Frontline Ltd., a shipping company, is engaged in shipping crude oil and petroleum products globally. The company is headquartered in Hamilton, Bermuda.
| Revenue (TTM) | $2.25B |
| Gross Profit (TTM) | $1.26B |
| EBITDA | $1.17B |
| Operating Margin | 51.80% |
| Return on Equity | 35.00% |
| Return on Assets | 9.21% |
| Revenue/Share (TTM) | $10.11 |
| Book Value | $12.76 |
| Price-to-Book | 2.88 |
| Price-to-Sales (TTM) | 3.80 |
| EV/Revenue | 4.593 |
| EV/EBITDA | 9.25 |
| Quarterly Earnings Growth (YoY) | 1580.00% |
| Quarterly Revenue Growth (YoY) | 66.90% |
| Shares Outstanding | $222.62M |
| Float | $142.92M |
| % Insiders | 35.79% |
| % Institutions | 35.80% |
Volatility is currently expanding
When Iran attempted to impose transit tolls on ships through the Strait of Hormuz this spring, Secretary of State Marco Rubio dismissed it as illegal: “No country is allowed to charge tolls or fees on an international waterway.
Frontline plc is rated a Strong Buy due to its spot-rate exposure, robust dividend policy, and favorable market dynamics. FRO's nearly 100% spot-rate fleet and young vessel profile position it to fully capitalize on surging TCE rates and market volatility. The dividend yield is currently 17.63% and could rise above 30% if spot rates persist, supported by strong cash generation and low breakeven costs.
Shipping ETFs are riding on elevated freight rates as Middle East disruptions reshape logistics, with BWET SEA posting strong 2026 gains.
Frontline is benefiting from an exceptionally strong tanker-rate environment, driving record profitability and robust cash flow. Q1 2026 delivered adjusted EPS of $1.55, $714.2M revenue, and a $1.55/share dividend, with forward fixtures indicating even higher earnings in Q2. FRO trades at a compressed multiple (trailing PE 8.5x, forward PE 4.5x) despite near-peak earnings, supporting a buy rating.
President Trump told Fox Business this week he would hold the line on Iran sanctions.
Frontline plc (FRO) Q1 2026 Earnings Call Transcript
Frontline NYSE: FRO reported what Chief Executive Officer Lars Barstad called the company's most profitable quarter since 2004, as tanker markets were reshaped by the effective closure of the Strait of Hormuz and shifting global oil trade patterns.
Persistent inflation, higher oil prices, and geopolitical tensions continue supporting income-oriented sectors tied to energy and select financials. Tanker shipping and refining companies can benefit from disrupted trade routes, tighter fuel markets, and stronger cash flow during energy market dislocations. Higher-rate financials and cash-generating companies may provide defensive income opportunities as investors prepare for continued volatility surrounding inflation and midterm elections.
The Undercovered Dozen series spotlights 12 lesser-covered stocks from the past week on Seeking Alpha. This week's edition covers articles published between April 24 and April 30, offering fresh investment ideas. The focus is on stocks that may offer unique opportunities due to limited analyst coverage.
Frontline is the largest listed pure-play crude oil tanker company, operating a young and efficient fleet of 81 vessels. Recent VLCC rate spikes above $100k/day reflect a multi-year structural trend, not a transient event, supporting FRO's positive outlook. Global tanker supply is constrained by aging fleets, limited newbuild slots, and tankers tied up in the shadow fleet, tightening effective capacity.
