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FRONTLINE PLC (FRO.OL) Stock Fundamental Analysis

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

170.4  +4.7 (+2.84%)

Fundamental Rating

5

FRO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 61 industry peers in the Oil, Gas & Consumable Fuels industry. FRO scores excellent on profitability, but there are concerns on its financial health. FRO has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year FRO was profitable.
In the past year FRO had a positive cash flow from operations.
In multiple years FRO reported negative net income over the last 5 years.
Of the past 5 years FRO 4 years had a positive operating cash flow.
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 81.97% of its industry peers.
FRO's Return On Equity of 28.82% is amongst the best of the industry. FRO outperforms 83.61% of its industry peers.
FRO has a better Return On Invested Capital (10.50%) than 68.85% 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 11.72%.
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 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 91.80% of its industry peers.
In the last couple of years the Profit Margin of FRO has grown nicely.
FRO has a better Operating Margin (41.43%) than 85.25% of its industry peers.
In the last couple of years the Operating Margin of FRO has grown nicely.
FRO has a better Gross Margin (55.88%) than 63.93% 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.
FRO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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

Based on the Altman-Z score of 1.49, we must say that FRO is in the distress zone and has some risk of bankruptcy.
FRO's Altman-Z score of 1.49 is on the low side compared to the rest of the industry. FRO is outperformed by 62.30% of its industry peers.
FRO has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
FRO has a worse Debt to Equity ratio (1.40) than 80.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.4
Debt/FCF N/A
Altman-Z 1.49
ROIC/WACC1.34
WACC7.82%
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

A Current Ratio of 1.78 indicates that FRO should not have too much problems paying its short term obligations.
The Current ratio of FRO (1.78) is better than 68.85% of its industry peers.
A Quick Ratio of 1.78 indicates that FRO should not have too much problems paying its short term obligations.
The Quick ratio of FRO (1.78) is better than 75.41% 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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3

3. Growth

3.1 Past

FRO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.32%.
FRO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.25% yearly.
EPS 1Y (TTM)-32.32%
EPS 3YN/A
EPS 5Y18.25%
EPS Q2Q%-56.52%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.56%

3.2 Future

The Earnings Per Share is expected to grow by 27.30% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.15% on average over the next years.
EPS Next Y33.97%
EPS Next 2Y33.2%
EPS Next 3Y27.3%
EPS Next 5YN/A
Revenue Next Year-8.53%
Revenue Next 2Y1.22%
Revenue Next 3Y7.15%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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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6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 9.21, the valuation of FRO can be described as very reasonable.
The rest of the industry has a similar Price/Earnings ratio as FRO.
Compared to an average S&P500 Price/Earnings ratio of 28.79, FRO is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.87, the valuation of FRO can be described as very cheap.
78.69% 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 (21.38), we can say FRO is valued rather cheaply.
Industry RankSector Rank
PE 9.21
Fwd PE 6.87
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

Based on the Enterprise Value to EBITDA ratio, FRO is valued a bit more expensive than 60.66% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.83
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's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of FRO may justify a higher PE ratio.
FRO's earnings are expected to grow with 27.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)0.5
EPS Next 2Y33.2%
EPS Next 3Y27.3%

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6

5. Dividend

5.1 Amount

FRO has a Yearly Dividend Yield of 11.53%, which is a nice return.
Compared to an average industry Dividend Yield of 61.27, FRO pays a better dividend. On top of this FRO pays more dividend than 83.61% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, FRO pays a better dividend.
Industry RankSector Rank
Dividend Yield 11.53%

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

97.34% of the earnings are spent on dividend by FRO. 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 2Y33.2%
EPS Next 3Y27.3%
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 (4/25/2025, 7:00:00 PM)

170.4

+4.7 (+2.84%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-28 2025-02-28/bmo
Earnings (Next)N/A N/A
Inst Owners28.14%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap37.93B
Analysts80
Price Target295.6 (73.47%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 11.53%
Yearly Dividend30.23
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)-9.33%
PT rev (3m)-21.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.87%
Valuation
Industry RankSector Rank
PE 9.21
Fwd PE 6.87
P/S 2.02
P/FCF N/A
P/OCF 4.26
P/B 1.6
P/tB 1.68
EV/EBITDA 6.83
EPS(TTM)18.51
EY10.86%
EPS(NY)24.8
Fwd EY14.55%
FCF(TTM)-36.21
FCFYN/A
OCF(TTM)39.99
OCFY23.47%
SpS84.17
BVpS106.39
TBVpS101.14
PEG (NY)0.27
PEG (5Y)0.5
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 1.49
F-Score6
WACC7.82%
ROIC/WACC1.34
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)-32.32%
EPS 3YN/A
EPS 5Y18.25%
EPS Q2Q%-56.52%
EPS Next Y33.97%
EPS Next 2Y33.2%
EPS Next 3Y27.3%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.56%
Revenue Next Year-8.53%
Revenue Next 2Y1.22%
Revenue Next 3Y7.15%
Revenue Next 5YN/A
EBIT growth 1Y72.52%
EBIT growth 3Y16.04%
EBIT growth 5Y59.42%
EBIT Next Year43.81%
EBIT Next 3Y18.95%
EBIT Next 5Y15.05%
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%