FRONTLINE PLC (FRO.OL) Stock Fundamental Analysis
OSL:FRO - Oslo Bors ASA - CY0200352116 - Common Stock - Currency: NOK
FRO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 62 industry peers in the Oil, Gas & Consumable Fuels industry. FRO has an excellent profitability rating, but there are concerns on its financial health. FRO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
FRO had positive earnings in the past year.
FRO had a positive operating cash flow in the past year.
FRO had positive earnings in 4 of the past 5 years.
In the past 5 years FRO always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 11.16%, FRO is doing good in the industry, outperforming 76.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 28.82%, FRO is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
The Return On Invested Capital of FRO (10.50%) is better than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FRO is significantly below the industry average of 12.33%.
The last Return On Invested Capital (10.50%) for FRO is above the 3 year average (6.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 28.82% | ||
| ROIC | 10.5% |
ROA(3y)6.95%
ROA(5y)7.04%
ROE(3y)16.39%
ROE(5y)16.81%
ROIC(3y)6.11%
ROIC(5y)6.97%
1.3 Margins
Looking at the Profit Margin, with a value of 36.42%, FRO belongs to the top of the industry, outperforming 88.33% of the companies in the same industry.
In the last couple of years the Profit Margin of FRO has grown nicely.
FRO has a better Operating Margin (41.43%) than 80.00% of its industry peers.
FRO's Operating Margin has improved in the last couple of years.
FRO's Gross Margin of 55.88% is fine compared to the rest of the industry. FRO outperforms 65.00% of its industry peers.
FRO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.43% | ||
| PM (TTM) | 36.42% | ||
| GM | 55.88% |
OM growth 3Y1.92%
OM growth 5Y33.51%
PM growth 3Y2.51%
PM growth 5YN/A
GM growth 3Y-0.13%
GM growth 5Y12.14%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FRO is still creating some value.
FRO has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for FRO has been increased compared to 5 years ago.
FRO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.58, we must say that FRO is in the distress zone and has some risk of bankruptcy.
FRO has a Altman-Z score of 1.58. This is in the lower half of the industry: FRO underperforms 65.00% of its industry peers.
A Debt/Equity ratio of 1.40 is on the high side and indicates that FRO has dependencies on debt financing.
With a Debt to Equity ratio value of 1.40, FRO is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.58 |
ROIC/WACC1.46
WACC7.17%
2.3 Liquidity
FRO has a Current Ratio of 1.78. This is a normal value and indicates that FRO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.78, FRO is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
FRO has a Quick Ratio of 1.78. This is a normal value and indicates that FRO is financially healthy and should not expect problems in meeting its short term obligations.
FRO's Quick ratio of 1.78 is fine compared to the rest of the industry. FRO outperforms 71.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
FRO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.03%.
FRO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.95% yearly.
Looking at the last year, FRO shows a very strong growth in Revenue. The Revenue has grown by 26.01%.
Measured over the past years, FRO shows a quite strong growth in Revenue. The Revenue has been growing by 19.41% on average per year.
EPS 1Y (TTM)-35.03%
EPS 3Y6.95%
EPS 5YN/A
EPS Q2Q%-5.56%
Revenue 1Y (TTM)26.01%
Revenue growth 3Y13.85%
Revenue growth 5Y19.41%
Sales Q2Q%30.03%
3.2 Future
Based on estimates for the next years, FRO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.91% on average per year.
Based on estimates for the next years, FRO will show a quite strong growth in Revenue. The Revenue will grow by 10.29% on average per year.
EPS Next Y-26.79%
EPS Next 2Y1.69%
EPS Next 3Y4.88%
EPS Next 5Y9.91%
Revenue Next Year29.8%
Revenue Next 2Y18.9%
Revenue Next 3Y13.78%
Revenue Next 5Y10.29%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.93, the valuation of FRO can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of FRO is on the same level as its industry peers.
FRO is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.70, the valuation of FRO can be described as very cheap.
76.67% of the companies in the same industry are more expensive than FRO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FRO to the average of the S&P500 Index (92.74), we can say FRO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.93 | ||
| Fwd PE | 6.7 |
4.2 Price Multiples
63.33% of the companies in the same industry are cheaper than FRO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.42 |
4.3 Compensation for Growth
The decent profitability rating of FRO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.69%
EPS Next 3Y4.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.16%, FRO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 60.90, FRO pays a better dividend. On top of this FRO pays more dividend than 83.33% of the companies listed in the same industry.
FRO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.16% |
5.2 History
On average, the dividend of FRO grows each year by 312.61%, which is quite nice.
Dividend Growth(5Y)312.61%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
FRO pays out 97.34% of its income as dividend. This is not a sustainable payout ratio.
FRO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP97.34%
EPS Next 2Y1.69%
EPS Next 3Y4.88%
FRONTLINE PLC
OSL:FRO (2/5/2025, 1:48:33 PM)
206.7
-2.9 (-1.38%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners30.12%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap46.02B
Analysts77.14
Price Target379.1 (83.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.16% |
Yearly Dividend2.87
Dividend Growth(5Y)312.61%
DP97.34%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.31%
Min EPS beat(2)-20.35%
Max EPS beat(2)-0.27%
EPS beat(4)1
Avg EPS beat(4)-4.86%
Min EPS beat(4)-20.35%
Max EPS beat(4)11.91%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)50.92%
Min Revenue beat(2)49.69%
Max Revenue beat(2)52.15%
Revenue beat(4)3
Avg Revenue beat(4)36.61%
Min Revenue beat(4)-6.31%
Max Revenue beat(4)52.15%
Revenue beat(8)7
Avg Revenue beat(8)55.14%
Revenue beat(12)11
Avg Revenue beat(12)69.68%
Revenue beat(16)15
Avg Revenue beat(16)62.23%
PT rev (1m)0.7%
PT rev (3m)-1.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.65%
EPS NY rev (3m)-37.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-4.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.93 | ||
| Fwd PE | 6.7 | ||
| P/S | 2.25 | ||
| P/FCF | N/A | ||
| P/OCF | 4.74 | ||
| P/B | 1.78 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 7.42 |
EPS(TTM)23.14
EY11.19%
EPS(NY)30.84
Fwd EY14.92%
FCF(TTM)-39.49
FCFYN/A
OCF(TTM)43.62
OCFY21.1%
SpS91.81
BVpS116.04
TBVpS110.31
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 28.82% | ||
| ROCE | 13.64% | ||
| ROIC | 10.5% | ||
| ROICexc | 11.15% | ||
| ROICexgc | 11.39% | ||
| OM | 41.43% | ||
| PM (TTM) | 36.42% | ||
| GM | 55.88% | ||
| FCFM | N/A |
ROA(3y)6.95%
ROA(5y)7.04%
ROE(3y)16.39%
ROE(5y)16.81%
ROIC(3y)6.11%
ROIC(5y)6.97%
ROICexc(3y)6.65%
ROICexc(5y)7.49%
ROICexgc(3y)6.82%
ROICexgc(5y)7.72%
ROCE(3y)7.93%
ROCE(5y)9.05%
ROICexcg growth 3Y1.14%
ROICexcg growth 5Y40.31%
ROICexc growth 3Y1.52%
ROICexc growth 5Y40.86%
OM growth 3Y1.92%
OM growth 5Y33.51%
PM growth 3Y2.51%
PM growth 5YN/A
GM growth 3Y-0.13%
GM growth 5Y12.14%
F-Score6
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 706.42% | ||
| Cap/Sales | 90.52% | ||
| Interest Coverage | 4.52 | ||
| Cash Conversion | 87.58% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 1.58 |
F-Score6
WACC7.17%
ROIC/WACC1.46
Cap/Depr(3y)407.55%
Cap/Depr(5y)305.25%
Cap/Sales(3y)58.57%
Cap/Sales(5y)42.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-35.03%
EPS 3Y6.95%
EPS 5YN/A
EPS Q2Q%-5.56%
EPS Next Y-26.79%
EPS Next 2Y1.69%
EPS Next 3Y4.88%
EPS Next 5Y9.91%
Revenue 1Y (TTM)26.01%
Revenue growth 3Y13.85%
Revenue growth 5Y19.41%
Sales Q2Q%30.03%
Revenue Next Year29.8%
Revenue Next 2Y18.9%
Revenue Next 3Y13.78%
Revenue Next 5Y10.29%
EBIT growth 1Y72.52%
EBIT growth 3Y16.04%
EBIT growth 5Y59.42%
EBIT Next Year44.61%
EBIT Next 3Y17.62%
EBIT Next 5Y17.3%
FCF growth 1Y-1665.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y122.19%
OCF growth 3Y12.33%
OCF growth 5Y79.32%