FRO

FrontlineNYSE:FRO Stock Report

Market Cap

US$1.6b

7D

1.9%

1Y

10.7%

Updated

18 Sep, 2021

Data

Company Financials +
FRO fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance1/6
Financial Health0/6
Dividends0/6

FRO Overview

Frontline Ltd., a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide.

Frontline Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Frontline
Historical stock prices
Current Share PriceUS$7.95
52 Week HighUS$5.28
52 Week LowUS$9.21
Beta0.43
1 Month Change9.20%
3 Month Change-2.81%
1 Year Change10.72%
3 Year Change45.60%
5 Year Change11.81%
Change since IPO-46.64%

Recent News & Updates

Sep 02

Frontline Ltd.: Facing More Headwinds Before A Potential Recovery

Frontline reported a net loss attributable to the company of $26.63 million for the quarter ended June 30, 2021. The tanker market is still facing short-term challenges, but the long-term outlook is still Positive. I recommend primarily using FRO as a trading vehicle and keeping a minimal long-term position below $6.80.

Aug 18

Frontline: An Undervalued Call Option On Tanker Rates

Tanker rates are likely to go higher over the next 4 years due to an upcoming shortage in supply, rising demand, and rising inflation. If this thesis plays out then Frontline would be able to pay off all debt in 18 months and reinstate its hefty dividends again. A long position in Frontline is highly asymmetric with a 1:5 risk reward ratio based on current market cap to a current DCF based valuation.

Jun 14
A Look At The Intrinsic Value Of Frontline Ltd. (NYSE:FRO)

A Look At The Intrinsic Value Of Frontline Ltd. (NYSE:FRO)

Today we will run through one way of estimating the intrinsic value of Frontline Ltd. ( NYSE:FRO ) by estimating the...

Shareholder Returns

FROUS Oil and GasUS Market
7D1.9%2.8%-0.6%
1Y10.7%52.5%33.8%

Return vs Industry: FRO underperformed the US Oil and Gas industry which returned 52.5% over the past year.

Return vs Market: FRO underperformed the US Market which returned 33.8% over the past year.

Price Volatility

Is FRO's price volatile compared to industry and market?
FRO volatility
FRO Beta0.43
Industry Beta1.82
Market Beta1

Stable Share Price: FRO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FRO's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a84Robert Macleodhttps://www.frontline.bm

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, 2020, the company operated a fleet of 68 vessels.

Frontline Fundamentals Summary

How do Frontline's earnings and revenue compare to its market cap?
FRO fundamental statistics
Market CapUS$1.57b
Earnings (TTM)US$50.15m
Revenue (TTM)US$786.29m

31.4x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FRO income statement (TTM)
RevenueUS$786.29m
Cost of RevenueUS$516.16m
Gross ProfitUS$270.14m
ExpensesUS$219.99m
EarningsUS$50.15m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 30, 2021

Earnings per share (EPS)0.25
Gross Margin34.36%
Net Profit Margin6.38%
Debt/Equity Ratio137.5%

How did FRO perform over the long term?

See historical performance and comparison

Valuation

Is Frontline undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FRO ($7.95) is trading below our estimate of fair value ($19.21)

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 (31.4x) compared to the US Oil and Gas industry average (18.2x).

PE vs Market: FRO is poor value based on its PE Ratio (31.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: FRO is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: FRO is good value based on its PB Ratio (1x) compared to the US Oil and Gas industry average (1.8x).


Future Growth

How is Frontline forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

108.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRO's forecast earnings growth (108.5% per year) is above the savings rate (2%).

Earnings vs Market: FRO's earnings (108.5% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FRO's revenue (27.4% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: FRO's revenue (27.4% per year) is forecast to grow faster 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 (17.5%).


Past Performance

How has Frontline performed over the past 5 years?

34.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FRO has a large one-off gain of $13.2M impacting its June 30 2021 financial results.

Growing Profit Margin: FRO's current net profit margins (6.4%) are lower than last year (35%).


Past Earnings Growth Analysis

Earnings Trend: FRO's earnings have grown significantly by 34.3% per year over the past 5 years.

Accelerating Growth: FRO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FRO had negative earnings growth (-89.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (-19.4%).


Return on Equity

High ROE: FRO's Return on Equity (3.1%) is considered low.


Financial Health

How is Frontline's financial position?


Financial Position Analysis

Short Term Liabilities: FRO's short term assets ($331.7M) do not cover its short term liabilities ($426.7M).

Long Term Liabilities: FRO's short term assets ($331.7M) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: FRO's debt to equity ratio (137.5%) is considered high.

Reducing Debt: FRO's debt to equity ratio has increased from 67.8% to 137.5% over the past 5 years.

Debt Coverage: FRO's debt is not well covered by operating cash flow (9%).

Interest Coverage: FRO's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Dividend

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

3.19%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FRO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FRO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FRO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FRO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FRO is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FRO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average board tenure


CEO

Robert Macleod (41 yo)

6.83yrs

Tenure

Mr. Robert Hvide Macleod is the owner and has served as the Chairman of Hans Hvide & Co. since January 2011. From November 2014 to October 2020, he served as the Chief Executive Officer of the management d...


Board Members

Experienced Board: FRO's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Frontline Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Frontline Ltd.
  • Ticker: FRO
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$1.574b
  • Shares outstanding: 198.03m
  • Website: https://www.frontline.bm

Number of Employees


Location

  • Frontline Ltd.
  • Par-la-Ville Place
  • 14 Par-la-Ville Road
  • Hamilton
  • HM 08
  • Bermuda

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.