Dikuch
Thesis
TORM plc (NASDAQ:TRMD) is one of those stocks that I just have to trust the facts. Despite the significant rise in stock price since my last analysis, the facts show TRMD can generate a healthy
TORM: Still Making Cash, A 15% Yield, And More Room To Run
Summary
- Refinery additions in 2023 are reaching full capacity, resulting in more supply entering the export market and increased demand for shipping.
- The 15% yield is well covered within current cash flows and has adequate levels of margin should shipping rates decline.
- The next 12-18 months look promising for shipping rates to remain high, ensuring large cash flows and dividends.
- I continue to rate TRMD a BUY.
I am a Licensed Professional Engineer who works in the Nuclear Power industry. I use my professional working knowledge of the power/energy industries to aid in evaluating potential equities worthy of long-term investment. I invest in income producing equities and rental real estate properties for cash flow and long-term appreciation. My articles are to serve as a platform for presenting the underlying fundamentals and long-term potential of each equity/business.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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