FRONTDOOR INC (FTDR) Stock Fundamental Analysis
USA - NASDAQ:FTDR - US35905A1097 - Common Stock
65.9 USD
+1.17 (+1.81%)
65.9 USD
0 (0%)
Overall FTDR gets a fundamental rating of 6 out of 10. We evaluated FTDR against 75 industry peers in the Diversified Consumer Services industry. FTDR scores excellent on profitability, but there are some minor concerns on its financial health. FTDR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FTDR was profitable.
FTDR had a positive operating cash flow in the past year.
FTDR had positive earnings in each of the past 5 years.
FTDR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FTDR's Return On Assets of 11.83% is amongst the best of the industry. FTDR outperforms 85.33% of its industry peers.
FTDR's Return On Equity of 101.18% is amongst the best of the industry. FTDR outperforms 97.33% of its industry peers.
With an excellent Return On Invested Capital value of 17.47%, FTDR belongs to the best of the industry, outperforming 94.67% 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 9.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.83% | ||
| ROE | 101.18% | ||
| ROIC | 17.47% |
ROA(3y)11.14%
ROA(5y)10.67%
ROE(3y)113.49%
ROE(5y)N/A
ROIC(3y)20.06%
ROIC(5y)20.49%
1.3 Margins
The Profit Margin of FTDR (13.08%) is better than 80.00% of its industry peers.
FTDR's Profit Margin has improved in the last couple of years.
FTDR has a Operating Margin of 20.66%. This is amongst the best in the industry. FTDR outperforms 85.33% of its industry peers.
In the last couple of years the Operating Margin of FTDR has remained more or less at the same level.
The Gross Margin of FTDR (55.01%) is better than 66.67% of its industry peers.
In the last couple of years the Gross Margin of FTDR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.66% | ||
| PM (TTM) | 13.08% | ||
| GM | 55.01% |
OM growth 3Y9.55%
OM growth 5Y0.35%
PM growth 3Y16.86%
PM growth 5Y2.61%
GM growth 3Y3.19%
GM growth 5Y1.6%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FTDR is creating value.
Compared to 1 year ago, FTDR has less shares outstanding
The number of shares outstanding for FTDR has been reduced compared to 5 years ago.
FTDR has a worse debt/assets ratio than last year.
2.2 Solvency
FTDR has an Altman-Z score of 3.55. This indicates that FTDR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.55, FTDR is in the better half of the industry, outperforming 78.67% of the companies in the same industry.
FTDR has a debt to FCF ratio of 3.88. This is a good value and a sign of high solvency as FTDR would need 3.88 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.88, FTDR is doing good in the industry, outperforming 70.67% of the companies in the same industry.
A Debt/Equity ratio of 4.56 is on the high side and indicates that FTDR has dependencies on debt financing.
The Debt to Equity ratio of FTDR (4.56) is worse than 78.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.56 | ||
| Debt/FCF | 3.88 | ||
| Altman-Z | 3.55 |
ROIC/WACC2.24
WACC7.79%
2.3 Liquidity
FTDR has a Current Ratio of 1.49. This is a normal value and indicates that FTDR is financially healthy and should not expect problems in meeting its short term obligations.
FTDR's Current ratio of 1.49 is in line compared to the rest of the industry. FTDR outperforms 60.00% of its industry peers.
A Quick Ratio of 1.49 indicates that FTDR should not have too much problems paying its short term obligations.
FTDR has a better Quick ratio (1.49) than 62.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
FTDR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.54%, which is quite impressive.
Measured over the past years, FTDR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.08% on average per year.
FTDR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.56%.
FTDR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.19% yearly.
EPS 1Y (TTM)37.54%
EPS 3Y21.57%
EPS 5Y12.08%
EPS Q2Q%28.35%
Revenue 1Y (TTM)8.56%
Revenue growth 3Y4.78%
Revenue growth 5Y6.19%
Sales Q2Q%13.84%
3.2 Future
FTDR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.44% yearly.
Based on estimates for the next years, FTDR will show a small growth in Revenue. The Revenue will grow by 5.23% on average per year.
EPS Next Y19.55%
EPS Next 2Y12.35%
EPS Next 3Y10.93%
EPS Next 5Y-8.44%
Revenue Next Year13.19%
Revenue Next 2Y9.79%
Revenue Next 3Y8.53%
Revenue Next 5Y5.23%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.81 indicates a correct valuation of FTDR.
Based on the Price/Earnings ratio, FTDR is valued a bit cheaper than 76.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.29. FTDR is valued slightly cheaper when compared to this.
FTDR is valuated correctly with a Price/Forward Earnings ratio of 15.54.
74.67% of the companies in the same industry are more expensive than FTDR, based on the Price/Forward Earnings ratio.
FTDR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 15.54 |
4.2 Price Multiples
65.33% of the companies in the same industry are more expensive than FTDR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FTDR is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.69 | ||
| EV/EBITDA | 11.34 |
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.
PEG (NY)0.86
PEG (5Y)1.39
EPS Next 2Y12.35%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
No dividends for FTDR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
65.9
+1.17 (+1.81%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners104.63%
Inst Owner Change-0.07%
Ins Owners0.59%
Ins Owner Change5.56%
Market Cap4.80B
Analysts78.33
Price Target62.56 (-5.07%)
Short Float %2.57%
Short Ratio2.81
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)37.95%
Min EPS beat(2)9.91%
Max EPS beat(2)65.99%
EPS beat(4)4
Avg EPS beat(4)60.4%
Min EPS beat(4)9.91%
Max EPS beat(4)136.35%
EPS beat(8)8
Avg EPS beat(8)125.37%
EPS beat(12)12
Avg EPS beat(12)128.97%
EPS beat(16)13
Avg EPS beat(16)91.41%
Revenue beat(2)2
Avg Revenue beat(2)0.34%
Min Revenue beat(2)0.3%
Max Revenue beat(2)0.38%
Revenue beat(4)3
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-2.3%
Max Revenue beat(4)2.06%
Revenue beat(8)4
Avg Revenue beat(8)-0.26%
Revenue beat(12)5
Avg Revenue beat(12)-0.22%
Revenue beat(16)6
Avg Revenue beat(16)-0.53%
PT rev (1m)0%
PT rev (3m)10.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.33%
EPS NY rev (1m)0%
EPS NY rev (3m)12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 15.54 | ||
| P/S | 2.44 | ||
| P/FCF | 15.69 | ||
| P/OCF | 14.25 | ||
| P/B | 18.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.34 |
EPS(TTM)3.92
EY5.95%
EPS(NY)4.24
Fwd EY6.44%
FCF(TTM)4.2
FCFY6.37%
OCF(TTM)4.63
OCFY7.02%
SpS26.97
BVpS3.49
TBVpS-15.51
PEG (NY)0.86
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.83% | ||
| ROE | 101.18% | ||
| ROCE | 23.12% | ||
| ROIC | 17.47% | ||
| ROICexc | 25.7% | ||
| ROICexgc | N/A | ||
| OM | 20.66% | ||
| PM (TTM) | 13.08% | ||
| GM | 55.01% | ||
| FCFM | 15.57% |
ROA(3y)11.14%
ROA(5y)10.67%
ROE(3y)113.49%
ROE(5y)N/A
ROIC(3y)20.06%
ROIC(5y)20.49%
ROICexc(3y)32.6%
ROICexc(5y)35.97%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)26.55%
ROCE(5y)27.11%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-20.72%
ROICexc growth 5Y-13.8%
OM growth 3Y9.55%
OM growth 5Y0.35%
PM growth 3Y16.86%
PM growth 5Y2.61%
GM growth 3Y3.19%
GM growth 5Y1.6%
F-Score6
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.56 | ||
| Debt/FCF | 3.88 | ||
| Debt/EBITDA | 2.46 | ||
| Cap/Depr | 47.69% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 7.12 | ||
| Cash Conversion | 71.55% | ||
| Profit Quality | 119.07% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 3.55 |
F-Score6
WACC7.79%
ROIC/WACC2.24
Cap/Depr(3y)101.38%
Cap/Depr(5y)97.36%
Cap/Sales(3y)2.11%
Cap/Sales(5y)2.09%
Profit Quality(3y)113.66%
Profit Quality(5y)123.69%
High Growth Momentum
Growth
EPS 1Y (TTM)37.54%
EPS 3Y21.57%
EPS 5Y12.08%
EPS Q2Q%28.35%
EPS Next Y19.55%
EPS Next 2Y12.35%
EPS Next 3Y10.93%
EPS Next 5Y-8.44%
Revenue 1Y (TTM)8.56%
Revenue growth 3Y4.78%
Revenue growth 5Y6.19%
Sales Q2Q%13.84%
Revenue Next Year13.19%
Revenue Next 2Y9.79%
Revenue Next 3Y8.53%
Revenue Next 5Y5.23%
EBIT growth 1Y31.82%
EBIT growth 3Y14.79%
EBIT growth 5Y6.56%
EBIT Next Year58.74%
EBIT Next 3Y18.05%
EBIT Next 5Y4.19%
FCF growth 1Y150.82%
FCF growth 3Y14.64%
FCF growth 5Y5.44%
OCF growth 1Y113.29%
OCF growth 3Y13.57%
OCF growth 5Y6.26%