Frontline Ltd.
Frontline Ltd. Fundamental Analysis
Frontline Ltd. (FRO) shows moderate financial fundamentals with a PE ratio of 35.29, profit margin of 12.34%, and ROE of 9.31%. The company generates $1.8B in annual revenue with strong year-over-year growth of 14.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FRO's fundamental strength across five key dimensions:
Efficiency Score
WeakFRO struggles to generate sufficient returns from assets.
Valuation Score
ModerateFRO shows balanced valuation metrics.
Growth Score
ModerateFRO shows steady but slowing expansion.
Financial Health Score
ModerateFRO shows balanced financial health with some risks.
Profitability Score
WeakFRO struggles to sustain strong margins.
Key Financial Metrics
Is FRO Expensive or Cheap?
P/E Ratio
FRO trades at 35.29 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FRO's PEG of -4.20 indicates potential undervaluation.
Price to Book
The market values Frontline Ltd. at 3.31 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.74 times EBITDA. This is generally considered low.
How Well Does FRO Make Money?
Net Profit Margin
For every $100 in sales, Frontline Ltd. keeps $12.34 as profit after all expenses.
Operating Margin
Core operations generate 25.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.31 in profit for every $100 of shareholder equity.
ROA
Frontline Ltd. generates $3.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Frontline Ltd. generates strong operating cash flow of $566.95M, reflecting robust business health.
Free Cash Flow
Frontline Ltd. generates strong free cash flow of $556.99M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.50 in free cash annually.
FCF Yield
FRO converts 7.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How FRO Stacks Against Its Sector Peers
| Metric | FRO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.29 | 20.19 | Worse (Expensive) |
| ROE | 9.31% | 1019.00% | Weak |
| Net Margin | 12.34% | -44017.00% (disorted) | Strong |
| Debt/Equity | 1.39 | -0.65 (disorted) | Distorted |
| Current Ratio | 1.37 | 4.60 | Neutral |
| ROA | 3.82% | -11655350.00% (disorted) | Weak |
FRO outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Frontline Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
66.99%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
176.05%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
104.92%
Industry Style: Cyclical, Value, Commodity
High Growth