FRONTLINE PLC (FRO) Stock Fundamental Analysis
USA - NYSE:FRO - CY0200352116 - Common Stock
23.87 USD
+0.04 (+0.17%)
23.89 USD
+0.02 (+0.08%)
Taking everything into account, FRO scores 5 out of 10 in our fundamental rating. FRO was compared to 210 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 on the other hand it scores bad on growth.
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.
The reported net income has been mixed in the past 5 years: FRO reported negative net income in multiple years.
Of the past 5 years FRO 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.16%, FRO belongs to the top of the industry, outperforming 89.05% of the companies in the same industry.
With an excellent Return On Equity value of 28.82%, FRO belongs to the best of the industry, outperforming 90.95% of the companies in the same industry.
FRO's Return On Invested Capital of 10.78% is amongst the best of the industry. FRO outperforms 81.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FRO is significantly below the industry average of 21.66%.
The last Return On Invested Capital (10.78%) for FRO is above the 3 year average (6.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 28.82% | ||
| ROIC | 10.78% |
ROA(3y)6.95%
ROA(5y)7.04%
ROE(3y)16.39%
ROE(5y)16.81%
ROIC(3y)6.27%
ROIC(5y)7.15%
1.3 Margins
Looking at the Profit Margin, with a value of 36.42%, FRO belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Profit Margin of FRO has grown nicely.
Looking at the Operating Margin, with a value of 41.43%, FRO belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
In the last couple of years the Operating Margin of FRO has grown nicely.
FRO has a better Gross Margin (55.88%) than 64.76% 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
FRO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for FRO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 1.78, we must say that FRO is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.78, FRO is doing good in the industry, outperforming 61.90% 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.
The Debt to Equity ratio of FRO (1.40) is worse than 72.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.78 |
ROIC/WACC1.38
WACC7.79%
2.3 Liquidity
A Current Ratio of 1.78 indicates that FRO should not have too much problems paying its short term obligations.
FRO has a better Current ratio (1.78) than 71.43% of its industry peers.
A Quick Ratio of 1.78 indicates that FRO should not have too much problems paying its short term obligations.
FRO has a better Quick ratio (1.78) than 74.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
The earnings per share for FRO have decreased strongly by -47.57% 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.
EPS 1Y (TTM)-47.57%
EPS 3YN/A
EPS 5Y18.25%
EPS Q2Q%-41.94%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-13.66%
3.2 Future
FRO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.73% yearly.
Based on estimates for the next years, FRO will show a small growth in Revenue. The Revenue will grow by 7.15% on average per year.
EPS Next Y23.41%
EPS Next 2Y30.2%
EPS Next 3Y28.73%
EPS Next 5YN/A
Revenue Next Year-14.68%
Revenue Next 2Y2.09%
Revenue Next 3Y7.15%
Revenue Next 5YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.10, the valuation of FRO can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as FRO.
FRO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.91, the valuation of FRO can be described as very cheap.
81.43% of the companies in the same industry are more expensive than FRO, based on the Price/Forward Earnings ratio.
FRO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.1 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FRO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.63 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FRO has an outstanding profitability rating, which may justify a higher PE ratio.
FRO's earnings are expected to grow with 28.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)1.21
EPS Next 2Y30.2%
EPS Next 3Y28.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.69%, FRO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.17, FRO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, FRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
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 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 2Y30.2%
EPS Next 3Y28.73%
23.87
+0.04 (+0.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners32.16%
Inst Owner Change2.27%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap5.31B
Analysts85
Price Target24.14 (1.13%)
Short Float %4.63%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
Yearly Dividend1.95
Dividend Growth(5Y)78.57%
DP97.34%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)2.9%
PT rev (3m)-13.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.1 | ||
| Fwd PE | 7.91 | ||
| P/S | 2.95 | ||
| P/FCF | N/A | ||
| P/OCF | 6.21 | ||
| P/B | 2.33 | ||
| P/tB | 2.45 | ||
| EV/EBITDA | 8.63 |
EPS(TTM)1.08
EY4.52%
EPS(NY)3.02
Fwd EY12.64%
FCF(TTM)-3.48
FCFYN/A
OCF(TTM)3.85
OCFY16.11%
SpS8.1
BVpS10.23
TBVpS9.73
PEG (NY)0.94
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 28.82% | ||
| ROCE | 13.64% | ||
| ROIC | 10.78% | ||
| ROICexc | 11.44% | ||
| ROICexgc | 11.69% | ||
| 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)6.27%
ROIC(5y)7.15%
ROICexc(3y)6.82%
ROICexc(5y)7.68%
ROICexgc(3y)7%
ROICexgc(5y)7.92%
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 | 1.78 |
F-Score6
WACC7.79%
ROIC/WACC1.38
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)-47.57%
EPS 3YN/A
EPS 5Y18.25%
EPS Q2Q%-41.94%
EPS Next Y23.41%
EPS Next 2Y30.2%
EPS Next 3Y28.73%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-13.66%
Revenue Next Year-14.68%
Revenue Next 2Y2.09%
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 3Y16.09%
EBIT Next 5Y15.66%
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%