Torm PLC Price To Sales vs. Gross Profit

TRMD Stock  USD 21.89  0.18  0.83%   
Based on the measurements of profitability obtained from Torm PLC's financial statements, Torm PLC Class is performing exceptionally good at this time. It has a great risk to showcase excellent profitability results in December. Profitability indicators assess Torm PLC's ability to earn profits and add value for shareholders.

Torm PLC Price To Sales Ratio

2.32

At present, Torm PLC's EV To Sales is projected to increase slightly based on the last few years of reporting. The current year's Sales General And Administrative To Revenue is expected to grow to 0.07, whereas Days Sales Outstanding is forecasted to decline to 31.36. At present, Torm PLC's Operating Income is projected to increase significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 684.6 M, whereas Net Interest Income is forecasted to decline to (48.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.330.6188
Way Down
Slightly volatile
For Torm PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Torm PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Torm PLC Class utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Torm PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Torm PLC Class over time as well as its relative position and ranking within its peers.
  
Check out World Market Map.
Is Oil & Gas Storage & Transportation space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Torm PLC. If investors know Torm will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Torm PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.05)
Dividend Share
5.86
Earnings Share
8.08
Revenue Per Share
18.109
Quarterly Revenue Growth
0.039
The market value of Torm PLC Class is measured differently than its book value, which is the value of Torm that is recorded on the company's balance sheet. Investors also form their own opinion of Torm PLC's value that differs from its market value or its book value, called intrinsic value, which is Torm PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Torm PLC's market value can be influenced by many factors that don't directly affect Torm PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Torm PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Torm PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Torm PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Torm PLC Class Gross Profit vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Torm PLC's current stock value. Our valuation model uses many indicators to compare Torm PLC value to that of its competitors to determine the firm's financial worth.
Torm PLC Class is rated fourth in price to sales category among its peers. It is currently regarded as top stock in gross profit category among its peers fabricating about  612,972,401  of Gross Profit per Price To Sales. At present, Torm PLC's Price To Sales Ratio is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Torm PLC by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Torm Gross Profit vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Torm PLC

P/S

 = 

MV Per Share

Revenue Per Share

 = 
1.28 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Torm PLC

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
781.78 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Torm Gross Profit Comparison

Torm PLC is currently under evaluation in gross profit category among its peers.

Torm PLC Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Torm PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Torm PLC will eventually generate negative long term returns. The profitability progress is the general direction of Torm PLC's change in net profit over the period of time. It can combine multiple indicators of Torm PLC, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income25.1 M29.7 M
Operating Income698.6 M733.5 M
Income Before Tax652 M684.6 M
Total Other Income Expense Net-46.6 M-44.3 M
Net Income661.3 M694.4 M
Income Tax ExpenseM4.3 M
Net Income From Continuing Ops648 M680.4 M
Net Income Applicable To Common Shares647.2 M679.5 M
Interest Income14.3 M15 M
Net Interest Income-46.6 M-48.9 M
Change To Netincome-17.1 M-16.2 M
Net Income Per Share 7.48  7.11 
Income Quality 1.24  1.95 
Net Income Per E B T 0.99  1.20 

Torm Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Torm PLC. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Torm PLC position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Torm PLC's important profitability drivers and their relationship over time.

Use Torm PLC in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Torm PLC position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Torm PLC will appreciate offsetting losses from the drop in the long position's value.

Torm PLC Pair Trading

Torm PLC Class Pair Trading Analysis

The ability to find closely correlated positions to Torm PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Torm PLC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Torm PLC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Torm PLC Class to buy it.
The correlation of Torm PLC is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Torm PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Torm PLC Class moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Torm PLC can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Torm PLC position

In addition to having Torm PLC in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether Torm PLC Class is a strong investment it is important to analyze Torm PLC's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Torm PLC's future performance. For an informed investment choice regarding Torm Stock, refer to the following important reports:
Check out World Market Map.
You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
To fully project Torm PLC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Torm PLC Class at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Torm PLC's income statement, its balance sheet, and the statement of cash flows.
Potential Torm PLC investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Torm PLC investors may work on each financial statement separately, they are all related. The changes in Torm PLC's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Torm PLC's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.