Despite its impressive fundamentals, NYSE:FRO remains undervalued.

Last update: Feb 22, 2024

Consider FRONTLINE PLC (NYSE:FRO) as a top value stock, identified by our stock screening tool. NYSE:FRO shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

How do we evaluate the Valuation 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:

Based on the Price/Earnings ratio of 7.33, the valuation of FRO can be described as very cheap.
Based on the Price/Earnings ratio, FRO is valued a bit cheaper than the industry average as 65.12% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.00. FRO is valued rather cheaply when compared to this.
FRO is valuated reasonably with a Price/Forward Earnings ratio of 8.49.
Based on the Price/Forward Earnings ratio, FRO is valued a bit cheaper than the industry average as 68.37% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FRO to the average of the S&P500 Index (21.38), we can say FRO is valued rather cheaply.
Based on the Price/Free Cash Flow ratio, FRO is valued a bit cheaper than the industry average as 75.81% 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.
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.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:FRO, the assigned 7 is a significant indicator of profitability:

The Return On Assets of FRO (16.89%) is better than 78.60% of its industry peers.
FRO has a better Return On Equity (34.90%) than 75.81% of its industry peers.
FRO's Return On Invested Capital of 16.36% is fine compared to the rest of the industry. FRO outperforms 72.56% 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.
FRO has a better Profit Margin (40.53%) than 80.47% of its industry peers.
In the last couple of years the Profit Margin of FRO has grown nicely.
FRO has a better Operating Margin (44.54%) than 77.21% of its industry peers.
In the last couple of years the Operating Margin of FRO has grown nicely.
FRO's Gross Margin has improved in the last couple of years.

Health Analysis for NYSE:FRO

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:FRO has received a 5 out of 10:

The Altman-Z score of FRO (2.54) is better than 66.51% 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 Debt to FCF ratio of 3.04. This is in the better half of the industry: FRO outperforms 64.19% of its industry peers.
FRO has a better Current ratio (1.79) than 71.16% of its industry peers.
FRO has a better Quick ratio (1.79) than 74.42% of its industry peers.

Growth Analysis for NYSE:FRO

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:FRO has earned a 9 for growth:

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.
The Earnings Per Share has been growing by 76.46% on average over the past years. This is a very strong growth
Looking at the last year, FRO shows a very strong growth in Revenue. The Revenue has grown by 72.17%.
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.
The Revenue is expected to grow by 27.61% on average over the next years. This is a very strong growth
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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.