FRONTLINE PLC (FRO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FRO - CY0200352116 - Common Stock
21.81 USD
+0.38 (+1.77%)
21.86 USD
+0.05 (+0.23%)
We assign a fundamental rating of 5 out of 10 to FRO. FRO was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of FRO get a neutral evaluation. Nothing too spectacular is happening here. FRO has a decent growth rate and is not valued too expensively.
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.
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 has a Return On Assets of 3.82%. This is comparable to the rest of the industry: FRO outperforms 55.71% of its industry peers.
The Return On Equity of FRO (9.37%) is better than 63.33% of its industry peers.
FRO has a better Return On Invested Capital (6.75%) than 61.43% 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 21.09%.
| 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
With a decent Profit Margin value of 12.34%, FRO is doing good in the industry, outperforming 62.86% of the companies in the same industry.
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 64.76% of the companies in the same industry.
In the last couple of years the Operating Margin of FRO has grown nicely.
FRO has a Gross Margin of 45.19%. This is comparable to the rest of the industry: FRO outperforms 54.29% of its industry peers.
FRO's Gross Margin has improved in the last couple of years.
| 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FRO is 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
FRO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.57, we must say that FRO is in the distress zone and has some risk of bankruptcy.
FRO has a Altman-Z score (1.57) which is comparable to the rest of the industry.
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.
FRO has a Debt to FCF ratio of 5.82. This is in the better half of the industry: FRO outperforms 62.86% of its industry peers.
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 72.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 5.82 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.81
WACC8.31%
2.3 Liquidity
FRO has a Current Ratio of 1.37. 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 1.37 is fine compared to the rest of the industry. FRO outperforms 62.38% 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's Quick ratio of 1.37 is fine compared to the rest of the industry. FRO outperforms 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
FRO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.41%.
FRO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.25% yearly.
Looking at the last year, FRO shows a very negative growth in Revenue. The Revenue has decreased by -13.41% in the last year.
FRO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.45% yearly.
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
FRO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.47% yearly.
The Revenue is expected to grow by 2.38% on average over the next years.
EPS Next Y4.57%
EPS Next 2Y31.52%
EPS Next 3Y19.47%
EPS Next 5YN/A
Revenue Next Year-7.58%
Revenue Next 2Y5.55%
Revenue Next 3Y2.38%
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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.45, FRO is valued on the expensive side.
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 26.57, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.08, the valuation of FRO can be described as very cheap.
Based on the Price/Forward Earnings ratio, FRO is valued cheaply inside the industry as 90.95% of the companies are valued more expensively.
FRO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.45 | ||
| Fwd PE | 7.08 |
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.
81.43% 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 | 8.72 | ||
| EV/EBITDA | 9.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FRO does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of FRO may justify a higher PE ratio.
FRO's earnings are expected to grow with 19.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.14
PEG (5Y)1.29
EPS Next 2Y31.52%
EPS Next 3Y19.47%
5. Dividend
5.1 Amount
FRO has a Yearly Dividend Yield of 4.23%, which is a nice return.
Compared to an average industry Dividend Yield of 3.95, FRO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.88, FRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
5.2 History
On average, the dividend of FRO grows each year by 78.57%, which is quite nice.
FRO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)78.57%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
110.35% of the earnings are spent on dividend by FRO. 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 2Y31.52%
EPS Next 3Y19.47%
21.81
+0.38 (+1.77%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners31.77%
Inst Owner Change0.66%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap4.86B
Revenue(TTM)1.77B
Net Income(TTM)217.88M
Analysts86.67
Price TargetN/A
Short Float %2.57%
Short Ratio1.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
Yearly Dividend1.95
Dividend Growth(5Y)78.57%
DP110.35%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-31.92%
Min EPS beat(2)-38.99%
Max EPS beat(2)-24.85%
EPS beat(4)0
Avg EPS beat(4)-32.45%
Min EPS beat(4)-44.42%
Max EPS beat(4)-21.54%
EPS beat(8)0
Avg EPS beat(8)-21.91%
EPS beat(12)1
Avg EPS beat(12)-17.02%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)56.87%
Min Revenue beat(2)53.65%
Max Revenue beat(2)60.08%
Revenue beat(4)4
Avg Revenue beat(4)51.47%
Min Revenue beat(4)40.16%
Max Revenue beat(4)60.08%
Revenue beat(8)8
Avg Revenue beat(8)47.42%
Revenue beat(12)11
Avg Revenue beat(12)43.12%
Revenue beat(16)15
Avg Revenue beat(16)53.64%
PT rev (1m)12.87%
PT rev (3m)20.42%
EPS NQ rev (1m)15.76%
EPS NQ rev (3m)11.73%
EPS NY rev (1m)2.86%
EPS NY rev (3m)-15.27%
Revenue NQ rev (1m)9.54%
Revenue NQ rev (3m)6.79%
Revenue NY rev (1m)9.46%
Revenue NY rev (3m)8.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.45 | ||
| Fwd PE | 7.08 | ||
| P/S | 2.75 | ||
| P/FCF | 8.72 | ||
| P/OCF | 8.56 | ||
| P/B | 2.09 | ||
| P/tB | 2.19 | ||
| EV/EBITDA | 9.9 |
EPS(TTM)0.93
EY4.26%
EPS(NY)3.08
Fwd EY14.12%
FCF(TTM)2.5
FCFY11.47%
OCF(TTM)2.55
OCFY11.68%
SpS7.93
BVpS10.45
TBVpS9.94
PEG (NY)5.14
PEG (5Y)1.29
Graham Number14.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 9.37% | ||
| ROCE | 8.55% | ||
| ROIC | 6.75% | ||
| ROICexc | 7.01% | ||
| ROICexgc | 7.17% | ||
| OM | 25.52% | ||
| PM (TTM) | 12.34% | ||
| GM | 45.19% | ||
| FCFM | 31.54% |
ROA(3y)9.7%
ROA(5y)7.85%
ROE(3y)23.68%
ROE(5y)19.15%
ROIC(3y)9.24%
ROIC(5y)7.64%
ROICexc(3y)10.04%
ROICexc(5y)8.23%
ROICexgc(3y)10.29%
ROICexgc(5y)8.45%
ROCE(3y)11.7%
ROCE(5y)9.67%
ROICexgc growth 3Y374.61%
ROICexgc growth 5Y7.27%
ROICexc growth 3Y376.04%
ROICexc growth 5Y7.73%
OM growth 3Y281.28%
OM growth 5Y5.78%
PM growth 3YN/A
PM growth 5Y10.58%
GM growth 3Y25.66%
GM growth 5Y3.8%
F-Score4
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 5.82 | ||
| Debt/EBITDA | 3.73 | ||
| Cap/Depr | 2.94% | ||
| Cap/Sales | 0.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.79% | ||
| Profit Quality | 255.64% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 1.57 |
F-Score4
WACC8.31%
ROIC/WACC0.81
Cap/Depr(3y)393.23%
Cap/Depr(5y)320.76%
Cap/Sales(3y)52.88%
Cap/Sales(5y)47.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-54.41%
EPS 3YN/A
EPS 5Y18.25%
EPS Q2Q%-44.12%
EPS Next Y4.57%
EPS Next 2Y31.52%
EPS Next 3Y19.47%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.41%
Revenue growth 3Y39.87%
Revenue growth 5Y16.45%
Sales Q2Q%-11.76%
Revenue Next Year-7.58%
Revenue Next 2Y5.55%
Revenue Next 3Y2.38%
Revenue Next 5YN/A
EBIT growth 1Y-42.95%
EBIT growth 3Y433.29%
EBIT growth 5Y23.18%
EBIT Next Year28.24%
EBIT Next 3Y15.49%
EBIT Next 5YN/A
FCF growth 1Y-24.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-42.02%
OCF growth 3Y105.18%
OCF growth 5Y21.32%
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 of FRONTLINE PLC (FRO) stock?
ChartMill assigns a valuation rating of 6 / 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.
How financially healthy is FRONTLINE PLC?
The financial health rating of FRONTLINE PLC (FRO) is 4 / 10.
Can you provide the dividend sustainability for FRO stock?
The dividend rating of FRONTLINE PLC (FRO) is 5 / 10 and the dividend payout ratio is 110.35%.