Switch to:
Frontline Ltd  (OSTO:FROo) Piotroski F-Score: 5 (As of Today)

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Frontline Ltd has an F-score of 5 indicating the company's financial situation is typical for a stable company.

OSTO:FROo' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 8
Current: 5

2
8

During the past 13 years, the highest Piotroski F-Score of Frontline Ltd was 8. The lowest was 2. And the median was 5.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Frontline Ltd Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 4.00 6.00 6.00 7.00

Frontline Ltd Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 5.00 7.00 4.00 5.00

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jun17) TTM:Last Year (Jun16) TTM:
Net Income was 44.8442622951 + 156.857876712 + 229.761904762 + -163.950930626 = NOK268 Mil.
Cash Flow from Operations was 397.795081967 + 288.270547945 + 678.43537415 + 250.862944162 = NOK1,615 Mil.
Revenue was 1288.17213115 + 1526.45547945 + 1506.18197279 + 1270.28764805 = NOK5,591 Mil.
Gross Profit was 608.901639344 + 788.844178082 + 725.467687075 + 476.226734349 = NOK2,599 Mil.
Average Total Assets from the begining of this year (Jun16)
to the end of this year (Jun17) was
(24485.5730897 + 23957.8606557 + 25396.5496575 + 26783.0697279 + 27251.0321489) / 5 = NOK25574.817056 Mil.
Total Assets at the begining of this year (Jun16) was NOK24,486 Mil.
Long-Term Debt & Capital Lease Obligation was NOK13,206 Mil.
Total Current Assets was NOK2,780 Mil.
Total Current Liabilities was NOK1,670 Mil.
Net Income was 512.576636288 + 509.2 + 668.694915254 + 118.870431894 = NOK1,809 Mil.

Revenue was 890.273405137 + 1339.33043478 + 1924.60169492 + 1592.65780731 = NOK5,747 Mil.
Gross Profit was 406.652858326 + 805.72173913 + 1283.50847458 + 880.797342193 = NOK3,377 Mil.
Average Net Income from the begining of last year (Jun15)
to the end of last year (Jun16) was
(6817.078125 + 7051.81441591 + 25073.6347826 + 25250.1101695 + 24485.5730897) / 5 = NOK17735.6421165 Mil.
Total Assets at the begining of last year (Jun15) was NOK6,817 Mil.
Long-Term Debt & Capital Lease Obligation was NOK10,722 Mil.
Total Current Assets was NOK2,502 Mil.
Total Current Liabilities was NOK1,934 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Frontline Ltd's current Net Income (TTM) was 268. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Frontline Ltd's current Cash Flow from Operations (TTM) was 1,615. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets(Jun16)
=267.513113143/24485.5730897
=0.01092534

ROA (Last Year)=Net Income/Total Assets(Jun15)
=1809.34198344/6817.078125
=0.26541312

Frontline Ltd's return on assets of this year was 0.01092534. Frontline Ltd's return on assets of last year was 0.26541312. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Frontline Ltd's current Net Income (TTM) was 268. Frontline Ltd's current Cash Flow from Operations (TTM) was 1,615. ==> 1,615 > 268 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun17)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Jun16 to Jun17
=13206.0913706/25574.817056
=0.5163709

Gearing (Last Year: Jun16)=Long-Term Debt & Capital Lease Obligation/Total Assetsfrom Jun15 to Jun16
=10721.744186/17735.6421165
=0.60453093

Frontline Ltd's gearing of this year was 0.5163709. Frontline Ltd's gearing of last year was 0.60453093. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun17)=Total Current Assets/Total Current Liabilities
=2779.89001692/1670.43993232
=1.6641664

Current Ratio (Last Year: Jun16)=Total Current Assets/Total Current Liabilities
=2502.04318937/1933.81229236
=1.29383974

Frontline Ltd's current ratio of this year was 1.6641664. Frontline Ltd's current ratio of last year was 1.29383974. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Frontline Ltd's number of shares in issue this year was 169.8. Frontline Ltd's number of shares in issue last year was 159. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2599.44023885/5591.09723144
=0.46492489

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3376.68041423/5746.86334214
=0.58756929

Frontline Ltd's gross margin of this year was 0.46492489. Frontline Ltd's gross margin of last year was 0.58756929. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun16)
=5591.09723144/24485.5730897
=0.22834251

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun15)
=5746.86334214/6817.078125
=0.84300975

Frontline Ltd's asset turnover of this year was 0.22834251. Frontline Ltd's asset turnover of last year was 0.84300975. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+1+0+0+0
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Frontline Ltd has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms


Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK