Frontline Ltd., a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide.
Reasonable growth potential and fair value.
Share Price & News
How has Frontline's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FRO's share price has been volatile over the past 3 months.
7 Day Return
NO Oil and Gas
1 Year Return
NO Oil and Gas
Return vs Industry: FRO exceeded the Norwegian Oil and Gas industry which returned -22.3% over the past year.
Return vs Market: FRO exceeded the Norwegian Market which returned -5.1% over the past year.
Price Volatility Vs. Market
How volatile is Frontline's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Frontline undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FRO (NOK70.15) is trading below our estimate of fair value (NOK150.67)
Significantly Below Fair Value: FRO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FRO is poor value based on its PE Ratio (21.6x) compared to the Oil and Gas industry average (15.9x).
PE vs Market: FRO is poor value based on its PE Ratio (21.6x) compared to the Norwegian market (14.5x).
Price to Earnings Growth Ratio
PEG Ratio: FRO is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: FRO is overvalued based on its PB Ratio (1x) compared to the NO Oil and Gas industry average (0.8x).
How is Frontline forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FRO's forecast earnings growth (28.4% per year) is above the savings rate (0.7%).
Earnings vs Market: FRO's earnings (28.4% per year) are forecast to grow faster than the Norwegian market (18.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: FRO's revenue (7% per year) is forecast to grow faster than the Norwegian market (3.4% per year).
High Growth Revenue: FRO's revenue (7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FRO's Return on Equity is forecast to be low in 3 years time (11.4%).
How has Frontline performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FRO has high quality earnings.
Growing Profit Margin: FRO became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: FRO's earnings have declined by -49% per year over the past 5 years.
Accelerating Growth: FRO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: FRO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-18%).
Return on Equity
High ROE: FRO's Return on Equity (4.1%) is considered low.
How is Frontline's financial position?
Financial Position Analysis
Short Term Liabilities: FRO's short term assets ($317.0M) do not cover its short term liabilities ($525.8M).
Long Term Liabilities: FRO's short term assets ($317.0M) do not cover its long term liabilities ($1.7B).
Debt to Equity History and Analysis
Debt Level: FRO's debt to equity ratio (124.9%) is considered high.
Reducing Debt: FRO's debt to equity ratio has increased from 50.6% to 124.9% over the past 5 years.
Debt Coverage: FRO's debt is not well covered by operating cash flow (12%).
Interest Coverage: FRO's interest payments on its debt are not well covered by EBIT (1.4x coverage).
Inventory Level: FRO has a high level of physical assets or inventory.
Debt Coverage by Assets: FRO's debt is not covered by short term assets (assets are 0.2x debt).
What is Frontline's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FRO's dividend (5.59%) is higher than the bottom 25% of dividend payers in the Norwegian market (3%).
High Dividend: FRO's dividend (5.59%) is low compared to the top 25% of dividend payers in the Norwegian market (6.42%).
Stability and Growth of Payments
Stable Dividend: FRO has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: FRO has only been paying a dividend for 4 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30.2%), FRO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FRO's dividends in 3 years are forecast to be covered by earnings (62.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Fredriksen (75yo)
Mr. John Fredriksen has served as the Chairman of the Board, President and Director of Frontline Ltd. since November 3, 1997 and served as its Chief Executive Officer. Mr. Fredriksen is a Founder of World ...
|Chairman of the Board & President||22.3yrs||no data||no data|
|Principal Financial Officer||8.1yrs||no data||0.091% $12.1m|
|Chief Executive Officer of Frontline Management AS||5.3yrs||no data||0.51% $67.1m|
Experienced Management: FRO's management team is seasoned and experienced (8.1 years average tenure).
|Chairman of the Board & President||22.3yrs||no data||no data|
|Independent Director||4.8yrs||no data||0.0015% $201.7k|
|Independent Director||1.4yrs||no data||no data|
|Independent Director||1.4yrs||no data||0.025% $3.4m|
Experienced Board: FRO's board of directors are considered experienced (3.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FRO insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Frontline Ltd.'s company bio, employee growth, exchange listings and data sources
- Name: Frontline Ltd.
- Ticker: FRO
- Exchange: OB
- Industry: Oil and Gas Storage and Transportation
- Sector: Energy
- Market Cap: US$1.415b
- Listing Market Cap: US$13.268b
- Shares outstanding: 197.69m
- Website: https://www.frontline.bm
Number of Employees
- Frontline Ltd.
- Par-la-Ville Place
- 14 Par-la-Ville Road
- HM 08
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|FRO||NYSE (New York Stock Exchange)||Yes||Ordinary Shares||US||USD||May 1998|
|FRO||OB (Oslo Bors)||Yes||Ordinary Shares||NO||NOK||May 1998|
|FRLN||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||May 1998|
|FRO1 N||BMV (Bolsa Mexicana de Valores)||Yes||Ordinary Shares||MX||MXN||May 1998|
|FROO||BATS-CHIXE (BATS 'Chi-X Europe')||Yes||Ordinary Shares||GB||NOK||May 1998|
|0REH||LSE (London Stock Exchange)||Yes||Ordinary Shares||GB||NOK||May 1998|
Frontline Ltd., a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers. As of September 30, 2019, the company operated a fleet of 71 vessels. It is also involved in the charter, purchase, and sale of vessels. The company is based in Hamilton, Bermuda.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/26 20:38|
|End of Day Share Price||2020/02/26 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.