Latest Ratios: P/E Ratio 11.6x · EV/EBITDA 7.5x · ROE 13.9%. (2000–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.5B | $2.0B | $1.9B | $2.6B | $2.4B | $622M | $524M | $802M | $430M | — | — |
| Enterprise Value | $4.4B | $2.8B | $2.8B | $3.4B | $3.1B | $1.6B | $1.3B | $1.6B | $1.1B | — | — |
| P/E Ratio → | 11.63 | 6.61 | 3.06 | 4.07 | 4.23 | — | 5.55 | 4.82 | — | — | — |
| P/S Ratio | 2.53 | 1.41 | 1.20 | 1.73 | 1.67 | 1.00 | 0.70 | 1.16 | 0.68 | — | — |
| P/B Ratio | 1.57 | 0.89 | 0.90 | 1.58 | 1.61 | 0.59 | 0.51 | 0.80 | 0.51 | — | — |
| P/FCF | 17.79 | 9.92 | 8.03 | 8.75 | 6.31 | — | 8.35 | — | — | — | — |
| P/OCF | 6.79 | 3.79 | 2.37 | 3.21 | 4.81 | 12.97 | 2.22 | 4.69 | 6.08 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.02 | 1.81 | 2.26 | 2.12 | 2.60 | 1.71 | 2.31 | 1.66 | — | — |
| EV / EBITDA | 7.55 | 4.86 | 3.32 | 4.05 | 4.13 | 12.19 | 4.89 | 5.07 | 9.26 | — | — |
| EV / EBIT | 12.27 | 7.33 | 4.16 | 4.84 | 5.06 | 984.90 | 9.34 | 7.77 | 424.39 | — | — |
| EV / FCF | — | 14.22 | 12.12 | 11.38 | 8.00 | — | 20.35 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 34.1% | 34.1% | 60.8% | 61.9% | 58.5% | 40.0% | 53.2% | 45.4% | 37.0% | 41.7% | 46.3% |
| Operating Margin | 25.6% | 25.6% | 42.3% | 45.9% | 41.7% | 0.2% | 18.6% | 29.7% | 0.4% | 6.0% | -15.8% |
| Net Profit Margin | 21.3% | 21.3% | 39.3% | 42.6% | 39.0% | -6.8% | 11.8% | 24.0% | -5.5% | 0.4% | -21.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.9% | 13.9% | 32.7% | 40.9% | 44.0% | -4.1% | 8.7% | 17.9% | -4.2% | 0.3% | -16.2% |
| ROA | 8.7% | 8.7% | 19.3% | 23.6% | 22.8% | -1.9% | 4.4% | 8.9% | -2.1% | 0.1% | -8.3% |
| ROIC | 8.8% | 8.8% | 18.0% | 22.7% | 21.5% | 0.1% | 5.8% | 9.4% | 0.1% | 2.1% | -5.4% |
| ROCE | 11.6% | 11.6% | 22.8% | 27.9% | 27.1% | 0.1% | 7.7% | 12.3% | 0.2% | 2.7% | -6.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.46 | 0.46 | 0.59 | 0.64 | 0.64 | 1.08 | 0.83 | 0.85 | 0.88 | 0.95 | 0.88 |
| Debt / EBITDA | 1.75 | 1.75 | 1.44 | 1.25 | 1.31 | 8.59 | 3.23 | 2.71 | 6.60 | 4.65 | 72.24 |
| Net Debt / Equity | — | 0.39 | 0.46 | 0.48 | 0.43 | 0.94 | 0.74 | 0.79 | 0.73 | 0.78 | 0.78 |
| Net Debt / EBITDA | 1.47 | 1.47 | 1.12 | 0.94 | 0.87 | 7.49 | 2.89 | 2.53 | 5.48 | 3.81 | 64.21 |
| Debt / FCF | — | 4.29 | 4.09 | 2.63 | 1.69 | — | 12.00 | — | — | — | 11.74 |
| Interest Coverage | 4.99 | 4.99 | 9.73 | 12.62 | 12.43 | 0.04 | 1.76 | 3.90 | 0.06 | 1.20 | -3.37 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.33 | 1.33 | 2.16 | 2.60 | 3.58 | 1.18 | 1.24 | 1.11 | 1.61 | 1.67 | 1.19 |
| Quick Ratio | 1.16 | 1.16 | 1.92 | 2.37 | 3.23 | 1.02 | 1.12 | 0.93 | 1.38 | 1.46 | 0.99 |
| Cash Ratio | 0.41 | 0.41 | 0.95 | 1.00 | 1.55 | 0.47 | 0.45 | 0.29 | 0.76 | 0.86 | 0.50 |
| Asset Turnover | — | 0.41 | 0.45 | 0.53 | 0.55 | 0.27 | 0.37 | 0.35 | 0.37 | 0.40 | 0.43 |
| Inventory Turnover | 13.80 | 13.80 | 8.93 | 9.39 | 8.31 | 7.62 | 15.58 | 10.85 | 10.15 | 11.53 | 11.56 |
| Days Sales Outstanding | — | 62.47 | 48.95 | 52.74 | 66.58 | 52.02 | 31.31 | 49.59 | 49.40 | 46.15 | 37.92 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 6.0% | 10.6% | 28.2% | 22.7% | 6.9% | — | 13.5% | — | — | — | — |
| Payout Ratio | 70.0% | 70.0% | 86.2% | 92.3% | 29.6% | — | 80.1% | — | — | 51.5% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.6% | 15.1% | 32.7% | 24.6% | 23.7% | — | 18.0% | 20.8% | — | — | — |
| FCF Yield | 5.6% | 10.1% | 12.5% | 11.4% | 15.8% | — | 12.0% | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.3% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 6.0% | 10.6% | 28.2% | 22.7% | 6.9% | 0.0% | 13.7% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $100M | $96M | $87M | $83M | $78M | $74M | $74M | $73M | $62M | $63M |
Includes 30+ ratios · 26 years · Updated daily
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Quick answers to the most common questions about buying TRMD stock.
TORM plc's current P/E ratio is 11.6x. The historical average is 4.7x. This places it at the 100th percentile of its historical range.
TORM plc's current EV/EBITDA is 7.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.0x.
TORM plc's return on equity (ROE) is 13.9%. The historical average is 10.1%.
Based on historical data, TORM plc is trading at a P/E of 11.6x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
TORM plc's current dividend yield is 6.01% with a payout ratio of 70.0%.
TORM plc has 34.1% gross margin and 25.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
TORM plc's Debt/EBITDA ratio is 1.7x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Cyclical Rate Normalization
Deep Value Pricing Amidst Cyclical Peak
TORM's forward P/E of 4.37 and EV/EBITDA of 3.27, as reported in recent financial statements, suggest the market is pricing in a severe earnings contraction, a discount that appears extreme relative to the company's current strong profitability and low leverage.
The current valuation multiples are at a significant discount to the peer group, with TORM's forward P/E of 4.37 well below the peer average of ~11.5. This implies the market expects a sharp reversion in freight rates and profitability, potentially overshooting the actual cyclical risk. The PEG ratio of 0.60 further underscores this deep value pricing, suggesting the market is not assigning any value to the company's recent earnings power or its strategic positioning within the product tanker cycle.
Peak Margins Driven by Favorable Rates
TORM's net margin expanded to 51.0% in 2026Q2, a level that appears unsustainable and is directly tied to the exceptional Time Charter Equivalent rates achieved in a favorable freight market.
The dramatic expansion in gross margin from 36.3% in 2025Q3 to 57.3% in 2026Q2, and the corresponding net margin surge, indicates that current profitability is at a cyclical peak rather than reflecting a permanent structural improvement. The high operating leverage inherent in the fleet means that a normalization in spot rates would lead to a rapid and significant compression of these margins, a risk the market is clearly pricing into the valuation multiples.
ROIC Surge Reflects Cyclical Leverage
Return on Invested Capital (ROIC) surged to 8.2% in 2026Q2 from a low of 1.9% in 2025Q2, a volatile trajectory that highlights the company's high sensitivity to the freight rate cycle rather than a steady compounding of returns.
The ROIC trend is not indicative of a durable competitive moat translating into consistent returns, but rather a direct function of the volatile Time Charter Equivalent rates. The sharp swings in ROE, from 2.8% to 13.8% over four quarters, further confirm that returns are being driven by external market conditions (rates) rather than internal improvements in capital efficiency or margin structure. Investors should monitor whether the company can sustain returns above its cost of capital through a full cycle.
Low Financial Leverage Masks Operational Risk
The reported debt-to-equity ratio of 0.42 in 2026Q2 appears exceptionally low for a capital-intensive shipping company, suggesting significant operating lease obligations may be excluded from this headline metric.
While the improving D/E ratio from 0.63 to 0.42 over two years indicates strategic deleveraging, the figure is anomalous for the industry and warrants scrutiny of the cash flow statement for lease payments. The interest coverage ratio of 19.43x is extremely comfortable, but this strength is contingent on maintaining the current high earnings level. A cyclical downturn would rapidly erode this coverage, though the low reported debt provides a meaningful buffer compared to more levered peers like Tsakos Energy Navigation.
The Misleading Safety of Low Reported Leverage
The debt-to-equity ratio of 0.42 is the most commonly misapplied ratio for TORM, as it likely understates true financial leverage by excluding substantial operating lease liabilities for its fleet.
For asset-heavy shipping companies, the standard debt-to-equity ratio often fails to capture the full economic obligation of long-term vessel leases, which function similarly to debt. Investors relying solely on this metric may underestimate the company's true fixed obligations and financial risk profile. A more appropriate analysis would focus on the Net Debt to EBITDA ratio or incorporate capitalized lease obligations to assess the true leverage and interest burden, especially given the cyclical nature of the company's cash flows.