By analyzing existing basic indicators between Frontline and Antero, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Antero with a short position in Frontline. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Frontline has an asset utilization ratio of 45.73 percent. This suggests that the company is making $0.46 for each dollar of assets. An increasing asset utilization means that Frontline is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Frontline or Teekay is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Frontline dividends
A dividend is the distribution of a portion of Frontline earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Frontline dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Frontline one year expected dividend income is about USD1.03 per share.
At this time, Frontline's
Dividends Paid is very stable compared to the past year. As of the 25th of April 2024,
Dividend Yield is likely to grow to 0.15, though
Dividend Paid And Capex Coverage Ratio is likely to grow to
(0.82).
Investing in dividend-paying stocks, such as Frontline is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Frontline must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Frontline. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Frontline's Liquidity
Frontline
financial leverage refers to using borrowed capital as a funding source to finance Frontline ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Frontline financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Frontline's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Frontline's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Frontline's total debt and its cash.
Correlation Between Frontline and Teekay Tankers
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Frontline together with similar or unrelated positions with a negative correlation. For example, you can also add Teekay Tankers to your portfolio. If Teekay Tankers is not perfectly correlated to Frontline it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Frontline, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Frontline and Teekay Tankers in your portfolio? Please note if you are using this as a pair-trade strategy between Frontline and Teekay Tankers, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between FRO and TNK for more information.
A Deeper Perspective
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check Frontline revenue. Based on the latest financial disclosure, Frontline reported 1.32
B of revenue. This is 97.32% lower than that of the Energy sector and 88.76% lower than that of the
Oil & Gas Midstream industry. The revenue for all United States stocks is 86.01% higher than that of Frontline. As for Antero Midstream we see revenue of 1.01
B, which is 91.4% lower than that of the Oil & Gas Midstream
| FRO | 1.32 Billion | 11.22 |
| Sector | 9.43 Billion | 80.2 |
| AM | 1.01 Billion | 8.58 |
Does Frontline have cash to continue?
Latest market risk adjusted performance is at -0.55. Frontline exhibits very low volatility with skewness of 0.25 and kurtosis of 1.2. However, we advise investors to further study Frontline technical indicators to make sure all market info is available and is reliable.
Our Takeaway on Frontline Investment
When is the right time to buy or sell Frontline? Buying stocks such as Frontline isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. To summarize, as of the 25th of November 2020, our research shows that Frontline is a rather slightly risky investment opportunity with a
below average probability of financial unrest in the next two years. From a slightly different view, the entity currently appears to be
fairly valued. However, our ongoing 30 days buy-or-sell advice on the company is
Sell.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Frontline. Please refer to our
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