Frontline Return On Equity vs. Current Valuation
| FRO Stock | NOK 180.90 4.65 2.51% |
For Frontline profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Frontline to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Frontline utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Frontline's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Frontline over time as well as its relative position and ranking within its peers.
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Frontline Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Frontline's current stock value. Our valuation model uses many indicators to compare Frontline value to that of its competitors to determine the firm's financial worth. Frontline is one of the top stocks in return on equity category among its peers. It also is rated as one of the top companies in current valuation category among its peers reporting about 351,844,668,828 of Current Valuation per Return On Equity. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Frontline's earnings, one of the primary drivers of an investment's value.Frontline Current Valuation vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.14 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
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| = | 49.22 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Frontline Current Valuation vs Competition
Frontline is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Energy industry is currently estimated at about 1.6 Trillion. Frontline holds roughly 49.22 Billion in current valuation claiming about 3% of equities under Energy industry.
Frontline Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Frontline, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Frontline will eventually generate negative long term returns. The profitability progress is the general direction of Frontline's change in net profit over the period of time. It can combine multiple indicators of Frontline, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Frontline Ltd., a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. It is also involved in the charter, purchase, and sale of vessels. Frontline Ltd operates under Shipping Ports classification in Norway and is traded on Oslo Stock Exchange. It employs 145 people.
Frontline Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Frontline. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Frontline position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Frontline's important profitability drivers and their relationship over time.
Use Frontline in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Frontline position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Frontline will appreciate offsetting losses from the drop in the long position's value.Frontline Pair Trading
Frontline Pair Trading Analysis
The ability to find closely correlated positions to Frontline could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Frontline when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Frontline - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Frontline to buy it.
The correlation of Frontline is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Frontline moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Frontline moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Frontline can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Frontline position
In addition to having Frontline in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Trading Thematic Idea Now
Trading
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Trading theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Trading Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Frontline Stock
When determining whether Frontline offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Frontline's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Frontline Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Frontline Stock:Check out Investing Opportunities. For more information on how to buy Frontline Stock please use our How to buy in Frontline Stock guide.You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
To fully project Frontline's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Frontline at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Frontline's income statement, its balance sheet, and the statement of cash flows.