FRONTDOOR INC (FTDR) Stock Fundamental Analysis
NASDAQ:FTDR - Nasdaq - US35905A1097 - Common Stock - Currency: USD
Overall FTDR gets a fundamental rating of 6 out of 10. We evaluated FTDR against 71 industry peers in the Diversified Consumer Services industry. FTDR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FTDR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year FTDR was profitable.
FTDR had a positive operating cash flow in the past year.
In the past 5 years FTDR has always been profitable.
Each year in the past 5 years FTDR had a positive operating cash flow.
1.2 Ratios
FTDR has a Return On Assets of 19.23%. This is amongst the best in the industry. FTDR outperforms 93.75% of its industry peers.
FTDR's Return On Equity of 89.66% is amongst the best of the industry. FTDR outperforms 96.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 29.65%, FTDR belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FTDR is significantly above the industry average of 12.02%.
The 3 year average ROIC (23.57%) for FTDR is below the current ROIC(29.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.23% | ||
| ROE | 89.66% | ||
| ROIC | 29.65% |
ROA(3y)11.41%
ROA(5y)10.89%
ROE(3y)2214.04%
ROE(5y)N/A
ROIC(3y)23.57%
ROIC(5y)21.87%
1.3 Margins
FTDR has a Profit Margin of 12.81%. This is amongst the best in the industry. FTDR outperforms 85.94% of its industry peers.
FTDR's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 18.78%, FTDR belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
FTDR's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 53.72%, FTDR is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
FTDR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.78% | ||
| PM (TTM) | 12.81% | ||
| GM | 53.72% |
OM growth 3Y2.91%
OM growth 5Y-1.25%
PM growth 3Y8.13%
PM growth 5Y-0.67%
GM growth 3Y0.78%
GM growth 5Y1.84%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FTDR is creating value.
Compared to 1 year ago, FTDR has less shares outstanding
Compared to 5 years ago, FTDR has less shares outstanding
Compared to 1 year ago, FTDR has an improved debt to assets ratio.
2.2 Solvency
FTDR has an Altman-Z score of 5.95. This indicates that FTDR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FTDR (5.95) is better than 89.06% of its industry peers.
The Debt to FCF ratio of FTDR is 2.47, which is a good value as it means it would take FTDR, 2.47 years of fcf income to pay off all of its debts.
FTDR has a Debt to FCF ratio of 2.47. This is in the better half of the industry: FTDR outperforms 76.56% of its industry peers.
FTDR has a Debt/Equity ratio of 2.16. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of FTDR (2.16) is worse than 78.13% of its industry peers.
Although FTDR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | 2.47 | ||
| Altman-Z | 5.95 |
ROIC/WACC2.85
WACC10.41%
2.3 Liquidity
FTDR has a Current Ratio of 1.42. This is a normal value and indicates that FTDR is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.42, FTDR perfoms like the industry average, outperforming 53.13% of the companies in the same industry.
A Quick Ratio of 1.42 indicates that FTDR should not have too much problems paying its short term obligations.
FTDR has a Quick ratio (1.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
FTDR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.53%, which is quite impressive.
FTDR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.39% yearly.
FTDR shows a small growth in Revenue. In the last year, the Revenue has grown by 4.10%.
Measured over the past years, FTDR shows a small growth in Revenue. The Revenue has been growing by 7.19% on average per year.
EPS 1Y (TTM)47.53%
EPS 3Y14.31%
EPS 5Y7.39%
EPS Q2Q%46.81%
Revenue 1Y (TTM)4.1%
Revenue growth 3Y6.49%
Revenue growth 5Y7.19%
Sales Q2Q%3.05%
3.2 Future
The Earnings Per Share is expected to decrease by -3.57% on average over the next years.
The Revenue is expected to grow by 4.95% on average over the next years.
EPS Next Y42.09%
EPS Next 2Y19.24%
EPS Next 3Y18.27%
EPS Next 5Y-3.57%
Revenue Next Year3.1%
Revenue Next 2Y4.73%
Revenue Next 3Y5.66%
Revenue Next 5Y4.95%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.36 indicates a rather expensive valuation of FTDR.
Based on the Price/Earnings ratio, FTDR is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. FTDR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.46, the valuation of FTDR can be described as rather expensive.
Based on the Price/Forward Earnings ratio, FTDR is valued a bit cheaper than 76.56% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. FTDR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 17.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTDR is valued a bit cheaper than the industry average as 65.63% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FTDR indicates a somewhat cheap valuation: FTDR is cheaper than 73.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.34 | ||
| EV/EBITDA | 12.2 |
4.3 Compensation for Growth
FTDR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of FTDR may justify a higher PE ratio.
FTDR's earnings are expected to grow with 18.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)2.35
EPS Next 2Y19.24%
EPS Next 3Y18.27%
5. Dividend
5.1 Amount
FTDR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
57.1
-1.32 (-2.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners106.54%
Inst Owner Change-1.41%
Ins Owners0.44%
Ins Owner Change-3.74%
Market Cap4.33B
Analysts80
Price Target57.38 (0.49%)
Short Float %2.91%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.8%
Min EPS beat(2)24.26%
Max EPS beat(2)29.34%
EPS beat(4)4
Avg EPS beat(4)180.28%
Min EPS beat(4)24.26%
Max EPS beat(4)553.6%
EPS beat(8)8
Avg EPS beat(8)164.12%
EPS beat(12)9
Avg EPS beat(12)101.59%
EPS beat(16)13
Avg EPS beat(16)84.92%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-2.3%
Max Revenue beat(2)-1%
Revenue beat(4)0
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-2.3%
Max Revenue beat(4)-0.2%
Revenue beat(8)2
Avg Revenue beat(8)-0.64%
Revenue beat(12)3
Avg Revenue beat(12)-0.67%
Revenue beat(16)3
Avg Revenue beat(16)-1.04%
PT rev (1m)0%
PT rev (3m)14.8%
EPS NQ rev (1m)3.7%
EPS NQ rev (3m)21.74%
EPS NY rev (1m)0.44%
EPS NY rev (3m)5.88%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 17.46 | ||
| P/S | 2.37 | ||
| P/FCF | 18.34 | ||
| P/OCF | 15.69 | ||
| P/B | 16.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.2 |
EPS(TTM)3.29
EY5.76%
EPS(NY)3.27
Fwd EY5.73%
FCF(TTM)3.11
FCFY5.45%
OCF(TTM)3.64
OCFY6.38%
SpS24.08
BVpS3.44
TBVpS-5.05
PEG (NY)0.41
PEG (5Y)2.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.23% | ||
| ROE | 89.66% | ||
| ROCE | 39.16% | ||
| ROIC | 29.65% | ||
| ROICexc | 51.84% | ||
| ROICexgc | N/A | ||
| OM | 18.78% | ||
| PM (TTM) | 12.81% | ||
| GM | 53.72% | ||
| FCFM | 12.92% |
ROA(3y)11.41%
ROA(5y)10.89%
ROE(3y)2214.04%
ROE(5y)N/A
ROIC(3y)23.57%
ROIC(5y)21.87%
ROICexc(3y)39.69%
ROICexc(5y)40.65%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)31.12%
ROCE(5y)28.88%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y7.18%
ROICexc growth 5Y3.71%
OM growth 3Y2.91%
OM growth 5Y-1.25%
PM growth 3Y8.13%
PM growth 5Y-0.67%
GM growth 3Y0.78%
GM growth 5Y1.84%
F-Score8
Asset Turnover1.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | 2.47 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 108.11% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | 9.03 | ||
| Cash Conversion | 72.63% | ||
| Profit Quality | 100.86% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 5.95 |
F-Score8
WACC10.41%
ROIC/WACC2.85
Cap/Depr(3y)97.57%
Cap/Depr(5y)95.7%
Cap/Sales(3y)2.05%
Cap/Sales(5y)1.98%
Profit Quality(3y)120.86%
Profit Quality(5y)127.21%
High Growth Momentum
Growth
EPS 1Y (TTM)47.53%
EPS 3Y14.31%
EPS 5Y7.39%
EPS Q2Q%46.81%
EPS Next Y42.09%
EPS Next 2Y19.24%
EPS Next 3Y18.27%
EPS Next 5Y-3.57%
Revenue 1Y (TTM)4.1%
Revenue growth 3Y6.49%
Revenue growth 5Y7.19%
Sales Q2Q%3.05%
Revenue Next Year3.1%
Revenue Next 2Y4.73%
Revenue Next 3Y5.66%
Revenue Next 5Y4.95%
EBIT growth 1Y31.92%
EBIT growth 3Y9.59%
EBIT growth 5Y5.85%
EBIT Next Year75.49%
EBIT Next 3Y23.95%
EBIT Next 5Y8.93%
FCF growth 1Y174.42%
FCF growth 3Y-0.96%
FCF growth 5Y1.09%
OCF growth 1Y122.58%
OCF growth 3Y-0.81%
OCF growth 5Y1.44%