FRONTLINE PLC (FRO) Stock Fundamental Analysis
USA - NYSE:FRO - CY0200352116 - Common Stock
24.23 USD
+0.39 (+1.64%)
24.25 USD
+0.02 (+0.08%)
We assign a fundamental rating of 5 out of 10 to FRO. FRO was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. FRO scores excellent on profitability, but there are concerns on its financial health. FRO has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FRO was profitable.
FRO had a positive operating cash flow in the past year.
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
The Return On Assets of FRO (11.16%) is better than 89.95% of its industry peers.
FRO has a better Return On Equity (28.82%) than 91.39% of its industry peers.
FRO has a Return On Invested Capital of 10.78%. This is amongst the best in the industry. FRO outperforms 83.25% 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 21.71%.
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
Looking at the Profit Margin, with a value of 36.42%, FRO belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
FRO's Profit Margin has improved in the last couple of years.
The Operating Margin of FRO (41.43%) is better than 86.60% of its industry peers.
FRO's Operating Margin has improved in the last couple of years.
FRO's Gross Margin of 55.88% is fine compared to the rest of the industry. FRO outperforms 64.11% of its industry peers.
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.
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
Based on the Altman-Z score of 1.78, we must say that FRO is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.78, FRO is doing good in the industry, outperforming 62.68% 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.
With a Debt to Equity ratio value of 1.40, FRO is not doing good in the industry: 74.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.78 |
ROIC/WACC1.38
WACC7.79%
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.
The Current ratio of FRO (1.78) is better than 72.73% of its industry peers.
A Quick Ratio of 1.78 indicates that FRO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.78, FRO is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
The earnings per share for FRO have decreased strongly by -47.57% in the last year.
FRO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.25% yearly.
EPS 1Y (TTM)-47.57%
EPS 3YN/A
EPS 5Y18.25%
EPS Q2Q%-41.94%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-13.66%
3.2 Future
The Earnings Per Share is expected to grow by 22.00% on average over the next years. This is a very strong growth
FRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.39% yearly.
EPS Next Y0.62%
EPS Next 2Y25.92%
EPS Next 3Y22%
EPS Next 5YN/A
Revenue Next Year-15.77%
Revenue Next 2Y0.51%
Revenue Next 3Y1.39%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.44, the valuation of FRO can be described as rather expensive.
FRO's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of FRO to the average of the S&P500 Index (26.83), we can say FRO is valued inline with the index average.
FRO is valuated reasonably with a Price/Forward Earnings ratio of 8.59.
FRO's Price/Forward Earnings ratio is rather cheap when compared to the industry. FRO is cheaper than 82.30% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, FRO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.44 | ||
| Fwd PE | 8.59 |
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 | 8.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FRO has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FRO's earnings are expected to grow with 22.00% in the coming years.
PEG (NY)36.1
PEG (5Y)1.23
EPS Next 2Y25.92%
EPS Next 3Y22%
5. Dividend
5.1 Amount
FRO has a Yearly Dividend Yield of 4.44%, which is a nice return.
Compared to an average industry Dividend Yield of 6.15, FRO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, FRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
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
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 2Y25.92%
EPS Next 3Y22%
24.23
+0.39 (+1.64%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners33.37%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap5.39B
Revenue(TTM)N/A
Net Income(TTM)656.41M
Analysts85
Price Target24.14 (-0.37%)
Short Float %3.54%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
Yearly Dividend1.95
Dividend Growth(5Y)78.57%
DP97.34%
Div Incr Years0
Div Non Decr Years0
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)69.28%
Revenue beat(16)15
Avg Revenue beat(16)61%
PT rev (1m)0%
PT rev (3m)2.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.44 | ||
| Fwd PE | 8.59 | ||
| P/S | 2.99 | ||
| P/FCF | N/A | ||
| P/OCF | 6.3 | ||
| P/B | 2.37 | ||
| P/tB | 2.49 | ||
| EV/EBITDA | 8.64 |
EPS(TTM)1.08
EY4.46%
EPS(NY)2.82
Fwd EY11.65%
FCF(TTM)-3.48
FCFYN/A
OCF(TTM)3.85
OCFY15.87%
SpS8.1
BVpS10.23
TBVpS9.73
PEG (NY)36.1
PEG (5Y)1.23
Graham Number15.77
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%
ROICexgc growth 3Y1.14%
ROICexgc 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 | 1.78 |
F-Score6
WACC7.79%
ROIC/WACC1.38
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)-47.57%
EPS 3YN/A
EPS 5Y18.25%
EPS Q2Q%-41.94%
EPS Next Y0.62%
EPS Next 2Y25.92%
EPS Next 3Y22%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-13.66%
Revenue Next Year-15.77%
Revenue Next 2Y0.51%
Revenue Next 3Y1.39%
Revenue Next 5YN/A
EBIT growth 1Y72.52%
EBIT growth 3Y16.04%
EBIT growth 5Y59.42%
EBIT Next Year43.81%
EBIT Next 3Y16.55%
EBIT Next 5Y13.42%
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%
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 4 / 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 8 / 10.
How financially healthy is FRONTLINE PLC?
The financial health rating of FRONTLINE PLC (FRO) is 3 / 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 97.34%.