OB:TOM

Stock Analysis Report

Executive Summary

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

Snowflake

Solid track record with excellent balance sheet.

Rewards

Trading at 8.8% below its fair value

Earnings are forecast to grow 11.36% per year

Earnings grew by 18.7% over the past year

Risk Analysis

No risks detected for TOM from our risk checks.


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

1.0%

TOM

0.6%

NO Commercial Services

-1.5%

NO Market


1 Year Return

23.9%

TOM

6.8%

NO Commercial Services

-0.6%

NO Market

Return vs Industry: TOM exceeded the Norwegian Commercial Services industry which returned 6.8% over the past year.

Return vs Market: TOM exceeded the Norwegian Market which returned -0.6% over the past year.


Shareholder returns

TOMIndustryMarket
7 Day1.0%0.6%-1.5%
30 Day9.0%2.9%1.0%
90 Day-4.4%5.9%6.0%
1 Year26.1%23.9%10.2%6.8%5.0%-0.6%
3 Year197.7%182.0%14.6%4.3%37.7%20.2%
5 Year466.8%415.6%33.1%12.7%54.6%18.8%

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?

8.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TOM (NOK255.2) is trading below our estimate of fair value (NOK279.69)

Significantly Below Fair Value: TOM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TOM is poor value based on its PE Ratio (47.8x) compared to the Commercial Services industry average (16.6x).

PE vs Market: TOM is poor value based on its PE Ratio (47.8x) compared to the Norwegian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: TOM is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: TOM is overvalued based on its PB Ratio (7.6x) compared to the XE Commercial Services industry average (1.6x).


Next Steps

Future Growth

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

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOM's forecast earnings growth (11.4% per year) is above the savings rate (1.8%).

Earnings vs Market: TOM's earnings (11.4% per year) are forecast to grow slower than the Norwegian market (21.3% per year).

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

Revenue vs Market: TOM's revenue (5.9% per year) is forecast to grow faster than the Norwegian market (4.4% per year).

High Growth Revenue: TOM's revenue (5.9% 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 (16.2%).


Next Steps

Past Performance

How has Tomra Systems performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TOM has high quality earnings.

Growing Profit Margin: TOM's current net profit margins (8.5%) are higher than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: TOM's earnings have grown by 10.1% per year over the past 5 years.

Accelerating Growth: TOM's earnings growth over the past year (18.7%) exceeds its 5-year average (10.1% per year).

Earnings vs Industry: TOM earnings growth over the past year (18.7%) exceeded the Commercial Services industry 6.1%.


Return on Equity

High ROE: TOM's Return on Equity (16%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tomra Systems's financial position?


Financial Position Analysis

Short Term Liabilities: TOM's short term assets (NOK4.7B) exceeds its short term liabilities (NOK1.3B)

Long Term Liabilities: TOM's short term assets (NOK4.7B) do not cover its long term liabilities (4.8B)


Debt to Equity History and Analysis

Debt Level: TOM's debt to equity ratio (39%) is considered satisfactory.

Reducing Debt: TOM's debt to equity ratio has reduced from 54.3% to 39% over the past 5 years.

Debt Coverage: TOM's debt is well covered by operating cash flow (52.7%).

Interest Coverage: TOM's interest payments on its debt are well covered by EBIT (21.3x 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?

0.98%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%2.5%markettop25%6.0%industryaverage3.1%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: TOM's dividend (0.98%) isn’t notable compared to the bottom 25% of dividend payers in the Norwegian market (2.48%).

High Dividend: TOM's dividend (0.98%) is low compared to the top 25% of dividend payers in the Norwegian market (5.98%).


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

What is the CEO of Tomra Systems's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average management tenure


CEO

Stefan Ranstrand (59yo)

10.3yrs

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 ($USD1.07M) is about average for companies of similar size in the Norwegian market ($USD938.75K).

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


Management Age and Tenure

7.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: TOM's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

59yo

Average Age

Experienced Board: TOM's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sellkr3,132,00022 Jul 19
Volker Rehrmann
EntityIndividual
Role
Senior Key Executive
Executive VP and Head of Recycling
Shares12,000
Max Pricekr261.00
Buykr910,00022 Jul 19
Stefan Ranstrand
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares3,500
Max Pricekr260.00
Buykr151,80014 Jun 19
Bodil Gallon
EntityIndividual
Role
Member of the Board of Directors
Director
Shares550
Max Pricekr276.00
Buykr133,79114 Jun 19
Hege Skryseth
EntityIndividual
Role
Member of the Board of Directors
Director
Shares483
Max Pricekr277.00
Buykr113,16014 Jun 19
Pierre Couderc
EntityIndividual
Role
Member of the Board of Directors
Director
Shares410
Max Pricekr276.00
Buykr1,021,02214 Jun 19
Bjørn Matre
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,686
Max Pricekr277.00
Buykr113,25025 Feb 19
Pierre Couderc
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max Pricekr226.50
Buykr53,19911 Jan 19
Linda Bell
EntityIndividual
Shares257
Max Pricekr207.00

Ownership Breakdown

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


Management Team

  • Espen Gundersen (55yo)

    Deputy CEO & CFO

    • Tenure: 17.8yrs
    • Compensation: kr6.00m
  • Harald Henriksen (56yo)

    Executive VP & Head of Business Area Collection Solutions

    • Tenure: 15.8yrs
    • Compensation: kr5.47m
  • Heiner Bevers (59yo)

    Senior VP & Head of Collection Solutions Americas

    • Tenure: 14.5yrs
    • Compensation: kr804.16k
  • Stefan Ranstrand (59yo)

    President & CEO

    • Tenure: 10.3yrs
    • Compensation: kr9.73m
  • Tom Eng (54yo)

    Senior VP & Head of Recycling

    • Tenure: 7.8yrs
    • Compensation: kr3.29m
  • Volker Rehrmann (58yo)

    Executive VP and Head of Recycling

    • Tenure: 0.08yrs
    • Compensation: kr514.75k
  • Elisabet Sandnes (39yo)

    Senior VP & Head of Group Strategy

    • Tenure: 0yrs
    • Compensation: kr1.76m
  • Ashley Hunter (60yo)

    Senior VP & Head of Bulk Sorting TOMRA Food

    • Tenure: 6.8yrs
    • Compensation: kr649.86k
  • Frank Höhler (47yo)

    Senior VP & Head of Central and Eastern Europe Collection Solutions

    • Tenure: 3.1yrs
    • Compensation: kr318.62k
  • Anneli Forsman (42yo)

    Senior VP & Head of Northern Europe Collection Solutions

    • Tenure: 2.1yrs
    • Compensation: kr3.52m

Board Members

  • Bodil Gallon (51yo)

    Director

    • Tenure: 6.6yrs
    • Compensation: kr497.50k
  • Jan Svensson (63yo)

    Chairman

    • Tenure: 4.6yrs
    • Compensation: kr678.50k
  • Bjørn Matre (59yo)

    Director

    • Tenure: 0.5yrs
  • David Williamson (60yo)

    Employee Elected Director

    • Tenure: 11.8yrs
    • Compensation: kr752.20k
  • Hege Skryseth (52yo)

    Director

    • Tenure: 0.5yrs
  • Pierre Couderc (60yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: kr497.50k
  • Bente Traa (40yo)

    Employee Elected Director

    • Tenure: 2.5yrs
    • Compensation: kr1.20m

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: kr37.647b
  • 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 deve ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 20:42
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.