Frontline Ltd., a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$7.95|
|52 Week High||US$5.28|
|52 Week Low||US$9.21|
|1 Month Change||9.20%|
|3 Month Change||-2.81%|
|1 Year Change||10.72%|
|3 Year Change||45.60%|
|5 Year Change||11.81%|
|Change since IPO||-46.64%|
Recent News & Updates
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.
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.
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...
|FRO||US Oil and Gas||US Market|
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.
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
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
|FRO fundamental statistics|
Is FRO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|FRO income statement (TTM)|
|Cost of Revenue||US$516.16m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 30, 2021
|Earnings per share (EPS)||0.25|
|Net Profit Margin||6.38%|
How did FRO perform over the long term?See historical performance and comparison
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 ($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).
How is Frontline forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
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%).
How has Frontline performed over the past 5 years?
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.
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).
What is Frontline current dividend yield, its reliability and sustainability?
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.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Robert Macleod (41 yo)
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...
Experienced Board: FRO's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Frontline Ltd.'s employee growth, exchange listings and data sources
- 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
- Frontline Ltd.
- Par-la-Ville Place
- 14 Par-la-Ville Road
- HM 08
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 22:03|
|End of Day Share Price||2021/09/17 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.