NYSE:FRO, an undervalued stock with good fundamentals.

Last update: Dec 20, 2023

FRONTLINE PLC (NYSE:FRO) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:FRO showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Valuation Assessment of NYSE:FRO

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:FRO has achieved a 8 out of 10:

FRO is valuated cheaply with a Price/Earnings ratio of 6.58.
Based on the Price/Earnings ratio, FRO is valued a bit cheaper than the industry average as 72.81% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.74, FRO is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.62, the valuation of FRO can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FRO indicates a somewhat cheap valuation: FRO is cheaper than 68.66% of the companies listed in the same industry.
FRO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.31.
Based on the Price/Free Cash Flow ratio, FRO is valued a bit cheaper than 78.34% of the companies in the same industry.
FRO's 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.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:FRO has earned a 7 out of 10:

FRO has a Return On Assets of 16.89%. This is in the better half of the industry: FRO outperforms 76.96% of its industry peers.
With a decent Return On Equity value of 34.90%, FRO is doing good in the industry, outperforming 76.04% of the companies in the same industry.
FRO has a better Return On Invested Capital (16.36%) than 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.
Looking at the Profit Margin, with a value of 40.53%, FRO belongs to the top of the industry, outperforming 80.18% of the companies in the same industry.
In the last couple of years the Profit Margin of FRO has grown nicely.
FRO's Operating Margin of 44.54% is fine compared to the rest of the industry. FRO outperforms 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.

Health Analysis for NYSE:FRO

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:FRO has earned a 5 out of 10:

FRO has a better Altman-Z score (2.41) than 62.21% of its industry peers.
The Debt to FCF ratio of FRO is 3.04, which is a good value as it means it would take FRO, 3.04 years of fcf income to pay off all of its debts.
FRO has a better Debt to FCF ratio (3.04) than 63.13% of its industry peers.
FRO has a better Current ratio (1.79) than 70.97% of its industry peers.
FRO has a better Quick ratio (1.79) than 74.19% of its industry peers.

Growth Analysis for NYSE:FRO

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:

The Earnings Per Share has grown by an impressive 470.91% over the past year.
The Earnings Per Share has been growing by 76.46% on average over the past years. This is a very strong growth
The Revenue has grown by 72.17% in the past year. This is a very strong growth!
FRO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.22% yearly.
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.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of FRO

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.