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FRONTLINE PLC (FRO) Stock Fundamental Analysis

NYSE:FRO - New York Stock Exchange, Inc. - CY0200352116 - Common Stock - Currency: USD

18.34  +1.16 (+6.75%)

After market: 18.24 -0.1 (-0.55%)

Fundamental Rating

5

FRO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 213 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 valued quite cheap, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

FRO had positive earnings in the past year.
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.
FRO Yearly Net Income VS EBIT VS OCF VS FCFFRO 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

Looking at the Return On Assets, with a value of 11.16%, FRO belongs to the top of the industry, outperforming 84.98% 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 90.14% of the companies in the same industry.
FRO has a better Return On Invested Capital (10.78%) than 77.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FRO is significantly below the industry average of 25.87%.
The last Return On Invested Capital (10.78%) for FRO is above the 3 year average (6.27%), which is a sign of increasing profitability.
Industry RankSector 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%
FRO Yearly ROA, ROE, ROICFRO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 -20

1.3 Margins

With an excellent Profit Margin value of 36.42%, FRO belongs to the best of the industry, outperforming 89.67% of the companies in the same industry.
In the last couple of years the Profit Margin of FRO has grown nicely.
FRO has a Operating Margin of 41.43%. This is amongst the best in the industry. FRO outperforms 86.39% 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 61.97% of its industry peers.
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 Yearly Profit, Operating, Gross MarginsFRO 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.
FRO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
FRO Yearly Shares OutstandingFRO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
FRO Yearly Total Debt VS Total AssetsFRO 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 1.53, we must say that FRO is in the distress zone and has some risk of bankruptcy.
FRO's Altman-Z score of 1.53 is in line compared to the rest of the industry. FRO outperforms 57.28% 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.
FRO has a Debt to Equity ratio of 1.40. This is in the lower half of the industry: FRO underperforms 73.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.4
Debt/FCF N/A
Altman-Z 1.53
ROIC/WACC1.36
WACC7.93%
FRO Yearly LT Debt VS Equity VS FCFFRO 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 has a Current ratio of 1.78. This is in the better half of the industry: FRO outperforms 73.24% of its industry peers.
A Quick Ratio of 1.78 indicates that FRO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.78, FRO is in the better half of the industry, outperforming 76.06% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.78
Quick Ratio 1.78
FRO Yearly Current Assets VS Current LiabilitesFRO 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 26.93% yearly.
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-8.19%
Revenue Next 2Y1.15%
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 Yearly Revenue VS EstimatesFRO 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 Yearly EPS VS EstimatesFRO 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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7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.30, the valuation of FRO can be described as very reasonable.
Based on the Price/Earnings ratio, FRO is valued a bit cheaper than the industry average as 70.89% of the companies are valued more expensively.
FRO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
The Price/Forward Earnings ratio is 7.76, which 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 77.93% of the companies are valued more expensively.
FRO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.3
Fwd PE 7.76
FRO Price Earnings VS Forward Price EarningsFRO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as FRO.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.12
FRO Per share dataFRO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8 10

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.
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%

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6

5. Dividend

5.1 Amount

FRO has a Yearly Dividend Yield of 9.85%, which is a nice return.
FRO's Dividend Yield is rather good when compared to the industry average which is at 6.77. FRO pays more dividend than 86.85% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, FRO pays a better dividend.
Industry RankSector Rank
Dividend Yield 9.85%

5.2 History

On average, the dividend of FRO grows each year by 78.57%, which is quite nice.
FRO has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of FRO decreased recently.
Dividend Growth(5Y)78.57%
Div Incr Years1
Div Non Decr Years1
FRO Yearly Dividends per shareFRO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2019 2020 2022 2023 2024 2025 2 4 6

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 Yearly Income VS Free CF VS DividendFRO 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 Dividend Payout.FRO Dividend Payout, showing the Payout Ratio.FRO Dividend Payout.PayoutRetained Earnings

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FRONTLINE PLC

NYSE:FRO (5/23/2025, 8:17:02 PM)

After market: 18.24 -0.1 (-0.55%)

18.34

+1.16 (+6.75%)

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 Change-5.15%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap4.08B
Analysts80
Price Target27.88 (52.02%)
Short Float %5.29%
Short Ratio2.41
Dividend
Industry RankSector Rank
Dividend Yield 9.85%
Yearly Dividend1.95
Dividend Growth(5Y)78.57%
DP97.34%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-14 2025-03-14 (0.2)
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)-2.38%
PT rev (3m)-15.9%
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)-0.2%
Valuation
Industry RankSector Rank
PE 10.3
Fwd PE 7.76
P/S 2.27
P/FCF N/A
P/OCF 4.77
P/B 1.79
P/tB 1.89
EV/EBITDA 7.12
EPS(TTM)1.78
EY9.71%
EPS(NY)2.36
Fwd EY12.88%
FCF(TTM)-3.48
FCFYN/A
OCF(TTM)3.85
OCFY20.97%
SpS8.1
BVpS10.23
TBVpS9.73
PEG (NY)0.31
PEG (5Y)0.56
Profitability
Industry RankSector 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 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 1.53
F-Score6
WACC7.93%
ROIC/WACC1.36
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 3Y18.95%
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%