NYSE:FRO, a strong growth stock, setting up for a breakout.

Last update: Feb 27, 2024

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether FRONTLINE PLC (NYSE:FRO) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but FRONTLINE PLC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

How We Gauge Growth 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:

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
FRO shows a strong growth in Revenue. In the last year, 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.

Assessing Health Metrics 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:

FRO's Altman-Z score of 2.55 is fine compared to the rest of the industry. FRO outperforms 70.56% 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.
With a decent Debt to FCF ratio value of 3.04, FRO is doing good in the industry, outperforming 64.49% of the companies in the same industry.
FRO has a Current ratio of 1.79. This is in the better half of the industry: FRO outperforms 71.03% of its industry peers.
FRO's Quick ratio of 1.79 is fine compared to the rest of the industry. FRO outperforms 73.83% of its industry peers.

Analyzing Profitability Metrics

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:

With a decent Return On Assets value of 16.89%, FRO is doing good in the industry, outperforming 78.97% of the companies in the same industry.
Looking at the Return On Equity, with a value of 34.90%, FRO is in the better half of the industry, outperforming 78.50% of the companies in the same industry.
The Return On Invested Capital of FRO (16.36%) is better than 74.77% 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 80.84% 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 77.57% 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.

Why is NYSE:FRO a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:FRO this score is currently 7:

Besides having an excellent technical rating, FRO also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 22.71, a Stop Loss order could be placed below this zone.

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

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

For an up to date full technical analysis you can check the technical 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.