First position in Torm TRMD opened today

I opened my first position today, what is your opinion on the share? What attractive alternatives are there ?

📈 TORM share (TRMD) - Dividend monster with tailwind? 🚢💸

Torm plc is a Danish shipping group with a focus on product tankers. The company operates a fleet of around 90 ships and transports refined oil products, among other things - a business that is cyclical but potentially lucrative.

🔍 Key figures & valuation (as at: June 2025):

📊 P/E ratio 2025e: 6.3
💰 Dividend yield 2025e: ~13.2 %
💵 Free cash flow 2025e: ~386 million USD
🧾 Net result 2024: USD 612 million
🚢 Fleet size: approx. 90 ships
📈 Analyst target (2025): Ø USD 48.71 (current share price: ~USD 16.40)

📌 Future prospects:

✅ High demand for product tankers:

Growing emerging markets, geopolitical detour (Suez/bypasses), and rising demand for transportation outside regional pipelines are driving the market.

✅ Low order books in the industry:

Few new ships under construction - creating a shortage of supply and high charter rates.

✅ Fleet modernization & sustainability:

Investments in more energy-efficient ships could secure competitive advantages in the long term.

⚠️ Risks & uncertainties:

❗ Market volatility:

Around 27% of earning days in 2025 are not yet contracted - revenues fluctuate.

❗ Cyclical business:

Falling freight rates or overcapacity would massively depress profits.

❗ Regulatory risks:

Climate requirements (IMO 2030/2050) could lead to higher operating costs.

❗ Fuel prices & geopolitical situation:

Exploding bunker costs or political crises affect routes and margins.

💸 Dividend - solid cash cow or shaky candidate?

Torm pays a quarterly dividend that is flexibly adjusted to the operating cash flow.

In the record year 2023, a total dividend of over USD 5 per share was distributed - the trend in 2024/25 is slightly downwards, but still at a top level.

🔄 No fixed payout, but dynamic & market-dependent - this means: high dividends in boom phases, but cuts possible in weak phases.

🧠 Conclusion:

TORM is an interesting share for dividend hunters with risk awareness.

If you can live with fluctuations and believe that tanker markets will remain high, this is the stock for you:

✅ Cyclical value play

✅ Solid balance sheet

✅ Extremely high dividend yield

But: don't underestimate volatility & geopolitical risks. Only suitable for buy & hold investors with good risk management.

Global I.@gloinvest

So cool. Position opened (high conviction mode:on) . Are there any attractive alternatives?

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S.A.U.@SAUgut77

@gloinvest $HAUTO 🤫

AktienRob88@AktienRob88

@SAUgut77 is also on my watchlist, do you think the share is fairly valued?

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@AktienRob88 You ultimately have to decide for yourself whether a company is fairly valued and I will not provide any advice.

I placed my first small position at ~6.67 and added a little more after the last divi discount and will probably do so again at the next discount....

...but in the end you have to decide for yourself and not listen to the opinions of others...a well-intentioned tip.

Although $TRMD A is on my watchlist, I preferred to add $300750 and $1211 to my portfolio recently, but that was also my own decision and not based on the opinions of others.

However, I will most likely at least add to $HAUTO in due course....

@SAUgut77 Of course you're right, I'll take a closer look at the company, I made some good purchases last week with BYD and bought more today 👍

NichtRelevant@NichtRelevant

Sounds good. Just don't get too nervous if the value fluctuates a lot. I think that's common practice in the industry.

There was also a dividend today.

(Alternative would be $HAFNI)

Because of the withholding tax, I think it's good that both $HAFNI and $TRMD A are not listed in Scandinavia. I find this somewhat problematic with other shipping shares.

📥 First position in Torm (TRMD) opened today! 🚢💰