FRONTLINE PLC (FRO.OL) Stock Fundamental Analysis
OSL:FRO - Euronext Oslo - CY0200352116 - Common Stock - Currency: NOK
Taking everything into account, FRO scores 5 out of 10 in our fundamental rating. FRO was compared to 59 industry peers in the Oil, Gas & Consumable Fuels industry. While FRO belongs to the best of the industry regarding profitability, there are concerns on its financial health. FRO has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In multiple years FRO reported negative net income over the last 5 years.
Of the past 5 years FRO 4 years had a positive operating cash flow.
1.2 Ratios
FRO's Return On Assets of 11.16% is amongst the best of the industry. FRO outperforms 83.05% of its industry peers.
FRO has a Return On Equity of 28.82%. This is amongst the best in the industry. FRO outperforms 84.75% of its industry peers.
With a decent Return On Invested Capital value of 10.50%, FRO is doing good in the industry, outperforming 69.49% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FRO is significantly below the industry average of 14.75%.
The last Return On Invested Capital (10.50%) for FRO is above the 3 year average (6.11%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 36.42%, FRO belongs to the top of the industry, outperforming 91.53% of the companies in the same industry.
FRO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 41.43%, FRO belongs to the top of the industry, outperforming 84.75% of the companies in the same industry.
In the last couple of years the Operating Margin of FRO has grown nicely.
Looking at the Gross Margin, with a value of 55.88%, FRO is in the better half of the industry, outperforming 66.10% of the companies in the same industry.
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
FRO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
FRO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 1.55, we must say that FRO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.55, FRO is in line with its industry, outperforming 40.68% 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.
With a Debt to Equity ratio value of 1.40, FRO is not doing good in the industry: 81.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.55 |
ROIC/WACC1.32
WACC7.95%
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.
With a decent Current ratio value of 1.78, FRO is doing good in the industry, outperforming 62.71% 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 72.88% 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 -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 26.93% yearly.
FRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.15% yearly.
EPS Next Y32.71%
EPS Next 2Y32.34%
EPS Next 3Y26.93%
EPS Next 5YN/A
Revenue Next Year-8.19%
Revenue Next 2Y1.15%
Revenue Next 3Y7.15%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.20, which indicates a very decent valuation of FRO.
FRO's Price/Earnings ratio is in line with the industry average.
FRO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.19.
A Price/Forward Earnings ratio of 7.69 indicates a rather cheap valuation of FRO.
Based on the Price/Forward Earnings ratio, FRO is valued a bit cheaper than the industry average as 62.71% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.13. FRO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.2 | ||
| Fwd PE | 7.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FRO indicates a slightly more expensive valuation: FRO is more expensive than 67.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.25 |
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 an outstanding 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 26.93% in the coming years.
PEG (NY)0.31
PEG (5Y)0.56
EPS Next 2Y32.34%
EPS Next 3Y26.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.06%, FRO is a good candidate for dividend investing.
FRO's Dividend Yield is rather good when compared to the industry average which is at 60.24. FRO pays more dividend than 81.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, FRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.06% |
5.2 History
The dividend of FRO is nicely growing with an annual growth rate of 78.57%!
Dividend Growth(5Y)78.57%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
97.34% of the earnings are spent on dividend by FRO. 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 2Y32.34%
EPS Next 3Y26.93%
OSL:FRO (5/30/2025, 4:19:59 PM)
184.875
+3.93 (+2.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners28.14%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap41.16B
Analysts80
Price Target289.93 (56.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.06% |
Yearly Dividend19.88
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)-1.92%
PT rev (3m)-23.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.2 | ||
| Fwd PE | 7.69 | ||
| P/S | 2.24 | ||
| P/FCF | N/A | ||
| P/OCF | 4.72 | ||
| P/B | 1.77 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 7.25 |
EPS(TTM)18.13
EY9.81%
EPS(NY)24.06
Fwd EY13.01%
FCF(TTM)-35.46
FCFYN/A
OCF(TTM)39.17
OCFY21.18%
SpS82.44
BVpS104.2
TBVpS99.05
PEG (NY)0.31
PEG (5Y)0.56
Profitability
| Industry Rank | Sector 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 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 | 1.55 |
F-Score6
WACC7.95%
ROIC/WACC1.32
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 Y32.71%
EPS Next 2Y32.34%
EPS Next 3Y26.93%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.56%
Revenue Next Year-8.19%
Revenue Next 2Y1.15%
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 3Y18.76%
EBIT Next 5Y14.92%
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%