LENDINGTREE INC (TREE) Stock Fundamental Analysis
USA - NASDAQ:TREE - US52603B1070 - Common Stock
49.12 USD
-1.57 (-3.1%)
49.73 USD
+0.61 (+1.24%)
We assign a fundamental rating of 4 out of 10 to TREE. TREE was compared to 55 industry peers in the Consumer Finance industry. While TREE is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past 5 years TREE reported 4 times negative net income.
TREE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TREE's Return On Assets of 1.86% is in line compared to the rest of the industry. TREE outperforms 43.64% of its industry peers.
TREE has a Return On Equity of 10.69%. This is comparable to the rest of the industry: TREE outperforms 50.91% of its industry peers.
The Return On Invested Capital of TREE (10.51%) is better than 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.
TREE has a better Gross Margin (96.16%) than 92.73% of its industry peers.
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 below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TREE has more shares outstanding
Compared to 5 years ago, TREE has more shares outstanding
The debt/assets ratio for TREE has been reduced compared to a year ago.
2.2 Solvency
TREE has an Altman-Z score of 0.88. This is a bad value and indicates that TREE is not financially healthy and even has some risk of bankruptcy.
TREE has a Altman-Z score (0.88) which is in line with 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.
TREE has a Debt to FCF ratio (6.48) which is comparable to the rest of the industry.
TREE has a Debt/Equity ratio of 2.93. This is a high value indicating a heavy dependency on external 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 | 0.88 |
ROIC/WACC0.98
WACC10.75%
2.3 Liquidity
A Current Ratio of 1.43 indicates that TREE should not have too much problems paying 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.
TREE has a Quick 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'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
The Earnings Per Share has grown by an impressive 114.66% over the past year.
The earnings per share for TREE have been decreasing by -10.75% on average. This is quite bad
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
Based on estimates for the next years, TREE will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.34% on average per year.
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
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
TREE is valuated reasonably with a Price/Earnings ratio of 9.86.
TREE's Price/Earnings is on the same level as the industry average.
TREE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
TREE is valuated reasonably with a Price/Forward Earnings ratio of 9.72.
TREE's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, TREE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 9.72 |
4.2 Price Multiples
72.73% 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 | 11.05 | ||
| EV/EBITDA | 9.99 |
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 |
49.12
-1.57 (-3.1%)
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 Cap669.01M
Revenue(TTM)1.06B
Net Income(TTM)14.16M
Analysts83.33
Price Target73.44 (49.51%)
Short Float %6.14%
Short Ratio2.82
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 | 9.86 | ||
| Fwd PE | 9.72 | ||
| P/S | 0.63 | ||
| P/FCF | 11.05 | ||
| P/OCF | 9.19 | ||
| P/B | 5.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.99 |
EPS(TTM)4.98
EY10.14%
EPS(NY)5.05
Fwd EY10.29%
FCF(TTM)4.45
FCFY9.05%
OCF(TTM)5.35
OCFY10.88%
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 | 0.88 |
F-Score8
WACC10.75%
ROIC/WACC0.98
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 9.86 and the Price/Book (PB) ratio is 5.05.
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.