Why is Frontline Corporation Ltd ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Operating profit has grown by an annual rate 14.73% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at 4.67 times
- The company has been able to generate a Return on Capital Employed (avg) of 0.08% signifying low profitability per unit of total capital (equity and debt)
2
Flat results in Dec 25
- EPS(Q) Lowest at Rs 0.92
3
Risky - Negative Operating Profits
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -43.40%, its profits have risen by 8.9% ; the PEG ratio of the company is 0.7
4
Below par performance in long term as well as near term
- Along with generating -43.40% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Frontline Corp. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Frontline Corp.
-43.4%
-0.74
58.31%
Sensex
8.53%
0.73
11.73%
Quality key factors
Factor
Value
Sales Growth (5y)
17.73%
EBIT Growth (5y)
14.73%
EBIT to Interest (avg)
-0.60
Debt to EBITDA (avg)
27.67
Net Debt to Equity (avg)
3.19
Sales to Capital Employed (avg)
1.20
Tax Ratio
21.41%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
-2.25%
ROE (avg)
18.81%
Valuation Key Factors 
Factor
Value
P/E Ratio
6
Industry P/E
31
Price to Book Value
0.86
EV to EBIT
-66.95
EV to EBITDA
28.01
EV to Capital Employed
0.97
EV to Sales
0.59
PEG Ratio
0.65
Dividend Yield
NA
ROCE (Latest)
0.38%
ROE (Latest)
14.90%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
Technical Movement
2What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 10.72 times
-1What is not working for the Company
EPS(Q)
Lowest at Rs 0.92
Loading Valuation Snapshot...
Here's what is working for Frontline Corp.
Debtors Turnover Ratio- Half Yearly
Highest at 10.72 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Frontline Corp.
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.92
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)






