LENDINGTREE INC (TREE) Stock Fundamental Analysis
USA - NASDAQ:TREE - US52603B1070 - Common Stock
48.88 USD
+0.48 (+0.99%)
48.88 USD
0 (0%)
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
TREE had positive earnings in the past year.
TREE had a positive operating cash flow in the past year.
TREE had negative earnings in 4 of the past 5 years.
Each year in the past 5 years TREE had a positive operating cash flow.
1.2 Ratios
TREE has a Return On Assets (1.86%) which is comparable to the rest of the industry.
With a Return On Equity value of 10.69%, TREE perfoms like the industry average, outperforming 50.91% of the companies in the same 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 has a Profit Margin of 1.34%. This is in the lower half of the industry: TREE underperforms 74.55% of its industry peers.
The Operating Margin of TREE (7.27%) is comparable to the rest of the industry.
TREE's Operating Margin has declined in the last couple of years.
TREE's Gross Margin of 96.16% is amongst the best of the industry. TREE outperforms 92.73% of its industry peers.
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.
TREE has more shares outstanding than it did 1 year ago.
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 0.87. This is a bad value and indicates that TREE is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.87, TREE perfoms like the industry average, outperforming 56.36% of the companies in the same 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.
TREE's Debt to FCF ratio of 6.48 is in line compared to the rest of the industry. TREE outperforms 60.00% of its industry peers.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.93 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.99
WACC10.63%
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 better Current ratio (1.43) than 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.
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.
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
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 9.82, which indicates a very decent valuation of TREE.
TREE's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.51, TREE is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.67, the valuation of TREE can be described as very reasonable.
TREE's Price/Forward Earnings is on the same level as the industry average.
TREE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 9.67 |
4.2 Price Multiples
TREE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TREE is cheaper than 72.73% 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 | 10.99 | ||
| EV/EBITDA | 9.89 |
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
No dividends for TREE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
48.88
+0.48 (+0.99%)
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 Cap665.75M
Revenue(TTM)1.06B
Net Income(TTM)14.16M
Analysts83.33
Price Target73.44 (50.25%)
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 | 9.82 | ||
| Fwd PE | 9.67 | ||
| P/S | 0.63 | ||
| P/FCF | 10.99 | ||
| P/OCF | 9.14 | ||
| P/B | 5.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.89 |
EPS(TTM)4.98
EY10.19%
EPS(NY)5.05
Fwd EY10.34%
FCF(TTM)4.45
FCFY9.1%
OCF(TTM)5.35
OCFY10.94%
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
WACC10.63%
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 9.82 and the Price/Book (PB) ratio is 5.03.
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.