FRONTLINE PLC (FRO) Stock Fundamental Analysis
USA - NYSE:FRO - CY0200352116 - Common Stock
23.66 USD
-0.06 (-0.25%)
23.66 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to FRO. FRO was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. FRO scores excellent on profitability, but there are concerns on its financial health. FRO is valued correctly, but it does not seem to be growing.
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.
Of the past 5 years FRO 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.16%, FRO belongs to the best of the industry, outperforming 90.48% 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 90.95% of the companies in the same industry.
FRO has a better Return On Invested Capital (10.78%) than 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FRO is significantly below the industry average of 21.78%.
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 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 91.43% of the companies in the same industry.
In the last couple of years the Profit Margin of FRO has grown nicely.
Looking at the Operating Margin, with a value of 41.43%, FRO belongs to the top of the industry, outperforming 86.19% of the companies in the same industry.
In the last couple of years the Operating Margin of FRO has grown nicely.
FRO's Gross Margin of 55.88% is fine compared to the rest of the industry. FRO outperforms 65.24% 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
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.
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.
Looking at the Altman-Z score, with a value of 1.77, FRO is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
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 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.77 |
ROIC/WACC1.36
WACC7.91%
2.3 Liquidity
A Current Ratio of 1.78 indicates that FRO should not have too much problems paying its short term obligations.
The Current ratio of FRO (1.78) is better than 72.86% 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 76.67% 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 -47.57% 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)-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
FRO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.06% yearly.
Based on estimates for the next years, FRO will show a small growth in Revenue. The Revenue will grow by 3.33% on average per year.
EPS Next Y3.17%
EPS Next 2Y25.98%
EPS Next 3Y22.06%
EPS Next 5YN/A
Revenue Next Year-5.65%
Revenue Next 2Y3.6%
Revenue Next 3Y3.33%
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
FRO is valuated rather expensively with a Price/Earnings ratio of 21.91.
Compared to the rest of the industry, the Price/Earnings ratio of FRO is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.06. FRO is around the same levels.
The Price/Forward Earnings ratio is 8.37, which indicates a very decent valuation of FRO.
83.33% of the companies in the same industry are more expensive than FRO, based on the Price/Forward Earnings ratio.
FRO is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.91 | ||
| Fwd PE | 8.37 |
4.2 Price Multiples
FRO's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.6 |
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 22.06% in the coming years.
PEG (NY)6.9
PEG (5Y)1.2
EPS Next 2Y25.98%
EPS Next 3Y22.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.55%, FRO is a good candidate for dividend investing.
FRO's Dividend Yield is a higher than the industry average which is at 6.14.
FRO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
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.
FRO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP97.34%
EPS Next 2Y25.98%
EPS Next 3Y22.06%
23.66
-0.06 (-0.25%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners33.37%
Inst Owner Change0.65%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap5.27B
Revenue(TTM)N/A
Net Income(TTM)656.41M
Analysts86.67
Price Target25.76 (8.88%)
Short Float %3.54%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
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)69.28%
Revenue beat(16)15
Avg Revenue beat(16)61%
PT rev (1m)6.69%
PT rev (3m)9.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)4.38%
EPS NY rev (3m)4.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-6.89%
Revenue NY rev (3m)-6.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.91 | ||
| Fwd PE | 8.37 | ||
| P/S | 2.92 | ||
| P/FCF | N/A | ||
| P/OCF | 6.15 | ||
| P/B | 2.31 | ||
| P/tB | 2.43 | ||
| EV/EBITDA | 8.6 |
EPS(TTM)1.08
EY4.56%
EPS(NY)2.83
Fwd EY11.94%
FCF(TTM)-3.48
FCFYN/A
OCF(TTM)3.85
OCFY16.25%
SpS8.1
BVpS10.23
TBVpS9.73
PEG (NY)6.9
PEG (5Y)1.2
Graham Number15.77
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%
ROICexgc growth 3Y1.14%
ROICexgc 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 | 1.77 |
F-Score6
WACC7.91%
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)-47.57%
EPS 3YN/A
EPS 5Y18.25%
EPS Q2Q%-41.94%
EPS Next Y3.17%
EPS Next 2Y25.98%
EPS Next 3Y22.06%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-13.66%
Revenue Next Year-5.65%
Revenue Next 2Y3.6%
Revenue Next 3Y3.33%
Revenue Next 5YN/A
EBIT growth 1Y72.52%
EBIT growth 3Y16.04%
EBIT growth 5Y59.42%
EBIT Next Year47.8%
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%
FRONTLINE PLC / FRO FAQ
What is the ChartMill fundamental rating of FRONTLINE PLC (FRO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to FRO.
What is the valuation status of FRONTLINE PLC (FRO) stock?
ChartMill assigns a valuation rating of 4 / 10 to FRONTLINE PLC (FRO). This can be considered as Fairly Valued.
Can you provide the profitability details for FRONTLINE PLC?
FRONTLINE PLC (FRO) has a profitability rating of 8 / 10.
How financially healthy is FRONTLINE PLC?
The financial health rating of FRONTLINE PLC (FRO) is 3 / 10.
Can you provide the dividend sustainability for FRO stock?
The dividend rating of FRONTLINE PLC (FRO) is 5 / 10 and the dividend payout ratio is 97.34%.