LENDINGTREE INC (TREE) Stock Fundamental Analysis
USA - NASDAQ:TREE - US52603B1070 - Common Stock
48.11 USD
-1.24 (-2.51%)
48.25 USD
+0.14 (+0.29%)
Taking everything into account, TREE scores 4 out of 10 in our fundamental rating. TREE was compared to 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 decent growth rate and is not valued too expensively.
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.
TREE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TREE has a Return On Assets of 1.86%. This is comparable to the rest of the industry: TREE outperforms 43.64% of its industry peers.
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 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
The Profit Margin of TREE (1.34%) is worse than 74.55% of its industry peers.
TREE has a Operating Margin (7.27%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TREE has declined.
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
TREE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TREE has more shares outstanding than it did 1 year ago.
TREE has more shares outstanding than it did 5 years ago.
TREE has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that TREE is in the distress zone and has some risk of bankruptcy.
TREE has a Altman-Z score (0.89) which is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 6.48, TREE is in line with its industry, 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 has a Debt to Equity ratio (2.93) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.93 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.99
WACC10.64%
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.
TREE has a Current ratio of 1.43. This is in the better half of the industry: TREE outperforms 65.45% 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's Quick ratio of 1.43 is fine compared to the rest of the industry. TREE outperforms 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
TREE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 114.66%, which is quite impressive.
The earnings per share for TREE have been decreasing by -10.75% on average. This is quite bad
Looking at the last year, TREE shows a very strong growth in Revenue. The Revenue has grown by 37.01%.
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
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 9.66, which indicates a very decent valuation of TREE.
The rest of the industry has a similar Price/Earnings ratio as TREE.
TREE is valuated cheaply when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.52 indicates a reasonable valuation of TREE.
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 (34.08), we can say TREE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 9.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TREE is valued a bit cheaper than 72.73% of the companies in the same industry.
TREE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.82 | ||
| EV/EBITDA | 10.02 |
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.
A more expensive valuation may be justified as TREE's earnings are expected to grow with 23.34% in the coming years.
PEG (NY)0.2
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 |
48.11
-1.24 (-2.51%)
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 Cap655.26M
Revenue(TTM)1.06B
Net Income(TTM)14.16M
Analysts83.33
Price Target73.44 (52.65%)
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 | 9.66 | ||
| Fwd PE | 9.52 | ||
| P/S | 0.62 | ||
| P/FCF | 10.82 | ||
| P/OCF | 9 | ||
| P/B | 4.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.02 |
EPS(TTM)4.98
EY10.35%
EPS(NY)5.05
Fwd EY10.5%
FCF(TTM)4.45
FCFY9.24%
OCF(TTM)5.35
OCFY11.11%
SpS77.76
BVpS9.72
TBVpS-21.18
PEG (NY)0.2
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 | 0.89 |
F-Score8
WACC10.64%
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 9.66 and the Price/Book (PB) ratio is 4.95.
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.