# Torm (TRMD.US)

Canonical: https://gigainvestors.com/s/TRMD

Analysis as of: 2026-10-16T07:32:29.915Z. Financial observations: FY2000–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $38.69 per share; close as of 2026-10-15.

Estimated value: low $45.17 per share, central $54.94 per share, high $63.53 per share. Buy at or below the central value $54.94 per share. Valuation as of 2026-10-16T07:32:29.915Z; scenarios are not confidence intervals.

Expected annual return: 13.2% at the stated quote. About 13.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 3

- Operating margin variation: 1.03×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.16×

- FY2017: 0.06×

- FY2018: 0.00×

- FY2019: 0.30×

- FY2020: 0.19×

- FY2021: 0.00×

- FY2022: 0.42×

- FY2023: 0.46×

- FY2024: 0.42×

- FY2025: 0.26×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 11.7pp below the typical margin (limit 4pp)

- ROIC, median of available years: 9.5%

- ROIC, second-lowest year: 0.1%

- Typical minus recent gross margin: 11.7 pp

- Typical gross margin (annual median): 45.8%

- Recent gross margin (lower of latest and 3-year median): 34.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 27.5%

- ROIC including acquisitions, ten-year median: 3.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -6.1%

- FY2017: 2.1%

- FY2018: 0.2%

- FY2019: 11.3%

- FY2020: 7.7%

- FY2021: 0.1%

- FY2022: 28.0%

- FY2023: 28.3%

- FY2024: 21.8%

- FY2025: 11.3%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.64×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.3B

- Net income, five-year total: $2.1B

- Return on incremental invested capital: 12.6%

- Working capital / revenue, annual change: 0.7 pp

- Working capital / revenue, change between three-year averages: 3.5 pp

- Working capital / revenue, final three-year average: 16.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 5.49×

- FY2022: 1.03×

- FY2023: 0.68×

- FY2024: 0.53×

- FY2025: 0.67×

### management: fail

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 0.2% vs 21.8%

- Per-share earnings: 0.04 to 6.36 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 6.8%

- Ordinary dilution, 5-year annual growth: 6.1%

- Market cap gain: $1.5B

- Cumulative retained earnings: $1.0B

- Diluted shares, 10-year annual growth: 6.8%

- Diluted shares, 5-year annual growth: 6.1%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 89.1%

- Per-share value change: $6.32

- Per-share value, starting three-year median: $0.04

- Per-share value, ending three-year median: $6.36

- Buybacks concentrated in cheaper years (correlation): 0.40

- Average buyback yield: 0.2%

- Buyback history: 4 years

- Debt-funded buybacks: Yes

- Acquisition spending: $61M

- Cumulative net income, 10 years: $2.2B

- ROIC, first three-year median: 0.2%

- ROIC, last three-year median: 21.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$2.27

- FY2017: $0.04

- FY2018: -$0.48

- FY2019: $2.24

- FY2020: $1.19

- FY2021: -$0.54

- FY2022: $6.80

- FY2023: $7.48

- FY2024: $6.36

- FY2025: $2.96

### accounting: pass

- Sloan accruals: -6.6%

- Receivables to sales index (DSRI): 1.28×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.75×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -20.0%

- FY2017: -6.5%

- FY2018: -6.2%

- FY2019: -0.3%

- FY2020: -7.4%

- FY2021: -3.9%

- FY2022: 2.3%

- FY2023: -6.0%

- FY2024: -5.1%

- FY2025: -6.6%

## Holders

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Howard Marks](https://gigainvestors.com/oc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to shrink 1.9% a year for ten years · sales -10.9%

Story as of 2026-10-16T09:59:43.187Z; price observation 2026-10-15.

Price needs cash profits to shrink 1.9% a year for ten years

- 2025-08-14: TORM GAAP EPS of $0.60; raises FY outlook ([seekingalpha.com](https://seekingalpha.com/news/4485137-torm-gaap-eps-of-060-raises-fy-outlook?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-05-13: TORM GAAP EPS of $1.18, revenue of $402M; upgrades its full-year guidance ([seekingalpha.com](https://seekingalpha.com/news/4591870-torm-gaap-eps-of-118-revenue-of-402m-upgrades-its-full-year-guidance?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2024–2025

sales -10.9%; source https://www.sec.gov/Archives/edgar/data/1655891/000162828026011954/trmd-20251231.htm; observed 2026-02-26.

- FY2016: $680M 

- FY2017: $657M 

- FY2018: $635M 

- FY2019: $693M 

- FY2020: $747M 

- FY2021: $620M 

- FY2022: $1.4B 

- FY2023: $1.5B 

- FY2024: $1.6B 

- FY2025: $1.4B 

### Gross margin · FY2025

gross margin 34.1%; source https://www.sec.gov/Archives/edgar/data/1655891/000162828026011954/trmd-20251231.htm; observed 2026-02-26.

- FY2016: 46.3% 

- FY2017: 41.7% 

- FY2018: 37.0% 

- FY2019: 45.4% 

- FY2020: 53.2% 

- FY2021: 40.0% 

- FY2022: 58.5% 

- FY2023: 61.9% 

- FY2024: 60.8% 

- FY2025: 34.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in oil & gas midstream; annual sales are USD 1.4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1655891/000162828026011954/trmd-20251231.htm (filed 2026-02-26); FY2025: revenue 1389839148; grossProfit 474174311; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 34.1% to 61.9% during 2023–25; it earns 9.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 61.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 60.8%.

- Source: https://www.sec.gov/Archives/edgar/data/1655891/000162828026011954/trmd-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 34.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,-0.06103025302728429],[2017,0.021254346053824515],[2018,0.0015171671307903168],[2019,0.11345774676889445],[2020,0.07722204055293383],[2021,0.0005398718707487489],[2022,0.28028890959925445],[2023,0.28265514998756225],[2024,0.21766280107047278],[2025,0.11315569589847983]]; median 0.09518886822570682. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 139142826.9212478; upkeep 245206173.0787522; owner earnings 30939826.92124781. Growth capex / owner earnings = 4.497207669435668.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 51128000; upkeep 121922000; owner earnings 88114000. Growth capex / owner earnings = 0.5802483146832512.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 0; upkeep 119962000; cash acquisitions 0; owner earnings 581838000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 166281786.90730155; upkeep 353626507.09269845; cash acquisitions 0; owner earnings 443973492.90730155. Growth capex plus acquisitions / owner earnings = 0.3745308888114633.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 77968847.62208295; upkeep 477835239.37791705; cash acquisitions 0; owner earnings 326664760.62208295. Growth capex plus acquisitions / owner earnings = 0.23868153844817308.

- Source: https://www.sec.gov/Archives/edgar/data/1655891/000162828026011954/trmd-20251231.htm (filed 2026-02-26); FY2025: growth capex 0; upkeep 320093601; owner earnings 198489158. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,25000000],[2017,1240000],[2018,70611000],[2019,70611000],[2020,70611000],[2021,166658000],[2022,166658000],[2023,598210281],[2024,528032969],[2025,207204836]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 20.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TRMD.US SharesStats.PercentInsiders = 20.430999999999997 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 1.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate -0.0391910769704627. Price 38.69; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -1.1731914893617021 → FY2025 1.9829086713286714. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2018-02: $7.60 per share

- 2018-03: $7.40 per share

- 2018-04: $8.00 per share

- 2018-05: $7.32 per share

- 2018-06: $7.80 per share

- 2018-07: $7.75 per share

- 2018-08: $6.57 per share

- 2018-09: $6.60 per share

- 2018-10: $5.58 per share

- 2018-11: $6.80 per share

- 2018-12: $5.88 per share

- 2019-01: $6.21 per share

- 2019-02: $5.99 per share

- 2019-03: $7.50 per share

- 2019-04: $7.65 per share

- 2019-05: $8.99 per share

- 2019-06: $9.00 per share

- 2019-07: $8.45 per share

- 2019-08: $7.79 per share

- 2019-09: $8.50 per share

- 2019-10: $9.55 per share

- 2019-11: $9.90 per share

- 2019-12: $10.84 per share

- 2020-01: $8.45 per share

- 2020-02: $7.30 per share

- 2020-03: $7.57 per share

- 2020-04: $8.50 per share

- 2020-05: $8.00 per share

- 2020-06: $6.68 per share

- 2020-07: $7.41 per share

- 2020-08: $7.00 per share

- 2020-09: $6.82 per share

- 2020-10: $6.54 per share

- 2020-11: $7.18 per share

- 2020-12: $7.05 per share

- 2021-01: $7.24 per share

- 2021-02: $8.31 per share

- 2021-03: $9.12 per share

- 2021-04: $8.92 per share

- 2021-05: $9.38 per share

- 2021-06: $8.81 per share

- 2021-07: $8.84 per share

- 2021-08: $7.86 per share

- 2021-09: $7.74 per share

- 2021-10: $8.23 per share

- 2021-11: $7.46 per share

- 2021-12: $7.96 per share

- 2022-01: $7.04 per share

- 2022-02: $7.86 per share

- 2022-03: $8.86 per share

- 2022-04: $9.77 per share

- 2022-05: $13.40 per share

- 2022-06: $13.55 per share

- 2022-07: $16.29 per share

- 2022-08: $19.60 per share

- 2022-09: $20.29 per share

- 2022-10: $27.00 per share

- 2022-11: $27.99 per share

- 2022-12: $29.17 per share

- 2023-01: $25.69 per share

- 2023-02: $35.23 per share

- 2023-03: $31.13 per share

- 2023-04: $31.35 per share

- 2023-05: $24.81 per share

- 2023-06: $24.16 per share

- 2023-07: $25.01 per share

- 2023-08: $24.66 per share

- 2023-09: $27.52 per share

- 2023-10: $30.35 per share

- 2023-11: $28.20 per share

- 2023-12: $30.41 per share

- 2024-01: $35.94 per share

- 2024-02: $33.81 per share

- 2024-03: $34.95 per share

- 2024-04: $34.43 per share

- 2024-05: $37.05 per share

- 2024-06: $38.77 per share

- 2024-07: $38.68 per share

- 2024-08: $36.09 per share

- 2024-09: $34.19 per share

- 2024-10: $26.00 per share

- 2024-11: $20.94 per share

- 2024-12: $19.45 per share

- 2025-01: $19.93 per share

- 2025-02: $17.59 per share

- 2025-03: $16.48 per share

- 2025-04: $16.57 per share

- 2025-05: $15.98 per share

- 2025-06: $16.66 per share

- 2025-07: $18.40 per share

- 2025-08: $21.75 per share

- 2025-09: $20.62 per share

- 2025-10: $21.95 per share

- 2025-11: $21.41 per share

- 2025-12: $19.58 per share

- 2026-01: $24.34 per share

- 2026-02: $30.13 per share

- 2026-03: $27.90 per share

- 2026-04: $32.55 per share

- 2026-05: $27.24 per share

- 2026-06: $26.06 per share

- 2026-07: $30.31 per share

- 2026-08: $32.81 per share

- 2026-09: $38.05 per share

- 2026-10: $38.69 per share

## Annual estimated value (USD per share)

- FY2022: low $12.03 per share, central $13.21 per share, high $14.77 per share

- FY2023: low $25.31 per share, central $28.43 per share, high $32.57 per share

- FY2024: low $41.85 per share, central $50.16 per share, high $58.04 per share

- FY2025: low $33.15 per share, central $37.53 per share, high $43.37 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1655891/000162828026011954/trmd-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.