NYSE:FRO

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Good value with proven track record.


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

Stable Share Price: FRO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.9%

FRO

0.7%

US Oil and Gas

-0.8%

US Market


1 Year Return

-38.5%

FRO

-45.5%

US Oil and Gas

18.0%

US Market

Return vs Industry: FRO exceeded the US Oil and Gas industry which returned -47.5% over the past year.

Return vs Market: FRO underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

FROIndustryMarket
7 Day-4.9%0.7%-0.8%
30 Day-3.0%2.3%6.8%
90 Day-16.0%-14.6%8.9%
1 Year-24.9%-38.5%-42.2%-45.5%20.7%18.0%
3 Year29.9%6.4%-45.3%-52.5%41.5%32.1%
5 Yearn/a-42.1%-53.3%84.6%63.8%

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 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 ($6.45) is trading below our estimate of fair value ($23.9)

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 (2.6x) compared to the US Oil and Gas industry average (7.5x).

PE vs Market: FRO is good value based on its PE Ratio (2.6x) compared to the US market (18.9x).


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's PB Ratio (0.8x) is in line with the US Oil and Gas industry average.


Next Steps

Future Growth

How is Frontline forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-55.7%

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 (-55.7% per year).

Earnings vs Market: FRO's earnings are forecast to decline over the next 3 years (-55.7% 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 (-24.3% per year).

High Growth Revenue: FRO's revenue is forecast to decline over the next 3 years (-24.3% 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 (8.7%).


Next Steps

Past Performance

How has Frontline performed over the past 5 years?

-14.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FRO has high quality earnings.

Growing Profit Margin: FRO's current net profit margins (35%) are higher than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: FRO's earnings have declined by 14.4% per year over the past 5 years.

Accelerating Growth: FRO's earnings growth over the past year (576.2%) exceeds its 5-year average (-14.4% per year).

Earnings vs Industry: FRO earnings growth over the past year (576.2%) exceeded the Oil and Gas industry -38%.


Return on Equity

High ROE: Whilst FRO's Return on Equity (27.85%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Frontline's financial position?


Financial Position Analysis

Short Term Liabilities: FRO's short term assets ($468.5M) do not cover its short term liabilities ($666.3M).

Long Term Liabilities: FRO's short term assets ($468.5M) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: FRO's debt to equity ratio (131.2%) is considered high.

Reducing Debt: FRO's debt to equity ratio has increased from 80.9% to 131.2% over the past 5 years.

Debt Coverage: FRO's debt is well covered by operating cash flow (26.7%).

Interest Coverage: FRO's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Next Steps

Dividend

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

43.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FRO's dividend (43.41%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: FRO's dividend (43.41%) is in the top 25% of dividend payers in the US market (4.67%)


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.


Next Steps

Management

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

8.8yrs

Average management tenure


CEO

John Fredriksen (76 yo)

22.92yrs

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
John Fredriksen
Chairman of the Board & President22.92yrsno datano data
Inger Klemp
Principal Financial Officer8.75yrsno data0.091%
$ 1.2m
Robert Macleod
Chief Executive Officer of Frontline Management AS5.92yrsno data0%
$ 0

8.8yrs

Average Tenure

56yo

Average Age

Experienced Management: FRO's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Fredriksen
Chairman of the Board & President22.92yrsno datano data
Ola Lorentzon
Independent Director5.42yrsno data0.0015%
$ 19.4k
James O'Shaughnessy
Independent Director2.08yrsno datano data
Tor Svelland
Director0.17yrno datano data

3.8yrs

Average Tenure

71yo

Average Age

Experienced Board: FRO's board of directors are considered experienced (3.8 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$1.275b
  • Shares outstanding: 197.69m
  • 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

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
FRO1 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, 2019, the company operat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 23:42
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.