Operating Margin

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Price: 153.9 DKK 3.29% Market Closed

Market Cap: kr15.6B

3.9%

Declining

by 1.9%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

3.9%

Operating Income

$316.7m

Revenue

$1.3B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

3.9%

Operating Income

kr316.7m

Revenue

$1.3B

Peer Comparison

Country		Company	Market Cap	Operating Margin
UK	T	Torm PLC CSE:TRMD A	15.1B DKK	Loading...
CA		Enbridge Inc TSX:ENB	144B CAD	Loading...
US		Williams Companies Inc NYSE:WMB	82.2B USD	Loading...
US		Enterprise Products Partners LP NYSE:EPD	73.5B USD	Loading...
US		Kinder Morgan Inc NYSE:KMI	67.1B USD	Loading...
US		Energy Transfer LP NYSE:ET	63.4B USD	Loading...
CA		TC Energy Corp TSX:TRP	82.6B CAD	Loading...
US		MPLX LP NYSE:MPLX	57.3B USD	Loading...
US		ONEOK Inc NYSE:OKE	50.5B USD	Loading...
US		Cheniere Energy Inc NYSE:LNG	46.1B USD	Loading...
US		Targa Resources Corp NYSE:TRGP	43B USD	Loading...

Market Distribution

Min	-195 650%
30th Percentile	0%
Median	0.1%
70th Percentile	0.2%
Max	4 630.7%

Other Profitability Ratios

Torm PLC
Glance View

Economic Moat

Narrow

Market Cap

15.6B DKK

Industry

Energy

Torm PLC, a distinguished name in the maritime industry, navigates through the world's oceans as one of the leading product tanker companies. Based in Denmark, Torm operates a modernized fleet of vessels that transport refined oil products, such as gasoline, diesel, and jet fuel, across the globe. These transactions are not merely mundane logistical feats but are pivotal in connecting refineries with markets that thirst for energy. The company thrives on the complex yet efficient orchestration of managing voyage charters and time charters. Voyage charters involve the transportation of cargo for a single voyage between load port and discharge port at a fixed rate, while time charters lease vessels for a set period, providing steady revenue regardless of market fluctuations. Torm’s prowess lies in its ability to leverage these operational strategies, optimizing routes and timing shipments to capitalize on market dynamics. The company's financial engine is powered not just by its operational excellence but also by its strategic adaptability. Torm employs a flexible business model that allows it to adjust its fleet deployment to either spot or charter contracts based on market conditions, optimizing profitability. This approach is complemented by an integrated internal platform that ensures timely decisions backed by data-driven insights, seamlessly coupling operational acumen with real-time maritime intelligence. Torm also emphasizes the focus on sustainability by advancing in eco-efficient operations, which aligns with global regulatory adherence and burgeoning demand for environmentally conscious solutions. In essence, Torm PLC weaves together a comprehensive strategy that not only transports crucial products efficiently across the seas but also advances the company’s standing as a stalwart in the economically vital maritime sector.

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Torm PLC
CSE:TRMD A

Peer Comparison

Market Distribution

Other Profitability Ratios

Torm PLC
Glance View

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52 Week Range	94 153.9
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Torm PLC CSE:TRMD A