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 209 industry peers in the Oil, Gas & Consumable Fuels industry. FRO has an excellent profitability rating, but 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.
Of the past 5 years FRO 4 years were profitable.
Each year in the past 5 years FRO had a positive operating cash flow.
1.2 Ratios
FRO has a Return On Assets of 11.16%. This is amongst the best in the industry. FRO outperforms 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 28.82%, FRO belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
The Return On Invested Capital of FRO (10.78%) is better than 73.33% of its industry peers.
FRO had an Average Return On Invested Capital over the past 3 years of 6.27%. This is significantly below the industry average of 27.48%.
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
FRO has a Profit Margin of 36.42%. This is amongst the best in the industry. FRO outperforms 87.62% 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 83.81% of its industry peers.
FRO's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 55.88%, FRO is doing good in the industry, outperforming 61.90% of the companies in the same industry.
In the last couple of years the Gross Margin of FRO has grown nicely.
| 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.
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 1.51, we must say that FRO is in the distress zone and has some risk of bankruptcy.
FRO's Altman-Z score of 1.51 is in line compared to the rest of the industry. FRO outperforms 54.29% 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's Debt to Equity ratio of 1.40 is on the low side compared to the rest of the industry. FRO is outperformed by 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.51 |
ROIC/WACC1.43
WACC7.52%
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.
With a decent Current ratio value of 1.78, FRO is doing good in the industry, outperforming 71.90% of the companies in the same industry.
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 73.81% of its industry peers.
| 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.
FRO shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.01%.
The Revenue has been growing by 19.41% on average over the past years. This is quite good.
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
FRO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.91% yearly.
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-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
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
The Price/Earnings ratio is 8.13, which indicates a very decent valuation of FRO.
74.29% of the companies in the same industry are more expensive than FRO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.35, FRO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.67, the valuation of FRO can be described as very cheap.
79.52% 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 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 6.67 |
4.2 Price Multiples
FRO's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.98 |
4.3 Compensation for Growth
The excellent profitability rating of FRO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.8%
EPS Next 3Y0.66%
5. Dividend
5.1 Amount
FRO has a Yearly Dividend Yield of 10.99%, which is a nice return.
FRO's Dividend Yield is rather good when compared to the industry average which is at 7.12. FRO pays more dividend than 90.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, FRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.99% |
5.2 History
On average, the dividend of FRO grows each year by 312.61%, which is quite nice.
FRO has paid a dividend for at least 10 years, which is a reliable track record.
FRO has decreased its dividend 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.
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%
16.58
+0.39 (+2.41%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners28.14%
Inst Owner Change6.83%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap3.69B
Analysts80
Price Target28.9 (74.31%)
Short Float %6.6%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.99% |
Yearly Dividend2.87
Dividend Growth(5Y)312.61%
DP97.34%
Div Incr Years1
Div Non Decr Years1
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)-12.82%
PT rev (3m)-17.87%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 6.67 | ||
| P/S | 2.05 | ||
| P/FCF | N/A | ||
| P/OCF | 4.31 | ||
| P/B | 1.62 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 6.98 |
EPS(TTM)2.04
EY12.3%
EPS(NY)2.48
Fwd EY14.99%
FCF(TTM)-3.48
FCFYN/A
OCF(TTM)3.85
OCFY23.2%
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 | 1.51 |
F-Score6
WACC7.52%
ROIC/WACC1.43
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%