FRONTDOOR INC (FTDR) Stock Fundamental Analysis
NASDAQ:FTDR - Nasdaq - US35905A1097 - Common Stock - Currency: USD
Taking everything into account, FTDR scores 6 out of 10 in our fundamental rating. FTDR was compared to 71 industry peers in the Diversified Consumer Services industry. While FTDR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FTDR is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years FTDR had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.22%, FTDR belongs to the best of the industry, outperforming 85.92% of the companies in the same industry.
FTDR has a better Return On Equity (120.20%) than 98.59% of its industry peers.
FTDR has a better Return On Invested Capital (16.43%) than 95.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FTDR is significantly above the industry average of 10.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.22% | ||
| ROE | 120.2% | ||
| ROIC | 16.43% |
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
Looking at the Profit Margin, with a value of 12.59%, FTDR belongs to the top of the industry, outperforming 81.69% of the companies in the same industry.
In the last couple of years the Profit Margin of FTDR has grown nicely.
FTDR has a better Operating Margin (19.63%) than 85.92% of its industry peers.
In the last couple of years the Operating Margin of FTDR has remained more or less at the same level.
With a decent Gross Margin value of 54.50%, FTDR is doing good in the industry, outperforming 69.01% of the companies in the same industry.
FTDR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.63% | ||
| PM (TTM) | 12.59% | ||
| GM | 54.5% |
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
FTDR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, FTDR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.28 indicates that FTDR is not in any danger for bankruptcy at the moment.
FTDR has a better Altman-Z score (3.28) than 73.24% of its industry peers.
The Debt to FCF ratio of FTDR is 4.35, which is a neutral value as it means it would take FTDR, 4.35 years of fcf income to pay off all of its debts.
FTDR's Debt to FCF ratio of 4.35 is fine compared to the rest of the industry. FTDR outperforms 70.42% of its industry peers.
A Debt/Equity ratio of 5.88 is on the high side and indicates that FTDR has dependencies on debt financing.
FTDR has a Debt to Equity ratio of 5.88. This is in the lower half of the industry: FTDR underperforms 78.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.88 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 3.28 |
ROIC/WACC2.06
WACC7.97%
2.3 Liquidity
A Current Ratio of 1.34 indicates that FTDR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.34, FTDR is in line with its industry, outperforming 56.34% of the companies in the same industry.
A Quick Ratio of 1.34 indicates that FTDR should not have too much problems paying its short term obligations.
FTDR has a Quick ratio of 1.34. This is comparable to the rest of the industry: FTDR outperforms 57.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.31% over the past year.
FTDR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.08% yearly.
FTDR shows a small growth in Revenue. In the last year, the Revenue has grown by 5.53%.
The Revenue has been growing slightly by 6.19% on average over the past years.
EPS 1Y (TTM)45.31%
EPS 3Y21.57%
EPS 5Y12.08%
EPS Q2Q%45.45%
Revenue 1Y (TTM)5.53%
Revenue growth 3Y4.78%
Revenue growth 5Y6.19%
Sales Q2Q%12.7%
3.2 Future
Based on estimates for the next years, FTDR will show a decrease in Earnings Per Share. The EPS will decrease by -8.44% on average per year.
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 Y6.74%
EPS Next 2Y5.81%
EPS Next 3Y8.91%
EPS Next 5Y-8.44%
Revenue Next Year11.53%
Revenue Next 2Y9%
Revenue Next 3Y8.94%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.40, the valuation of FTDR can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of FTDR indicates a rather cheap valuation: FTDR is cheaper than 80.28% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.28. FTDR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.52, the valuation of FTDR can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTDR indicates a somewhat cheap valuation: FTDR is cheaper than 74.65% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, FTDR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.4 | ||
| Fwd PE | 15.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTDR is valued a bit cheaper than 67.61% of the companies in the same industry.
81.69% of the companies in the same industry are more expensive than FTDR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.83 | ||
| EV/EBITDA | 11.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of FTDR may justify a higher PE ratio.
PEG (NY)2.44
PEG (5Y)1.36
EPS Next 2Y5.81%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
FTDR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
58.4
-0.55 (-0.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners104.01%
Inst Owner Change-0.15%
Ins Owners0.59%
Ins Owner Change26.64%
Market Cap4.34B
Analysts78.33
Price Target56.78 (-2.77%)
Short Float %2.21%
Short Ratio2.41
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)101.17%
Min EPS beat(2)65.99%
Max EPS beat(2)136.35%
EPS beat(4)4
Avg EPS beat(4)63.99%
Min EPS beat(4)24.26%
Max EPS beat(4)136.35%
EPS beat(8)8
Avg EPS beat(8)130.9%
EPS beat(12)11
Avg EPS beat(12)127.56%
EPS beat(16)13
Avg EPS beat(16)91.92%
Revenue beat(2)2
Avg Revenue beat(2)1.18%
Min Revenue beat(2)0.3%
Max Revenue beat(2)2.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-2.3%
Max Revenue beat(4)2.06%
Revenue beat(8)3
Avg Revenue beat(8)-0.32%
Revenue beat(12)5
Avg Revenue beat(12)-0.24%
Revenue beat(16)5
Avg Revenue beat(16)-0.73%
PT rev (1m)0%
PT rev (3m)2.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)17.64%
EPS NY rev (1m)0%
EPS NY rev (3m)9.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.4 | ||
| Fwd PE | 15.52 | ||
| P/S | 2.3 | ||
| P/FCF | 15.83 | ||
| P/OCF | 13.99 | ||
| P/B | 21.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.85 |
EPS(TTM)3.56
EY6.1%
EPS(NY)3.76
Fwd EY6.44%
FCF(TTM)3.69
FCFY6.32%
OCF(TTM)4.17
OCFY7.15%
SpS25.44
BVpS2.67
TBVpS-16.17
PEG (NY)2.44
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.22% | ||
| ROE | 120.2% | ||
| ROCE | 21.73% | ||
| ROIC | 16.43% | ||
| ROICexc | 23.35% | ||
| ROICexgc | N/A | ||
| OM | 19.63% | ||
| PM (TTM) | 12.59% | ||
| GM | 54.5% | ||
| FCFM | 14.5% |
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 Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.88 | ||
| Debt/FCF | 4.35 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 67.92% | ||
| Cap/Sales | 1.9% | ||
| Interest Coverage | 7.89 | ||
| Cash Conversion | 73.11% | ||
| Profit Quality | 115.13% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 3.28 |
F-Score6
WACC7.97%
ROIC/WACC2.06
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)45.31%
EPS 3Y21.57%
EPS 5Y12.08%
EPS Q2Q%45.45%
EPS Next Y6.74%
EPS Next 2Y5.81%
EPS Next 3Y8.91%
EPS Next 5Y-8.44%
Revenue 1Y (TTM)5.53%
Revenue growth 3Y4.78%
Revenue growth 5Y6.19%
Sales Q2Q%12.7%
Revenue Next Year11.53%
Revenue Next 2Y9%
Revenue Next 3Y8.94%
Revenue Next 5Y5.23%
EBIT growth 1Y33.94%
EBIT growth 3Y14.79%
EBIT growth 5Y6.56%
EBIT Next Year49.5%
EBIT Next 3Y17.45%
EBIT Next 5Y4.19%
FCF growth 1Y138.26%
FCF growth 3Y14.64%
FCF growth 5Y5.44%
OCF growth 1Y101.3%
OCF growth 3Y13.57%
OCF growth 5Y6.26%