Frontier Developments plc
Frontier Developments plc Fundamental Analysis
Frontier Developments plc (FRRDF) shows moderate financial fundamentals with a PE ratio of 7.94, profit margin of 19.43%, and ROE of 21.09%. The company generates $0.1B in annual revenue with weak year-over-year growth of 1.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.1/100 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 FRRDF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentFRRDF demonstrates superior asset utilization.
Valuation Score
ExcellentFRRDF trades at attractive valuation levels.
Growth Score
WeakFRRDF faces weak or negative growth trends.
Financial Health Score
ExcellentFRRDF maintains a strong and stable balance sheet.
Profitability Score
ExcellentFRRDF achieves industry-leading margins.
Key Financial Metrics
Is FRRDF Expensive or Cheap?
P/E Ratio
FRRDF trades at 7.94 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FRRDF's PEG of -0.24 indicates potential undervaluation.
Price to Book
The market values Frontier Developments plc at 1.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.29 times EBITDA. This is generally considered low.
How Well Does FRRDF Make Money?
Net Profit Margin
For every $100 in sales, Frontier Developments plc keeps $19.43 as profit after all expenses.
Operating Margin
Core operations generate 11.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.09 in profit for every $100 of shareholder equity.
ROA
Frontier Developments plc generates $14.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Frontier Developments plc generates strong operating cash flow of $48.60M, reflecting robust business health.
Free Cash Flow
Frontier Developments plc generates strong free cash flow of $48.34M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.34 in free cash annually.
FCF Yield
FRRDF converts 32.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How FRRDF Stacks Against Its Sector Peers
| Metric | FRRDF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.94 | 35.62 | Better (Cheaper) |
| ROE | 21.09% | 1160.00% | Weak |
| Net Margin | 19.43% | -136515.00% (disorted) | Strong |
| Debt/Equity | 0.20 | 0.39 | Strong (Low Leverage) |
| Current Ratio | 2.83 | 4.79 | Strong Liquidity |
| ROA | 14.62% | -311498.00% (disorted) | Strong |
FRRDF outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Frontier Developments plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.37%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
37.87%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
72.77%
Industry Style: Growth, Innovation, High Beta
High Growth