Frontline Ltd.Find Ratings Reports
FRONTLINE LTD's gross profit margin for the third quarter of its fiscal year 2021 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its subsector. FRONTLINE LTD has weak liquidity. Currently, the Quick Ratio is 0.87 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.38% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY21||Q3 FY20|
|Net Sales ($mil)||171.82||247.41|
|Net Income ($mil)||-33.21||57.07|
|Balance Sheet||Q3 FY21||Q3 FY20|
|Cash & Equiv. ($mil)||124.95||217.19|
|Total Assets ($mil)||3988.43||3983.75|
|Total Debt ($mil)||2313.2||2229.97|
|Profitability||Q3 FY21||Q3 FY20|
|Gross Profit Margin||13.62||49.51|
|Return on Assets||-1.0||13.32|
|Return on Equity||-2.54||32.74|
|Debt||Q3 FY21||Q3 FY20|
|Share Data||Q3 FY21||Q3 FY20|
|Shares outstanding (mil)||198.03||197.69|
|Div / share||0.0||0.5|
|Book value / share||7.99||8.2|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1628411.0||1580477.0|
HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 0.95 indicates a significant discount versus the S&P 500 average of 4.63 and a discount versus the subsector average of 2.07. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, FRONTLINE LTD proves to trade at a discount to investment alternatives.
|FRO NM||Peers 10.91||FRO 23.50||Peers 6.06|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
FRO's P/E is negative making this valuation measure meaningless.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
FRO is trading at a significant premium to its peers.
|FRO 7.29||Peers 90.50||FRO NA||Peers 0.03|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
FRO's ratio is negative making this valuation measure meaningless.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|FRO 0.95||Peers 2.07||FRO -107.43||Peers 219.61|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
FRO is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, FRO is expected to significantly trail its peers on the basis of its earnings growth rate.
|FRO 2.12||Peers 14.95||FRO -48.66||Peers -45.45|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
FRO is trading at a significant discount to its subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
FRO significantly trails its peers on the basis of sales growth.