Frontline Plc Ordinary Shares (FRO)

FairStock Score: 67/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Frontline as a cyclical asset operator, not a franchise. It owns 80 tankers—41 VLCCs, 21 Suezmax, and 18 LR2/Aframax—and sells freight in a commodity market. Scale matters, but there is no durable moat; rates set the economics. The latest reported quarter, fiscal Q2 2026, was exceptional: revenue of $943.3 million and net income of $659.2 million, a 69.88% net margin. Trailing free cash flow was $689.0 million, an 8.9% FCF yield using FairStock's calculation and the 2026-10-13 market cap. FairStock calculations show ROE of 53.85%, ROCE of 14.25%, and a Piotroski F-score of 7/9, so current financial execution is strong. But this is not a stable consumer staple. Debt-to-equity is 0.77, the Altman Z-score is 2.55, and the fleet must be maintained through cycles. At the 2026-10-13 close of $59.04, FairStock's P/E is 8.85 and EV/EBITDA is 5.91, which looks inexpensive on peak-ish earnings. The P/B is 4.17, and the Graham Number is $46.11, implying a -28.04% margin of safety—i.e., price is well above a conservative asset-based value. The 10.46% dividend yield and 0.06 beta are attractive, but cyclical dividends can be cut. The supplied growth figures are very high, but the data does not name the exact period, so I treat them as cycle signals rather than durable growth. I would want evidence of through-cycle earnings power, not just one strong quarter.

In plain English: Frontline owns and operates a fleet of oil and product tankers. In its latest reported quarter, fiscal Q2 2026, it earned $659.2 million on $943.3 million of revenue, so the business is currently very profitable. At $59.04 on 2026-10-13, the shares sit near the top of their 52-week range and above what its accounting value alone would suggest, so the price looks expensive on assets but cheap relative to recent earnings.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer