LENDINGTREE INC (TREE) Stock Fundamental Analysis
USA - NASDAQ:TREE - US52603B1070 - Common Stock
52.04 USD
-1.23 (-2.31%)
52.7 USD
+0.66 (+1.27%)
We assign a fundamental rating of 4 out of 10 to TREE. TREE was compared to 55 industry peers in the Consumer Finance industry. TREE has a medium profitability rating, but doesn't score so well on its financial health evaluation. TREE is not valued too expensively and it also shows a decent growth rate.
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 (1.86%) which is comparable to the rest of the industry.
The Return On Equity of TREE (10.69%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 10.51%, TREE belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
| 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 has a worse Profit Margin (1.34%) than 69.09% of its industry peers.
With a Operating Margin value of 7.27%, TREE perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
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 90.91% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TREE is destroying value.
TREE has more shares outstanding than it did 1 year ago.
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
Based on the Altman-Z score of 0.94, we must say that TREE is in the distress zone and has some risk of bankruptcy.
TREE has a Altman-Z score of 0.94. This is in the better half of the industry: TREE outperforms 63.64% 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 Debt to FCF ratio value of 6.48, TREE perfoms like the industry average, outperforming 60.00% 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.
The Debt to Equity ratio of TREE (2.93) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.93 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.99
WACC10.6%
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 63.64% 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 has a Quick ratio of 1.43. This is in the better half of the industry: TREE outperforms 63.64% 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.
TREE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.75% yearly.
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
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.
Based on estimates for the next years, TREE will show a quite strong growth in Revenue. The Revenue will grow by 8.32% on average per year.
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
The Price/Earnings ratio is 10.45, which indicates a very decent valuation of TREE.
Compared to the rest of the industry, the Price/Earnings ratio of TREE is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TREE to the average of the S&P500 Index (25.83), we can say TREE is valued rather cheaply.
A Price/Forward Earnings ratio of 10.30 indicates a reasonable valuation of TREE.
The rest of the industry has a similar Price/Forward Earnings ratio as TREE.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, TREE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.45 | ||
| Fwd PE | 10.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TREE is valued a bit cheaper than 69.09% of the companies 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 | 11.7 | ||
| EV/EBITDA | 10.56 |
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)0.22
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 |
52.04
-1.23 (-2.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners81.46%
Inst Owner Change-2.4%
Ins Owners18.47%
Ins Owner Change10.68%
Market Cap708.78M
Revenue(TTM)1.06B
Net Income(TTM)14.16M
Analysts83.33
Price Target73.44 (41.12%)
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)13.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.81%
EPS NY rev (1m)0%
EPS NY rev (3m)1.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.45 | ||
| Fwd PE | 10.3 | ||
| P/S | 0.67 | ||
| P/FCF | 11.7 | ||
| P/OCF | 9.73 | ||
| P/B | 5.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.56 |
EPS(TTM)4.98
EY9.57%
EPS(NY)5.05
Fwd EY9.71%
FCF(TTM)4.45
FCFY8.55%
OCF(TTM)5.35
OCFY10.27%
SpS77.76
BVpS9.72
TBVpS-21.18
PEG (NY)0.22
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 | 0.94 |
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 10.45 and the Price/Book (PB) ratio is 5.35.
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.