FRONTLINE PLC (FRO)
CY0200352116 - Common Stock
FRO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 204 industry peers in the Oil, Gas & Consumable Fuels industry. FRO has an excellent profitability rating, but there are concerns on its financial health. FRO is not valued too expensively and it also shows a decent growth rate.
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's Return On Assets of 11.16% is fine compared to the rest of the industry. FRO outperforms 78.33% of its industry peers.
FRO's Return On Equity of 28.82% is amongst the best of the industry. FRO outperforms 87.19% of its industry peers.
With a decent Return On Invested Capital value of 10.78%, FRO is doing good in the industry, outperforming 67.49% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FRO is significantly below the industry average of 22.54%.
The last Return On Invested Capital (10.78%) for FRO is above the 3 year average (6.27%), which is a sign of increasing profitability.
| 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 85.71% 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 80.30% of its industry peers.
FRO's Operating Margin has improved in the last couple of years.
FRO has a Gross Margin of 55.88%. This is in the better half of the industry: FRO outperforms 62.56% of its industry peers.
In the last couple of years the Gross Margin of FRO has grown nicely.
| 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.
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.
Compared to 1 year ago, FRO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.65, we must say that FRO is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.65, FRO perfoms like the industry average, outperforming 49.75% 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.
The Debt to Equity ratio of FRO (1.40) is worse than 80.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.65 |
ROIC/WACC1.5
WACC7.2%
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 70.94% of its industry peers.
A Quick Ratio of 1.78 indicates that FRO should not have too much problems paying its short term obligations.
FRO has a Quick ratio of 1.78. This is in the better half of the industry: FRO outperforms 72.41% 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 -34.60%.
Measured over the past 5 years, FRO shows a small growth in Earnings Per Share. The EPS has been growing by 6.95% on average per year.
FRO shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.01%.
Measured over the past years, FRO shows a quite strong growth in Revenue. The Revenue has been growing by 19.41% on average per year.
EPS 1Y (TTM)-34.6%
EPS 3Y6.95%
EPS 5YN/A
EPS Q2Q%-34.04%
Revenue 1Y (TTM)26.01%
Revenue growth 3Y13.85%
Revenue growth 5Y19.41%
Sales Q2Q%8.44%
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 9.91% on average per year.
FRO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.82% yearly.
EPS Next Y1.1%
EPS Next 2Y17.56%
EPS Next 3Y10.75%
EPS Next 5Y9.91%
Revenue Next Year44.75%
Revenue Next 2Y25.78%
Revenue Next 3Y15.87%
Revenue Next 5Y8.82%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.48, which indicates a very decent valuation of FRO.
Compared to the rest of the industry, the Price/Earnings ratio of FRO indicates a somewhat cheap valuation: FRO is cheaper than 67.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FRO to the average of the S&P500 Index (28.96), we can say FRO is valued rather cheaply.
The Price/Forward Earnings ratio is 5.37, which indicates a rather cheap valuation of FRO.
FRO's Price/Forward Earnings ratio is rather cheap when compared to the industry. FRO is cheaper than 86.70% of the companies in the same industry.
FRO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 5.37 |
4.2 Price Multiples
FRO's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.82 |
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 excellent profitability rating of FRO may justify a higher PE ratio.
PEG (NY)8.65
PEG (5Y)N/A
EPS Next 2Y17.56%
EPS Next 3Y10.75%
5. Dividend
5.1 Amount
FRO has a Yearly Dividend Yield of 9.66%, which is a nice return.
FRO's Dividend Yield is rather good when compared to the industry average which is at 6.45. FRO pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, FRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.66% |
5.2 History
The dividend of FRO is nicely growing with an annual growth rate of 312.61%!
FRO has paid a dividend for at least 10 years, which is a reliable track record.
FRO has decreased its dividend recently.
Dividend Growth(5Y)312.61%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
97.34% 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.
DP97.34%
EPS Next 2Y17.56%
EPS Next 3Y10.75%
FRONTLINE PLC
NYSE:FRO (11/21/2024, 8:04:00 PM)
After market: 19.59 +0.06 (+0.31%)19.53
-0.73 (-3.6%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.66% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 5.37 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)8.65
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 28.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 41.43% | ||
| PM (TTM) | 36.42% | ||
| GM | 55.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-34.6%
EPS 3Y6.95%
EPS 5Y
EPS Q2Q%
EPS Next Y1.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)26.01%
Revenue growth 3Y13.85%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y