LENDINGTREE INC (TREE) Stock Fundamental Analysis
USA - NASDAQ:TREE - US52603B1070 - Common Stock
58.225 USD
-1.77 (-2.96%)
58.225 USD
0 (0%)
Overall TREE gets a fundamental rating of 4 out of 10. We evaluated TREE against 55 industry peers in the Consumer Finance industry. TREE has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
In the past 5 years TREE always reported a positive cash flow from operatings.
1.2 Ratios
TREE has a Return On Assets of -6.46%. This is amonst the worse of the industry: TREE underperforms 89.09% of its industry peers.
Looking at the Return On Equity, with a value of -45.71%, TREE is doing worse than 87.27% of the companies in the same industry.
TREE has a Return On Invested Capital of 8.53%. This is in the better half of the industry: TREE outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.46% | ||
| ROE | -45.71% | ||
| ROIC | 8.53% |
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 (6.13%) which is comparable to the rest of the industry.
TREE's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 96.14%, TREE belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
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 | 6.13% | ||
| PM (TTM) | N/A | ||
| GM | 96.14% |
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.
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
Based on the Altman-Z score of 0.74, we must say that TREE is in the distress zone and has some risk of bankruptcy.
TREE's Altman-Z score of 0.74 is in line compared to the rest of the industry. TREE outperforms 56.36% of its industry peers.
The Debt to FCF ratio of TREE is 6.35, which is on the high side as it means it would take TREE, 6.35 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.35, TREE perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Debt/Equity ratio of 3.26 is on the high side and indicates that TREE has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.26, TREE is in line with its industry, outperforming 41.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 6.35 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.79
WACC10.85%
2.3 Liquidity
TREE has a Current Ratio of 1.22. 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 Current ratio of 1.22 is in line compared to the rest of the industry. TREE outperforms 56.36% of its industry peers.
TREE has a Quick Ratio of 1.22. 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 (1.22) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 91.55% over the past year.
The earnings per share for TREE have been decreasing by -10.75% on average. This is quite bad
TREE shows a strong growth in Revenue. In the last year, the Revenue has grown by 51.65%.
The Revenue has been decreasing by -4.04% on average over the past years.
EPS 1Y (TTM)91.55%
EPS 3Y27.33%
EPS 5Y-10.75%
EPS Q2Q%109.26%
Revenue 1Y (TTM)51.65%
Revenue growth 3Y-6.42%
Revenue growth 5Y-4.04%
Sales Q2Q%19.05%
3.2 Future
The Earnings Per Share is expected to grow by 16.00% on average over the next years. This is quite good.
TREE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.68% yearly.
EPS Next Y37.43%
EPS Next 2Y23.61%
EPS Next 3Y26.56%
EPS Next 5Y16%
Revenue Next Year18.12%
Revenue Next 2Y12.73%
Revenue Next 3Y9.6%
Revenue Next 5Y8.68%
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 14.27, which indicates a correct valuation of TREE.
Based on the Price/Earnings ratio, TREE is valued a bit more expensive than the industry average as 61.82% of the companies are valued more cheaply.
TREE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.31, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.91, the valuation of TREE can be described as reasonable.
TREE's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, TREE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.27 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
TREE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TREE is cheaper than 61.82% 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 | 10.25 | ||
| EV/EBITDA | 13.61 |
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.
TREE's earnings are expected to grow with 26.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y23.61%
EPS Next 3Y26.56%
5. Dividend
5.1 Amount
No dividends for TREE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
58.225
-1.77 (-2.96%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners81.46%
Inst Owner Change0.12%
Ins Owners18.47%
Ins Owner Change10.68%
Market Cap793.02M
Analysts83.33
Price Target73.44 (26.13%)
Short Float %6.37%
Short Ratio2.22
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)29.36%
Min EPS beat(2)10.05%
Max EPS beat(2)48.67%
EPS beat(4)4
Avg EPS beat(4)612.96%
Min EPS beat(4)10.05%
Max EPS beat(4)2374.51%
EPS beat(8)8
Avg EPS beat(8)395.95%
EPS beat(12)12
Avg EPS beat(12)337.66%
EPS beat(16)16
Avg EPS beat(16)292.65%
Revenue beat(2)0
Avg Revenue beat(2)-2.25%
Min Revenue beat(2)-4.05%
Max Revenue beat(2)-0.44%
Revenue beat(4)2
Avg Revenue beat(4)2.08%
Min Revenue beat(4)-4.05%
Max Revenue beat(4)8.25%
Revenue beat(8)4
Avg Revenue beat(8)1.37%
Revenue beat(12)4
Avg Revenue beat(12)-0.79%
Revenue beat(16)4
Avg Revenue beat(16)-1.25%
PT rev (1m)5.88%
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 | 14.27 | ||
| Fwd PE | 11.91 | ||
| P/S | 0.78 | ||
| P/FCF | 10.25 | ||
| P/OCF | 8.89 | ||
| P/B | 6.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.61 |
EPS(TTM)4.08
EY7.01%
EPS(NY)4.89
Fwd EY8.4%
FCF(TTM)5.68
FCFY9.75%
OCF(TTM)6.55
OCFY11.25%
SpS74.31
BVpS8.67
TBVpS-22.33
PEG (NY)0.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.46% | ||
| ROE | -45.71% | ||
| ROCE | 10.8% | ||
| ROIC | 8.53% | ||
| ROICexc | 11.51% | ||
| ROICexgc | 1279.41% | ||
| OM | 6.13% | ||
| PM (TTM) | N/A | ||
| GM | 96.14% | ||
| FCFM | 7.64% |
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 Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 6.35 | ||
| Debt/EBITDA | 4.52 | ||
| Cap/Depr | 51.49% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.73% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 0.74 |
F-Score7
WACC10.85%
ROIC/WACC0.79
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)91.55%
EPS 3Y27.33%
EPS 5Y-10.75%
EPS Q2Q%109.26%
EPS Next Y37.43%
EPS Next 2Y23.61%
EPS Next 3Y26.56%
EPS Next 5Y16%
Revenue 1Y (TTM)51.65%
Revenue growth 3Y-6.42%
Revenue growth 5Y-4.04%
Sales Q2Q%19.05%
Revenue Next Year18.12%
Revenue Next 2Y12.73%
Revenue Next 3Y9.6%
Revenue Next 5Y8.68%
EBIT growth 1Y165.34%
EBIT growth 3Y79.39%
EBIT growth 5Y-9.36%
EBIT Next Year259.67%
EBIT Next 3Y62.37%
EBIT Next 5Y38.43%
FCF growth 1Y71.29%
FCF growth 3Y-20.82%
FCF growth 5Y-16.25%
OCF growth 1Y61.96%
OCF growth 3Y-23.28%
OCF growth 5Y-15.43%