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FRONTLINE PLC (FRO.OL) Stock Fundamental Analysis

OSL:FRO - Euronext Oslo - CY0200352116 - Common Stock - Currency: NOK

186.6  +1.6 (+0.86%)

Fundamental Rating

5

Overall FRO gets a fundamental rating of 5 out of 10. We evaluated FRO against 58 industry peers in the Oil, Gas & Consumable Fuels industry. FRO scores excellent on profitability, but there are concerns on its financial health. FRO is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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7

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.
FRO had a positive operating cash flow in 4 of the past 5 years.
FRO.OL Yearly Net Income VS EBIT VS OCF VS FCFFRO.OL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M

1.2 Ratios

The Return On Assets of FRO (11.16%) is better than 79.31% of its industry peers.
Looking at the Return On Equity, with a value of 28.82%, FRO belongs to the top of the industry, outperforming 81.03% of the companies in the same industry.
FRO's Return On Invested Capital of 10.50% is fine compared to the rest of the industry. FRO outperforms 65.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FRO is significantly below the industry average of 15.08%.
The 3 year average ROIC (6.11%) for FRO is below the current ROIC(10.50%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 11.16%
ROE 28.82%
ROIC 10.5%
ROA(3y)6.95%
ROA(5y)7.04%
ROE(3y)16.39%
ROE(5y)16.81%
ROIC(3y)6.11%
ROIC(5y)6.97%
FRO.OL Yearly ROA, ROE, ROICFRO.OL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 -20

1.3 Margins

Looking at the Profit Margin, with a value of 36.42%, FRO belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
FRO's Profit Margin has improved in the last couple of years.
FRO has a Operating Margin of 41.43%. This is amongst the best in the industry. FRO outperforms 84.48% of its industry peers.
FRO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 55.88%, FRO is in the better half of the industry, outperforming 63.79% of the companies in the same industry.
FRO's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
FRO.OL Yearly Profit, Operating, Gross MarginsFRO.OL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 60

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3

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.
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.
FRO.OL Yearly Shares OutstandingFRO.OL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
FRO.OL Yearly Total Debt VS Total AssetsFRO.OL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

Based on the Altman-Z score of 1.56, we must say that FRO is in the distress zone and has some risk of bankruptcy.
FRO has a Altman-Z score of 1.56. This is in the lower half of the industry: FRO underperforms 60.34% of its industry peers.
A Debt/Equity ratio of 1.40 is on the high side and indicates that FRO has dependencies on debt financing.
FRO's Debt to Equity ratio of 1.40 is on the low side compared to the rest of the industry. FRO is outperformed by 81.03% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.4
Debt/FCF N/A
Altman-Z 1.56
ROIC/WACC1.34
WACC7.85%
FRO.OL Yearly LT Debt VS Equity VS FCFFRO.OL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B

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.
Looking at the Current ratio, with a value of 1.78, FRO is in the better half of the industry, outperforming 63.79% of the companies in the same industry.
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 72.41% of its industry peers.
Industry RankSector Rank
Current Ratio 1.78
Quick Ratio 1.78
FRO.OL Yearly Current Assets VS Current LiabilitesFRO.OL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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3

3. Growth

3.1 Past

The earnings per share for FRO have decreased strongly by -32.32% 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)-32.32%
EPS 3YN/A
EPS 5Y18.25%
EPS Q2Q%-56.52%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.56%

3.2 Future

FRO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.30% yearly.
Based on estimates for the next years, FRO will show a small growth in Revenue. The Revenue will grow by 7.15% on average per year.
EPS Next Y33.97%
EPS Next 2Y33.2%
EPS Next 3Y27.3%
EPS Next 5YN/A
Revenue Next Year-8.53%
Revenue Next 2Y1.22%
Revenue Next 3Y7.15%
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 accelerating.
FRO.OL Yearly Revenue VS EstimatesFRO.OL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
FRO.OL Yearly EPS VS EstimatesFRO.OL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2

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6

4. Valuation

4.1 Price/Earnings Ratio

FRO is valuated reasonably with a Price/Earnings ratio of 10.09.
FRO's Price/Earnings ratio is in line with the industry average.
FRO is valuated cheaply when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.53, the valuation of FRO can be described as very cheap.
Based on the Price/Forward Earnings ratio, FRO is valued a bit cheaper than 65.52% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.74. FRO is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.09
Fwd PE 7.53
FRO.OL Price Earnings VS Forward Price EarningsFRO.OL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, FRO is valued a bit more expensive than the industry average as 67.24% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.26
FRO.OL Per share dataFRO.OL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

4.3 Compensation for Growth

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 27.30% in the coming years.
PEG (NY)0.3
PEG (5Y)0.55
EPS Next 2Y33.2%
EPS Next 3Y27.3%

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6

5. Dividend

5.1 Amount

FRO has a Yearly Dividend Yield of 10.62%, which is a nice return.
FRO's Dividend Yield is rather good when compared to the industry average which is at 61.98. FRO pays more dividend than 82.76% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, FRO pays a better dividend.
Industry RankSector Rank
Dividend Yield 10.62%

5.2 History

On average, the dividend of FRO grows each year by 78.57%, which is quite nice.
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 2Y33.2%
EPS Next 3Y27.3%
FRO.OL Yearly Income VS Free CF VS DividendFRO.OL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M
FRO.OL Dividend Payout.FRO.OL Dividend Payout, showing the Payout Ratio.FRO.OL Dividend Payout.PayoutRetained Earnings

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FRONTLINE PLC

OSL:FRO (5/6/2025, 4:25:30 PM)

186.6

+1.6 (+0.86%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-28 2025-02-28/bmo
Earnings (Next)N/A N/A
Inst Owners28.14%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap41.54B
Analysts80
Price Target300.29 (60.93%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 10.62%
Yearly Dividend20.21
Dividend Growth(5Y)78.57%
DP97.34%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-0.75%
PT rev (3m)-20.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.34%
Valuation
Industry RankSector Rank
PE 10.09
Fwd PE 7.53
P/S 2.22
P/FCF N/A
P/OCF 4.67
P/B 1.75
P/tB 1.85
EV/EBITDA 7.26
EPS(TTM)18.5
EY9.91%
EPS(NY)24.78
Fwd EY13.28%
FCF(TTM)-36.19
FCFYN/A
OCF(TTM)39.97
OCFY21.42%
SpS84.13
BVpS106.34
TBVpS101.09
PEG (NY)0.3
PEG (5Y)0.55
Profitability
Industry RankSector Rank
ROA 11.16%
ROE 28.82%
ROCE 13.64%
ROIC 10.5%
ROICexc 11.15%
ROICexgc 11.39%
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)6.11%
ROIC(5y)6.97%
ROICexc(3y)6.65%
ROICexc(5y)7.49%
ROICexgc(3y)6.82%
ROICexgc(5y)7.72%
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 RankSector 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 1.56
F-Score6
WACC7.85%
ROIC/WACC1.34
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)-32.32%
EPS 3YN/A
EPS 5Y18.25%
EPS Q2Q%-56.52%
EPS Next Y33.97%
EPS Next 2Y33.2%
EPS Next 3Y27.3%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.56%
Revenue Next Year-8.53%
Revenue Next 2Y1.22%
Revenue Next 3Y7.15%
Revenue Next 5YN/A
EBIT growth 1Y72.52%
EBIT growth 3Y16.04%
EBIT growth 5Y59.42%
EBIT Next Year43.81%
EBIT Next 3Y18.95%
EBIT Next 5Y15.05%
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%