FRO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. FRO has an average financial health and profitability rating. FRO has a correct valuation and a medium growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year FRO was profitable.
FRO had a positive operating cash flow in the past year.
Of the past 5 years FRO 4 years were profitable.
FRO had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With a Return On Assets value of 3.82%, FRO perfoms like the industry average, outperforming 55.07% of the companies in the same industry.
The Return On Equity of FRO (9.37%) is better than 62.32% of its industry peers.
With a decent Return On Invested Capital value of 6.75%, FRO is doing good in the industry, outperforming 61.84% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FRO is significantly below the industry average of 21.94%.

		Industry Rank	Sector Rank
ROA	3.82%
ROE	9.37%
ROIC	6.75%

ROA(3y)9.7%

ROA(5y)7.85%

ROE(3y)23.68%

ROE(5y)19.15%

ROIC(3y)9.24%

ROIC(5y)7.64%

1.3 Margins

FRO has a Profit Margin of 12.34%. This is in the better half of the industry: FRO outperforms 62.80% of its industry peers.
FRO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 25.52%, FRO is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
FRO's Operating Margin has improved in the last couple of years.
FRO's Gross Margin of 45.19% is in line compared to the rest of the industry. FRO outperforms 54.59% of its industry peers.
In the last couple of years the Gross Margin of FRO has grown nicely.

		Industry Rank	Sector Rank
OM	25.52%
PM (TTM)	12.34%
GM	45.19%

OM growth 3Y281.28%

OM growth 5Y5.78%

PM growth 3YN/A

PM growth 5Y10.58%

GM growth 3Y25.66%

GM growth 5Y3.8%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The debt/assets ratio for FRO is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.75, we must say that FRO is in the distress zone and has some risk of bankruptcy.
FRO has a Altman-Z score of 1.75. This is in the better half of the industry: FRO outperforms 61.84% of its industry peers.
FRO has a debt to FCF ratio of 5.82. This is a neutral value as FRO would need 5.82 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.82, FRO is doing good in the industry, outperforming 61.84% of the companies in the same industry.
A Debt/Equity ratio of 1.27 is on the high side and indicates that FRO has dependencies on debt financing.
FRO has a Debt to Equity ratio of 1.27. This is in the lower half of the industry: FRO underperforms 71.98% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.27
Debt/FCF	5.82
Altman-Z	1.75

ROIC/WACC0.82

WACC8.22%

2.3 Liquidity

A Current Ratio of 1.37 indicates that FRO should not have too much problems paying its short term obligations.
The Current ratio of FRO (1.37) is better than 61.35% of its industry peers.
A Quick Ratio of 1.37 indicates that FRO should not have too much problems paying its short term obligations.
FRO has a better Quick ratio (1.37) than 67.63% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.37
Quick Ratio	1.37

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for FRO have decreased strongly by -54.41% in the last year.
FRO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.25% yearly.
The Revenue for FRO has decreased by -13.41% in the past year. This is quite bad
Measured over the past years, FRO shows a quite strong growth in Revenue. The Revenue has been growing by 16.45% on average per year.

EPS 1Y (TTM)-54.41%

EPS 3YN/A

EPS 5Y18.25%

EPS Q2Q%-44.12%

Revenue 1Y (TTM)-13.41%

Revenue growth 3Y39.87%

Revenue growth 5Y16.45%

Sales Q2Q%-11.76%

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 18.91% on average per year.
Based on estimates for the next years, FRO will show a small growth in Revenue. The Revenue will grow by 2.66% on average per year.

EPS Next Y4.31%

EPS Next 2Y31.77%

EPS Next 3Y18.91%

EPS Next 5YN/A

Revenue Next Year-7.03%

Revenue Next 2Y5.25%

Revenue Next 3Y2.66%

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 28.02, FRO can be considered very expensive at the moment.
FRO's Price/Earnings ratio is a bit more expensive when compared to the industry. FRO is more expensive than 60.87% of the companies in the same industry.
FRO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.43, the valuation of FRO can be described as very reasonable.
87.92% 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 (25.98), we can say FRO is valued rather cheaply.

		Industry Rank	Sector Rank
PE	28.02
Fwd PE	8.43

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FRO is on the same level as its industry peers.
78.26% of the companies in the same industry are more expensive than FRO, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	10.42
EV/EBITDA	11.2

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FRO has a very decent profitability rating, which may justify a higher PE ratio.
FRO's earnings are expected to grow with 18.91% in the coming years. This may justify a more expensive valuation.

PEG (NY)6.5

PEG (5Y)1.54

EPS Next 2Y31.77%

EPS Next 3Y18.91%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.67%, FRO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.73, FRO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.81, FRO pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	3.67%

5.2 History

On average, the dividend of FRO grows each year by 78.57%, which is quite nice.
FRO has been paying a dividend for at least 10 years, so it has a reliable track record.

Dividend Growth(5Y)78.57%

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

FRO pays out 110.35% 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.

DP110.35%

EPS Next 2Y31.77%

EPS Next 3Y18.91%

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FRONTLINE PLC / FRO FAQ

What is the ChartMill fundamental rating of FRONTLINE PLC (FRO) stock?

ChartMill assigns a fundamental rating of 5 / 10 to FRO.

What is the valuation status for FRO stock?

ChartMill assigns a valuation rating of 5 / 10 to FRONTLINE PLC (FRO). This can be considered as Fairly Valued.

Can you provide the profitability details for FRONTLINE PLC?

FRONTLINE PLC (FRO) has a profitability rating of 6 / 10.

Can you provide the PE and PB ratios for FRO stock?

The Price/Earnings (PE) ratio for FRONTLINE PLC (FRO) is 28.02 and the Price/Book (PB) ratio is 2.49.

What is the earnings growth outlook for FRONTLINE PLC?

The Earnings per Share (EPS) of FRONTLINE PLC (FRO) is expected to grow by 4.31% in the next year.