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NYSE:FRO is showing decent growth, but is still valued reasonably.

By Mill Chart

Last update: Jan 8, 2024

FRONTLINE PLC (NYSE:FRO) was identified as an affordable growth stock by our stock screener. NYSE:FRO is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

How do we evaluate the Growth for NYSE:FRO?

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:FRO has earned a 9 for growth:

  • FRO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 470.91%, which is quite impressive.
  • FRO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 76.46% yearly.
  • Looking at the last year, FRO shows a very strong growth in Revenue. The Revenue has grown by 72.17%.
  • Measured over the past years, FRO shows a quite strong growth in Revenue. The Revenue has been growing by 17.22% on average per year.
  • Based on estimates for the next years, FRO will show a very strong growth in Earnings Per Share. The EPS will grow by 43.02% on average per year.
  • FRO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.61% yearly.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Valuation Examination for NYSE:FRO

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:FRO has achieved a 8 out of 10:

  • Based on the Price/Earnings ratio of 7.08, the valuation of FRO can be described as very cheap.
  • Compared to the rest of the industry, the Price/Earnings ratio of FRO indicates a somewhat cheap valuation: FRO is cheaper than 68.52% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.56. FRO is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 8.21, the valuation of FRO can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, FRO is valued a bit cheaper than the industry average as 67.13% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of FRO to the average of the S&P500 Index (20.55), we can say FRO is valued rather cheaply.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of FRO indicates a somewhat cheap valuation: FRO is cheaper than 75.46% of the companies listed in the same industry.
  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • FRO has a very decent 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 42.93% in the coming years.

A Closer Look at Health for NYSE:FRO

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:FRO has earned a 5 out of 10:

  • FRO has a better Altman-Z score (2.50) than 63.89% of its industry peers.
  • The Debt to FCF ratio of FRO is 3.04, which is a good value as it means it would take FRO, 3.04 years of fcf income to pay off all of its debts.
  • FRO's Debt to FCF ratio of 3.04 is fine compared to the rest of the industry. FRO outperforms 62.96% of its industry peers.
  • With a decent Current ratio value of 1.79, FRO is doing good in the industry, outperforming 70.83% of the companies in the same industry.
  • FRO has a Quick ratio of 1.79. This is in the better half of the industry: FRO outperforms 74.07% of its industry peers.

What does the Profitability looks like for NYSE:FRO

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:FRO has achieved a 7:

  • FRO has a better Return On Assets (16.89%) than 76.39% of its industry peers.
  • FRO has a better Return On Equity (34.90%) than 75.46% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 16.36%, FRO is in the better half of the industry, outperforming 71.30% of the companies in the same industry.
  • The 3 year average ROIC (6.14%) for FRO is below the current ROIC(16.36%), indicating increased profibility in the last year.
  • FRO has a Profit Margin of 40.53%. This is amongst the best in the industry. FRO outperforms 80.09% of its industry peers.
  • FRO's Profit Margin has improved in the last couple of years.
  • FRO's Operating Margin of 44.54% is fine compared to the rest of the industry. FRO outperforms 76.39% of its industry peers.
  • FRO's Operating Margin has improved in the last couple of years.
  • FRO's Gross Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of FRO for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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FRONTLINE PLC

NYSE:FRO (5/17/2024, 7:04:00 PM)

After market: 27.32 -0.16 (-0.58%)

27.48

+0.16 (+0.59%)

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