Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
0
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield,
Earnings Yield = Net Income / Market Cap
Dividend Yield = Total Dividends / Market Cap is 32%, Dividend Yield is 17%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate,
Reflects the premium above risk free assets offered by the investment. is 28%, FCF Yield is 10%
Trading close to highsDist 52W High is -2.6%
Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -19%, Rev Chg QQuarterly Revenue Change % is -28%
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Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 46%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 17%
Weak multi-year price returns2Y Excs Rtn is -41%, 3Y Excs Rtn is -19%
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Low stock price volatilityVol 12M is 43%
0
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield,
Earnings Yield = Net Income / Market Cap
Dividend Yield = Total Dividends / Market Cap is 32%, Dividend Yield is 17%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate,
Reflects the premium above risk free assets offered by the investment. is 28%, FCF Yield is 10%
1
Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 46%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 17%
2
Low stock price volatilityVol 12M is 43%
3
Trading close to highsDist 52W High is -2.6%
4
Weak multi-year price returns2Y Excs Rtn is -41%, 3Y Excs Rtn is -19%
5
Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -19%, Rev Chg QQuarterly Revenue Change % is -28%
Here are five key points explaining the 26.2% stock movement for TORM (TRMD) from approximately July 31, 2025, to November 8, 2025:
1. Strong Q2 2025 Earnings and Upgraded Full-Year Guidance.
TORM reported strong second-quarter results on August 14, 2025, and significantly raised its full-year 2025 guidance for Time Charter Equivalent (TCE) earnings and EBITDA, signaling a positive outlook for the rest of the year.
2. Exceptional Q3 2025 Performance Exceeding Expectations.
The company announced on November 6, 2025, its "strongest quarterly result so far in 2025," with reported earnings per share (EPS) of $0.77, beating analyst consensus estimates of $0.60. This demonstrated robust operational performance and exceeded market expectations.
Here are five key points explaining the 26.2% stock movement for TORM (TRMD) from approximately July 31, 2025, to November 8, 2025:
1. Strong Q2 2025 Earnings and Upgraded Full-Year Guidance.
TORM reported strong second-quarter results on August 14, 2025, and significantly raised its full-year 2025 guidance for Time Charter Equivalent (TCE) earnings and EBITDA, signaling a positive outlook for the rest of the year.
2. Exceptional Q3 2025 Performance Exceeding Expectations.
The company announced on November 6, 2025, its "strongest quarterly result so far in 2025," with reported earnings per share (EPS) of $0.77, beating analyst consensus estimates of $0.60. This demonstrated robust operational performance and exceeded market expectations.
3. Significant Increase in Quarterly Dividend.
TORM's board approved a substantial interim dividend of USD 0.62 per share for the third quarter of 2025, a 55% increase from the previous quarter's dividend of USD 0.40. This enhanced shareholder return policy reflected strong earnings and a confident financial position.
4. Positive Revised Financial Outlook and High Earnings Visibility.
The company further narrowed and slightly increased its full-year 2025 guidance for TCE earnings to a range of USD 875-925 million and EBITDA to USD 540-590 million. Furthermore, TORM secured 89% of its earning days for the full year 2025 at an average rate of USD/day 28,281, providing strong earnings visibility.
5. Strategic Fleet Management and Favorable Market Conditions.
TORM actively managed its fleet through strategic sales of older vessels and the acquisition of five newer vessels, expanding its fleet size to 92. These actions, coupled with firm freight rates during Q3 2025 and ongoing geopolitical volatility underpinning the tanker market, created a favorable operational environment.
[1] Cumulative total returns since the beginning of 2020 [2] Peers: FRO, BANL, TMDE, TOPS, ENB. [3] Win Rate = % of calendar months in which monthly returns were positive [4] Max drawdown represents maximum peak-to-trough decline within a year [5] 2025 data is for the year up to 11/7/2025 (YTD)
TORM plc, a product tanker company, engages in the transportation of refined oil products and crude oil worldwide. The company transports gasoline, jet fuel, and naphtha. As of March 23, 2022, it operated a fleet of approximately 85 vessels. The company was founded in 1889 and is headquartered in London, the United Kingdom.
[1] Choosing top 10 best bets from each sector quarterly is an alpha producing strategy vs sector benchmark [2] Historical annualized return of 5.4%, alpha of -0.1%, and sharpe of 0.25
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
Comparison of TRMD With Other Asset Classes (Last 1Y)
TRMD
Sector ETF
Equity
Gold
Commodities
Real Estate
Bitcoin
Annualized Return
1.2%
2.4%
18.9%
45.7%
0.7%
-1.3%
52.4%
Annualized Volatility
43.0%
24.6%
19.6%
19.9%
16.1%
18.0%
37.2%
Sharpe Ratio
0.14
0.05
0.76
1.78
-0.14
-0.22
0.88
Correlation With Other Assets
38.8%
22.7%
14.3%
34.7%
6.3%
2.8%
ETFs used for asset classes: Sector ETF = XLE, Equity = SPY, Gold = GLD, Commodities = DBC, Real Estate = VNQ, and Bitcoin = BTCUSD Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
Comparison of TRMD With Other Asset Classes (Last 5Y)
TRMD
Sector ETF
Equity
Gold
Commodities
Real Estate
Bitcoin
Annualized Return
43.8%
30.3%
17.1%
15.9%
13.8%
7.2%
49.7%
Annualized Volatility
46.5%
28.3%
17.1%
15.6%
18.9%
19.1%
49.3%
Sharpe Ratio
0.94
0.96
0.81
0.82
0.61
0.29
0.76
Correlation With Other Assets
36.8%
21.2%
9.1%
29.2%
11.9%
12.0%
ETFs used for asset classes: Sector ETF = XLE, Equity = SPY, Gold = GLD, Commodities = DBC, Real Estate = VNQ, and Bitcoin = BTCUSD Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
Comparison of TRMD With Other Asset Classes (Last 10Y)
TRMD
Sector ETF
Equity
Gold
Commodities
Real Estate
Bitcoin
Annualized Return
26.3%
7.0%
14.3%
12.9%
5.1%
5.3%
77.8%
Annualized Volatility
61.2%
29.9%
18.0%
14.7%
17.7%
20.9%
56.2%
Sharpe Ratio
0.63
0.29
0.69
0.72
0.22
0.23
0.96
Correlation With Other Assets
18.2%
12.2%
2.1%
13.8%
8.2%
6.7%
ETFs used for asset classes: Sector ETF = XLE, Equity = SPY, Gold = GLD, Commodities = DBC, Real Estate = VNQ, and Bitcoin = BTCUSD Smart multi-asset allocation framework can stack odds in your favor. Learn How
