FRONTLINE PLC (FRO) Stock Fundamental Analysis
NYSE:FRO - New York Stock Exchange, Inc. - CY0200352116 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to FRO. FRO was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. While FRO belongs to the best of the industry regarding profitability, 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.
Each year in the past 5 years FRO had a positive operating cash flow.
1.2 Ratios
FRO's Return On Assets of 11.16% is fine compared to the rest of the industry. FRO outperforms 79.61% of its industry peers.
The Return On Equity of FRO (28.82%) is better than 86.41% of its industry peers.
The Return On Invested Capital of FRO (10.78%) is better than 70.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FRO is significantly below the industry average of 28.73%.
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 88.35% of the companies in the same industry.
In the last couple of years the Profit Margin of FRO has grown nicely.
With an excellent Operating Margin value of 41.43%, FRO belongs to the best of the industry, outperforming 81.07% of the companies in the same industry.
FRO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 55.88%, FRO is in the better half of the industry, outperforming 62.62% of the companies in the same industry.
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.
The number of shares outstanding for FRO remains at a similar level compared to 1 year ago.
Compared to 5 years ago, FRO has more shares outstanding
The debt/assets ratio for FRO is higher compared to a year ago.
2.2 Solvency
FRO has an Altman-Z score of 1.55. This is a bad value and indicates that FRO is not financially healthy and even has some risk of bankruptcy.
FRO has a Altman-Z score of 1.55. This is comparable to the rest of the industry: FRO outperforms 49.03% 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.
FRO has a Debt to Equity ratio of 1.40. This is in the lower half of the industry: FRO underperforms 79.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.55 |
ROIC/WACC1.49
WACC7.24%
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.
FRO's Current ratio of 1.78 is fine compared to the rest of the industry. FRO outperforms 69.42% of its industry peers.
A Quick Ratio of 1.78 indicates that FRO should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.78, FRO is doing good in the industry, outperforming 72.33% of the companies in the same industry.
| 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%.
FRO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.41% yearly.
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.
FRO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.29% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
FRO is valuated reasonably with a Price/Earnings ratio of 9.25.
Compared to the rest of the industry, the Price/Earnings ratio of FRO indicates a somewhat cheap valuation: FRO is cheaper than 73.30% of the companies listed in the same industry.
FRO is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.94, the valuation of FRO can be described as very cheap.
FRO's Price/Forward Earnings ratio is rather cheap when compared to the industry. FRO is cheaper than 84.47% of the companies in the same industry.
FRO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.25 | ||
| Fwd PE | 6.94 |
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 | 7.2 |
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 2Y1.69%
EPS Next 3Y4.88%
5. Dividend
5.1 Amount
FRO has a Yearly Dividend Yield of 11.16%, which is a nice return.
FRO's Dividend Yield is rather good when compared to the industry average which is at 6.57. FRO pays more dividend than 90.78% of the companies in the same industry.
FRO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.16% |
5.2 History
The dividend of FRO is nicely growing with an annual growth rate of 312.61%!
FRO has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of FRO decreased recently.
Dividend Growth(5Y)312.61%
Div Incr Years1
Div Non Decr Years1
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
NYSE:FRO (2/4/2025, 8:04:00 PM)
After market: 18.87 0 (0%)18.87
+1.32 (+7.52%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners30.12%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap4.20B
Analysts77.14
Price Target33.15 (75.68%)
Short Float %6.29%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.16% |
Yearly Dividend2.87
Dividend Growth(5Y)312.61%
DP97.34%
Div Incr Years1
Div Non Decr Years1
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%
PT rev (3m)-5.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.65%
EPS NY rev (3m)-29.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-11.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.25 | ||
| Fwd PE | 6.94 | ||
| P/S | 2.33 | ||
| P/FCF | N/A | ||
| P/OCF | 4.91 | ||
| P/B | 1.84 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 7.2 |
EPS(TTM)2.04
EY10.81%
EPS(NY)2.72
Fwd EY14.41%
FCF(TTM)-3.48
FCFYN/A
OCF(TTM)3.85
OCFY20.38%
SpS8.1
BVpS10.23
TBVpS9.73
PEG (NY)N/A
PEG (5Y)N/A
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 | 1.55 |
F-Score6
WACC7.24%
ROIC/WACC1.49
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%