FRONTLINE PLC (FRO)

CY0200352116 - Common Stock

23.35  +0.07 (+0.3%)

Fundamental Rating

6

FRO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 214 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!



7

1. Profitability

1.1 Basic Checks

In the past year FRO was profitable.
FRO had a positive operating cash flow in the past year.
FRO had positive earnings in 4 of the past 5 years.
In the past 5 years FRO always reported a positive cash flow from operatings.

1.2 Ratios

FRO's Return On Assets of 11.16% is fine compared to the rest of the industry. FRO outperforms 68.08% of its industry peers.
FRO has a better Return On Equity (28.82%) than 75.12% of its industry peers.
The Return On Invested Capital of FRO (10.78%) is better than 60.09% 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 48.71%.
The 3 year average ROIC (6.27%) for FRO is below the current ROIC(10.78%), indicating increased profibility in the last year.
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%

1.3 Margins

With a decent Profit Margin value of 36.42%, FRO is doing good in the industry, outperforming 78.40% of the companies in the same industry.
In the last couple of years the Profit Margin of FRO has grown nicely.
With a decent Operating Margin value of 41.43%, FRO is doing good in the industry, outperforming 75.59% of the companies in the same industry.
In the last couple of years the Operating Margin of FRO has grown nicely.
Looking at the Gross Margin, with a value of 55.88%, FRO is in line with its industry, outperforming 58.22% of the companies in the same industry.
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%

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FRO is still creating some value.
The number of shares outstanding for FRO remains at a similar level compared to 1 year ago.
FRO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FRO is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.76, we must say that FRO is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.76, FRO perfoms like the industry average, outperforming 54.46% 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 78.40% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.4
Debt/FCF N/A
Altman-Z 1.76
ROIC/WACC1.48
WACC7.29%

2.3 Liquidity

A Current Ratio of 1.78 indicates that FRO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.78, FRO is in the better half of the industry, outperforming 73.71% 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 75.59% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.78
Quick Ratio 1.78

8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 70.78% over the past year.
FRO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.95% yearly.
The Revenue has grown by 26.01% in the past year. This is a very strong growth!
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 11.64% yearly.
Based on estimates for the next years, FRO will show a very strong growth in Revenue. The Revenue will grow by 22.81% on average per year.
EPS Next Y3.03%
EPS Next 2Y25.14%
EPS Next 3Y11.64%
EPS Next 5YN/A
Revenue Next Year50.16%
Revenue Next 2Y0.08%
Revenue Next 3Y22.81%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 8.88 indicates a reasonable valuation of FRO.
FRO's Price/Earnings ratio is a bit cheaper when compared to the industry. FRO is cheaper than 63.38% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.42, FRO is valued rather cheaply.
FRO is valuated reasonably with a Price/Forward Earnings ratio of 8.62.
Based on the Price/Forward Earnings ratio, FRO is valued a bit cheaper than 74.65% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FRO to the average of the S&P500 Index (22.74), we can say FRO is valued rather cheaply.
Industry RankSector Rank
PE 8.88
Fwd PE 8.62

4.2 Price Multiples

FRO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FRO is more expensive than 61.03% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 8.51

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.
FRO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.93
PEG (5Y)N/A
EPS Next 2Y25.14%
EPS Next 3Y11.64%

6

5. Dividend

5.1 Amount

FRO has a Yearly Dividend Yield of 9.26%, which is a nice return.
FRO's Dividend Yield is rather good when compared to the industry average which is at 5.86. FRO pays more dividend than 87.79% of the companies in the same industry.
FRO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 9.26%

5.2 History

On average, the dividend of FRO grows each year by 312.61%, which is quite nice.
FRO has paid a dividend for at least 10 years, which is a reliable track record.
FRO has decreased its dividend recently.
Dividend Growth(5Y)312.61%
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

FRO pays out 97.34% of its income as dividend. 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 2Y25.14%
EPS Next 3Y11.64%

FRONTLINE PLC

NYSE:FRO (3/28/2024, 11:56:09 AM)

23.35

+0.07 (+0.3%)

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 Cap5.20B
Analysts
Price Target
Dividend
Industry RankSector 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)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 8.88
Fwd PE 8.62
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)2.93
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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