Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

Frontline

DB:FRLN
Snowflake Description

Good value average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FRLN
DB
$2B
Market Cap
  1. Home
  2. DE
  3. Energy
Company description

Frontline Ltd., a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. The last earnings update was 10 days ago. More info.


Add to Portfolio Compare Print
  • Frontline has significant price volatility in the past 3 months.
FRLN Share Price and Events
7 Day Returns
63.4%
DB:FRLN
18.1%
DE Oil and Gas
7.3%
DE Market
1 Year Returns
72.6%
DB:FRLN
21.9%
DE Oil and Gas
-17.7%
DE Market
FRLN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Frontline (FRLN) 63.4% 44.1% -9.3% 72.6% 60.5% -7%
DE Oil and Gas 18.1% -15.9% -28.7% 21.9% -25.6% 137.4%
DE Market 7.3% -17.9% -25.8% -17.7% -25.6% -29%
1 Year Return vs Industry and Market
  • FRLN outperformed the Oil and Gas industry which returned 21.9% over the past year.
  • FRLN outperformed the Market in Germany which returned -17.7% over the past year.
Price Volatility
FRLN
Industry
5yr Volatility vs Market
Related Companies

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Frontline to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Frontline.

DB:FRLN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in USD $ 1.885
Payout Ratio Company Filings (2019-12-31) 14029.1%
Discount Rate (Cost of Equity) See below 8.4%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:FRLN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.5%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.808 (1 + (1- 21%) (111.28%))
1.347
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.35
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.347 * 6.51%)
8.38%

Discounted Cash Flow Calculation for DB:FRLN using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Frontline is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

DB:FRLN Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= $1.89 / (8.38% - -0.39%)
$22.78
DB:FRLN Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:FRLN represents 1.05857x of NYSE:FRO
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.05857x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 20.33 x 1.05857
€21.52
Value per share (EUR) From above. €21.52
Current discount Discount to share price of €9.94
= -1 x (€9.94 - €21.52) / €21.52
53.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Frontline is available for.
Intrinsic value
>50%
Share price is €9.94 vs Future cash flow value of €21.52
Current Discount Checks
For Frontline to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Frontline's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Frontline's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:FRLN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.81
NYSE:FRO Share Price ** NYSE (2020-03-30) in USD $9.39
Europe Oil and Gas Industry PE Ratio Median Figure of 105 Publicly-Listed Oil and Gas Companies 5.67x
Germany Market PE Ratio Median Figure of 400 Publicly-Listed Companies 16.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Frontline.

DB:FRLN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:FRO Share Price ÷ EPS (both in USD)

= 9.39 ÷ 0.81

11.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Frontline is overvalued based on earnings compared to the Europe Oil and Gas industry average.
  • Frontline is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Frontline's expected growth come at a high price?
Raw Data
DB:FRLN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
12.6%per year
Europe Oil and Gas Industry PEG Ratio Median Figure of 65 Publicly-Listed Oil and Gas Companies 0.17x
Germany Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

DB:FRLN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.64x ÷ 12.6%

0.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Frontline is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Frontline's assets?
Raw Data
DB:FRLN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $7.67
NYSE:FRO Share Price * NYSE (2020-03-30) in USD $9.39
Germany Oil and Gas Industry PB Ratio Median Figure of 6 Publicly-Listed Oil and Gas Companies 0.94x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.43x
DB:FRLN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:FRO Share Price ÷ Book Value per Share (both in USD)

= 9.39 ÷ 7.67

1.22x

* Primary Listing of Frontline.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Frontline is overvalued based on assets compared to the DE Oil and Gas industry average.
X
Value checks
We assess Frontline's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Frontline has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Frontline expected to grow at an attractive rate?
  • Frontline's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Frontline's earnings growth is positive but not above the Germany market average.
  • Frontline's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:FRLN Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:FRLN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 12.6%
DB:FRLN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts -9.9%
Europe Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 13%
Europe Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 2.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:FRLN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:FRLN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 653 339 150 2
2021-12-31 882 587 381 5
2020-12-31 1,082 676 541 5
2020-03-30
DB:FRLN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 957 280 140
2019-09-30 835 206 57
2019-06-30 836 174 69
2019-03-31 810 132 45
2018-12-31 741 46 -9
2018-09-30 702 22 -283
2018-06-30 655 34 -309
2018-03-31 637 63 -306
2017-12-31 645 130 -265
2017-09-30 642 154 2
2017-06-30 660 192 31
2017-03-31 702 244 65

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Frontline's earnings are expected to grow by 12.6% yearly, however this is not considered high growth (20% yearly).
  • Frontline's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:FRLN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Frontline Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:FRLN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 2.82 3.18 2.45 2.00
2020-12-31 2.80 2.91 2.69 2.00
2020-03-30
DB:FRLN Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.81
2019-09-30 0.33
2019-06-30 0.40
2019-03-31 0.26
2018-12-31 -0.05
2018-09-30 -1.66
2018-06-30 -1.82
2018-03-31 -1.80
2017-12-31 -1.56
2017-09-30 0.01
2017-06-30 0.18
2017-03-31 0.38

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Frontline is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Frontline's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Frontline has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Frontline performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Frontline's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Frontline's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above 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 Europe Oil and Gas industry average.
Earnings and Revenue History
Frontline's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Frontline Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:FRLN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 956.63 139.97 45.02
2019-09-30 835.41 56.53 41.20
2019-06-30 836.21 68.73 39.41
2019-03-31 809.73 44.79 37.64
2018-12-31 740.97 -8.88 37.29
2018-09-30 702.40 -282.69 36.87
2018-06-30 654.68 -309.00 37.21
2018-03-31 637.19 -305.52 38.58
2017-12-31 644.58 -264.86 37.60
2017-09-30 642.48 1.89 41.45
2017-06-30 659.60 31.43 41.31
2017-03-31 702.25 65.12 38.82
2016-12-31 752.11 117.01 41.03
2016-09-30 723.58 157.25 33.55
2016-06-30 673.88 213.64 26.68
2016-03-31 585.48 277.93 20.06
2015-12-31 452.48 285.63 10.58
2015-09-30 376.22 293.86 3.09
2015-06-30 324.12 291.48 1.70
2015-03-31 273.82 272.70 1.77
2014-12-31 240.21 200.63 4.94
2014-09-30 210.98 146.32 5.35
2014-06-30 184.32 110.71 5.01
2014-03-31 161.74 88.79 4.25
2013-12-31 133.90 69.50 1.35
2013-09-30 124.55 57.69 3.23
2013-06-30 128.45 32.78 3.24
2013-03-31 138.23 0.87 3.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Frontline has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Frontline used its assets more efficiently than the Europe Oil and Gas industry average last year based on Return on Assets.
  • Frontline's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Frontline's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Frontline has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Frontline's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Frontline's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Frontline's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Frontline's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Frontline's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Frontline Company Filings, last reported 2 months ago.

DB:FRLN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,510.21 1,693.38 177.87
2019-09-30 1,379.90 1,723.47 104.92
2019-06-30 1,214.89 1,752.19 91.77
2019-03-31 1,204.36 1,721.37 96.78
2018-12-31 1,164.22 1,730.77 67.32
2018-09-30 1,138.45 1,754.26 69.76
2018-06-30 1,135.95 1,779.64 117.15
2018-03-31 1,157.94 1,746.95 114.19
2017-12-31 1,187.63 1,580.15 123.38
2017-09-30 1,436.82 1,594.47 151.43
2017-06-30 1,459.45 1,364.80 164.16
2017-03-31 1,507.74 1,153.38 180.95
2016-12-31 1,499.77 981.96 210.83
2016-09-30 1,397.30 1,016.03 131.43
2016-06-30 1,421.37 962.37 136.28
2016-03-31 1,467.20 915.73 280.09
2015-12-31 1,446.34 803.27 278.38
2015-09-30 864.76 639.92 170.35
2015-06-30 806.37 653.78 178.10
2015-03-31 1,105.58 632.12 111.87
2014-12-31 1,447.35 517.58 235.80
2014-09-30 1,572.96 798.93 319.69
2014-06-30 1,161.08 505.98 290.59
2014-03-31 1,056.67 560.24 287.33
2013-12-31 1,063.16 592.46 347.75
2013-09-30 1,074.25 575.50 513.57
2013-06-30 829.28 552.75 279.55
2013-03-31 791.39 597.66 297.02
  • Frontline's level of debt (112.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (35.9% vs 112.1% today).
  • Debt is not well covered by operating cash flow (16.5%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.3x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Frontline's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Frontline has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
17.04%
Current annual income from Frontline dividends. Estimated to be 20.07% next year.
If you bought €2,000 of Frontline shares you are expected to receive €341 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Frontline's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.7%).
  • Frontline's dividend is above the markets top 25% of dividend payers in Germany (4.97%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:FRLN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Europe Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 68 Stocks 9.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 1%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:FRLN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 1.43 2.00
2020-12-31 2.35 2.00
2020-03-30
DB:FRLN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-27 1.600 20.669
2019-12-11 0.400 3.936
2019-11-27 0.400 3.609
2019-03-28 0.000 0.000
2019-02-28 0.000 0.000
2018-11-23 0.000 0.000
2018-11-16 0.000 0.000
2018-09-04 0.000 0.000
2018-08-22 0.000 0.000
2018-06-20 0.000 0.000
2018-05-31 0.000 0.000
2018-03-19 0.000 0.000
2018-02-28 0.000 0.000
2017-11-22 0.000 0.000
2017-09-22 0.000 0.000
2017-08-30 0.000 0.000
2017-03-16 0.850 14.187
2017-02-28 0.850 12.318
2016-05-31 1.600 21.229
2016-02-29 1.400 16.988
2015-12-02 1.000 8.884
2015-12-01 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Frontline has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Frontline only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Frontline's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess Frontline's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Frontline afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Frontline has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Fredriksen
AGE 75
TENURE AS CEO 22.3 years
CEO Bio

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 Shipholding Ltd. He served as President of SeaDrill Limited since May 2005 until 2018. He served as the Chief Executive Officer and President at Golden Ocean Group Ltd. since November 3, 1997. He served as the President of Golar LNG Ltd. from its inception in May 2001 to September 2014. He served as an Interim Chief Executive Officer of Frontline Management AS, a subsidiary of Frontline Ltd. He worked with Hemen Holding Ltd. He served as the Chief Executive Officer of Golar LNG Ltd., since July 31, 2009. He served as the Chief Executive Officer of Old Frontline. Mr. Fredriksen has been the Chairman of Frontline 2012 Ltd. since November 3, 1997. He has been the Chairman of Osprey Maritime Ltd. since February 8, 2001. He served as the Chairman of the Board and Director at SeaDrill Limited since May 10, 2005 until November 21, 2019. He has been Director of Golden Ocean Group Limited since March 31, 2015. He has been a Director of Osprey Maritime Ltd. since February 8, 2001 and Golar LNG Energy Limited. He serves as a Member of Board of Advisors at Grupo Brasilinvest S.A. He serves as the Chairman at SeaDrill Management AS. Mr. Fredriksen was a director of Frontline 2012. He served as the Chairman of North Atlantic Drilling Limited from September 2013 to November 7, 2015. Mr. Fredriksen served as the Chairman of Golden Ocean Group Ltd. since November 03, 1997. He served as the Chairman of Golar LNG Ltd. from May 2001 to September 19, 2014. He served as the Chairman of the Board at Old Frontline. He served as the Chairman and Director of Smedvig ASA. He served as a Director of Seatankers Management Company Limited. He served as Director of Golar LNG Ltd. from May 2001 to September 2014 and Golden Ocean Group Ltd. since November 3, 1997. He served as Director of NADL from its inception in 2011 to September 2015.

CEO Compensation
  • Insufficient data for John to compare compensation growth.
  • Insufficient data for John to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Frontline management team in years:

8.2
Average Tenure
55
Average Age
  • The average tenure for the Frontline management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

John Fredriksen

TITLE
Chairman of the Board & President
AGE
75
TENURE
22.3 yrs

Inger Klemp

TITLE
Principal Financial Officer
AGE
55
TENURE
8.2 yrs

Robert Macleod

TITLE
Chief Executive Officer of Frontline Management AS
AGE
39
TENURE
5.3 yrs
Board of Directors Tenure

Average tenure and age of the Frontline board of directors in years:

3.2
Average Tenure
62.5
Average Age
  • The tenure for the Frontline board of directors is about average.
Board of Directors

John Fredriksen

TITLE
Chairman of the Board & President
AGE
75
TENURE
22.3 yrs

James O'Shaughnessy

TITLE
Independent Director
AGE
55
TENURE
1.5 yrs

Ola Lorentzon

TITLE
Independent Director
AGE
70
TENURE
4.8 yrs

Ulrika Laurin

TITLE
Independent Director
AGE
48
TENURE
1.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
29. Nov 19 Buy Robert Macleod Individual 29. Nov 19 29. Nov 19 202,000 €9.98 €2,015,527
11. Oct 19 Sell SFL Corporation Ltd. Company 10. Oct 19 11. Oct 19 -1,593,070 €10.72 €-16,544,679
06. Jun 19 Sell Greenwich Holdings Ltd. Company 06. Jun 19 06. Jun 19 -3,000,000 €6.98 €-20,930,290
X
Management checks
We assess Frontline's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Frontline has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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 operated a fleet of 71 vessels. It is also involved in the charter, purchase, and sale of vessels. Frontline Ltd. is based in Hamilton, Bermuda.

Details
Name: Frontline Ltd.
FRLN
Exchange: DB
Founded:
$1,674,224,833
197,692,321
Website: http://www.frontline.bm
Address: Frontline Ltd.
Par-la-Ville Place,
14 Par-la-Ville Road,
Hamilton,
HM 08,
Bermuda
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE FRO Ordinary Shares New York Stock Exchange US USD 12. May 1998
DB FRLN Ordinary Shares Deutsche Boerse AG DE EUR 12. May 1998
LSE 0REH Ordinary Shares London Stock Exchange GB NOK 12. May 1998
BMV FRO1 N Ordinary Shares Bolsa Mexicana de Valores MX MXN 12. May 1998
OB FRO Ordinary Shares Oslo Bors NO NOK 12. May 1998
BATS-CHIXE FROO Ordinary Shares BATS 'Chi-X Europe' GB NOK 12. May 1998
Number of employees
Current staff
Staff numbers
157
Frontline employees.
Industry
Oil and Gas Storage and Transportation
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/30 21:01
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2020/03/30
Last earnings filing: 2020/03/20
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.