$Frontline PLC (FRO.US)$The Cypriot company, which was liste...

In the past 5 years, in addition to a sharp contraction of 38.6% in 2021, revenue increased for 4 years, with an average growth rate of 17.2%. Operating profit fluctuated greatly due to gross margin. It shrank sharply in 2018 and almost returned to zero in 2021, while net profit lost slightly in both 2018 and 2021. Interest expenses account for 22.3% of operating profit in 2022, and the interest burden is heavy. The return on net assets of 24.4% is pretty good.

In the first three quarters of 2023, revenue increased sharply by 54.1%, operating profit doubled, and net profit increased 1.3 times to 540 million, exceeding the full year net profit of 2022 of 480 million yuan.

The balance ratio has declined from 62.2% to 52.6% over the past 5 years. The ratio and growth rate of accounts receivable and inventory are reasonable. Goodwill and other intangible assets are at $112 million, accounting for 5% of the net assets of $2.26 billion, and long-term loans of $2,112 billion, which is 1.1 times the net assets. The leverage ratio is very high, but it is normal within the sector.

Net cash flow operating over the past 5 years has been slightly lower than net investment, and no shareholder surplus has been generated.

Currently, the price-earnings ratio is 9.1, the price-earnings ratio is TTM 5.7, and the dividend rate is very unstable. If the annual net profit reaches 650 million, the 5-year average net profit will reach 330 million, and the corresponding price-earnings ratio is 13.5. The valuation is not very attractive for cyclical stocks.