Latest Ratios: P/E Ratio 9.6x · EV/EBITDA 6.5x · 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 | $2.9B | $2.0B | $1.9B | $2.6B | $2.4B | $622M | $524M | $802M | $430M | — | — |
| Enterprise Value | $3.7B | $2.8B | $2.8B | $3.4B | $3.1B | $1.6B | $1.3B | $1.6B | $1.1B | — | — |
| P/E Ratio → | 9.58 | 6.61 | 3.06 | 4.07 | 4.23 | — | 5.55 | 4.82 | — | — | — |
| P/S Ratio | 2.08 | 1.41 | 1.20 | 1.73 | 1.67 | 1.00 | 0.70 | 1.16 | 0.68 | — | — |
| P/B Ratio | 1.29 | 0.89 | 0.90 | 1.58 | 1.61 | 0.59 | 0.51 | 0.80 | 0.51 | — | — |
| P/FCF | 14.66 | 9.92 | 8.03 | 8.75 | 6.31 | — | 8.35 | — | — | — | — |
| P/OCF | 5.59 | 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 | 6.48 | 4.86 | 3.32 | 4.05 | 4.13 | 12.19 | 4.89 | 5.07 | 9.26 | — | — |
| EV / EBIT | 10.53 | 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 | 7.3% | 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 | 10.4% | 15.1% | 32.7% | 24.6% | 23.7% | — | 18.0% | 20.8% | — | — | — |
| FCF Yield | 6.8% | 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 | 7.3% | 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 |
Cyclical freight rate volatility
Based on current market data, TORM trades at a forward P/E of 3.76, which appears to reflect significant investor skepticism regarding the sustainability of peak freight rates compared to the broader peer group average, as noted in recent equity research and market pricing reports.
The low forward P/E multiple suggests that the market is pricing in a sharp earnings contraction, likely anticipating a reversion to historical mean freight rates. While the PEG ratio of 0.49 indicates potential undervaluation relative to growth, investors should monitor whether this reflects a genuine value opportunity or a structural trap given the inherent volatility of the product tanker cycle.
According to quarterly financial disclosures, TORM's ROIC has trended downward from 6.3% in 2024Q1 to 3.3% in 2026Q1, signaling a period of diminishing returns on invested capital as the company navigates a more challenging freight environment and increased fleet renewal expenditures.
The compression in ROIC suggests that the company's recent capital allocation into fleet assets is not yet generating the same level of efficiency as the peak cycle period. This trend warrants further investigation into whether the current fleet renewal strategy will eventually drive margin expansion or if it will continue to dilute returns on capital in the near term.
As reported in recent filings, TORM's cash conversion cycle has fluctuated, reaching 67 days in 2026Q1, which indicates that the company's ability to manage its working capital remains sensitive to the timing of voyage completions and the broader operational demands of the global tanker market.
The variability in the cash conversion cycle, particularly the DSO and DIO trends, suggests that operational leverage is highly dependent on the speed of cargo turnover. Investors should monitor these metrics closely, as any sustained increase in the CCC could signal a deterioration in the company's ability to convert freight services into immediate cash flow.
Based on reported figures, TORM maintains a debt-to-equity ratio of 0.48 as of 2026Q1, which appears notably conservative compared to historical industry norms and provides a significant buffer against the cyclical downturns inherent in the energy shipping sector's financing requirements.
The company's ability to maintain a stable debt-to-equity ratio while simultaneously funding fleet renewal suggests a disciplined approach to capital structure. This financial positioning may provide a competitive advantage over more highly levered peers, potentially allowing TORM to pursue opportunistic acquisitions if market conditions deteriorate further.
The price-to-book ratio is frequently misapplied to TORM, as it fails to account for the significant variance between the accounting book value of aging vessels and their actual market-based liquidation value in a volatile secondary market for product tankers.
Investors should prioritize Net Asset Value (NAV) over P/B, as NAV provides a more accurate reflection of the fleet's current market worth. Relying on P/B may obscure the true valuation of the company's assets, especially during periods when second-hand vessel prices decouple from historical cost-based accounting figures.
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 9.6x. The historical average is 4.7x. This places it at the 100th percentile of its historical range.
TORM plc's current EV/EBITDA is 6.5x. 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 9.6x. 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 7.30% 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.