FRONTLINE PLC (FRO) Stock Fundamental Analysis
NYSE:FRO - New York Stock Exchange, Inc. - CY0200352116 - Common Stock - Currency: USD
Taking everything into account, FRO scores 5 out of 10 in our fundamental rating. FRO was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. FRO scores excellent on profitability, but there are concerns on its financial health. FRO is cheap, 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.
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.
1.2 Ratios
FRO's Return On Assets of 11.16% is amongst the best of the industry. FRO outperforms 84.43% 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 88.68% of the companies in the same industry.
FRO's Return On Invested Capital of 10.78% is fine compared to the rest of the industry. FRO outperforms 74.53% 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 27.43%.
The 3 year average ROIC (6.27%) for FRO is below the current ROIC(10.78%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 36.42%, FRO belongs to the best of the industry, outperforming 88.68% of the companies in the same industry.
FRO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 41.43%, FRO belongs to the best of the industry, outperforming 84.91% of the companies in the same industry.
In the last couple of years the Operating Margin of FRO has grown nicely.
Looking at the Gross Margin, with a value of 55.88%, FRO is in the better half of the industry, outperforming 61.32% 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
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
FRO has an Altman-Z score of 1.47. This is a bad value and indicates that FRO is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.47, FRO is in line with its industry, outperforming 54.72% of the companies in the same industry.
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 75.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.47 |
ROIC/WACC1.36
WACC7.9%
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 74.06% of its industry peers.
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.
The Quick ratio of FRO (1.78) is better than 75.00% 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 -32.32%.
Measured over the past years, FRO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.25% on average per year.
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
Based on estimates for the next years, FRO will show a very strong growth in Earnings Per Share. The EPS will grow by 27.30% on average per year.
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
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
A Price/Earnings ratio of 8.37 indicates a reasonable valuation of FRO.
FRO's Price/Earnings ratio is a bit cheaper when compared to the industry. FRO is cheaper than 71.70% of the companies in the same industry.
When comparing the Price/Earnings ratio of FRO to the average of the S&P500 Index (28.29), we can say FRO is valued rather cheaply.
The Price/Forward Earnings ratio is 6.25, which indicates a rather cheap valuation of FRO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FRO indicates a rather cheap valuation: FRO is cheaper than 82.08% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FRO to the average of the S&P500 Index (21.32), we can say FRO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 6.25 |
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 | 6.72 |
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.
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)0.25
PEG (5Y)0.46
EPS Next 2Y33.2%
EPS Next 3Y27.3%
5. Dividend
5.1 Amount
FRO has a Yearly Dividend Yield of 11.53%, which is a nice return.
FRO's Dividend Yield is rather good when compared to the industry average which is at 7.41. FRO pays more dividend than 91.04% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, FRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.53% |
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.
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.
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%
NYSE:FRO (4/21/2025, 2:42:57 PM)
14.895
-0.54 (-3.53%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners28.14%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap3.32B
Analysts80
Price Target28.56 (91.74%)
Short Float %6.24%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.53% |
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)-1.18%
PT rev (3m)-13.85%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 6.25 | ||
| P/S | 1.84 | ||
| P/FCF | N/A | ||
| P/OCF | 3.87 | ||
| P/B | 1.46 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 6.72 |
EPS(TTM)1.78
EY11.95%
EPS(NY)2.38
Fwd EY16.01%
FCF(TTM)-3.48
FCFYN/A
OCF(TTM)3.85
OCFY25.82%
SpS8.1
BVpS10.23
TBVpS9.73
PEG (NY)0.25
PEG (5Y)0.46
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 | 1.47 |
F-Score6
WACC7.9%
ROIC/WACC1.36
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%