Frontline Ltd. (FRO) - Stock Analysis

Last updated: Sep 5, 2026

EnergyClosed

Research Idea

Research content for general circulation. Not individualized advice. Methodology & Disclosures

Gained 14.3% over 21 sessions as record Q2 2026 profitability and tight tanker supply reinforced momentum. Forward bookings of $83,300 per day for VLCCs and $60,600 for Suezmaxes provide visible near-term earnings support; $45.42 is the breakout level.

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Idea window: 9/3/2026 – 9/10/2026Sector: Energy

AI Analyst Overview

Last Price
$48.74
Market Cap
$10.77B
1D Return
+0.70%
YTD Return
+140.57%

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Valuation Metrics

P/E
7.3
P/B
3.4
P/S
4.0
EV/EBITDA
7.0
Div Yield
6.47%

Fundamental Analysis

6.0

Key Financial Insights: • Strong Cash Flow • Material Leverage • Dividend Risk FRO offers strong cash generation and profitability, but material leverage, thin interest coverage, and an unsustainably high dividend payout warrant caution.

CashGeneration
LeverageRisk

Price Behavior

6.0

Key Price Behavior Insights: • Higher highs • Near resistance • Elevated momentum Support Level: $43.50–$44.30 Resistance Level: $46.12 FRO rallied to $46.12 over the last month, with bullish momentum intact above $43.50–$44.30 support but elevated pullback risk after a 16% gain.

Bullish
PullbackRisk

Sentiment & News

7.0

Key News Insights: • Record Q2 Profit • Tanker Rate Surge • Hormuz Disruption Frontline's record Q2 profit and 52-week-high share price reflect tanker-rate strength driven by Hormuz disruption and constrained vessel supply.

Frontline
TankerRates
AI

AI Summary

6.0
Neutral

FRO is a high-beta bet on sustained tanker-rate tightness—not a dependable dividend compounder—so investors should favor it only if freight disruptions persist and management converts peak cash flows and VLCC-sale proceeds into deleveraging rather than unsustainably high payouts.

TankerRates
DividendRisk
Deleveraging
AI summary updated 5 days ago

Description

Frontline Ltd. is a Hamilton, Bermuda–based shipping company that provides seaborne transportation of crude oil and refined petroleum products worldwide. As of December 31, 2021 the company operated a fleet of 70 oil and product tankers and conducts vessel chartering as well as the purchase and sale of ships. Founded in 1985, it combines operating and commercial activities across the tanker sector.

Idea History

DateCloseTickerCompanySummaryStatusP/L
Sep 3Sep 10FROFrontline Ltd.
Gained 14.3% over 21 sessions as record Q2 2026 profitability and tight tanker supply reinforced momentum. Forward bookings of $83,300 per day for VLCCs and $60,600 for Suezmaxes provide visible near-term earnings support; $45.42 is the breakout level.
Closed+6.6%
Feb 20Feb 27FROFrontline Ltd.
Seven one-year VLCC charters at ~$76,900/day starting late Jan–Apr 2026 lock in elevated cash flow on top of strong spot freight, while the stock is up ~28% in 21 days and trades ~17% above its 21-day SMA, making it a compelling short-term play on tanker strength with clear timing of cash realization.
Closed+9.3%
Research content for educational purposes only. Not investment advice. All decisions are your responsibility.