Taking everything into account, FRO scores 5 out of 10 in our fundamental rating. FRO was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. FRO has only an average score on both its financial health and profitability. FRO has a decent growth rate and is not valued too expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year FRO was profitable.
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

The Return On Assets of FRO (3.82%) is comparable to the rest of the industry.
FRO has a Return On Equity of 9.37%. This is in the better half of the industry: FRO outperforms 62.32% of its industry peers.
With a decent Return On Invested Capital value of 6.75%, FRO is doing good in the industry, outperforming 61.84% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FRO is significantly below the industry average of 21.94%.

		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

FRO's Profit Margin of 12.34% is fine compared to the rest of the industry. FRO outperforms 62.80% of its industry peers.
FRO's Profit Margin has improved in the last couple of years.
FRO has a better Operating Margin (25.52%) than 65.22% of its industry peers.
In the last couple of years the Operating Margin of FRO has grown nicely.
With a Gross Margin value of 45.19%, FRO perfoms like the industry average, outperforming 54.59% of the companies in the same industry.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
FRO has about the same amout of shares outstanding than it did 1 year ago.
FRO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FRO is higher compared to a year ago.

2.2 Solvency

FRO has an Altman-Z score of 1.78. This is a bad value and indicates that FRO is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.78, FRO is doing good in the industry, outperforming 61.84% of the companies in the same industry.
The Debt to FCF ratio of FRO is 5.82, which is a neutral value as it means it would take FRO, 5.82 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.82, FRO is doing good in the industry, outperforming 61.84% of the companies in the same industry.
A Debt/Equity ratio of 1.27 is on the high side and indicates that FRO has dependencies on debt financing.
FRO's Debt to Equity ratio of 1.27 is on the low side compared to the rest of the industry. FRO is outperformed by 71.98% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.27
Debt/FCF	5.82
Altman-Z	1.78

ROIC/WACC0.82

WACC8.2%

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 has a better Current ratio (1.37) than 61.35% of its industry peers.
FRO has a Quick 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 Quick ratio of 1.37 is fine compared to the rest of the industry. FRO outperforms 67.63% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.37
Quick Ratio	1.37

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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%.
The Earnings Per Share has been growing by 18.25% on average over the past years. This is quite good.
FRO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.41%.
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

The Earnings Per Share is expected to grow by 18.91% on average over the next years. This is quite good.
FRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.66% yearly.

EPS Next Y4.31%

EPS Next 2Y31.77%

EPS Next 3Y18.91%

EPS Next 5YN/A

Revenue Next Year-7.03%

Revenue Next 2Y5.25%

Revenue Next 3Y2.66%

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

FRO is valuated quite expensively with a Price/Earnings ratio of 29.08.
60.87% of the companies in the same industry are cheaper than FRO, based on the Price/Earnings ratio.
FRO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.75 indicates a reasonable valuation of FRO.
87.44% of the companies in the same industry are more expensive than FRO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FRO to the average of the S&P500 Index (25.96), we can say FRO is valued rather cheaply.

		Industry Rank	Sector Rank
PE	29.08
Fwd PE	8.75

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as FRO.
76.81% 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	10.81
EV/EBITDA	11.38

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of FRO may justify a higher PE ratio.
A more expensive valuation may be justified as FRO's earnings are expected to grow with 18.91% in the coming years.

PEG (NY)6.75

PEG (5Y)1.59

EPS Next 2Y31.77%

EPS Next 3Y18.91%

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5. Dividend

5.1 Amount

FRO has a Yearly Dividend Yield of 3.67%.
FRO's Dividend Yield is comparable with the industry average which is at 3.73.
Compared to an average S&P500 Dividend Yield of 1.82, FRO pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	3.67%

5.2 History

The dividend of FRO is nicely growing with an annual growth rate of 78.57%!
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

110.35% of the earnings are spent on dividend by FRO. This is not a sustainable payout ratio.
FRO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.

DP110.35%

EPS Next 2Y31.77%

EPS Next 3Y18.91%

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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 for FRO stock?

ChartMill assigns a valuation rating of 5 / 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.

Can you provide the PE and PB ratios for FRO stock?

The Price/Earnings (PE) ratio for FRONTLINE PLC (FRO) is 29.08 and the Price/Book (PB) ratio is 2.59.

What is the earnings growth outlook for FRONTLINE PLC?

The Earnings per Share (EPS) of FRONTLINE PLC (FRO) is expected to grow by 4.31% in the next year.