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LENDINGTREE INC (TREE) Stock Fundamental Analysis

NASDAQ:TREE - Nasdaq - US52603B1070 - Common Stock - Currency: USD

38.75  +0.42 (+1.1%)

After market: 38.0448 -0.71 (-1.82%)

Fundamental Rating

4

TREE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 52 industry peers in the Consumer Finance industry. TREE has a bad profitability rating. Also its financial health evaluation is rather negative. TREE has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

TREE had positive earnings in the past year.
In the past year TREE had a positive cash flow from operations.
TREE had negative earnings in 4 of the past 5 years.
In the past 5 years TREE always reported a positive cash flow from operatings.
TREE Yearly Net Income VS EBIT VS OCF VS FCFTREE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M

1.2 Ratios

The Return On Assets of TREE (-7.09%) is worse than 88.46% of its industry peers.
With a Return On Equity value of -53.11%, TREE is not doing good in the industry: 90.38% of the companies in the same industry are doing better.
With a decent Return On Invested Capital value of 7.08%, TREE is doing good in the industry, outperforming 71.15% of the companies in the same industry.
Industry RankSector Rank
ROA -7.09%
ROE -53.11%
ROIC 7.08%
ROA(3y)-12.12%
ROA(5y)-7.02%
ROE(3y)-75.77%
ROE(5y)-45.03%
ROIC(3y)N/A
ROIC(5y)N/A
TREE Yearly ROA, ROE, ROICTREE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60 -80

1.3 Margins

TREE has a Operating Margin of 5.20%. This is comparable to the rest of the industry: TREE outperforms 40.38% of its industry peers.
In the last couple of years the Operating Margin of TREE has declined.
Looking at the Gross Margin, with a value of 96.15%, TREE belongs to the top of the industry, outperforming 90.38% of the companies in the same industry.
In the last couple of years the Gross Margin of TREE has remained more or less at the same level.
Industry RankSector Rank
OM 5.2%
PM (TTM) N/A
GM 96.15%
OM growth 3Y91.7%
OM growth 5Y-5.54%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.42%
GM growth 5Y0.46%
TREE Yearly Profit, Operating, Gross MarginsTREE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TREE is destroying value.
The number of shares outstanding for TREE has been increased compared to 1 year ago.
Compared to 5 years ago, TREE has more shares outstanding
Compared to 1 year ago, TREE has an improved debt to assets ratio.
TREE Yearly Shares OutstandingTREE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
TREE Yearly Total Debt VS Total AssetsTREE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

TREE has an Altman-Z score of 0.39. This is a bad value and indicates that TREE is not financially healthy and even has some risk of bankruptcy.
TREE's Altman-Z score of 0.39 is in line compared to the rest of the industry. TREE outperforms 46.15% of its industry peers.
The Debt to FCF ratio of TREE is 11.11, which is on the high side as it means it would take TREE, 11.11 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 11.11, TREE perfoms like the industry average, outperforming 48.08% of the companies in the same industry.
TREE has a Debt/Equity ratio of 3.74. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TREE (3.74) is worse than 61.54% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.74
Debt/FCF 11.11
Altman-Z 0.39
ROIC/WACC0.8
WACC8.83%
TREE Yearly LT Debt VS Equity VS FCFTREE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 1.20 indicates that TREE should not have too much problems paying its short term obligations.
TREE has a Current ratio (1.20) which is comparable to the rest of the industry.
A Quick Ratio of 1.20 indicates that TREE should not have too much problems paying its short term obligations.
TREE has a Quick ratio (1.20) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.2
Quick Ratio 1.2
TREE Yearly Current Assets VS Current LiabilitesTREE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

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5

3. Growth

3.1 Past

TREE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.84%, which is quite impressive.
Measured over the past years, TREE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.75% on average per year.
Looking at the last year, TREE shows a very strong growth in Revenue. The Revenue has grown by 51.96%.
The Revenue has been decreasing by -4.04% on average over the past years.
EPS 1Y (TTM)27.84%
EPS 3Y27.33%
EPS 5Y-10.75%
EPS Q2Q%41.43%
Revenue 1Y (TTM)51.96%
Revenue growth 3Y-6.42%
Revenue growth 5Y-4.04%
Sales Q2Q%42.88%

3.2 Future

Based on estimates for the next years, TREE will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.11% on average per year.
Based on estimates for the next years, TREE will show a small growth in Revenue. The Revenue will grow by 7.29% on average per year.
EPS Next Y35.2%
EPS Next 2Y19.12%
EPS Next 3Y19.7%
EPS Next 5Y17.11%
Revenue Next Year12.07%
Revenue Next 2Y9.71%
Revenue Next 3Y8.88%
Revenue Next 5Y7.29%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
TREE Yearly Revenue VS EstimatesTREE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 500M 1B
TREE Yearly EPS VS EstimatesTREE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 2 4 6 8

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.10, which indicates a very decent valuation of TREE.
Compared to the rest of the industry, the Price/Earnings ratio of TREE is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.28. TREE is valued rather cheaply when compared to this.
TREE is valuated reasonably with a Price/Forward Earnings ratio of 8.53.
Based on the Price/Forward Earnings ratio, TREE is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, TREE is valued rather cheaply.
Industry RankSector Rank
PE 11.1
Fwd PE 8.53
TREE Price Earnings VS Forward Price EarningsTREE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

TREE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TREE is cheaper than 69.23% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TREE.
Industry RankSector Rank
P/FCF 11.8
EV/EBITDA 11.94
TREE Per share dataTREE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 60

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TREE's earnings are expected to grow with 19.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y19.12%
EPS Next 3Y19.7%

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0

5. Dividend

5.1 Amount

No dividends for TREE!.
Industry RankSector Rank
Dividend Yield N/A

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LENDINGTREE INC

NASDAQ:TREE (7/2/2025, 8:01:12 PM)

After market: 38.0448 -0.71 (-1.82%)

38.75

+0.42 (+1.1%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)05-01 2025-05-01/amc
Earnings (Next)07-24 2025-07-24/bmo
Inst Owners82.79%
Inst Owner Change6.37%
Ins Owners18.39%
Ins Owner Change25.13%
Market Cap524.67M
Analysts83.33
Price Target64.87 (67.41%)
Short Float %6.54%
Short Ratio1.84
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1211.59%
Min EPS beat(2)48.67%
Max EPS beat(2)2374.51%
EPS beat(4)4
Avg EPS beat(4)614.46%
Min EPS beat(4)16.04%
Max EPS beat(4)2374.51%
EPS beat(8)8
Avg EPS beat(8)429.35%
EPS beat(12)12
Avg EPS beat(12)342.51%
EPS beat(16)16
Avg EPS beat(16)321.9%
Revenue beat(2)1
Avg Revenue beat(2)2.1%
Min Revenue beat(2)-4.05%
Max Revenue beat(2)8.25%
Revenue beat(4)3
Avg Revenue beat(4)4.67%
Min Revenue beat(4)-4.05%
Max Revenue beat(4)9.94%
Revenue beat(8)4
Avg Revenue beat(8)0.47%
Revenue beat(12)4
Avg Revenue beat(12)-1.19%
Revenue beat(16)4
Avg Revenue beat(16)-1.33%
PT rev (1m)-0.1%
PT rev (3m)-9.14%
EPS NQ rev (1m)4.75%
EPS NQ rev (3m)15.3%
EPS NY rev (1m)3.46%
EPS NY rev (3m)29.38%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-3.38%
Valuation
Industry RankSector Rank
PE 11.1
Fwd PE 8.53
P/S 0.54
P/FCF 11.8
P/OCF 9.31
P/B 5.06
P/tB N/A
EV/EBITDA 11.94
EPS(TTM)3.49
EY9.01%
EPS(NY)4.54
Fwd EY11.72%
FCF(TTM)3.28
FCFY8.47%
OCF(TTM)4.16
OCFY10.74%
SpS71.8
BVpS7.66
TBVpS-23.62
PEG (NY)0.32
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -7.09%
ROE -53.11%
ROCE 8.96%
ROIC 7.08%
ROICexc 9.12%
ROICexgc 272.68%
OM 5.2%
PM (TTM) N/A
GM 96.15%
FCFM 4.57%
ROA(3y)-12.12%
ROA(5y)-7.02%
ROE(3y)-75.77%
ROE(5y)-45.03%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y119.8%
ROICexc growth 5Y1.26%
OM growth 3Y91.7%
OM growth 5Y-5.54%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.42%
GM growth 5Y0.46%
F-Score7
Asset Turnover1.25
Health
Industry RankSector Rank
Debt/Equity 3.74
Debt/FCF 11.11
Debt/EBITDA 5.22
Cap/Depr 50.29%
Cap/Sales 1.22%
Interest Coverage 250
Cash Conversion 75.9%
Profit Quality N/A
Current Ratio 1.2
Quick Ratio 1.2
Altman-Z 0.39
F-Score7
WACC8.83%
ROIC/WACC0.8
Cap/Depr(3y)39.47%
Cap/Depr(5y)47.75%
Cap/Sales(3y)1.42%
Cap/Sales(5y)2.42%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.84%
EPS 3Y27.33%
EPS 5Y-10.75%
EPS Q2Q%41.43%
EPS Next Y35.2%
EPS Next 2Y19.12%
EPS Next 3Y19.7%
EPS Next 5Y17.11%
Revenue 1Y (TTM)51.96%
Revenue growth 3Y-6.42%
Revenue growth 5Y-4.04%
Sales Q2Q%42.88%
Revenue Next Year12.07%
Revenue Next 2Y9.71%
Revenue Next 3Y8.88%
Revenue Next 5Y7.29%
EBIT growth 1Y108.4%
EBIT growth 3Y79.39%
EBIT growth 5Y-9.36%
EBIT Next Year247.76%
EBIT Next 3Y61.79%
EBIT Next 5Y38.06%
FCF growth 1Y24.54%
FCF growth 3Y-20.82%
FCF growth 5Y-16.25%
OCF growth 1Y22.15%
OCF growth 3Y-23.28%
OCF growth 5Y-15.43%