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Frontline

NYSE:FRO
Snowflake Description

Reasonable growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FRO
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Energy
Company description

Frontline Ltd., a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. The last earnings update was 58 days ago. More info.


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FRO Share Price and Events
7 Day Returns
-3.2%
NYSE:FRO
-3.1%
US Oil and Gas
-0.3%
US Market
1 Year Returns
45.7%
NYSE:FRO
-17.4%
US Oil and Gas
3.9%
US Market
FRO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Frontline (FRO) -3.2% 0.5% 0.3% 45.7% -4.9% -
US Oil and Gas -3.1% 0.2% -7.8% -17.4% -6.4% -38.7%
US Market -0.3% 2.3% 2.3% 3.9% 36.7% 41.8%
1 Year Return vs Industry and Market
  • FRO outperformed the Oil and Gas industry which returned -17.4% over the past year.
  • FRO outperformed the Market in United States of America which returned 3.9% over the past year.
Price Volatility
FRO
Industry
5yr Volatility vs Market

FRO Value

 Is Frontline undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Frontline to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Frontline.

NYSE:FRO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:FRO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.919 (1 + (1- 21%) (137.89%))
1.617
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.62
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.617 * 5.96%)
12.37%

Discounted Cash Flow Calculation for NYSE:FRO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Frontline is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:FRO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.37%)
2020 311.54 Analyst x6 277.25
2021 364.40 Analyst x5 288.60
2022 407.31 Est @ 11.77% 287.08
2023 444.21 Est @ 9.06% 278.64
2024 476.03 Est @ 7.16% 265.73
2025 503.79 Est @ 5.83% 250.28
2026 528.48 Est @ 4.9% 233.65
2027 550.95 Est @ 4.25% 216.77
2028 571.85 Est @ 3.79% 200.23
2029 591.72 Est @ 3.47% 184.39
Present value of next 10 years cash flows $2,482.63
NYSE:FRO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $591.72 × (1 + 2.73%) ÷ (12.37% – 2.73%)
$6,307.83
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $6,307.83 ÷ (1 + 12.37%)10
$1,965.61
NYSE:FRO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,482.63 + $1,965.61
$4,448.24
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,448.24 / 170.97
$26.02
NYSE:FRO Discount to Share Price
Calculation Result
Value per share (USD) From above. $26.02
Current discount Discount to share price of $7.78
= -1 x ($7.78 - $26.02) / $26.02
70.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Frontline is available for.
Intrinsic value
>50%
Share price is $7.78 vs Future cash flow value of $26.02
Current Discount Checks
For Frontline to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Frontline's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Frontline's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Frontline's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Frontline's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:FRO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.26
NYSE:FRO Share Price ** NYSE (2019-07-19) in USD $7.78
United States of America Oil and Gas Industry PE Ratio Median Figure of 101 Publicly-Listed Oil and Gas Companies 12.6x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Frontline.

NYSE:FRO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:FRO Share Price ÷ EPS (both in USD)

= 7.78 ÷ 0.26

29.5x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Frontline is overvalued based on earnings compared to the US Oil and Gas industry average.
  • Frontline is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Frontline's expected growth come at a high price?
Raw Data
NYSE:FRO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.5x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
46%per year
United States of America Oil and Gas Industry PEG Ratio Median Figure of 79 Publicly-Listed Oil and Gas Companies 0.37x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:FRO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.5x ÷ 46%

0.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Frontline is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Frontline's assets?
Raw Data
NYSE:FRO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $7.09
NYSE:FRO Share Price * NYSE (2019-07-19) in USD $7.78
United States of America Oil and Gas Industry PB Ratio Median Figure of 196 Publicly-Listed Oil and Gas Companies 1.05x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.8x
NYSE:FRO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:FRO Share Price ÷ Book Value per Share (both in USD)

= 7.78 ÷ 7.09

1.1x

* Primary Listing of Frontline.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Frontline is overvalued based on assets compared to the US Oil and Gas industry average.
X
Value checks
We assess Frontline's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Frontline has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FRO Future Performance

 How is Frontline expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
46%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Frontline expected to grow at an attractive rate?
  • Frontline's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Frontline's earnings growth is expected to exceed the United States of America market average.
  • Frontline's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:FRO Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:FRO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 46%
NYSE:FRO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 5.5%
United States of America Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:FRO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:FRO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 620 386 241 4
2020-12-31 637 376 265 7
2019-12-31 485 216 103 7
NYSE:FRO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 810 132 45
2018-12-31 741 46 -9
2018-09-30 702 22 -283
2018-06-30 654 34 -309
2018-03-31 637 63 -306
2017-12-31 645 130 -265
2017-09-30 642 154 2
2017-06-30 660 192 31
2017-03-31 702 244 65
2016-12-31 752 286 117
2016-09-30 724 339 157
2016-06-30 674 323 214

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Frontline's earnings are expected to grow significantly at over 20% yearly.
  • Frontline's revenue is expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:FRO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Frontline Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FRO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 1.09 1.20 0.97 2.00
2019-12-31 0.51 0.67 0.34 2.00
NYSE:FRO Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.26
2018-12-31 -0.05
2018-09-30 -1.66
2018-06-30 -1.82
2018-03-31 -1.80
2017-12-31 -1.56
2017-09-30 0.01
2017-06-30 0.18
2017-03-31 0.38
2016-12-31 0.75
2016-09-30 1.05
2016-06-30 1.60

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Frontline is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Frontline's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Frontline has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FRO Past Performance

  How has Frontline performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Frontline's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Frontline's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Frontline has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Frontline has become profitable in the last year making it difficult to compare the US Oil and Gas industry average.
Earnings and Revenue History
Frontline's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Frontline Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FRO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 809.73 44.79 37.64
2018-12-31 740.97 -8.88 37.29
2018-09-30 702.40 -282.69 36.87
2018-06-30 653.98 -309.00 37.21
2018-03-31 637.19 -305.52 38.58
2017-12-31 644.58 -264.86 37.60
2017-09-30 642.48 1.89 41.45
2017-06-30 659.60 31.43 41.31
2017-03-31 702.25 65.12 38.82
2016-12-31 752.11 117.01 41.03
2016-09-30 723.58 157.25 33.55
2016-06-30 673.88 213.64 26.68
2016-03-31 585.48 277.93 20.06
2015-12-31 452.48 285.63 10.58
2015-09-30 376.22 293.86 3.09
2015-06-30 324.12 291.48 1.70
2015-03-31 273.82 272.70 1.77
2014-12-31 240.21 200.63 4.94
2014-09-30 210.98 146.32 5.35
2014-06-30 184.32 110.71 5.01
2014-03-31 161.74 88.79 4.25
2013-12-31 133.90 69.50 1.35
2013-09-30 124.55 57.69 3.23
2013-06-30 128.45 32.78 3.24
2013-03-31 138.23 0.87 3.30
2012-12-31 140.85 8.06 3.35

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Frontline has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Frontline used its assets less efficiently than the US Oil and Gas industry average last year based on Return on Assets.
  • Frontline's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Frontline's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Frontline has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

FRO Health

 How is Frontline's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Frontline's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Frontline is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Frontline's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Frontline's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Frontline Company Filings, last reported 3 months ago.

NYSE:FRO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,204.36 1,721.37 96.78
2018-12-31 1,164.22 1,730.77 67.32
2018-09-30 1,138.45 1,754.26 69.76
2018-06-30 1,135.95 1,779.64 117.15
2018-03-31 1,157.94 1,746.95 114.19
2017-12-31 1,187.63 1,580.15 123.38
2017-09-30 1,436.82 1,594.47 151.43
2017-06-30 1,459.45 1,364.80 164.16
2017-03-31 1,507.74 1,153.38 180.95
2016-12-31 1,499.77 981.96 210.83
2016-09-30 1,397.30 1,016.03 131.43
2016-06-30 1,421.37 962.37 136.28
2016-03-31 1,467.20 915.73 280.09
2015-12-31 1,446.34 803.27 278.38
2015-09-30 864.76 639.92 170.35
2015-06-30 806.37 653.78 178.10
2015-03-31 1,105.58 632.12 111.87
2014-12-31 1,447.35 517.58 235.80
2014-09-30 1,572.96 798.93 319.69
2014-06-30 1,161.08 505.98 290.59
2014-03-31 1,056.67 560.24 287.33
2013-12-31 1,063.16 592.46 347.75
2013-09-30 1,074.25 575.50 513.57
2013-06-30 829.28 552.75 279.55
2013-03-31 791.39 597.66 297.02
2012-12-31 489.43 640.89 132.72
  • Frontline's level of debt (150.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (52.9% vs 150.9% today).
  • Debt is not well covered by operating cash flow (7.3%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.3x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Frontline's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Frontline has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FRO Dividends

 What is Frontline's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Frontline dividends. Estimated to be 4.76% next year.
If you bought $2,000 of Frontline shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Frontline's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Frontline's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:FRO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 67 Stocks 3.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:FRO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.40 1.00
2020-12-31 0.57 2.00
2019-12-31 0.16 2.00
NYSE:FRO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-28 0.000 0.000
2019-02-28 0.000 0.000
2018-11-23 0.000 0.000
2018-11-16 0.000 0.000
2018-09-04 0.000 0.000
2018-08-22 0.000 0.000
2018-06-20 0.000 0.000
2018-05-31 0.000 0.000
2018-03-19 0.000 0.000
2018-02-28 0.000 0.000
2017-11-22 0.000 0.000
2017-09-22 0.000 0.000
2017-08-30 0.000 0.000
2017-03-16 0.850 14.187
2017-02-28 0.850 12.318
2016-05-31 1.600 21.229
2016-02-29 1.400 16.988
2015-12-02 1.000 8.884
2015-12-01 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Frontline has not reported any payouts.
  • Unable to verify if Frontline's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Frontline's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Frontline has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess Frontline's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Frontline afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Frontline has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FRO Management

 What is the CEO of Frontline's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Robert Macleod
COMPENSATION $0
AGE 39
TENURE AS CEO 7.5 years
CEO Bio

Mr. Robert Hvide Macleod has been the Chief Executive Officer at Frontline Management AS since November 03, 2014. Mr. Macleod had been Principal Executive Officer at Frontline Ltd. since 2012. He served as the Chief Executive Officer of Frontline 2012 Ltd. Mr. Macleod is the Founder, Managing Director and Owner of Highlander Tankers AS. He was employed by the A.P. Moller Group from 2002 to 2004 and Glencore-ST Shipping from 2004 to 2011. He has been a Director at Frontline Ltd. since May 29, 2015. Mr. Macleod holds a Maritime Business (Hons) degree from Plymouth University.

CEO Compensation
  • Insufficient data for Robert to compare compensation growth.
  • Robert's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Frontline management team in years:

7.5
Average Tenure
55
Average Age
  • The average tenure for the Frontline management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

John Fredriksen

TITLE
Chairman of the Board & President
AGE
75
TENURE
21.7 yrs

Robert Macleod

TITLE
Principal Executive Officer & Director
AGE
39
TENURE
7.5 yrs

Inger Klemp

TITLE
Principal Financial Officer
AGE
55
TENURE
7.5 yrs
Board of Directors Tenure

Average tenure and age of the Frontline board of directors in years:

4.2
Average Tenure
55
Average Age
  • The tenure for the Frontline board of directors is about average.
Board of Directors

John Fredriksen

TITLE
Chairman of the Board & President
AGE
75
TENURE
21.7 yrs

Robert Macleod

TITLE
Principal Executive Officer & Director
AGE
39
TENURE
4.2 yrs

James O'Shaughnessy

TITLE
Director
AGE
55
TENURE
0.8 yrs

Ola Lorentzon

TITLE
Director
AGE
70
TENURE
4.2 yrs

Ulrika Laurin

TITLE
Director
AGE
48
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Jun 19 Sell Greenwich Holdings Ltd. Company 06. Jun 19 06. Jun 19 -3,000,000 $7.88 $-23,636,691
26. Jul 18 Sell Robert Macleod Individual 26. Jul 18 26. Jul 18 -500,000 $5.35 $-2,673,179
26. Jul 18 Buy Robert Macleod Individual 26. Jul 18 26. Jul 18 120,000 $5.31 $637,158
X
Management checks
We assess Frontline's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Frontline has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FRO News

Simply Wall St News

Examining Frontline Ltd.’s (NYSE:FRO) Weak Return On Capital Employed

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Frontline: 0.045 = US$132m ÷ (US$3.1b - US$226m) (Based on the trailing twelve months to March 2019.) So, Frontline has an ROCE of 4.5%. … How Frontline's Current Liabilities Impact Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Is Frontline Ltd.'s (NYSE:FRO) 3.8% ROE Worse Than Average?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Frontline: 3.8% = US$45m ÷ US$1.2b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Frontline Have A Good Return On Equity? … How Does Debt Impact Return On Equity?

Simply Wall St -

If You Had Bought Frontline (NYSE:FRO) Stock A Year Ago, You Could Pocket A 68% Gain Today

(NYSE:FRO) share price is 68% higher than it was a year ago, much better than the market return of around 1.5% (not including dividends) in the same period. … We'd be remiss not to mention the difference between Frontline's total shareholder return (TSR) and its share price return. … Its history of dividend payouts mean that Frontline's TSR of 68% over the last year is better than the share price return.

Simply Wall St -

How Many Frontline Ltd. (NYSE:FRO) Shares Do Institutions Own?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that have been privatized tend to have low insider ownership. … Taking a look at our data on the ownership groups (below), it's seems that

Simply Wall St -

How Much Are Frontline Ltd. (NYSE:FRO) Insiders Taking Off The Table?

Over the last year, we can see that the biggest insider sale was by the Principal Executive Officer & Director, Robert Macleod, for US$2.7m worth of shares, at about US$5.35 per share. … Robert Macleod was the only individual insider to sell shares in the last twelve months … Notably Robert Macleod was also the biggest buyer, having purchased US$637k worth of shares

Simply Wall St -

Who Has Been Selling Frontline Ltd. (NYSE:FRO) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Frontline Ltd. … Over the last year, we can see that the biggest insider sale was by Principal Executive Officer & Director Robert Macleod for US$2.7m worth of shares, at about US$5.35 per share. … Robert Macleod was the only individual insider to sell shares in the last twelve months

Simply Wall St -

Who Really Owns Frontline Ltd (NYSE:FRO)?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Taking a look at the our data on the ownership groups (below), it's seems that. … Let's take a closer look to see what the different types of shareholder can tell us about FRO

Simply Wall St -

Before You Buy Frontline Ltd's (NYSE:FRO), Consider This

Generally, an investor should consider two types of risk that impact the market value of FRO. … A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one. … Any stock with a beta of greater than one is considered more volatile than the market, and those with a beta less than one is generally less volatile.

Simply Wall St -

Are Frontline Ltd's (NYSE:FRO) Interest Costs Too High?

Frontline Ltd (NYSE:FRO) is a small-cap stock with a market capitalization of US$1.03b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Companies operating in the Oil and Gas industry,

Simply Wall St -

What Should We Expect From Frontline Ltd's (FRO) Earnings Over The Next Year?

NYSE:FRO Past Future Earnings Nov 22nd 17 Is this similar growth to the past? … FRO’s earnings growth the past couple of years was 44.14% which indicates that the company's past performance will continue to persist into the future. … This means FRO has already proven its capacity to grow at a robust rate, which should give investors higher conviction of analysts' consensus prediction for the company's future growth going forward.Next Steps: For FRO, there are three important factors you should further research: 1.

Simply Wall St -

FRO Company Info

Description

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, 2018, the company's fleet consisted of 61 vessels, which included very large crude carrier, Suezmax, and LR2/Aframax tankers with an aggregate capacity of approximately 11.6 million deadweight ton. It is also involved in the charter, purchase, and sale of vessels. The company is based in Hamilton, Bermuda.

Details
Name: Frontline Ltd.
FRO
Exchange: NYSE
Founded:
$1,330,131,755
170,968,092
Website: http://www.frontline.bm
Address: Frontline Ltd.
Par-la-Ville Place,
14 Par-la-Ville Road,
Hamilton,
HM 08,
Bermuda
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE FRO Ordinary Shares New York Stock Exchange US USD 12. May 1998
DB FRLN Ordinary Shares Deutsche Boerse AG DE EUR 12. May 1998
LSE 0REH Ordinary Shares London Stock Exchange GB NOK 12. May 1998
BMV FRO N Ordinary Shares Bolsa Mexicana de Valores MX MXN 12. May 1998
OB FRO Ordinary Shares Oslo Bors NO NOK 12. May 1998
BATS-CHIXE FROO Ordinary Shares BATS 'Chi-X Europe' GB NOK 12. May 1998
Number of employees
Current staff
Staff numbers
145
Frontline employees.
Industry
Oil and Gas Storage and Transportation
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 23:49
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/19
Last earnings filing: 2019/05/22
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.