Frontline Plc Ordinary Shares (FRO)

FairStock Score: 67/100 — STEADY

Key Financials

Strengths

• Generates $544 million in annual free cash flow (7.0% yield on market cap)
• Strong Piotroski F-Score of 9/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 15.6% above cost of capital
• Healthy net profit margin of 11.6% showing consistent profitability
• Revenue growth of 46.7% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($21) with negative 68% margin of safety—limited downside protection

AI Analysis

Frontline Plc Ordinary Shares is a small-cap energy company valued at $7.8 billion. The business generates $2.0 billion in annual revenue with a 11.6% net margin and $544 million in free cash flow. From a quality standpoint, Frontline shows near-perfect Piotroski F-Score of 9/9 indicating exceptional financial health and Altman Z-Score of 1.9 in the grey zone. On valuation, the stock is reasonably priced at 20.5x earnings, with trades above its Graham Number with a negative 68% margin. Growth dynamics show revenue growing at 46.7% and profit growth of 241.6%. The 5.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 67/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Frontline's 47% revenue growth trajectory could accelerate as it captures additional market share in the energy sector. With $544 million in annual free cash flow (7.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer