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Frontline
(NYSE:FRO)
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Rating:82Outperform
Price Target:
$51.00
▲(17.35% Upside)
Action:Reiterated
Date:08/29/26
FRO scores well primarily due to very strong current-cycle financial performance (outsized margins, strong profitability, and improving leverage) and an attractive valuation (low P/E and high dividend yield). Technicals also support the outlook with a clear uptrend and positive momentum. The main constraint on the score is shipping-cycle risk highlighted by historical cash-flow volatility and earnings-call risks around geopolitical uncertainty and potential future oversupply from the orderbook.
Positive Factors
Modern, fuel-efficient fleet
A young, eco-designed fleet should support lower fuel consumption, stronger customer appeal and better regulatory resilience. Scrubber coverage can also improve competitiveness where fuel-quality rules and operating economics materially affect tanker returns.
Negative Factors
Highly cyclical earnings and volatile cash conversion
Spot-market exposure makes earnings sensitive to freight rates, utilization and trade flows. Historical losses and uneven free cash flow indicate that current profitability may not persist through a weaker tanker cycle, constraining dependable shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Modern, fuel-efficient fleet
A young, eco-designed fleet should support lower fuel consumption, stronger customer appeal and better regulatory resilience. Scrubber coverage can also improve competitiveness where fuel-quality rules and operating economics materially affect tanker returns.
Read all positive factors
Frontline Key Performance Indicators (KPIs)
Any
Spot Time Charter Equivalent By Carrier
Measures the revenue earned per day by each vessel type, providing insight into market conditions and operational efficiency. It highlights which carriers are generating the most income and how well the company is capitalizing on spot market opportunities.
Measures the revenue earned per day by each vessel type, providing insight into market conditions and operational efficiency. It highlights which carriers are generating the most income and how well the company is capitalizing on spot market opportunities.
Data provided by:
The Fly
The FlyFrontline (FRO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.87B
Dividend Yield6.89%
Average Volume (3M)2.08M
Price to Earnings (P/E)6.8
Beta (1Y)0.84
Revenue Growth48.84%
EPS Growth524.52%
CountryUS
Employees85
SectorGeneral
Sector StrengthN/A
IndustryMarine Shipping
Share Statistics
EPS (TTM)6.67
Shares Outstanding222,622,900
10 Day Avg. Volume2,609,224
30 Day Avg. Volume2,078,660
Financial Highlights & Ratios
PEG Ratio-0.54
Price to Book (P/B)1.93
Price to Sales (P/S)2.47
P/FCF Ratio7.25
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$45.05Price Target Upside3.66% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)9.57
Revenue Forecast (FY)$2.62B
Frontline Business Overview & Revenue Model
Company Description
Frontline plc, a shipping company, engages in the ownership and operation of oil and product tankers worldwide. The company owns and operates oil and product tankers, such as very large crude carriers (VLCCs), Suezmax tankers, and LR2/Aframax tank...
How the Company Makes Money
Frontline makes money primarily by chartering its tankers to oil companies, refiners, commodity traders, and other shipping customers to transport crude oil and refined products. Revenue is mainly generated through: (1) Spot-market charters (inclu...
Frontline Earnings Call Summary
Earnings Call Date:Aug 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 30, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive near-term financial and operational picture: record quarterly earnings, very high TCEs with substantial booking coverage, improved liquidity, lower financing costs, and significant cash generation potential. These positives are tempered by meaningful medium-to-long-term risks — elevated geopolitical insecurity, pronounced market inefficiencies, data blind spots, an elevated orderbook relative to the active fleet and slow scrapping — which introduce uncertainty about sustainability. On balance, the strong earnings, fleet quality, and balance sheet improvements outweigh the risks discussed.Positive Updates
Record Quarterly Profit
Reported profit of $659 million ($2.96 per share) and adjusted profit of $580 million ($2.61 per share) in Q2 2026 — the company's best quarter ever; adjusted profit increased by $235 million versus the prior quarter.
Negative Updates
Geopolitical and Security Risks
Management highlighted elevated risk in Gulf of Oman, Red Sea, Black Sea and renewed Houthi activity — contributing to volatility, higher risk premiums and route inefficiencies that could be sustained.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Profit
Reported profit of $659 million ($2.96 per share) and adjusted profit of $580 million ($2.61 per share) in Q2 2026 — the company's best quarter ever; adjusted profit increased by $235 million versus the prior quarter.
Read all positive updates
Company Guidance
Frontline’s guidance emphasized very strong near‑term cash generation and a solid balance sheet: Q2 TCEs were $153k/day (VLCC), $111k/day (Suezmax) and $92.4k/day (LR2/Aframax), with forward coverage of 86% of VLCC days at $157k/day, 79% of Suezmax days at $117k/day and 70% of LR2 days at $81k/day; reported profit was $659M ($2.96/share) and adjusted profit $580M ($2.61/share), up $235M QoQ. Liquidity is robust (SEK 1.2bn cash and equivalents, $91M undrawn revolver), no meaningful debt maturities until 2030, remaining newbuilding commitments ~$601M with up to $737M newbuilding financing secured, and a ~52 bps reduction in weighted average margin (from 178 to 126 bps: amendments 24 bps, refinancings 21 bps, newbuilding/asset sales 7 bps). Pro‑forma fleet post deliveries/sales: 40 VLCCs, 19 Suezmax, 18 Aframax/LR2 (avg age 6.6 yrs; 100% eco; 69% scrubber‑fitted). Estimated 12‑month cash breakevens: VLCC ~$23.8k/day, Suezmax ~$25.7k/day, LR2 ~$22.2k/day (fleet avg ~$23.9k/day; excl. drydock ~$22.3k/day); Q2 OpEx incl. drydock: VLCC $9.2k/day, Suezmax $9.0k/day, LR2 $13.3k/day (fleet OpEx ex‑drydock $8.7k/day). Based on ~27.8k earning days, cash‑generation potential at current TCE/spot rates is ~$2.3bn (~$10.35/share; ~24% cash‑flow yield), rising to ~$3.1bn ($30.91/share) with a 30% rate upside or falling to ~$1.5bn ($6.88/share) with a 30% downside.Frontline Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
74
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.71B | 1.97B | 2.05B | 1.80B | 1.43B | 749.38M |
| Gross Profit | 1.40B | 644.05M | 705.68M | 776.11M | 484.33M | 27.23M |
| EBITDA | 1.89B | 946.80M | 1.14B | 1.07B | 739.83M | 211.34M |
| Net Income | 1.49B | 379.08M | 495.58M | 656.41M | 475.54M | -14.96M |
Balance Sheet | ||||||
| Total Assets | 5.81B | 5.75B | 6.22B | 5.88B | 4.78B | 4.12B |
| Cash, Cash Equivalents and Short-Term Investments | 322.31M | 253.41M | 417.56M | 315.75M | 490.81M | 115.51M |
| Total Debt | 2.43B | 3.07B | 3.75B | 3.46B | 2.37B | 2.37B |
| Total Liabilities | 2.66B | 3.24B | 3.88B | 3.61B | 2.51B | 2.46B |
| Stockholders Equity | 3.16B | 2.51B | 2.34B | 2.28B | 2.27B | 1.65B |
Cash Flow | ||||||
| Free Cash Flow | 688.97M | 669.93M | -178.84M | -775.24M | 52.93M | -399.47M |
| Operating Cash Flow | 1.35B | 682.46M | 736.41M | 856.18M | 370.89M | 62.93M |
| Investing Cash Flow | 340.92M | 24.98M | -483.40M | -1.24B | -239.47M | -363.06M |
| Financing Cash Flow | -1.85B | -869.62M | -147.80M | 433.07M | 10.03M | 223.55M |
Frontline Technical Analysis
Positive
43.46
Price Trends
39.53
Positive
37.46
Positive
32.03
Positive
Market Momentum
1.40
Negative
61.76
Neutral
71.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRO, the sentiment is Positive. The current price of 43.46 is above the 20-day moving average (MA) of 41.86, above the 50-day MA of 39.53, and above the 200-day MA of 32.03, indicating a bullish trend. The MACD of 1.40 indicates Negative momentum. The RSI at 61.76 is Neutral, neither overbought nor oversold. The STOCH value of 71.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRO.
Frontline Risk Analysis
Frontline disclosed 49 risk factors in its most recent earnings report. Frontline reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Frontline Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $3.06B | 5.33 | 27.73% | 2.64% | 19.33% | 110.30% | |
82 Outperform | $9.87B | 6.81 | 54.89% | 7.97% | 48.84% | 524.52% | |
82 Outperform | $3.99B | 4.67 | 24.51% | 2.16% | 32.68% | 130.22% | |
80 Outperform | $3.17B | 6.83 | 39.55% | 7.97% | 39.42% | 148.77% | |
78 Outperform | $4.94B | 6.42 | 37.04% | 9.03% | 57.66% | 225.95% | |
67 Neutral | $5.32B | 33.21 | 8.62% | 2.06% | 94.64% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
FRO
Frontline
45.42
25.65
129.68%
DHT
DHT Holdings
20.07
9.57
91.16%
GLNG
Golar LNG
53.13
10.24
23.88%
STNG
Scorpio Tankers
81.42
31.00
61.48%
TNK
Teekay Tankers
90.75
41.41
83.94%
INSW
International Seaways
101.19
60.42
148.19%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.