$Frontline (FRO.US)$Cyprus-based company listed in 2001, mai...

Over the past 5 years, revenue has grown for 4 years except for a significant decline of 38.6% in 2021. The average growth rate is 17.2%. Operating profit fluctuates greatly due to gross margin, with a significant decline in 2018 and almost zero in 2021. Net profit had slight losses in 2018 and 2021. In 2022, interest expenses accounted for 22.3% of operating profit, indicating a heavy interest burden. A net asset return rate of 24.4% is decent.

Revenue in the first 3 quarters of 2023 surged by 54.1%, operating profit doubled, and net profit increased by 1.3 times to reach 0.54 billion, surpassing the full-year net profit of 0.48 billion in 2022.

Over the past 5 years, the debt-to-asset ratio decreased from 62.2% to 52.6%. The proportion and growth rate of receivables and inventory are reasonable. Goodwill and other intangible assets amount to 0.112 billion, accounting for 5% of the 2.26 billion net assets. Long-term loans stand at 2.112 billion, which is 1.1 times the net assets. The leverage ratio is high but considered normal within the sector.

Operating cash flow has been slightly lower than investment cash flow in the past 5 years, resulting in no shareholder surplus.

Currently, the PE ratio is 9.1, TTM PE ratio is 5.7, dividend yield is 12.8%, the dividend is very unstable. If the full-year net income reaches 0.65 billion, the 5-year average net income will reach 0.33 billion, corresponding to a PE ratio of 13.5. For cyclical stocks, the valuation is not very attractive.