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FRONTLINE PLC (FRO.OL) Stock Fundamental Analysis

OSL:FRO - Euronext Oslo - CY0200352116 - Common Stock - Currency: NOK

178.8  +3 (+1.71%)

Fundamental Rating

6

Overall FRO gets a fundamental rating of 6 out of 10. We evaluated FRO against 62 industry peers in the Oil, Gas & Consumable Fuels industry. While FRO has a great profitability rating, there are quite some concerns on its financial health. FRO is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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8

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.
FRO.OL Yearly Net Income VS EBIT VS OCF VS FCFFRO.OL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M

1.2 Ratios

FRO has a Return On Assets of 11.16%. This is amongst the best in the industry. FRO outperforms 80.95% of its industry peers.
FRO's Return On Equity of 28.82% is amongst the best of the industry. FRO outperforms 82.54% of its industry peers.
FRO has a Return On Invested Capital of 10.50%. This is in the better half of the industry: FRO outperforms 63.49% of its industry peers.
FRO had an Average Return On Invested Capital over the past 3 years of 6.11%. This is significantly below the industry average of 11.89%.
The 3 year average ROIC (6.11%) for FRO is below the current ROIC(10.50%), indicating increased profibility in the last year.
Industry RankSector 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%
FRO.OL Yearly ROA, ROE, ROICFRO.OL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 -20

1.3 Margins

FRO has a Profit Margin of 36.42%. This is amongst the best in the industry. FRO outperforms 88.89% of its industry peers.
In the last couple of years the Profit Margin of FRO has grown nicely.
FRO's Operating Margin of 41.43% is amongst the best of the industry. FRO outperforms 82.54% of its industry peers.
FRO's Operating Margin has improved in the last couple of years.
FRO has a Gross Margin of 55.88%. This is in the better half of the industry: FRO outperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of FRO has grown nicely.
Industry RankSector 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%
FRO.OL Yearly Profit, Operating, Gross MarginsFRO.OL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 60

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FRO is creating some value.
Compared to 1 year ago, FRO has about the same amount of shares outstanding.
The number of shares outstanding for FRO has been increased compared to 5 years ago.
Compared to 1 year ago, FRO has a worse debt to assets ratio.
FRO.OL Yearly Shares OutstandingFRO.OL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
FRO.OL Yearly Total Debt VS Total AssetsFRO.OL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

FRO has an Altman-Z score of 1.51. This is a bad value and indicates that FRO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.51, FRO perfoms like the industry average, outperforming 46.03% of the companies in the same industry.
A Debt/Equity ratio of 1.40 is on the high side and indicates that FRO has dependencies on debt financing.
FRO has a worse Debt to Equity ratio (1.40) than 79.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.4
Debt/FCF N/A
Altman-Z 1.51
ROIC/WACC1.46
WACC7.19%
FRO.OL Yearly LT Debt VS Equity VS FCFFRO.OL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B

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.
The Current ratio of FRO (1.78) is better than 69.84% of its industry peers.
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 76.19% of its industry peers.
Industry RankSector Rank
Current Ratio 1.78
Quick Ratio 1.78
FRO.OL Yearly Current Assets VS Current LiabilitesFRO.OL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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6

3. Growth

3.1 Past

The earnings per share for FRO have decreased strongly by -35.03% in the last year.
Measured over the past 5 years, FRO shows a small growth in Earnings Per Share. The EPS has been growing by 6.95% on average per year.
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

The Earnings Per Share is expected to grow by 9.91% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.29% on average over the next years. This is quite good.
EPS Next Y-27.42%
EPS Next 2Y-2.8%
EPS Next 3Y0.66%
EPS Next 5Y9.91%
Revenue Next Year20.28%
Revenue Next 2Y9.82%
Revenue Next 3Y10.98%
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.
FRO.OL Yearly Revenue VS EstimatesFRO.OL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
FRO.OL Yearly EPS VS EstimatesFRO.OL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 8.09, which indicates a very decent valuation of FRO.
FRO's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.35, FRO is valued rather cheaply.
A Price/Forward Earnings ratio of 6.64 indicates a rather cheap valuation of FRO.
Based on the Price/Forward Earnings ratio, FRO is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, FRO is valued rather cheaply.
Industry RankSector Rank
PE 8.09
Fwd PE 6.64
FRO.OL Price Earnings VS Forward Price EarningsFRO.OL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FRO indicates a slightly more expensive valuation: FRO is more expensive than 60.32% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.97
FRO.OL Per share dataFRO.OL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

4.3 Compensation for Growth

FRO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.8%
EPS Next 3Y0.66%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 10.99%, FRO is a good candidate for dividend investing.
FRO's Dividend Yield is rather good when compared to the industry average which is at 60.92. FRO pays more dividend than 82.54% of the companies in the same industry.
FRO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
Industry RankSector Rank
Dividend Yield 10.99%

5.2 History

The dividend of FRO is nicely growing with an annual growth rate of 312.61%!
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.
The dividend of FRO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP97.34%
EPS Next 2Y-2.8%
EPS Next 3Y0.66%
FRO.OL Yearly Income VS Free CF VS DividendFRO.OL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M
FRO.OL Dividend Payout.FRO.OL Dividend Payout, showing the Payout Ratio.FRO.OL Dividend Payout.PayoutRetained Earnings

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FRONTLINE PLC

OSL:FRO (3/7/2025, 7:00:00 PM)

178.8

+3 (+1.71%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-27 2024-11-27/bmo
Earnings (Next)N/A N/A
Inst Owners28.14%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap39.80B
Analysts80
Price Target326 (82.33%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 10.99%
Yearly Dividend31.09
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)-14%
PT rev (3m)-17.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.85%
EPS NY rev (3m)-26.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-16.9%
Valuation
Industry RankSector Rank
PE 8.09
Fwd PE 6.64
P/S 2.04
P/FCF N/A
P/OCF 4.29
P/B 1.61
P/tB 1.7
EV/EBITDA 6.97
EPS(TTM)22.09
EY12.35%
EPS(NY)26.91
Fwd EY15.05%
FCF(TTM)-37.72
FCFYN/A
OCF(TTM)41.65
OCFY23.3%
SpS87.68
BVpS110.82
TBVpS105.35
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 1.51
F-Score6
WACC7.19%
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-27.42%
EPS Next 2Y-2.8%
EPS Next 3Y0.66%
EPS Next 5Y9.91%
Revenue 1Y (TTM)26.01%
Revenue growth 3Y13.85%
Revenue growth 5Y19.41%
Sales Q2Q%30.03%
Revenue Next Year20.28%
Revenue Next 2Y9.82%
Revenue Next 3Y10.98%
Revenue Next 5Y10.29%
EBIT growth 1Y72.52%
EBIT growth 3Y16.04%
EBIT growth 5Y59.42%
EBIT Next Year44.07%
EBIT Next 3Y16.02%
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%