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 54 industry peers in the Consumer Finance industry. Both the profitability and the financial health of TREE get a neutral evaluation. Nothing too spectacular is happening here. 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.
- 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 in line with its industry peers.
- With a Return On Equity value of 10.69%, TREE perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
- The Return On Invested Capital of TREE (10.51%) is better than 79.63% 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 worse Profit Margin (1.34%) than 75.93% of its industry peers.
- TREE has a Operating Margin (7.27%) which is comparable to the rest of the industry.
- TREE's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 96.16%, TREE belongs to the top of the industry, outperforming 92.59% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TREE is creating some value.
- Compared to 1 year ago, TREE has more shares outstanding
- Compared to 5 years ago, TREE has more shares outstanding
- Compared to 1 year ago, TREE has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.06, we must say that TREE is in the distress zone and has some risk of bankruptcy.
- TREE has a better Altman-Z score (1.06) than 66.67% 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 70.37% 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 46.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.93 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 1.06 |
ROIC/WACC1.27
WACC8.28%
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.
- With a decent Current ratio value of 1.43, TREE is doing good in the industry, outperforming 62.96% of the companies in the same industry.
- A Quick Ratio of 1.43 indicates that TREE should not have too much problems paying its short term obligations.
- TREE has a better Quick ratio (1.43) than 62.96% 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
- The Revenue has grown by 37.01% in the past year. This is a very strong growth!
- 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
- 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.
- The Revenue is expected to grow by 8.32% on average over the next years. This is quite good.
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
- 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 12.52, the valuation of TREE can be described as correct.
- TREE's Price/Earnings ratio is in line with the industry average.
- TREE is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 12.27, the valuation of TREE can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TREE is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. TREE is valued slightly cheaper when compared to this.
| 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 62.96% of the companies listed in the same industry.
- TREE's Price/Free Cash Flow ratio is in line with the industry average.
| 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.
- TREE's earnings are expected to grow with 22.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y26.03%
EPS Next 3Y22.71%
5. Dividend
5.1 Amount
- TREE does not give a dividend.
| 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.