LENDINGTREE INC (TREE) Stock Fundamental Analysis
USA - NASDAQ:TREE - US52603B1070 - Common Stock
50.57 USD
+2.46 (+5.11%)
49.6 USD
-0.97 (-1.92%)
TREE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 55 industry peers in the Consumer Finance industry. There are concerns on the financial health of TREE while its profitability can be described as average. TREE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TREE was profitable.
TREE had a positive operating cash flow in the past year.
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.
1.2 Ratios
The Return On Assets of TREE (1.86%) is comparable to the rest of the industry.
TREE has a Return On Equity (10.69%) which is comparable to the rest of the industry.
TREE's Return On Invested Capital of 10.51% is fine compared to the rest of the industry. TREE outperforms 80.00% 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
TREE's Profit Margin of 1.34% is on the low side compared to the rest of the industry. TREE is outperformed by 74.55% of its industry peers.
With a Operating Margin value of 7.27%, TREE perfoms like the industry average, outperforming 47.27% of the companies in the same industry.
TREE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 96.16%, TREE belongs to the top of the industry, outperforming 92.73% of the companies in the same industry.
TREE's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TREE is destroying value.
Compared to 1 year ago, TREE has more shares outstanding
TREE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TREE has an improved debt to assets ratio.
2.2 Solvency
TREE has an Altman-Z score of 0.87. 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 (0.87) is comparable to the rest of the industry.
TREE has a debt to FCF ratio of 6.48. This is a slightly negative value and a sign of low solvency as TREE would need 6.48 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.48, TREE perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Debt/Equity ratio of 2.93 is on the high side and indicates that TREE has dependencies on debt financing.
TREE's Debt to Equity ratio of 2.93 is in line compared to the rest of the industry. TREE outperforms 41.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.93 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.99
WACC10.6%
2.3 Liquidity
TREE has a Current Ratio of 1.43. This is a normal value and indicates that TREE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.43, TREE is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
A Quick Ratio of 1.43 indicates that TREE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.43, TREE is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
| 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.
TREE shows a strong growth in Revenue. In the last year, the Revenue has grown by 37.01%.
The Revenue has been decreasing by -4.04% on average over the past years.
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
TREE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.34% yearly.
The Revenue is expected to grow by 8.32% on average over the next years. This is quite good.
EPS Next Y47.69%
EPS Next 2Y25.65%
EPS Next 3Y23.34%
EPS Next 5Y14.34%
Revenue Next Year23.16%
Revenue Next 2Y15.09%
Revenue Next 3Y11.17%
Revenue Next 5Y8.32%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.15, which indicates a very decent valuation of TREE.
The rest of the industry has a similar Price/Earnings ratio as TREE.
When comparing the Price/Earnings ratio of TREE to the average of the S&P500 Index (25.45), we can say TREE is valued rather cheaply.
TREE is valuated reasonably with a Price/Forward Earnings ratio of 10.01.
TREE's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, TREE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 10.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TREE indicates a somewhat cheap valuation: TREE is cheaper than 72.73% of the companies listed in the same industry.
TREE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.37 | ||
| EV/EBITDA | 9.85 |
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.
A more expensive valuation may be justified as TREE's earnings are expected to grow with 23.34% in the coming years.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y25.65%
EPS Next 3Y23.34%
5. Dividend
5.1 Amount
TREE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
50.57
+2.46 (+5.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners81.46%
Inst Owner Change1.81%
Ins Owners18.47%
Ins Owner Change11.82%
Market Cap688.76M
Revenue(TTM)1.06B
Net Income(TTM)14.16M
Analysts83.33
Price Target73.44 (45.22%)
Short Float %7.15%
Short Ratio3.18
Dividend
| Industry Rank | Sector 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)26.97%
Min EPS beat(2)10.05%
Max EPS beat(2)43.89%
EPS beat(4)4
Avg EPS beat(4)619.28%
Min EPS beat(4)10.05%
Max EPS beat(4)2374.51%
EPS beat(8)8
Avg EPS beat(8)392.37%
EPS beat(12)12
Avg EPS beat(12)335.93%
EPS beat(16)16
Avg EPS beat(16)293.6%
Revenue beat(2)1
Avg Revenue beat(2)3.97%
Min Revenue beat(2)-0.44%
Max Revenue beat(2)8.38%
Revenue beat(4)2
Avg Revenue beat(4)3.03%
Min Revenue beat(4)-4.05%
Max Revenue beat(4)8.38%
Revenue beat(8)5
Avg Revenue beat(8)3.1%
Revenue beat(12)5
Avg Revenue beat(12)0.15%
Revenue beat(16)5
Avg Revenue beat(16)-0.71%
PT rev (1m)0%
PT rev (3m)9.76%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-10%
EPS NY rev (1m)7.46%
EPS NY rev (3m)9.23%
Revenue NQ rev (1m)7.78%
Revenue NQ rev (3m)9.01%
Revenue NY rev (1m)4.27%
Revenue NY rev (3m)8.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 10.01 | ||
| P/S | 0.65 | ||
| P/FCF | 11.37 | ||
| P/OCF | 9.46 | ||
| P/B | 5.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.85 |
EPS(TTM)4.98
EY9.85%
EPS(NY)5.05
Fwd EY9.99%
FCF(TTM)4.45
FCFY8.79%
OCF(TTM)5.35
OCFY10.57%
SpS77.76
BVpS9.72
TBVpS-21.18
PEG (NY)0.21
PEG (5Y)N/A
Graham Number33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.86% | ||
| ROE | 10.69% | ||
| ROCE | 13.31% | ||
| ROIC | 10.51% | ||
| ROICexc | 11.92% | ||
| ROICexgc | 67.97% | ||
| OM | 7.27% | ||
| PM (TTM) | 1.34% | ||
| GM | 96.16% | ||
| FCFM | 5.72% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score8
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.93 | ||
| Debt/FCF | 6.48 | ||
| Debt/EBITDA | 3.91 | ||
| Cap/Depr | 54.79% | ||
| Cap/Sales | 1.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.25% | ||
| Profit Quality | 427.79% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 0.87 |
F-Score8
WACC10.6%
ROIC/WACC0.99
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)114.66%
EPS 3Y27.33%
EPS 5Y-10.75%
EPS Q2Q%112.5%
EPS Next Y47.69%
EPS Next 2Y25.65%
EPS Next 3Y23.34%
EPS Next 5Y14.34%
Revenue 1Y (TTM)37.01%
Revenue growth 3Y-6.42%
Revenue growth 5Y-4.04%
Sales Q2Q%18.02%
Revenue Next Year23.16%
Revenue Next 2Y15.09%
Revenue Next 3Y11.17%
Revenue Next 5Y8.32%
EBIT growth 1Y149.01%
EBIT growth 3Y79.39%
EBIT growth 5Y-9.36%
EBIT Next Year259.67%
EBIT Next 3Y62.37%
EBIT Next 5Y38.51%
FCF growth 1Y18.91%
FCF growth 3Y-20.82%
FCF growth 5Y-16.25%
OCF growth 1Y14.96%
OCF growth 3Y-23.28%
OCF growth 5Y-15.43%
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.
What is the valuation status for TREE stock?
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.
Can you provide the PE and PB ratios for TREE stock?
The Price/Earnings (PE) ratio for LENDINGTREE INC (TREE) is 10.15 and the Price/Book (PB) ratio is 5.2.
Can you provide the expected EPS growth for TREE stock?
The Earnings per Share (EPS) of LENDINGTREE INC (TREE) is expected to grow by 47.69% in the next year.