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Frontline
(NYSE:FRO)
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Rating:82Outperform
Price Target:
$58.00
▲(33.46% Upside)
Action:Reiterated
Date:10/09/26
The score is driven primarily by very strong current financial performance (outsized margins and profitability with improving leverage) and a supportive earnings outlook emphasizing near-term cash generation and coverage. Valuation is attractive (low P/E and high dividend yield), while the main constraints are cyclical cash-flow variability and technical conditions that appear somewhat overbought near-term.
Positive Factors
Strong earnings growth and margins
The sharp TTM revenue increase and exceptionally high margins demonstrate strong current earning power and operating leverage. Although shipping earnings are cyclical, this profitability provides substantial capacity to fund fleet investment, reduce leverage, and return cash while market conditions remain supportive.
Negative Factors
Cyclical earnings and cash-flow volatility
Frontline’s strong current results do not establish a stable earnings floor because tanker rates, capital spending and working capital can change materially. Historical negative free cash flow and weaker cash conversion than net income could constrain distributions and investment if freight conditions normalize.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong earnings growth and margins
The sharp TTM revenue increase and exceptionally high margins demonstrate strong current earning power and operating leverage. Although shipping earnings are cyclical, this profitability provides substantial capacity to fund fleet investment, reduce leverage, and return cash while market conditions remain supportive.
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
$11.20B
Dividend Yield12.05%
Average Volume (3M)4.48M
Price to Earnings (P/E)7.7
Beta (1Y)0.83
Revenue Growth48.84%
EPS Growth524.52%
CountryUS
Employees85
SectorEnergy
Sector Strength52
IndustryMarine Shipping
Share Statistics
EPS (TTM)6.67
Shares Outstanding222,622,900
10 Day Avg. Volume4,971,500
30 Day Avg. Volume4,480,746
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 Cap0.88
Enterprise Value/Revenue3.63
Enterprise Value/Gross Profit7.05
Enterprise Value/Ebitda5.22
Forecast
1Y Price Target
$50.05Price Target Upside15.16% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)10.37
Revenue Forecast (FY)$2.66B
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 primarily makes money by chartering its tankers to customers to transport crude oil and petroleum products. Its core revenue stream is freight income earned under (1) spot-market voyages, where revenue is driven by prevailing tanker rate...
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
47.36
Positive
41.32
Positive
35.42
Positive
Market Momentum
1.28
Positive
50.48
Neutral
17.85
Positive
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 below the 20-day moving average (MA) of 52.67, below the 50-day MA of 47.36, and above the 200-day MA of 35.42, indicating a neutral trend. The MACD of 1.28 indicates Positive momentum. The RSI at 50.48 is Neutral, neither overbought nor oversold. The STOCH value of 17.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRO.
Frontline Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $3.28B | 5.63 | 27.73% | 2.08% | 19.33% | 110.30% | |
82 Outperform | $11.20B | 7.69 | 54.89% | 12.05% | 48.84% | 524.52% | |
81 Outperform | $3.38B | 8.39 | ― | 10.47% | 105.24% | 413.89% | |
76 Outperform | $3.76B | 8.22 | 39.55% | 10.14% | 39.42% | 148.77% | |
76 Outperform | $5.19B | 7.05 | 37.04% | 11.35% | 57.66% | 225.95% | |
70 Outperform | $1.61B | 13.02 | 26.85% | 10.42% | 29.11% | 814.26% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
FRO
Frontline
51.29
30.28
144.09%
DHT
DHT Holdings
24.16
13.17
119.90%
NAT
Nordic American Tanker
7.58
4.51
147.15%
TNK
Teekay Tankers
95.99
38.64
67.38%
INSW
International Seaways
111.15
68.75
162.16%
ECO
Okeanis Eco Tankers Corp.
76.15
48.36
174.06%
Frontline Corporate Events
Frontline Files Interim Results and Details Major Fleet Changes for First Half 2026
Sep 16, 2026
Frontline plc has filed a Form 6-K with the U.S. Securities and Exchange Commission, dated September 16, 2026, providing unaudited condensed consolidated interim financial statements and management’s discussion and analysis for the six month...
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.