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TORM plc (TRMD)

Company Dividend Discount ModelIndustry: Oil & Gas MidstreamSector: Energy

Valuation Snapshot

Stable Growth$123.24 - $550.56$287.97
Multi-Stage$66.72 - $72.81$69.71
Blended Fair Value$178.84
Current Price$20.62
Upside767.32%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%85.41%5.285.981.670.000.710.000.000.010.250.00
YoY Growth---11.73%258.85%0.00%-100.00%0.00%0.00%-100.00%-95.04%0.00%-100.00%
Dividend Yield--32.03%17.00%5.35%0.00%7.74%0.00%0.00%0.17%3.29%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)276.92
(-) Cash Dividends Paid (M)250.19
(=) Cash Retained (M)26.72
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)55.3834.6120.77
Cash Retained (M)26.7226.7226.72
(-) Cash Required (M)-55.38-34.61-20.77
(=) Excess Retained (M)-28.66-7.895.96
(/) Shares Outstanding (M)100.03100.03100.03
(=) Excess Retained per Share-0.29-0.080.06
LTM Dividend per Share2.502.502.50
(+) Excess Retained per Share-0.29-0.080.06
(=) Adjusted Dividend2.212.422.56
WACC / Discount Rate7.40%7.40%7.40%
Growth Rate5.50%6.50%7.50%
Fair Value$123.24$287.97$550.56
Upside / Downside497.69%1,296.57%2,570.02%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)276.92294.91314.08334.50356.24379.40390.78
Payout Ratio90.35%90.28%90.21%90.14%90.07%90.00%92.50%
Projected Dividends (M)250.19266.25283.33301.52320.87341.46361.47

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.40%7.40%7.40%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)245.58247.91250.24
Year 2 PV (M)241.06245.65250.29
Year 3 PV (M)236.62243.42250.34
Year 4 PV (M)232.27241.20250.39
Year 5 PV (M)227.99239.00250.43
PV of Terminal Value (M)5,490.475,755.666,031.00
Equity Value (M)6,673.996,972.847,282.69
Shares Outstanding (M)100.03100.03100.03
Fair Value$66.72$69.71$72.81
Upside / Downside223.57%238.06%253.08%

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