OB:TOM

Stock Analysis Report

Executive Summary

Tomra Systems ASA provides sensor-based solutions for optimal resource productivity worldwide.

Rewards

Earnings are forecast to grow 8.52% per year

Earnings grew by 11.1% over the past year

Risk Analysis

TOM passed our risk checks.


Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

How has Tomra Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TOM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

TOM

-1.7%

NO Commercial Services

8.2%

NO Market


1 Year Return

6.5%

TOM

-32.6%

NO Commercial Services

-24.7%

NO Market

Return vs Industry: TOM exceeded the Norwegian Commercial Services industry which returned -32.5% over the past year.

Return vs Market: TOM exceeded the Norwegian Market which returned -24.8% over the past year.


Shareholder returns

TOMIndustryMarket
7 Day0.9%-1.7%8.2%
30 Day-7.0%-29.1%-14.5%
90 Day1.1%-36.8%-24.9%
1 Year8.5%6.5%-30.5%-32.6%-20.8%-24.7%
3 Year201.9%186.1%-33.2%-38.8%2.1%-10.7%
5 Year331.0%292.0%-23.9%-35.0%14.8%-11.0%

Price Volatility Vs. Market

How volatile is Tomra Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tomra Systems undervalued compared to its fair value and its price relative to the market?

50.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TOM (NOK283.2) is trading above our estimate of fair value (NOK191.57)

Significantly Below Fair Value: TOM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TOM is poor value based on its PE Ratio (50.8x) compared to the Commercial Services industry average (12.5x).

PE vs Market: TOM is poor value based on its PE Ratio (50.8x) compared to the Norwegian market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: TOM is poor value based on its PEG Ratio (6x)


Price to Book Ratio

PB vs Industry: TOM is overvalued based on its PB Ratio (8.2x) compared to the XE Commercial Services industry average (1.3x).


Next Steps

Future Growth

How is Tomra Systems forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOM's forecast earnings growth (8.5% per year) is above the savings rate (0.7%).

Earnings vs Market: TOM's earnings (8.5% per year) are forecast to grow slower than the Norwegian market (20.2% per year).

High Growth Earnings: TOM's earnings are forecast to grow, but not significantly.

Revenue vs Market: TOM's revenue (4.3% per year) is forecast to grow faster than the Norwegian market (2.8% per year).

High Growth Revenue: TOM's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TOM's Return on Equity is forecast to be low in 3 years time (18%).


Next Steps

Past Performance

How has Tomra Systems performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TOM has high quality earnings.

Growing Profit Margin: TOM's current net profit margins (8.8%) are higher than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: TOM's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: TOM's earnings growth over the past year (11.1%) exceeds its 5-year average (9% per year).

Earnings vs Industry: TOM earnings growth over the past year (11.1%) exceeded the Commercial Services industry 8.9%.


Return on Equity

High ROE: TOM's Return on Equity (16.4%) is considered low.


Next Steps

Financial Health

How is Tomra Systems's financial position?


Financial Position Analysis

Short Term Liabilities: TOM's short term assets (NOK4.3B) exceed its short term liabilities (NOK291.7M).

Long Term Liabilities: TOM's short term assets (NOK4.3B) do not cover its long term liabilities (NOK5.3B).


Debt to Equity History and Analysis

Debt Level: TOM's debt to equity ratio (35.8%) is considered satisfactory.

Reducing Debt: TOM's debt to equity ratio has reduced from 49% to 35.8% over the past 5 years.

Debt Coverage: TOM's debt is well covered by operating cash flow (69.8%).

Interest Coverage: TOM's interest payments on its debt are well covered by EBIT (25.1x coverage).


Balance Sheet

Inventory Level: TOM has a high level of physical assets or inventory.

Debt Coverage by Assets: TOM's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

What is Tomra Systems's current dividend yield, its reliability and sustainability?

0.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TOM's dividend (0.97%) isn’t notable compared to the bottom 25% of dividend payers in the Norwegian market (3.88%).

High Dividend: TOM's dividend (0.97%) is low compared to the top 25% of dividend payers in the Norwegian market (8.06%).


Stability and Growth of Payments

Stable Dividend: TOM is not paying a notable dividend for the Norwegian market, therefore no need to check if payments are stable.

Growing Dividend: TOM is not paying a notable dividend for the Norwegian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: TOM is not paying a notable dividend for the Norwegian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TOM's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.3yrs

Average management tenure


CEO

Stefan Ranstrand (59yo)

10.67s

Tenure

kr9,730,085

Compensation

Mr. Stefan Ranstrand has been the Chief Executive Officer and President at Tomra Systems ASA since joining in August 2009. Mr. Ranstrand served in various management positions at ABB Ltd., from 1991 to 200 ...


CEO Compensation Analysis

Compensation vs Market: Stefan's total compensation ($USD923.66K) is above average for companies of similar size in the Norwegian market ($USD451.76K).

Compensation vs Earnings: Stefan's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stefan Ranstrand
President & CEO10.67yrskr9.73m0.094% NOK39.1m
Espen Gundersen
Deputy CEO & CFO18.25yrskr6.00m0.042% NOK17.3m
Harald Henriksen
Executive VP & Head of Business Area Collection Solutions16.25yrskr5.47m0.041% NOK17.1m
Heiner Bevers
Senior VP & Head of Collection Solutions Americas14.92yrskr804.16k0.046% NOK19.2m
Tom Eng
Senior VP & Head of Recycling8.25yrskr3.29m0.0086% NOK3.6m
Volker Rehrmann
Executive VP and Head of Recycling0.50yrkr514.75k0.014% NOK5.6m
Ashley Hunter
Senior VP & Head of Bulk Sorting TOMRA Food7.25yrskr649.86k0.022% NOK9.1m
Anneli Forsman
Senior VP & Head of Northern Europe Collection Solutions2.5yrskr3.52m0.00070% NOK292.4k
Bing Zhao
Director of Investor Relations & Strategyno datano datano data
Fabrizio Radice
Global Sales & Marketing Director2.83yrsno datano data

8.3yrs

Average Tenure

57yo

Average Age

Experienced Management: TOM's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bodil Gallon
Director7yrskr497.50k0.00037% NOK154.6k
Jan Svensson
Chairman5yrskr678.50k0.0047% NOK2.0m
Bjørn Matre
Director0.92yrno data0.0025% NOK1.0m
David Williamson
Employee Elected Director12.25yrskr752.20k0.0011% NOK442.8k
Hege Skryseth
Director0.92yrno data0.00033% NOK137.9k
Pierre Couderc
Director6.25yrskr497.50k0.00089% NOK371.8k
Bente Traa
Employee Elected Director2.92yrskr1.20m0.00071% NOK296.6k

5.0yrs

Average Tenure

59yo

Average Age

Experienced Board: TOM's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TOM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tomra Systems ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tomra Systems ASA
  • Ticker: TOM
  • Exchange: OB
  • Founded: 1972
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: kr41.778b
  • Shares outstanding: 147.52m
  • Website: https://www.tomra.com

Number of Employees


Location

  • Tomra Systems ASA
  • Drengsrudhagen 2
  • Asker
  • Akershus
  • 1385
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TMRA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
TOMOB (Oslo Bors)YesOrdinary SharesNONOKJan 1992
0KV7LSE (London Stock Exchange)YesOrdinary SharesGBNOKJan 1992
TMRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
TOMOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJan 1992
TMRA.YOTCPK (Pink Sheets LLC)SPON ADR NEWUSUSDSep 1993

Biography

Tomra Systems ASA provides sensor-based solutions for optimal resource productivity worldwide. It operates through Collection Solutions and Sorting Solutions segments. The Collection Solutions segment develops, produces, sells, leases, and services automated recycling systems, including data administration systems that monitor the volume of collected materials and associated deposit transactions. It is also involved in picking up, transporting, and processing empty beverage containers on behalf of beverage producers/fillers. This segment offers its solutions to the food retail industry in Europe and the United States. The Sorting Solutions segment provides sorting and processing technology for the fresh and processed food industries; sorting systems for waste and metal material streams; and ore sorting systems for the mining industry. Tomra Systems ASA was founded in 1972 and is headquartered in Asker, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 00:26
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.