NYSE:FRO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Reasonable growth potential and fair value.

Risks

  • Frontline has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Frontline's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.2%

NYSE:FRO

-3.4%

US Oil and Gas

-1.0%

US Market


1 Year Return

36.9%

NYSE:FRO

-22.5%

US Oil and Gas

-0.4%

US Market

FRO outperformed the Oil and Gas industry which returned -22.5% over the past year.

FRO outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

FROIndustryMarket
7 Day-2.2%-3.4%-1.0%
30 Day-9.3%-9.2%-3.3%
90 Day-22.2%-11.9%0.8%
1 Year36.9%36.9%-19.7%-22.5%1.9%-0.4%
3 Year-7.9%-15.8%-8.6%-16.8%39.4%30.4%
5 Yearn/a-33.5%-42.5%54.2%37.1%

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

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

Frontline is good value based on expected growth next year.


Price Based on Value of Assets

Frontline is overvalued based on assets compared to the US Oil and Gas industry average.


Next Steps

Future Growth

How is Frontline expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

45.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Frontline's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).

Frontline's earnings are expected to grow significantly at over 20% yearly.

Frontline's revenue growth is positive but not above the United States of America market average.

Frontline's earnings growth is expected to exceed the United States of America market average.

Frontline's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Frontline is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Frontline performed over the past 5 years?

-49.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

Frontline has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Frontline used its assets less efficiently than the US Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Frontline's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Frontline's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Frontline's level of debt (142.9%) 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 142.9% today).

Debt is not well covered by operating cash flow (7.7%, 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).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

5.28%

Expected Dividend Yield


Dividend Yield and Payments Analysis

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.

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

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 (2.1x coverage).


Next Steps

Management

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

7.6yrs

Average management tenure


CEO

Robert Macleod (39yo)

7.6yrs

Tenure

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 ...


Management Age and Tenure

7.6yrs

Average Tenure

55yo

Average Age

The average tenure for the Frontline management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.3yrs

Average Tenure

55yo

Average Age

The tenure for the Frontline board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$23,636,69106 Jun 19
Greenwich Holdings Ltd.
EntityCompany
Shares3,000,000
Max PriceUS$7.88

Ownership Breakdown


Management Team

  • John Fredriksen (75yo)

    Chairman of the Board & President

    • Tenure: 21.8yrs
  • Inger Klemp (55yo)

    Principal Financial Officer

    • Tenure: 7.6yrs
  • Robert Macleod (39yo)

    Principal Executive Officer & Director

    • Tenure: 7.6yrs

Board Members

  • John Fredriksen (75yo)

    Chairman of the Board & President

    • Tenure: 21.8yrs
  • Ola Lorentzon (70yo)

    Director

    • Tenure: 4.3yrs
  • James O'Shaughnessy (55yo)

    Director

    • Tenure: 0.9yrs
  • Robert Macleod (39yo)

    Principal Executive Officer & Director

    • Tenure: 4.3yrs
  • Ulrika Laurin (48yo)

    Director

    • Tenure: 0.9yrs

Company Information

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


Key Information

  • Name: Frontline Ltd.
  • Ticker: FRO
  • Exchange: NYSE
  • Founded:
  • Industry: oil and gas storage and transportation
  • Sector: energy
  • Market Cap: US$1.214b
  • Shares outstanding: 173.12m
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRONYSE (New York Stock Exchange)YesOrdinary SharesUSUSDMay 1998
FROOB (Oslo Bors)YesOrdinary SharesNONOKMay 1998
FRLNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1998
FRO NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMay 1998
FROOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKMay 1998
0REHLSE (London Stock Exchange)YesOrdinary SharesGBNOKMay 1998

Biography

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 flee ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 23:45
End of Day Share Price2019/08/16 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.