62.37 USD
-5.12 (-7.59%)
62.4 USD
+0.03 (+0.05%)
We assign a fundamental rating of 4 out of 10 to TREE. TREE was compared to 53 industry peers in the Consumer Finance industry. TREE has an average financial health and profitability rating. 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 (1.86%) which is in line with its industry peers.
- TREE has a Return On Equity (10.69%) which is comparable to the rest of the industry.
- The Return On Invested Capital of TREE (10.51%) is better than 79.25% 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's Profit Margin of 1.34% is on the low side compared to the rest of the industry. TREE is outperformed by 77.36% of its industry peers.
- TREE has a Operating Margin (7.27%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of TREE has declined.
- With an excellent Gross Margin value of 96.16%, TREE belongs to the best of the industry, outperforming 92.45% 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 just above the Cost of Capital (WACC), so TREE is still creating some value.
- The number of shares outstanding for TREE has been increased compared to 1 year ago.
- The number of shares outstanding for TREE has been increased compared to 5 years ago.
- The debt/assets ratio for TREE has been reduced compared to a year ago.
2.2 Solvency
- TREE has an Altman-Z score of 1.06. 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 1.06. This is in the better half of the industry: TREE outperforms 66.04% 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.
- TREE has a Debt to FCF ratio of 6.48. This is in the better half of the industry: TREE outperforms 69.81% of its industry peers.
- TREE has a Debt/Equity ratio of 2.93. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 2.93, TREE is in line with its industry, outperforming 45.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.93 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 1.06 |
ROIC/WACC1.28
WACC8.23%
2.3 Liquidity
- TREE has a Current 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 better Current ratio (1.43) than 62.26% of its industry peers.
- A Quick Ratio of 1.43 indicates that TREE should not have too much problems paying its short term obligations.
- The Quick ratio of TREE (1.43) is better than 62.26% 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.
- The earnings per share for TREE have been decreasing by -10.75% on average. This is quite bad
- Looking at the last year, TREE shows a very strong growth in Revenue. 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
- TREE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.34% yearly.
- TREE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.32% yearly.
EPS Next Y53.51%
EPS Next 2Y26.03%
EPS Next 3Y22.71%
EPS Next 5Y14.34%
Revenue Next Year23.83%
Revenue Next 2Y15.28%
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.
- 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
- The Price/Earnings ratio is 12.52, which indicates a correct valuation of TREE.
- TREE's Price/Earnings is on the same level as the industry average.
- TREE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 12.27 indicates a correct valuation of TREE.
- TREE's Price/Forward Earnings ratio is in line with the industry average.
- TREE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.52 | ||
| Fwd PE | 12.27 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TREE indicates a somewhat cheap valuation: TREE is cheaper than 62.26% of the companies listed 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 | 14.08 | ||
| EV/EBITDA | 11.83 |
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 22.71% in the coming years.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y26.03%
EPS Next 3Y22.71%
5. Dividend
5.1 Amount
- No dividends for TREE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.
Can you provide the valuation status for LENDINGTREE INC?
ChartMill assigns a valuation rating of 5 / 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.
What is the valuation of LENDINGTREE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LENDINGTREE INC (TREE) is 12.52 and the Price/Book (PB) ratio is 6.44.
What is the expected EPS growth for LENDINGTREE INC (TREE) stock?
The Earnings per Share (EPS) of LENDINGTREE INC (TREE) is expected to grow by 53.51% in the next year.