffett, I start with the business. TORM is an 1889-vintage operator of product tankers, moving refined products like gasoline, jet fuel, and diesel. Shipping is a commodity business; rates are set by global supply and demand, so I see little durable moat. Scale, fleet operations, and a small marine engineering arm help, but they do not protect pricing power like a consumer franchise would. Financial health is better than many cyclical shippers. In the latest reported quarter, fiscal Q1 2026, revenue was $402.0M and net income was $122.4M, a 30.45% margin. The provided company data list revenue growth of 22.15% and profit growth of 94.59%, though those rates are unlikely to persist in a cyclical industry. FairStock calculates ROE of 26.84% and ROCE of 11.90%, with debt-to-equity of 0.42. Piotroski is 7/9, and Altman Z is 2.56, a gray-zone but not alarming reading. At the 2026-10-13 close of $41.11, FairStock's P/E is 6.76 and P/B is 1.65. The Graham Number is $55.18, implying a 25.50% margin of safety, and EV/EBITDA is 6.28. Yet trailing free cash flow is only $85.1M, a 2.7% FCF yield, while the dividend yield is 11.56%. That gap says the dividend may depend on continued strong tanker rates rather than stable cash generation. The PEG of 0.07 looks spectacular but is likely flattered by cyclical profit growth. FairStock's Lynch category is none because only 0 years of filed results are available, needing 3. I see a cheap-looking, high-return cyclical with a weak moat and limited cash-flow cushion.

In plain English: TORM owns and operates product tankers that carry refined oil products such as gasoline, jet fuel, and diesel. The business looks strong on recent profits and returns, but shipping demand and prices can swing a lot, and it does not generate much spare cash after expenses. At the recent price, the stock looks cheaper than its profits and asset value suggest, though its high dividend is not fully covered by the cash the business generated over the past year.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer