FROFrontline plc
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.2×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Margin-driven, fat margins on slower asset turns. ROE 15% = margin × turnover × leverage.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is FRO?
Frontline plc earns 8.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.12 points below what the capital costs: growth destroys value
- Operating margin
- 30%
Operating margin · Oil & Gas Midstream median 30% · fiscal year to FY2025
- Cash conversion
- 1.16×
Cash conversion · 0.96× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- 0.00%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2021 | 1.1% |
| FY2022 | 31% |
| FY2023 | 41% |
| FY2024 | 36% |
| FY2025 | 30% |
Details›
- Operating marginfiscal year to FY2025
- 30%
- Net marginfiscal year to FY2025
- 19%
- Free cash flow margin
- 34%
- Revenue, trailing twelve months
- $1.97B
- Free cash flow, trailing twelve months
- $670M
- Net income, trailing twelve months
- $379M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.