Torm plc (TRMD, Financial) recently expanded its share capital through the issuance of 18,769 new A-shares. This increase is attributed to the exercise of an equivalent number of restricted share units. The newly issued shares have been fully subscribed for in cash, with each A-share priced at DKK 0.08.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for TORM PLC (TRMD, Financial) is $20.41 with a high estimate of $25.00 and a low estimate of $16.22. The average target implies an upside of 23.37% from the current price of $16.54. More detailed estimate data can be found on the TORM PLC (TRMD) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, TORM PLC's (TRMD, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for TORM PLC (TRMD, Financial) in one year is $15.61, suggesting a downside of 5.62% from the current price of $16.54. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the TORM PLC (TRMD) Summary page.
TRMD Key Business Developments
Release Date: March 06, 2025
- TCE Earnings: $1.135 billion for the full year 2024.
- Fleet-wide Rates: $39,626 per day for the first three quarters; decreased to $25,775 per day in Q4.
- Net Profit: $612 million for the full year 2024.
- Return on Invested Capital: 24.3% for the full year 2024.
- EBITDA: $851 million for the full year 2024; $142 million in Q4.
- Q4 TCE: $215 million.
- Q4 Net Profit: $77 million.
- Basic Earnings Per Share (Q4): $0.77 per share.
- Dividend (Q4): $0.60 per share, with a payout ratio of 75%.
- Net Interest-Bearing Debt: $948 million at the end of 2024.
- Debt Maturity: $168 million maturing in 2025.
- 2025 TCE Earnings Forecast: $650 million to $950 million.
- 2025 EBITDA Forecast: $350 million to $650 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- TORM PLC (TRMD, Financial) achieved a new all-time high in TCE earnings of $1.135 billion for 2024.
- The company reported a net profit of $612 million and a return on invested capital of 24.3% for the full year.
- Fleet efficiency, disciplined cost management, and a well-executed commercial strategy are key strengths for TORM PLC (TRMD).
- The company has a strong capital structure and operational leverage, positioning it well to navigate market uncertainties.
- TORM PLC (TRMD) is committed to sustainability, having achieved a 40% reduction in carbon intensity by the end of 2024, meeting the IMO 2030 target ahead of schedule.
Negative Points
- Freight rates decreased in the fourth quarter of 2024, with fleet-wide rates dropping to $25,775 per day.
- The normal seasonal strengthening of the market did not materialize in the fourth quarter, impacting earnings.
- Geopolitical risks and market uncertainties introduce a wide range of potential earnings outcomes for 2025.
- The company's earnings per share for Q4 decreased significantly to $0.77 compared to $2.18 in the same period last year.
- The U.S. proposal to tax Chinese-built tonnage could impact TORM PLC (TRMD)'s operations and market strategy.
