LENDINGTREE INC (TREE) Stock Fundamental Analysis
NASDAQ:TREE - Nasdaq - US52603B1070 - Common Stock - Currency: USD
Taking everything into account, TREE scores 3 out of 10 in our fundamental rating. TREE was compared to 53 industry peers in the Consumer Finance industry. Both the profitability and financial health of TREE have multiple concerns. TREE is not valued too expensively and it also shows a decent 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 multiple years TREE reported negative net income over the last 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 (-4.64%) is worse than 86.54% of its industry peers.
TREE has a worse Return On Equity (-38.71%) than 92.31% of its industry peers.
TREE's Return On Invested Capital of 4.75% is fine compared to the rest of the industry. TREE outperforms 71.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.64% | ||
| ROE | -38.71% | ||
| ROIC | 4.75% |
ROA(3y)-8.53%
ROA(5y)-5.56%
ROE(3y)-57.86%
ROE(5y)-36.48%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TREE has a Operating Margin (4.00%) which is in line with its industry peers.
TREE's Operating Margin has declined in the last couple of years.
TREE has a Gross Margin of 95.54%. This is amongst the best in the industry. TREE outperforms 92.31% 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 | 4% | ||
| PM (TTM) | N/A | ||
| GM | 95.54% |
OM growth 3YN/A
OM growth 5Y-32.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.08%
GM growth 5Y-0.21%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TREE is destroying value.
Compared to 1 year ago, TREE has more shares outstanding
The number of shares outstanding for TREE has been increased compared to 5 years ago.
TREE has a better debt/assets ratio than last year.
2.2 Solvency
TREE has an Altman-Z score of 0.00. 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 of 0.00. This is in the lower half of the industry: TREE underperforms 67.31% of its industry peers.
The Debt to FCF ratio of TREE is 8.45, which is on the high side as it means it would take TREE, 8.45 years of fcf income to pay off all of its debts.
TREE has a Debt to FCF ratio of 8.45. This is comparable to the rest of the industry: TREE outperforms 46.15% of its industry peers.
TREE has a Debt/Equity ratio of 3.67. This is a high value indicating a heavy dependency on external financing.
TREE has a Debt to Equity ratio of 3.67. This is in the lower half of the industry: TREE underperforms 63.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.67 | ||
| Debt/FCF | 8.45 | ||
| Altman-Z | 0 |
ROIC/WACC0.68
WACC7%
2.3 Liquidity
A Current Ratio of 0.92 indicates that TREE may have some problems paying its short term obligations.
TREE's Current ratio of 0.92 is in line compared to the rest of the industry. TREE outperforms 44.23% of its industry peers.
A Quick Ratio of 0.92 indicates that TREE may have some problems paying its short term obligations.
The Quick ratio of TREE (0.92) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for TREE have decreased by -2.52% in the last year.
The earnings per share for TREE have been decreasing by -16.77% on average. This is quite bad
The Revenue has been growing slightly by 4.44% in the past year.
TREE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.54% yearly.
EPS 1Y (TTM)-2.52%
EPS 3Y14.22%
EPS 5Y-16.77%
EPS Q2Q%31.15%
Revenue 1Y (TTM)4.44%
Revenue growth 3Y-9.59%
Revenue growth 5Y-2.54%
Sales Q2Q%68.03%
3.2 Future
Based on estimates for the next years, TREE will show a very strong growth in Earnings Per Share. The EPS will grow by 30.68% on average per year.
TREE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.67% yearly.
EPS Next Y14.45%
EPS Next 2Y21.11%
EPS Next 3Y33.32%
EPS Next 5Y30.68%
Revenue Next Year29.06%
Revenue Next 2Y22.35%
Revenue Next 3Y15.42%
Revenue Next 5Y11.67%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.01, TREE is valued on the expensive side.
TREE's Price/Earnings ratio is a bit more expensive when compared to the industry. TREE is more expensive than 65.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 30.30. TREE is valued slightly cheaper when compared to this.
TREE is valuated correctly with a Price/Forward Earnings ratio of 12.50.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TREE is on the same level as its industry peers.
TREE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 12.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TREE is valued a bit cheaper than 61.54% of the companies in the same industry.
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 | 9.99 | ||
| EV/EBITDA | 17.07 |
4.3 Compensation for Growth
TREE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as TREE's earnings are expected to grow with 33.32% in the coming years.
PEG (NY)1.25
PEG (5Y)N/A
EPS Next 2Y21.11%
EPS Next 3Y33.32%
5. Dividend
5.1 Amount
TREE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:TREE (2/21/2025, 12:40:03 PM)
41.79
-1.31 (-3.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners70.7%
Inst Owner Change2.76%
Ins Owners17.92%
Ins Owner Change6.06%
Market Cap558.31M
Analysts84.62
Price Target71.4 (70.85%)
Short Float %3.6%
Short Ratio1.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)17.32%
Min EPS beat(2)16.04%
Max EPS beat(2)18.61%
EPS beat(4)4
Avg EPS beat(4)165.47%
Min EPS beat(4)16.04%
Max EPS beat(4)540.48%
EPS beat(8)8
Avg EPS beat(8)194.25%
EPS beat(12)12
Avg EPS beat(12)185.04%
EPS beat(16)16
Avg EPS beat(16)195.24%
Revenue beat(2)2
Avg Revenue beat(2)7.25%
Min Revenue beat(2)4.57%
Max Revenue beat(2)9.94%
Revenue beat(4)3
Avg Revenue beat(4)3.17%
Min Revenue beat(4)-2.85%
Max Revenue beat(4)9.94%
Revenue beat(8)3
Avg Revenue beat(8)-1.29%
Revenue beat(12)3
Avg Revenue beat(12)-1.96%
Revenue beat(16)4
Avg Revenue beat(16)-1.56%
PT rev (1m)2.51%
PT rev (3m)11.87%
EPS NQ rev (1m)-145.98%
EPS NQ rev (3m)-145.98%
EPS NY rev (1m)-3.77%
EPS NY rev (3m)-3.77%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 12.5 | ||
| P/S | 0.72 | ||
| P/FCF | 9.99 | ||
| P/OCF | 8.35 | ||
| P/B | 5.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.07 |
EPS(TTM)2.32
EY5.55%
EPS(NY)3.34
Fwd EY8%
FCF(TTM)4.18
FCFY10.01%
OCF(TTM)5.01
OCFY11.98%
SpS57.86
BVpS7.06
TBVpS-24.96
PEG (NY)1.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.64% | ||
| ROE | -38.71% | ||
| ROCE | 6.01% | ||
| ROIC | 4.75% | ||
| ROICexc | 5.85% | ||
| ROICexgc | N/A | ||
| OM | 4% | ||
| PM (TTM) | N/A | ||
| GM | 95.54% | ||
| FCFM | 7.23% |
ROA(3y)-8.53%
ROA(5y)-5.56%
ROE(3y)-57.86%
ROE(5y)-36.48%
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 5Y-41.74%
ROICexc growth 3YN/A
ROICexc growth 5Y-33.45%
OM growth 3YN/A
OM growth 5Y-32.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.08%
GM growth 5Y-0.21%
F-Score7
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.67 | ||
| Debt/FCF | 8.45 | ||
| Debt/EBITDA | 6.21 | ||
| Cap/Depr | 44.37% | ||
| Cap/Sales | 1.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 120.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 0 |
F-Score7
WACC7%
ROIC/WACC0.68
Cap/Depr(3y)43.28%
Cap/Depr(5y)44.52%
Cap/Sales(3y)2.07%
Cap/Sales(5y)2.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.52%
EPS 3Y14.22%
EPS 5Y-16.77%
EPS Q2Q%31.15%
EPS Next Y14.45%
EPS Next 2Y21.11%
EPS Next 3Y33.32%
EPS Next 5Y30.68%
Revenue 1Y (TTM)4.44%
Revenue growth 3Y-9.59%
Revenue growth 5Y-2.54%
Sales Q2Q%68.03%
Revenue Next Year29.06%
Revenue Next 2Y22.35%
Revenue Next 3Y15.42%
Revenue Next 5Y11.67%
EBIT growth 1Y1558.25%
EBIT growth 3YN/A
EBIT growth 5Y-34.26%
EBIT Next Year551.75%
EBIT Next 3Y105.28%
EBIT Next 5Y60.81%
FCF growth 1Y1.36%
FCF growth 3YN/A
FCF growth 5Y-10.49%
OCF growth 1Y-2.58%
OCF growth 3Y20.52%
OCF growth 5Y-9.4%