FRONTDOOR INC (FTDR) Stock Fundamental Analysis
NASDAQ:FTDR - Nasdaq - US35905A1097 - Common Stock
FTDR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 71 industry peers in the Diversified Consumer Services industry. Both the health and profitability get an excellent rating, making FTDR a very profitable company, without any liquidiy or solvency issues. 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
FTDR had positive earnings in the past year.
In the past year FTDR had a positive cash flow from operations.
Each year in the past 5 years FTDR has been profitable.
Each year in the past 5 years FTDR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.23%, FTDR belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
With an excellent Return On Equity value of 89.66%, FTDR belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
The Return On Invested Capital of FTDR (29.65%) is better than 96.83% of its industry peers.
FTDR had an Average Return On Invested Capital over the past 3 years of 23.57%. This is significantly above the industry average of 11.87%.
The last Return On Invested Capital (29.65%) for FTDR is above the 3 year average (23.57%), which is a sign of increasing profitability.
| 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 better Profit Margin (12.81%) than 87.30% of its industry peers.
FTDR's Profit Margin has been stable in the last couple of years.
FTDR's Operating Margin of 18.78% is amongst the best of the industry. FTDR outperforms 84.13% of its industry peers.
FTDR's Operating Margin has been stable in the last couple of years.
FTDR has a better Gross Margin (53.72%) than 65.08% of its industry peers.
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
FTDR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for FTDR has been reduced compared to 1 year ago.
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 5.89. This indicates that FTDR is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.89, FTDR belongs to the best of the industry, outperforming 87.30% of the companies in the same industry.
FTDR has a debt to FCF ratio of 2.47. This is a good value and a sign of high solvency as FTDR would need 2.47 years to pay back of all of its debts.
FTDR has a better Debt to FCF ratio (2.47) than 73.02% 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.
FTDR's Debt to Equity ratio of 2.16 is on the low side compared to the rest of the industry. FTDR is outperformed by 79.37% 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 | 5.89 |
ROIC/WACC2.49
WACC11.93%
2.3 Liquidity
A Current Ratio of 1.42 indicates that FTDR should not have too much problems paying its short term obligations.
FTDR has a Current ratio (1.42) which is comparable to the rest of the 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
The Earnings Per Share has grown by an impressive 47.53% over the past year.
Measured over the past 5 years, FTDR shows a small growth in Earnings Per Share. The EPS has been growing by 7.39% on average per year.
FTDR shows a small growth in Revenue. In the last year, the Revenue has grown by 4.10%.
FTDR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.19% yearly.
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.
FTDR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y41.47%
EPS Next 2Y18.01%
EPS Next 3Y16.84%
EPS Next 5Y-3.57%
Revenue Next Year3.04%
Revenue Next 2Y3.69%
Revenue Next 3Y4.65%
Revenue Next 5Y4.95%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.79, the valuation of FTDR can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of FTDR indicates a somewhat cheap valuation: FTDR is cheaper than 76.19% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.96. FTDR is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.27, which indicates a rather expensive current valuation of FTDR.
Based on the Price/Forward Earnings ratio, FTDR is valued a bit cheaper than the industry average as 73.02% of the companies are valued more expensively.
FTDR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.79 | ||
| Fwd PE | 18.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTDR is valued a bit cheaper than the industry average as 68.25% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FTDR is valued a bit cheaper than 73.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.8 | ||
| EV/EBITDA | 11.93 |
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.
FTDR has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FTDR's earnings are expected to grow with 16.84% in the coming years.
PEG (NY)0.43
PEG (5Y)2.41
EPS Next 2Y18.01%
EPS Next 3Y16.84%
5. Dividend
5.1 Amount
FTDR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRONTDOOR INC
NASDAQ:FTDR (1/17/2025, 8:02:29 PM)
After market: 58.53 0 (0%)58.53
+1.48 (+2.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners106.54%
Inst Owner Change-0.01%
Ins Owners0.44%
Ins Owner Change-6.63%
Market Cap4.44B
Analysts80
Price Target57.38 (-1.96%)
Short Float %2.83%
Short Ratio3.72
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)0%
EPS NQ rev (3m)-17.98%
EPS NY rev (1m)0%
EPS NY rev (3m)13.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.79 | ||
| Fwd PE | 18.27 | ||
| P/S | 2.43 | ||
| P/FCF | 18.8 | ||
| P/OCF | 16.08 | ||
| P/B | 17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.93 |
EPS(TTM)3.29
EY5.62%
EPS(NY)3.2
Fwd EY5.47%
FCF(TTM)3.11
FCFY5.32%
OCF(TTM)3.64
OCFY6.22%
SpS24.08
BVpS3.44
TBVpS-5.05
PEG (NY)0.43
PEG (5Y)2.41
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 | 5.89 |
F-Score8
WACC11.93%
ROIC/WACC2.49
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 Y41.47%
EPS Next 2Y18.01%
EPS Next 3Y16.84%
EPS Next 5Y-3.57%
Revenue 1Y (TTM)4.1%
Revenue growth 3Y6.49%
Revenue growth 5Y7.19%
Sales Q2Q%3.05%
Revenue Next Year3.04%
Revenue Next 2Y3.69%
Revenue Next 3Y4.65%
Revenue Next 5Y4.95%
EBIT growth 1Y31.92%
EBIT growth 3Y9.59%
EBIT growth 5Y5.85%
EBIT Next Year75.16%
EBIT Next 3Y22.09%
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%