| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 92 | 6.0x | 17.8x | Top tier | |
Growth | 42 | 31.9% | 7.1% | Around median | |
Quality | 78 | 19.3% | 4.5% | Top tier | |
Safety | 80 | 0.8x | 2.6x | Top tier | |
Capital Return | 86 | 5.62% | 2.12% | Top tier | |
Momentum | 92 | 43.8% | 2.9% | Top tier | |
Sentiment | 74 | 2 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
TORM plc operates a fleet transporting petroleum products and generates its income primarily from operating LR2, LR1, and MR tankers based on freight rates and time charter equivalent earnings. The One TORM model integrates commercial, technical, and operational decisions to deploy vessels, increase utilization, and control costs; between 2023 and 2025, the MR fleet generated more than $200 million in additional time charter equivalent earnings compared with the peer average. The fleet reached 97 vessels at the end of Q2 FY2026, up from 78 vessels at the end of FY2022.
In FY2025, TORM recorded revenue of $1.3 billion, net income of $285.3 million, and earnings per share of $2.85, compared with revenue of $1.6 billion, net income of $612.5 million, and earnings per share of $6.36 in FY2024. It then delivered the strongest quarterly performance in its history in Q2 FY2026, as time charter equivalent earnings rose to $512 million from $208 million in Q2 FY2025, while earnings before interest, taxes, depreciation, and amortization reached $416 million, net profit reached $338 million, and basic earnings per share reached $3.31.
The fleetwide average time charter equivalent rate was $59,301 per vessel per day in Q2 FY2026, with approximately $67 thousand for LR2 vessels and slightly more than $57 thousand for both LR1 and MR vessels, while operating expenses were $8,315 per day. The company converted a $226 million increase in time charter equivalent earnings between Q1 and Q2 FY2026 into an approximately $215 million increase in earnings before interest, taxes, depreciation, and amortization, illustrating the strength of its operating leverage when freight rates rise.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is Buy, with an average price target of $38 and identical high and low targets of $38; this target is approximately 7.6% above the 52-week range high of $35.33, while the full range extends from $19.30 to $35.33. No price-to-earnings ratio is available in the data, so the available valuation is based on a consensus target with no dispersion and net asset value of $3.7 billion at the end of Q2 FY2026, which must be weighed against shipping earnings volatility and the decline recorded in FY2025.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Disruptions to oil trade in the Middle East increased voyage distances and reduced vessel availability, pushing the average time charter equivalent rate to $59,301 per day. As a result, time charter equivalent earnings reached $512 million, compared with $208 million in Q2 FY2025. Earnings before interest, taxes, depreciation, and amortization rose to $416 million, while net profit reached $338 million and basic earnings per share reached $3.31.
On August 26, 2026, TORM raised its time charter equivalent earnings guidance to a range of $1.4–1.6 billion, compared with a previous range of $1.15–1.45 billion. It also raised its earnings before interest, taxes, depreciation, and amortization guidance to $1.0–1.2 billion from $0.8–1.1 billion. There were 10,271 open operating days remaining, or 30% of total days, giving the company greater visibility for the remainder of FY2026.
Rerouting and ship-to-ship transfer operations increase ton-miles and keep vessels occupied for longer periods. One specific example is the voyage of TORM Innovation, which was extended by more than 30 days after being rerouted through the Suez Canal and around the Cape of Good Hope in July 2026. Management estimated on August 26, 2026 that more than 30 VLCC tankers and approximately 14 LR2 vessels were operating shuttle services, and that restoring previous export volumes could require more than three times the number of LR2 vessels used at that time.
For Q2 FY2026, the board approved an interim dividend of $2.40 per share, totaling approximately $246 million. The company stated that all free cash flow generated during the quarter after debt repayments would be returned to shareholders. Since 2023, TORM has distributed a total of $16.10 per share, or approximately $1.5 billion.
Net interest-bearing debt declined to $715 million at the end of Q2 FY2026 from $894 million at the end of Q1 FY2026. The net loan-to-value ratio improved to 22.4%, while the fleet's estimated value was $4.1 billion and net asset value was $3.7 billion. Conversely, $237 million of borrowings are due during the following twelve months, and the company typically expects to finance new vessels with approximately 50% leverage.
The main risks are the cyclical nature of freight rates and the dependence of record earnings on trade bottlenecks and longer routes; average bookings for Q3 FY2026 were approximately $38,600 per day compared with $59,301 achieved in Q2 FY2026. FY2025 revenue also declined to $1.3 billion and net income to $285.3 million, after $1.6 billion and $612.5 million, respectively, in FY2024. The shipbuilding program extending through 2029, and potentially 2030, adds capital commitments at a time when approximately 30% of the fleet remains 15 years old or older, according to the discussion during the August 26, 2026 call.
