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FRONTLINE PLC (FRO.OL) Stock Fundamental Analysis

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

199.5  +6.4 (+3.31%)

Fundamental Rating

5

FRO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 61 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 it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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8

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.
The reported net income has been mixed in the past 5 years: FRO reported negative net income in multiple 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

With an excellent Return On Assets value of 11.16%, FRO belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
With an excellent Return On Equity value of 28.82%, FRO belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
FRO has a better Return On Invested Capital (10.50%) than 72.13% 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 14.55%.
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 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 91.80% of the companies in the same industry.
In the last couple of years the Profit Margin of FRO has grown nicely.
FRO's Operating Margin of 41.43% is amongst the best of the industry. FRO outperforms 86.89% of its industry peers.
FRO's Operating Margin has improved in the last couple of years.
FRO's Gross Margin of 55.88% is fine compared to the rest of the industry. FRO outperforms 65.57% of its industry peers.
In the last couple of years the Gross Margin of FRO has grown nicely.
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

FRO has an Altman-Z score of 1.62. This is a bad value and indicates that FRO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FRO (1.62) is worse than 60.66% 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.
With a Debt to Equity ratio value of 1.40, FRO is not doing good in the industry: 81.97% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.4
Debt/FCF N/A
Altman-Z 1.62
ROIC/WACC1.2
WACC8.73%
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

A Current Ratio of 1.78 indicates that FRO should not have too much problems paying its short term obligations.
FRO's Current ratio of 1.78 is fine compared to the rest of the industry. FRO outperforms 62.30% 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 70.49% 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 -43.70% in the last year.
The Earnings Per Share has been growing by 18.25% on average over the past years. This is quite good.
EPS 1Y (TTM)-43.7%
EPS 3YN/A
EPS 5Y18.25%
EPS Q2Q%-70.97%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-26.03%

3.2 Future

The Earnings Per Share is expected to grow by 26.93% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.15% on average over the next years.
EPS Next Y32.71%
EPS Next 2Y32.34%
EPS Next 3Y26.93%
EPS Next 5YN/A
Revenue Next Year-9.42%
Revenue Next 2Y3.42%
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 1 -1 2 -2 3

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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 14.98 indicates a correct valuation of FRO.
FRO's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.34, FRO is valued a bit cheaper.
The Price/Forward Earnings ratio is 6.44, which indicates a rather cheap valuation of FRO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FRO indicates a rather cheap valuation: FRO is cheaper than 86.89% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FRO to the average of the S&P500 Index (22.19), we can say FRO is valued rather cheaply.
Industry RankSector Rank
PE 14.98
Fwd PE 6.44
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

68.85% of the companies in the same industry are cheaper than FRO, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.63
FRO.OL Per share dataFRO.OL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 60 80 100

4.3 Compensation for Growth

FRO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of FRO may justify a higher PE ratio.
FRO's earnings are expected to grow with 26.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.46
PEG (5Y)0.82
EPS Next 2Y32.34%
EPS Next 3Y26.93%

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6

5. Dividend

5.1 Amount

FRO has a Yearly Dividend Yield of 7.29%, which is a nice return.
Compared to an average industry Dividend Yield of 57.35, FRO pays a bit more dividend than its industry peers.
FRO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
Industry RankSector Rank
Dividend Yield 7.29%

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

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%
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 (6/19/2025, 7:00:00 PM)

199.5

+6.4 (+3.31%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)05-23 2025-05-23/bmo
Earnings (Next)N/A N/A
Inst Owners30.25%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap44.41B
Analysts82.86
Price Target281.55 (41.13%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 7.29%
Yearly Dividend19.38
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)-2.89%
PT rev (3m)-13.64%
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%
Valuation
Industry RankSector Rank
PE 14.98
Fwd PE 6.44
P/S 2.48
P/FCF N/A
P/OCF 5.22
P/B 1.96
P/tB 2.06
EV/EBITDA 7.63
EPS(TTM)13.32
EY6.68%
EPS(NY)31
Fwd EY15.54%
FCF(TTM)-34.63
FCFYN/A
OCF(TTM)38.24
OCFY19.17%
SpS80.5
BVpS101.75
TBVpS96.72
PEG (NY)0.46
PEG (5Y)0.82
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 1.62
F-Score6
WACC8.73%
ROIC/WACC1.2
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)-43.7%
EPS 3YN/A
EPS 5Y18.25%
EPS Q2Q%-70.97%
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%-26.03%
Revenue Next Year-9.42%
Revenue Next 2Y3.42%
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%