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 52 industry peers in the Consumer Finance industry. Both the profitability and financial health of TREE have multiple concerns. TREE has a correct valuation and a medium 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.
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's Return On Assets of -5.43% is on the low side compared to the rest of the industry. TREE is outperformed by 88.46% of its industry peers.
Looking at the Return On Equity, with a value of -38.32%, TREE is doing worse than 90.38% of the companies in the same industry.
TREE's Return On Invested Capital of 7.33% is fine compared to the rest of the industry. TREE outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.43% | ||
| ROE | -38.32% | ||
| ROIC | 7.33% |
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 Operating Margin (5.44%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TREE has declined.
TREE's Gross Margin of 95.99% is amongst the best of the industry. TREE outperforms 90.38% of its industry peers.
TREE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.44% | ||
| PM (TTM) | N/A | ||
| GM | 95.99% |
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.
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 0.41. This is a bad value and indicates that TREE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.41, TREE is in line with its industry, outperforming 44.23% of the companies in the same industry.
The Debt to FCF ratio of TREE is 9.19, which is on the high side as it means it would take TREE, 9.19 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 9.19, TREE perfoms like the industry average, outperforming 48.08% of the companies in the same industry.
TREE has a Debt/Equity ratio of 3.16. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.16, TREE perfoms like the industry average, outperforming 40.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.16 | ||
| Debt/FCF | 9.19 | ||
| Altman-Z | 0.41 |
ROIC/WACC0.91
WACC8.08%
2.3 Liquidity
TREE has a Current Ratio of 0.99. This is a bad value and indicates that TREE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of TREE (0.99) is comparable to the rest of the industry.
A Quick Ratio of 0.99 indicates that TREE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, TREE is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
TREE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.35%, which is quite impressive.
TREE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.75% yearly.
The Revenue has grown by 33.86% in the past year. This is a very strong growth!
The Revenue has been decreasing by -4.04% on average over the past years.
EPS 1Y (TTM)40.35%
EPS 3Y27.33%
EPS 5Y-10.75%
EPS Q2Q%314.29%
Revenue 1Y (TTM)33.86%
Revenue growth 3Y-6.42%
Revenue growth 5Y-4.04%
Sales Q2Q%94.64%
3.2 Future
TREE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.13% yearly.
Based on estimates for the next years, TREE will show a small growth in Revenue. The Revenue will grow by 7.55% on average per year.
EPS Next Y10.42%
EPS Next 2Y19.61%
EPS Next 3Y26.56%
EPS Next 5Y21.13%
Revenue Next Year15.21%
Revenue Next 2Y11.23%
Revenue Next 3Y9.39%
Revenue Next 5Y7.55%
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
Based on the Price/Earnings ratio of 16.91, the valuation of TREE can be described as correct.
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.
Compared to an average S&P500 Price/Earnings ratio of 27.85, TREE is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.32, TREE is valued correctly.
TREE's Price/Forward Earnings is on the same level as the industry average.
TREE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 15.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TREE is valued a bit cheaper than the industry average as 65.38% of the companies are valued more expensively.
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 | 14.2 | ||
| EV/EBITDA | 14.4 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TREE's earnings are expected to grow with 26.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.62
PEG (5Y)N/A
EPS Next 2Y19.61%
EPS Next 3Y26.56%
5. Dividend
5.1 Amount
TREE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
54.12
+2.53 (+4.9%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners82.02%
Inst Owner Change0.28%
Ins Owners18%
Ins Owner Change22.04%
Market Cap724.67M
Analysts84.62
Price Target67.66 (25.02%)
Short Float %3.52%
Short Ratio1.37
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)1196.56%
Min EPS beat(2)18.61%
Max EPS beat(2)2374.51%
EPS beat(4)4
Avg EPS beat(4)623.97%
Min EPS beat(4)16.04%
Max EPS beat(4)2374.51%
EPS beat(8)8
Avg EPS beat(8)464.95%
EPS beat(12)12
Avg EPS beat(12)378.44%
EPS beat(16)16
Avg EPS beat(16)334.38%
Revenue beat(2)2
Avg Revenue beat(2)6.41%
Min Revenue beat(2)4.57%
Max Revenue beat(2)8.25%
Revenue beat(4)4
Avg Revenue beat(4)5.95%
Min Revenue beat(4)1.05%
Max Revenue beat(4)9.94%
Revenue beat(8)4
Avg Revenue beat(8)0.35%
Revenue beat(12)4
Avg Revenue beat(12)-1.08%
Revenue beat(16)5
Avg Revenue beat(16)-1.02%
PT rev (1m)-5.24%
PT rev (3m)-2.86%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)-6.16%
EPS NY rev (1m)-3.92%
EPS NY rev (3m)-6.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 15.32 | ||
| P/S | 0.8 | ||
| P/FCF | 14.2 | ||
| P/OCF | 11.64 | ||
| P/B | 6.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.4 |
EPS(TTM)3.2
EY5.91%
EPS(NY)3.53
Fwd EY6.53%
FCF(TTM)3.81
FCFY7.04%
OCF(TTM)4.65
OCFY8.59%
SpS67.23
BVpS8.13
TBVpS-23.6
PEG (NY)1.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.43% | ||
| ROE | -38.32% | ||
| ROCE | 9.28% | ||
| ROIC | 7.33% | ||
| ROICexc | 9.19% | ||
| ROICexgc | N/A | ||
| OM | 5.44% | ||
| PM (TTM) | N/A | ||
| GM | 95.99% | ||
| FCFM | 5.67% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score7
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.16 | ||
| Debt/FCF | 9.19 | ||
| Debt/EBITDA | 4.71 | ||
| Cap/Depr | 46.38% | ||
| Cap/Sales | 1.25% | ||
| Interest Coverage | 1.28 | ||
| Cash Conversion | 85.14% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 0.41 |
F-Score7
WACC8.08%
ROIC/WACC0.91
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)40.35%
EPS 3Y27.33%
EPS 5Y-10.75%
EPS Q2Q%314.29%
EPS Next Y10.42%
EPS Next 2Y19.61%
EPS Next 3Y26.56%
EPS Next 5Y21.13%
Revenue 1Y (TTM)33.86%
Revenue growth 3Y-6.42%
Revenue growth 5Y-4.04%
Sales Q2Q%94.64%
Revenue Next Year15.21%
Revenue Next 2Y11.23%
Revenue Next 3Y9.39%
Revenue Next 5Y7.55%
EBIT growth 1Y476.01%
EBIT growth 3Y79.39%
EBIT growth 5Y-9.36%
EBIT Next Year255.54%
EBIT Next 3Y66.58%
EBIT Next 5Y41.32%
FCF growth 1Y-7.28%
FCF growth 3Y-20.82%
FCF growth 5Y-16.25%
OCF growth 1Y-7.86%
OCF growth 3Y-23.28%
OCF growth 5Y-15.43%