Torm Plc (NASDAQ: TRMD)’s stock price has increased by 3.64 compared to its previous closing price of 34.93. However, the company has seen a 7.04% increase in its stock price over the last five trading sessions. Seeking Alpha reported 2024-05-01 that TORM plc’s stock has risen by 62.64% since I upgraded it to “Buy” in July 2023. But it’s still undervalued and well positioned, in my view – read on. The product tanker market is expected to experience increased demand and a decrease in supply, leading to favorable conditions for maintaining high rates. TORM’s financial position and dividend payout coverage should remain strong for at least the next 2 years.
Is It Worth Investing in Torm Plc (NASDAQ: TRMD) Right Now?
The price-to-earnings ratio for Torm Plc (NASDAQ: TRMD) is 4.84x, which is above its average ratio. Moreover, the 36-month beta value for TRMD is 0.18. Analysts have varying opinions on the stock, with 1 analysts rating it as a “buy,” 0 as “overweight,” 0 as “hold,” and 0 as “sell.”
The public float for TRMD is 41.55M and currently, short sellers hold a 5.00% of that float. On May 08, 2024, TRMD’s average trading volume was 600.37K shares.
TRMD’s Market Performance
TRMD’s stock has seen a 7.04% increase for the week, with a 4.68% rise in the past month and a 6.50% gain in the past quarter. The volatility ratio for the week is 1.89%, and the volatility levels for the past 30 days are at 2.20% for Torm Plc The simple moving average for the past 20 days is 6.44% for TRMD’s stock, with a 18.22% simple moving average for the past 200 days.
Analysts’ Opinion of TRMD
Many brokerage firms have already submitted their reports for TRMD stocks, with H.C. Wainwright repeating the rating for TRMD by listing it as a “Buy.” The predicted price for TRMD in the upcoming period, according to H.C. Wainwright is $14 based on the research report published on April 12, 2022 of the previous year 2022.
TRMD Trading at 5.90% from the 50-Day Moving Average
After a stumble in the market that brought TRMD to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -2.45% of loss for the given period.
Volatility was left at 2.20%, however, over the last 30 days, the volatility rate increased by 1.89%, as shares surge +2.85% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +5.33% upper at present.
During the last 5 trading sessions, TRMD rose by +5.80%, which changed the moving average for the period of 200-days by +53.90% in comparison to the 20-day moving average, which settled at $34.06. In addition, Torm Plc saw 19.04% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for TRMD
Current profitability levels for the company are sitting at:
- 0.43 for the present operating margin
- 0.61 for the gross margin
The net margin for Torm Plc stands at 0.42. The total capital return value is set at 0.25. Equity return is now at value 40.96, with 23.64 for asset returns.
Based on Torm Plc (TRMD), the company’s capital structure generated 0.39 points at debt to capital in total, while cash flow to debt ratio is standing at 0.76. The debt to equity ratio resting at 0.63. The interest coverage ratio of the stock is 10.7.
Currently, EBITDA for the company is 782.75 million with net debt to EBITDA at 0.95. When we switch over and look at the enterprise to sales, we see a ratio of 2.73. The receivables turnover for the company is 5.64for trailing twelve months and the total asset turnover is 0.53. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.60.
Conclusion
To wrap up, the performance of Torm Plc (TRMD) has been better in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
