FRONTLINE PLC (FRO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FRO - CY0200352116 - Common Stock
24.98 USD
+0.55 (+2.25%)
24.49 USD
-0.49 (-1.96%)
Overall FRO gets a fundamental rating of 5 out of 10. We evaluated FRO against 208 industry peers in the Oil, Gas & Consumable Fuels industry. FRO has an average financial health and profitability rating. 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.
Of the past 5 years FRO 4 years were profitable.
FRO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FRO has a Return On Assets of 3.82%. This is comparable to the rest of the industry: FRO outperforms 55.29% of its industry peers.
The Return On Equity of FRO (9.37%) is better than 62.50% of its industry peers.
FRO has a Return On Invested Capital of 6.75%. This is in the better half of the industry: FRO outperforms 62.02% of its industry peers.
FRO had an Average Return On Invested Capital over the past 3 years of 9.24%. This is significantly below the industry average of 21.28%.
| 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
The Profit Margin of FRO (12.34%) is better than 62.50% of its industry peers.
FRO's Profit Margin has improved in the last couple of years.
FRO has a Operating Margin of 25.52%. This is in the better half of the industry: FRO outperforms 64.90% of its industry peers.
In the last couple of years the Operating Margin of FRO has grown nicely.
FRO's Gross Margin of 45.19% is in line compared to the rest of the industry. FRO outperforms 54.33% 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
FRO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, FRO has about the same amount of shares outstanding.
Compared to 5 years ago, FRO has more shares outstanding
The debt/assets ratio for FRO is higher compared to a year ago.
2.2 Solvency
FRO has an Altman-Z score of 1.69. This is a bad value and indicates that FRO is not financially healthy and even has some risk of bankruptcy.
FRO's Altman-Z score of 1.69 is fine compared to the rest of the industry. FRO outperforms 62.02% of its industry peers.
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 better Debt to FCF ratio (5.82) than 62.02% 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.
The Debt to Equity ratio of FRO (1.27) is worse than 71.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 5.82 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.81
WACC8.29%
2.3 Liquidity
A Current Ratio of 1.37 indicates that FRO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.37, FRO is doing good in the industry, outperforming 62.50% of the companies in the same industry.
A Quick Ratio of 1.37 indicates that FRO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.37, FRO is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
| 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%.
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.
The Revenue for FRO has decreased by -13.41% in the past year. This is quite bad
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
Based on estimates for the next years, FRO will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.47% on average per year.
The Revenue is expected to grow by 2.38% on average over the next years.
EPS Next Y4.57%
EPS Next 2Y32.93%
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 26.86, FRO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of FRO indicates a slightly more expensive valuation: FRO is more expensive than 61.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, FRO is valued at the same level.
The Price/Forward Earnings ratio is 7.94, which indicates a rather cheap valuation of FRO.
Based on the Price/Forward Earnings ratio, FRO is valued cheaply inside the industry as 88.94% of the companies are valued more expensively.
FRO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.86 | ||
| Fwd PE | 7.94 |
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.
FRO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FRO is cheaper than 78.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.98 | ||
| EV/EBITDA | 10.74 |
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 a very decent profitability rating, which 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)5.88
PEG (5Y)1.47
EPS Next 2Y32.93%
EPS Next 3Y19.47%
5. Dividend
5.1 Amount
FRO has a Yearly Dividend Yield of 3.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.93, FRO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.90, FRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
5.2 History
The dividend of FRO is nicely growing with an annual growth rate of 78.57%!
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 2Y32.93%
EPS Next 3Y19.47%
24.98
+0.55 (+2.25%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners31.42%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap5.56B
Revenue(TTM)1.77B
Net Income(TTM)217.88M
Analysts87.5
Price Target29.07 (16.37%)
Short Float %3.13%
Short Ratio1.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Yearly Dividend1.95
Dividend Growth(5Y)78.57%
DP110.35%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)1.79%
EPS NQ rev (3m)20.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)8.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.86 | ||
| Fwd PE | 7.94 | ||
| P/S | 3.15 | ||
| P/FCF | 9.98 | ||
| P/OCF | 9.81 | ||
| P/B | 2.39 | ||
| P/tB | 2.51 | ||
| EV/EBITDA | 10.74 |
EPS(TTM)0.93
EY3.72%
EPS(NY)3.15
Fwd EY12.59%
FCF(TTM)2.5
FCFY10.02%
OCF(TTM)2.55
OCFY10.2%
SpS7.93
BVpS10.45
TBVpS9.94
PEG (NY)5.88
PEG (5Y)1.47
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 | 1.69 |
F-Score4
WACC8.29%
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 2Y32.93%
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 Year28.18%
EBIT Next 3Y15.98%
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 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 26.86 and the Price/Book (PB) ratio is 2.39.
What is the earnings growth outlook for FRONTLINE PLC?
The Earnings per Share (EPS) of FRONTLINE PLC (FRO) is expected to grow by 4.57% in the next year.