FRONTLINE PLC (FRO.OL)
CY0200352116 - Common Stock
We assign a fundamental rating of 5 out of 10 to FRO. FRO was compared to 61 industry peers in the Oil, Gas & Consumable Fuels industry. While FRO has a great profitability rating, there are quite some concerns on its financial health. FRO is not overvalued while it is showing excellent growth. This is an interesting combination.
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 has a better Return On Assets (11.16%) than 72.88% of its industry peers.
FRO has a Return On Equity of 28.82%. This is in the better half of the industry: FRO outperforms 76.27% of its industry peers.
FRO has a Return On Invested Capital (10.50%) which is in line with its industry peers.
FRO had an Average Return On Invested Capital over the past 3 years of 6.11%. This is significantly below the industry average of 14.32%.
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
With an excellent Profit Margin value of 36.42%, FRO belongs to the best of the industry, outperforming 89.83% 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 81.36% of its industry peers.
In the last couple of years the Operating Margin of FRO has grown nicely.
The Gross Margin of FRO (55.88%) is better than 66.10% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FRO is creating some value.
The number of shares outstanding for FRO remains at a similar level compared to 1 year ago.
The number of shares outstanding for FRO has been increased compared to 5 years ago.
FRO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that FRO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FRO (1.77) is worse than 61.02% 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 86.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.77 |
ROIC/WACC1.39
WACC7.53%
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.
The Current ratio of FRO (1.78) is better than 62.71% of its industry peers.
FRO has a Quick 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 Quick ratio value of 1.78, FRO is doing good in the industry, outperforming 72.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
FRO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 70.78%, which is quite impressive.
The Earnings Per Share has been growing slightly by 6.95% on average over the past years.
Looking at the last year, FRO shows a very strong growth in Revenue. The Revenue has grown by 26.01%.
FRO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.41% yearly.
EPS 1Y (TTM)70.78%
EPS 3Y6.95%
EPS 5YN/A
EPS growth Q2Q-52.58%
Revenue 1Y (TTM)26.01%
Revenue growth 3Y13.85%
Revenue growth 5Y19.41%
Revenue growth Q2Q-21.72%
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 8.54% yearly.
FRO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.81% yearly.
EPS Next Y3.03%
EPS Next 2Y20.2%
EPS Next 3Y8.54%
EPS Next 5YN/A
Revenue Next Year52.3%
Revenue Next 2Y0.08%
Revenue Next 3Y22.81%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.94, the valuation of FRO can be described as very reasonable.
FRO's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 24.84. FRO is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.67, the valuation of FRO can be described as reasonable.
FRO's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of FRO to the average of the S&P500 Index (21.35), we can say FRO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 8.67 |
4.2 Price Multiples
72.88% of the companies in the same industry are cheaper than FRO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FRO does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of FRO may justify a higher PE ratio.
PEG (NY)2.95
PEG (5Y)N/A
EPS Next 2Y20.2%
EPS Next 3Y8.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.26%, FRO is a good candidate for dividend investing.
FRO's Dividend Yield is rather good when compared to the industry average which is at 55.92. FRO pays more dividend than 84.75% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, FRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.26% |
5.2 History
On average, the dividend of FRO grows each year by 312.61%, which is quite nice.
Dividend Growth(5Y)312.61%
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 2Y20.2%
EPS Next 3Y8.54%
FRONTLINE PLC
OSL:FRO (4/29/2024, 4:19:58 PM)
258.8
+0.3 (+0.12%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap57.61B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.26% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 8.67 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.95
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 28.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 41.43% | ||
| PM (TTM) | 36.42% | ||
| GM | 55.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)70.78%
EPS 3Y6.95%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)26.01%
Revenue growth 3Y13.85%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y