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TORM plc (TRMD)

Company Dividend Discount ModelIndustry: Oil & Gas MidstreamSector: Energy

Valuation Snapshot

Stable Growth$122.08 - $550.56$282.30
Multi-Stage$66.45 - $72.50$69.42
Blended Fair Value$175.86
Current Price$20.62
Upside752.86%
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 Rate7.41%7.41%7.41%
Growth Rate5.50%6.50%7.50%
Fair Value$122.08$282.30$550.56
Upside / Downside492.07%1,269.06%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 Rate7.41%7.41%7.41%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)245.54247.87250.20
Year 2 PV (M)240.98245.57250.21
Year 3 PV (M)236.50243.29250.21
Year 4 PV (M)232.11241.04250.22
Year 5 PV (M)227.80238.80250.22
PV of Terminal Value (M)5,463.505,727.396,001.37
Equity Value (M)6,646.446,943.967,252.43
Shares Outstanding (M)100.03100.03100.03
Fair Value$66.45$69.42$72.50
Upside / Downside222.24%236.66%251.62%

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