NYSE:FRO is showing good growth, while it is not too expensive.

Last update: Feb 19, 2024

Here's FRONTLINE PLC (NYSE:FRO) for you, a growth stock our stock screener believes is undervalued. NYSE:FRO is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Growth Analysis for NYSE:FRO

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:FRO was assigned a score of 9 for growth:

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!
Measured over the past years, FRO shows a quite strong growth in Revenue. The Revenue has been growing by 17.22% on average per year.
FRO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.02% yearly.
FRO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.61% yearly.
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 Analysis for NYSE:FRO

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:FRO scores a 8 out of 10:

FRO is valuated cheaply with a Price/Earnings ratio of 7.69.
Based on the Price/Earnings ratio, FRO is valued a bit cheaper than 61.86% of the companies in the same industry.
FRO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.19.
The Price/Forward Earnings ratio is 8.91, which indicates a very decent valuation of FRO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FRO indicates a somewhat cheap valuation: FRO is cheaper than 66.98% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FRO to the average of the S&P500 Index (21.51), we can say FRO is valued rather cheaply.
74.88% of the companies in the same industry are more expensive than FRO, based on the Price/Free Cash Flow ratio.
FRO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FRO has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FRO's earnings are expected to grow with 38.78% in the coming years.

Exploring NYSE:FRO's Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:FRO, the assigned 5 for health provides valuable insights:

FRO has a Altman-Z score of 2.61. This is in the better half of the industry: FRO outperforms 68.37% of its industry peers.
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.
FRO has a better Debt to FCF ratio (3.04) than 63.72% of its industry peers.
FRO has a better Current ratio (1.79) than 71.16% of its industry peers.
With a decent Quick ratio value of 1.79, FRO is doing good in the industry, outperforming 74.42% of the companies in the same industry.

A Closer Look at Profitability for NYSE:FRO

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:FRO scores a 7 out of 10:

With a decent Return On Assets value of 16.89%, FRO is doing good in the industry, outperforming 78.60% of the companies in the same industry.
FRO has a Return On Equity of 34.90%. This is in the better half of the industry: FRO outperforms 75.81% 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 72.56% of its industry peers.
The last Return On Invested Capital (16.36%) for FRO is above the 3 year average (6.14%), which is a sign of increasing profitability.
FRO has a Profit Margin of 40.53%. This is amongst the best in the industry. FRO outperforms 80.47% of its industry peers.
In the last couple of years the Profit Margin of FRO has grown nicely.
FRO has a Operating Margin of 44.54%. This is in the better half of the industry: FRO outperforms 76.74% of its industry peers.
FRO's Operating Margin has improved in the last couple of years.
FRO's Gross Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth 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.