FRONTLINE PLC (FRO) Stock Fundamental Analysis
USA - NYSE:FRO - CY0200352116 - Common Stock
23.36 USD
+0.35 (+1.52%)
23.3601 USD
0 (0%)
FRO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 211 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
FRO had positive earnings in the past year.
FRO had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: FRO reported negative net income in multiple 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 90.05% of its industry peers.
FRO has a better Return On Equity (28.82%) than 91.47% of its industry peers.
FRO has a better Return On Invested Capital (10.78%) than 82.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FRO is significantly below the industry average of 21.53%.
The 3 year average ROIC (6.27%) for FRO is below the current ROIC(10.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 28.82% | ||
| ROIC | 10.78% |
ROA(3y)6.95%
ROA(5y)7.04%
ROE(3y)16.39%
ROE(5y)16.81%
ROIC(3y)6.27%
ROIC(5y)7.15%
1.3 Margins
With an excellent Profit Margin value of 36.42%, FRO belongs to the best of the industry, outperforming 91.00% of the companies in the same industry.
In the last couple of years the Profit Margin of FRO has grown nicely.
FRO has a better Operating Margin (41.43%) than 86.73% 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 64.45% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FRO 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.
2.2 Solvency
FRO has an Altman-Z score of 1.75. This is a bad value and indicates that FRO is not financially healthy and even has some risk of bankruptcy.
FRO's Altman-Z score of 1.75 is fine compared to the rest of the industry. FRO outperforms 61.61% of its industry peers.
FRO has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of FRO (1.40) is worse than 73.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.75 |
ROIC/WACC1.4
WACC7.7%
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 72.04% of the companies in the same industry.
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 76.78% of the companies in the same industry.
| 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 -47.57% in the last year.
Measured over the past years, FRO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.25% on average per year.
EPS 1Y (TTM)-47.57%
EPS 3YN/A
EPS 5Y18.25%
EPS Q2Q%-41.94%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-13.66%
3.2 Future
The Earnings Per Share is expected to grow by 22.00% on average over the next years. This is a very strong growth
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 Y5.54%
EPS Next 2Y25.92%
EPS Next 3Y22%
EPS Next 5YN/A
Revenue Next Year-14.68%
Revenue Next 2Y0.51%
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
A Price/Earnings ratio of 21.63 indicates a rather expensive valuation of FRO.
Compared to the rest of the industry, the Price/Earnings ratio of FRO is on the same level as its industry peers.
When comparing the Price/Earnings ratio of FRO to the average of the S&P500 Index (27.40), we can say FRO is valued slightly cheaper.
A Price/Forward Earnings ratio of 8.28 indicates a reasonable valuation of FRO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FRO indicates a somewhat cheap valuation: FRO is cheaper than 79.15% of the companies listed in the same industry.
FRO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.63 | ||
| Fwd PE | 8.28 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FRO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 22.00% in the coming years.
PEG (NY)3.9
PEG (5Y)1.19
EPS Next 2Y25.92%
EPS Next 3Y22%
5. Dividend
5.1 Amount
FRO has a Yearly Dividend Yield of 4.69%, which is a nice return.
Compared to an average industry Dividend Yield of 6.15, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
5.2 History
The dividend of FRO is nicely growing with an annual growth rate of 78.57%!
FRO has been paying a dividend for at least 10 years, so it has a reliable track record.
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.
The dividend of FRO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP97.34%
EPS Next 2Y25.92%
EPS Next 3Y22%
23.36
+0.35 (+1.52%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners33.37%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap5.20B
Analysts85
Price Target24.14 (3.34%)
Short Float %4.7%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
Yearly Dividend1.95
Dividend Growth(5Y)78.57%
DP97.34%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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%
PT rev (3m)-13.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.63 | ||
| Fwd PE | 8.28 | ||
| P/S | 2.89 | ||
| P/FCF | N/A | ||
| P/OCF | 6.07 | ||
| P/B | 2.28 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 8.45 |
EPS(TTM)1.08
EY4.62%
EPS(NY)2.82
Fwd EY12.08%
FCF(TTM)-3.48
FCFYN/A
OCF(TTM)3.85
OCFY16.46%
SpS8.1
BVpS10.23
TBVpS9.73
PEG (NY)3.9
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 28.82% | ||
| ROCE | 13.64% | ||
| ROIC | 10.78% | ||
| ROICexc | 11.44% | ||
| ROICexgc | 11.69% | ||
| 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)6.27%
ROIC(5y)7.15%
ROICexc(3y)6.82%
ROICexc(5y)7.68%
ROICexgc(3y)7%
ROICexgc(5y)7.92%
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 | 1.75 |
F-Score6
WACC7.7%
ROIC/WACC1.4
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)-47.57%
EPS 3YN/A
EPS 5Y18.25%
EPS Q2Q%-41.94%
EPS Next Y5.54%
EPS Next 2Y25.92%
EPS Next 3Y22%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-13.66%
Revenue Next Year-14.68%
Revenue Next 2Y0.51%
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 3Y16.55%
EBIT Next 5Y13.42%
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%