Frontline, Ltd

Frontline, Ltd. (NYSE: FRO) traces its origins to Frontline AB, which was founded in 1985 and listed on the Stockholm Stock Exchange from 1989 to 1997. In 1996, Hemen Holding Limited, a company indirectly controlled by trusts established by John Fredriksen for the benefit of his immediate family (“Hemen Holding”), became the majority shareholder in Frontline AB. Frontline AB was subsequently re-domiciled from Sweden to Bermuda and listed on the Oslo Stock Exchange in May 1997. The following year, Frontline AB was merged with London & Overseas Freighters (“LOF”), also a Bermuda company, with LOF as the surviving company. LOF was subsequently renamed Frontline Ltd. (“Frontline”), the Frontline we know today.

frontline

  • Political and Macroeconomic Analysis.

Frontline, Ltd. is domiciled in Bermuda , which are a British overseas territory . Britain has just voted to leave the European Union , which could put some companies whose area of influence is Europe go to other countries . Bermuda, but has the status of British overseas territory , has chosen not to seek the same status to the EU, so the EU legislation does not apply in that territory. According to the Treaty on the Functioning of the European Union , Bermuda could ask to be recognized by the EU with the status of overseas country or territory.

Indicadores de crecimiento Gran Bretaña 2012 2013 2014 2015 2016 (e)
GDP (billions of dollars) 2.623,83 2.678,38 2.950,04 2.864,90e 3.054,84
GDP (annual growth in% , constant prices) 0,7 1,7 3,0 2,5e 2,2
GDP per capita (USD) 41.187 41.793 45.729 44.118e 46.720
Balance of public finances (% of GDP) -5,6 -3,6 -4,3 -3,6e -2,5
State debt (% of GDP) 85,8 87,3 89,4 88,9e 88,0
Rate of inflation (%) 2,8 2,6 1,5 0,1e 1,5
Unemployment rate (% of labor force) 8,0 7,6 6,2 5,6 5,5
Balance of current transactions (billions of dollars -98,15 -119,85 -173,93 -135,83e -130,56
Balance of current transactions (% of GDP) -3,7 -4,5 -5,9 -4,7e -4,3

Note: (e) Estimated data

  • Sectorial analysis.

Compared with the direct competitor

FRO TK Price trend volume (TPV)1 GNRT Sectores
Market capitalization: 1,28MM 479,11Mill N/A 451,43Mill 406,64Mill
Employees: 123 7.700 200 35 131,00
Quarterly revenue growth (yoy): 1,43 -0,01 N/A -0,09 0,39
Revenue (ttm): 591,94Mill 2,54MM 2,70Mill1 422,05Mill 235,90Mill
Gross Margin (ttm): 0,58 0,54 N/A 0,70 0,51
EBITDA (ttm): 316,47Mill 1,17MM N/A 255,10Mill 124,30Mill
Net operating income (ttm): 0,40 0,27 N/A 0,48 0,14
Net income (ttm): 277,93Mill -100,59Mill N/A 177,60Mill N/A
EPS (ttm): 1,71 -1,39 N/A 2,14 0,13
Price/Earnings (P/E) (ttm): 4,77 N/A N/A 2,55 9,35
PEG (5 yr): 1,22 -13,71 N/A N/A 0,41
Price / sales (P/S) (ttm):< 2,10 0,18 N/A 1,06 1,41

TK = Teekay Corporation
TPV1 = MISC BERHAD
GNRT = Gener8 Maritime Inc.
Industria = Shipping
1 = desde 2014

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  • Business analysis.
    FRO Frontline Ltd. daily Stock Chart
    Index P/E 0.16 EPS (ttm) 51.82 Insider Own 33.80% Shs Outstand 154.80M Perf Week 6.25%
    Market Cap 1.26B Forward P/E 8.78 EPS next Y 0.93 Insider Trans 0.00% Shs Float 64.18M Perf Month 8.37%
    Income 333.40M PEG 0.03 EPS next Q 0.27 Inst Own 21.10% Short Float 11.11% Perf Quarter 9.14%
    Sales 541.70M P/S 2.33 EPS this Y 48.40% Inst Trans -13.51% Short Ratio 5.58 Perf Half Y 5.01%
    Book/sh 46.90 P/B 0.17 EPS next Y -30.88% ROA 10.70% Target Price 10.83 Perf Year -36.01%
    Cash/sh 1.81 P/C 4.51 EPS next 5Y 5.00% ROE 24.10% 52W Range 7.11 – 15.47 Perf YTD -40.86%
    Dividend 1.60 P/FCF EPS past 5Y 2.80% ROI 9.90% 52W High -47.27% Beta 2.53
    Dividend % 19.61% Quick Ratio Sales past 5Y -17.00% Gross Margin 70.30% 52W Low 14.74% ATR 0.27
    Employees 123 Current Ratio 2.00 Sales Q/Q 57.30% Oper. Margin 62.30% RSI (14) 50.81 Volatility 3.92% 3.09%
    Optionable Yes Debt/Eq 0.97 EPS Q/Q 101.80% Profit Margin 37.40% Rel Volume 1.08 Prev Close 7.94
    Shortable Yes LT Debt/Eq 0.87 Earnings Aug 31 BMO Payout 14.10% Avg Volume 1.28M Price 8.16
    Recom 2.80 SMA20 3.44% SMA50 0.40% SMA200 -16.07% Volume 1,385,092 Change 2.77%

From the data shown here we see that the macroeconomic environment of the company is a stable environment with sustained economic growth, and a predictable maintenance of interest rates.

Frontline is the leader in shipping.

Regarding the ratios own company

Frontline
P/E Ratio 0,16
P/S Ratio 2,33
P/Free CF Ratio
P/BV Ratio 0,17
PEG 0,03

As these ratios the company is undervalued and should have an increase in value . Trading at a P / BV of 0.17 and a dividend rate of 19%.

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