NYSE:FRO is showing decent growth, but is still valued reasonably.

Last update: Dec 18, 2023

FRONTLINE PLC (NYSE:FRO) has caught the eye of our stock screener as an affordable growth stock. NYSE:FRO is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

ChartMill's Evaluation of Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:FRO scores a 9 out of 10:

FRO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 470.91%, which is quite impressive.
Measured over the past years, FRO shows a very strong growth in Earnings Per Share. The EPS has been growing by 76.46% on average per year.
FRO shows a strong growth in Revenue. In the last year, the Revenue has grown by 72.17%.
The Revenue has been growing by 17.22% on average over the past years. This is quite good.
FRO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.02% yearly.
Based on estimates for the next years, FRO will show a very strong growth in Revenue. The Revenue will grow by 27.61% on average per year.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Valuation Insights: NYSE:FRO

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:FRO has earned a 8 for valuation:

FRO is valuated cheaply with a Price/Earnings ratio of 6.40.
FRO's Price/Earnings ratio is a bit cheaper when compared to the industry. FRO is cheaper than 75.12% of the companies in the same industry.
When comparing the Price/Earnings ratio of FRO to the average of the S&P500 Index (25.46), we can say FRO is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.41, the valuation of FRO can be described as very cheap.
Based on the Price/Forward Earnings ratio, FRO is valued a bit cheaper than 69.12% of the companies in the same industry.
FRO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.07, which is the current average of the S&P500 Index.
Based on the Price/Free Cash Flow ratio, FRO is valued a bit cheaper than the industry average as 78.34% of the companies are valued more expensively.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of FRO may justify a higher PE ratio.
FRO's earnings are expected to grow with 42.93% in the coming years. This may justify a more expensive valuation.

Assessing Health for NYSE:FRO

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:FRO scores a 5 out of 10:

With a decent Altman-Z score value of 2.38, FRO is doing good in the industry, outperforming 62.21% of the companies in the same industry.
FRO has a debt to FCF ratio of 3.04. This is a good value and a sign of high solvency as FRO would need 3.04 years to pay back of all of its debts.
The Debt to FCF ratio of FRO (3.04) is better than 63.13% of its industry peers.
Looking at the Current ratio, with a value of 1.79, FRO is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
With a decent Quick ratio value of 1.79, FRO is doing good in the industry, outperforming 74.19% of the companies in the same industry.

Profitability Analysis for NYSE:FRO

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:FRO was assigned a score of 7 for profitability:

The Return On Assets of FRO (16.89%) is better than 76.96% of its industry peers.
The Return On Equity of FRO (34.90%) is better than 76.04% of its industry peers.
FRO has a Return On Invested Capital of 16.36%. This is in the better half of the industry: FRO outperforms 71.89% of its industry peers.
The 3 year average ROIC (6.14%) for FRO is below the current ROIC(16.36%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 40.53%, FRO belongs to the best of the industry, outperforming 80.18% of the companies in the same industry.
FRO's Profit Margin has improved in the last couple of years.
The Operating Margin of FRO (44.54%) is better than 76.50% of its industry peers.
In the last couple of years the Operating Margin of FRO has grown nicely.
In the last couple of years the Gross Margin of FRO has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of FRO contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.