Buffett Brain · Research note
Score updated 23 Oct 2026 · analysis from 26 May 2026
TRMD· Energy
TORM
TORM plc's inconsistent profitability and lack of durable competitive advantage signal high risk for long-term investors.
Buffett fit
Weak fit
Owner
54
Durability
27
Management
66
Price
29
Score updated 23 Oct 2026 · analysis from 26 May 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Energy stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned TORM plc outright, I'd be concerned about the lack of consistent profitability, given that it was not profitable in at least one year over the last five.
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TORM's durability is questionable, especially with a revenue CAGR of 22.38% but no consistent EPS growth.
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The share count CAGR of 5.89% indicates dilution, which is concerning for shareholder value.
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The current earnings yield of 8.38% is close to my target, but the yield of 5.67% indicates that the cash generation is not sufficient.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 10.52% is in the top quintile for the sector, indicating some competitive advantage.
- 2Current ratio of 1.33 suggests reasonable short-term liquidity.
- 3Net margin of 21.4% indicates some level of profitability when operational.
- 4Market cap of $3.2 billion provides a size advantage in the industry.
Concerns
5- 1No consistent profitability over the last five years, with at least one loss year.
- 25-year EPS max decline of 53.98% signals volatility in earnings.
- 3 of 43.4% is below the sector's top-quintile cutoff of 51.6%.
- 4Share count CAGR of 5.89% indicates dilution of existing shareholders.
Price history
$38.53+368.2%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
TORM plc operates a fleet of approximately 85 vessels, transporting refined oil products and crude oil. With revenue of $1.39 billion, the company has a net income of $296 million, reflecting a net margin of 21.4%. However, the business is not consistently profitable over the last five years, which raises concerns about its long-term viability.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 23, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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