FRONTLINE PLC (FRO)
CY0200352116 - Common Stock
We assign a fundamental rating of 6 out of 10 to FRO. FRO was compared to 205 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FRO was profitable.
FRO had a positive operating cash flow in the past year.
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's Return On Assets of 11.16% is fine compared to the rest of the industry. FRO outperforms 78.92% of its industry peers.
FRO has a Return On Equity of 28.82%. This is amongst the best in the industry. FRO outperforms 86.76% of its industry peers.
FRO has a better Return On Invested Capital (10.78%) than 71.08% 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 29.02%.
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
FRO has a better Profit Margin (36.42%) than 85.78% of its industry peers.
FRO's Profit Margin has improved in the last couple of years.
The Operating Margin of FRO (41.43%) is better than 80.39% of its industry peers.
FRO's Operating Margin has improved in the last couple of years.
FRO has a better Gross Margin (55.88%) than 62.75% 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
FRO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for FRO remains at a similar level compared to 1 year ago.
FRO has more shares outstanding than it did 5 years ago.
FRO has a worse debt/assets ratio than last year.
2.2 Solvency
FRO has an Altman-Z score of 1.39. 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 1.39 is in line compared to the rest of the industry. FRO outperforms 49.02% of its industry peers.
FRO has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.40, FRO is doing worse than 79.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.39 |
ROIC/WACC1.53
WACC7.05%
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.
FRO has a Current ratio of 1.78. This is in the better half of the industry: FRO outperforms 71.57% 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 better Quick ratio (1.78) than 74.51% of its industry peers.
| 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 -35.03% in the last year.
FRO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.95% yearly.
The Revenue has grown by 26.01% in the past year. This is a very strong growth!
The Revenue has been growing by 19.41% on average over the past years. This is quite good.
EPS 1Y (TTM)-35.03%
EPS 3Y6.95%
EPS 5YN/A
EPS Q2Q%-5.56%
Revenue 1Y (TTM)26.01%
Revenue growth 3Y13.85%
Revenue growth 5Y19.41%
Sales Q2Q%30.03%
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 9.91% yearly.
FRO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.29% yearly.
EPS Next Y-1.3%
EPS Next 2Y17.68%
EPS Next 3Y10.81%
EPS Next 5Y9.91%
Revenue Next Year44.75%
Revenue Next 2Y25.78%
Revenue Next 3Y15.87%
Revenue Next 5Y10.29%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.56, the valuation of FRO can be described as very cheap.
78.92% of the companies in the same industry are more expensive than FRO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.73. FRO is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 3.67, 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 93.14% 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 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 3.67 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.25 |
4.3 Compensation for Growth
FRO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17.68%
EPS Next 3Y10.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.20%, FRO is a good candidate for dividend investing.
In the last 3 months the price of FRO has falen by -39.87%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
FRO's Dividend Yield is rather good when compared to the industry average which is at 6.85. FRO pays more dividend than 92.65% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, FRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.2% |
5.2 History
On average, the dividend of FRO grows each year by 312.61%, which is quite nice.
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 2Y17.68%
EPS Next 3Y10.81%
FRONTLINE PLC
NYSE:FRO (12/20/2024, 8:12:56 PM)
After market: 13.31 -0.07 (-0.52%)13.38
+0.04 (+0.3%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners5.47%
Inst Owner Change8.61%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.98B
Analysts77.14
Price Target35.19 (163%)
Short Float %5.4%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.2% |
Dividend Growth(5Y)312.61%
DP97.34%
Div Incr Years1
Div Non Decr Years1
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)69.68%
Revenue beat(16)15
Avg Revenue beat(16)62.23%
PT rev (1m)0%
PT rev (3m)-1.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-2.37%
EPS NY rev (3m)-16.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 3.67 | ||
| P/S | 1.65 | ||
| P/FCF | N/A | ||
| P/OCF | 3.48 | ||
| P/B | 1.31 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 6.25 |
EPS(TTM)2.04
EY15.25%
EPS(NY)3.64
Fwd EY27.22%
FCF(TTM)-3.48
FCFYN/A
OCF(TTM)3.85
OCFY28.74%
SpS8.1
BVpS10.23
TBVpS9.73
PEG (NY)N/A
PEG (5Y)N/A
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%
ROICexcg growth 3Y1.14%
ROICexcg 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 | 1.39 |
F-Score6
WACC7.05%
ROIC/WACC1.53
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)-35.03%
EPS 3Y6.95%
EPS 5YN/A
EPS Q2Q%-5.56%
EPS Next Y-1.3%
EPS Next 2Y17.68%
EPS Next 3Y10.81%
EPS Next 5Y9.91%
Revenue 1Y (TTM)26.01%
Revenue growth 3Y13.85%
Revenue growth 5Y19.41%
Sales Q2Q%30.03%
Revenue Next Year44.75%
Revenue Next 2Y25.78%
Revenue Next 3Y15.87%
Revenue Next 5Y10.29%
EBIT growth 1Y72.52%
EBIT growth 3Y16.04%
EBIT growth 5Y59.42%
EBIT Next Year62.98%
EBIT Next 3Y21.44%
EBIT Next 5Y17.3%
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%