Frontline Ltd., a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. More Details
Undervalued with solid track record.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: FRO's weekly volatility (8%) has been stable over the past year.
7 Day Return
US Oil and Gas
1 Year Return
US Oil and Gas
Return vs Industry: FRO underperformed the US Oil and Gas industry which returned -31.1% over the past year.
Return vs Market: FRO underperformed the US Market which returned 19.7% over the past year.
Long-Term 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
17 hours ago | Simply Wall StFrontline (NYSE:FRO) Shares Have Generated A Total Return Of Negative 32% In The Last Five Years
2 weeks ago | Simply Wall StWith EPS Growth And More, Frontline (NYSE:FRO) Is Interesting
1 month ago | Simply Wall StIs Frontline (NYSE:FRO) Using Too Much Debt?
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 ($6.76) is trading below our estimate of fair value ($10.33)
Significantly Below Fair Value: FRO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FRO is good value based on its PE Ratio (2.7x) compared to the US Oil and Gas industry average (9.3x).
PE vs Market: FRO is good value based on its PE Ratio (2.7x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: FRO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: FRO is good value based on its PB Ratio (0.8x) compared to the US Oil and Gas industry average (1x).
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 earnings are forecast to decline over the next 3 years (-36.9% per year).
Earnings vs Market: FRO's earnings are forecast to decline over the next 3 years (-36.9% per year).
High Growth Earnings: FRO's earnings are forecast to decline over the next 3 years.
Revenue vs Market: FRO's revenue is expected to decline over the next 3 years (-21.9% per year).
High Growth Revenue: FRO's revenue is forecast to decline over the next 3 years (-21.9% 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 (11.7%).
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's current net profit margins (40.1%) are higher than last year (6.9%).
Past Earnings Growth Analysis
Earnings Trend: FRO's earnings have grown by 4.4% per year over the past 5 years.
Accelerating Growth: FRO's earnings growth over the past year (824.3%) exceeds its 5-year average (4.4% per year).
Earnings vs Industry: FRO earnings growth over the past year (824.3%) exceeded the Oil and Gas industry -29.6%.
Return on Equity
High ROE: Whilst FRO's Return on Equity (32.75%) is high, this metric is skewed due to their high level of debt.
How is Frontline's financial position?
Financial Position Analysis
Short Term Liabilities: FRO's short term assets ($404.4M) exceed its short term liabilities ($363.4M).
Long Term Liabilities: FRO's short term assets ($404.4M) do not cover its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: FRO's debt to equity ratio (133%) is considered high.
Reducing Debt: FRO's debt to equity ratio has increased from 74.7% to 133% over the past 5 years.
Debt Coverage: FRO's debt is well covered by operating cash flow (31.8%).
Interest Coverage: FRO's interest payments on its debt are well covered by EBIT (5.8x coverage).
What is Frontline current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FRO's dividend (41.42%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: FRO's dividend (41.42%) is in the top 25% of dividend payers in the US market (4.05%)
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's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (67.9%), FRO's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Fredriksen (76 yo)
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||23yrs||no data||no data|
|Principal Financial Officer||8.83yrs||no data||0.091% |
|Chief Executive Officer of Frontline Management AS||6yrs||no data||0% |
Experienced Management: FRO's management team is seasoned and experienced (8.8 years average tenure).
|Chairman of the Board & President||23yrs||no data||no data|
|Independent Director||5.5yrs||no data||0.0015% |
|Independent Director||2.17yrs||no data||no data|
|Director||0.25yr||no data||no data|
Experienced Board: FRO's board of directors are considered experienced (3.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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: NYSE
- Industry: Oil and Gas Storage and Transportation
- Sector: Energy
- Market Cap: US$1.336b
- 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 December 31, 2019, the company operat...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/11/26 23:17|
|End of Day Share Price||2020/11/25 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.