54.71 USD
-1.95 (-3.44%)
Last: Feb 2, 2026, 02:43 PM
Taking everything into account, TREE scores 4 out of 10 in our fundamental rating. TREE was compared to 54 industry peers in the Consumer Finance industry. TREE has only an average score on both its financial health and profitability. TREE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year TREE was profitable.
- In the past year TREE had a positive cash flow from operations.
- In the past 5 years TREE reported 4 times negative net income.
- Each year in the past 5 years TREE had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.86%, TREE is in line with its industry, outperforming 46.30% of the companies in the same industry.
- TREE has a Return On Equity (10.69%) which is comparable to the rest of the industry.
- TREE has a Return On Invested Capital of 10.51%. This is in the better half of the industry: TREE outperforms 79.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.86% | ||
| ROE | 10.69% | ||
| ROIC | 10.51% |
ROA(3y)-12.12%
ROA(5y)-7.02%
ROE(3y)-75.77%
ROE(5y)-45.03%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 1.34%, TREE is doing worse than 74.07% of the companies in the same industry.
- TREE has a Operating Margin (7.27%) which is in line with its industry peers.
- TREE's Operating Margin has declined in the last couple of years.
- With an excellent Gross Margin value of 96.16%, TREE belongs to the best of the industry, outperforming 92.59% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.27% | ||
| PM (TTM) | 1.34% | ||
| GM | 96.16% |
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%
2. Health
2.1 Basic Checks
- TREE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, TREE has more shares outstanding
- Compared to 5 years ago, TREE has more shares outstanding
- Compared to 1 year ago, TREE has an improved debt to assets ratio.
2.2 Solvency
- TREE has an Altman-Z score of 0.98. This is a bad value and indicates that TREE is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of TREE (0.98) is better than 64.81% of its industry peers.
- The Debt to FCF ratio of TREE is 6.48, which is on the high side as it means it would take TREE, 6.48 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 6.48, TREE is doing good in the industry, outperforming 70.37% of the companies in the same industry.
- TREE has a Debt/Equity ratio of 2.93. This is a high value indicating a heavy dependency on external financing.
- TREE has a Debt to Equity ratio (2.93) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.93 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 0.98 |
ROIC/WACC1.28
WACC8.23%
2.3 Liquidity
- A Current Ratio of 1.43 indicates that TREE should not have too much problems paying its short term obligations.
- The Current ratio of TREE (1.43) is better than 62.96% of its industry peers.
- A Quick Ratio of 1.43 indicates that TREE should not have too much problems paying its short term obligations.
- TREE has a better Quick ratio (1.43) than 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 114.66% over the past year.
- 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.
- The Revenue has grown by 37.01% in the past year. This is a very strong growth!
- TREE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.04% yearly.
EPS 1Y (TTM)114.66%
EPS 3Y27.33%
EPS 5Y-10.75%
EPS Q2Q%112.5%
Revenue 1Y (TTM)37.01%
Revenue growth 3Y-6.42%
Revenue growth 5Y-4.04%
Sales Q2Q%18.02%
3.2 Future
- The Earnings Per Share is expected to grow by 14.34% on average over the next years. This is quite good.
- The Revenue is expected to grow by 8.32% on average over the next years. This is quite good.
EPS Next Y53.51%
EPS Next 2Y26.03%
EPS Next 3Y22.71%
EPS Next 5Y14.34%
Revenue Next Year23.83%
Revenue Next 2Y15.28%
Revenue Next 3Y11.17%
Revenue Next 5Y8.32%
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 accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 10.99, the valuation of TREE can be described as reasonable.
- TREE's Price/Earnings ratio is in line with the industry average.
- TREE is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- TREE is valuated reasonably with a Price/Forward Earnings ratio of 10.76.
- TREE's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of TREE to the average of the S&P500 Index (25.57), we can say TREE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 10.76 |
4.2 Price Multiples
- 66.67% of the companies in the same industry are more expensive than TREE, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TREE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.35 | ||
| EV/EBITDA | 11.05 |
4.3 Compensation for Growth
- TREE's 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 22.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y26.03%
EPS Next 3Y22.71%
5. Dividend
5.1 Amount
- No dividends for TREE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
LENDINGTREE INC / TREE FAQ
What is the ChartMill fundamental rating of LENDINGTREE INC (TREE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to TREE.
Can you provide the valuation status for LENDINGTREE INC?
ChartMill assigns a valuation rating of 6 / 10 to LENDINGTREE INC (TREE). This can be considered as Fairly Valued.
Can you provide the profitability details for LENDINGTREE INC?
LENDINGTREE INC (TREE) has a profitability rating of 4 / 10.
What is the valuation of LENDINGTREE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LENDINGTREE INC (TREE) is 10.99 and the Price/Book (PB) ratio is 5.65.
What is the expected EPS growth for LENDINGTREE INC (TREE) stock?
The Earnings per Share (EPS) of LENDINGTREE INC (TREE) is expected to grow by 53.51% in the next year.