LENDINGTREE INC (TREE) Stock Fundamental Analysis
USA - NASDAQ:TREE - US52603B1070 - Common Stock
73.68 USD
-0.06 (-0.08%)
73.643 USD
-0.04 (-0.05%)
TREE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 54 industry peers in the Consumer Finance industry. TREE may be in some trouble as it scores bad on both profitability and health. 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.
Each year in the past 5 years TREE had a positive operating cash flow.
1.2 Ratios
TREE's Return On Assets of -6.46% is on the low side compared to the rest of the industry. TREE is outperformed by 90.74% of its industry peers.
TREE has a Return On Equity of -45.71%. This is amonst the worse of the industry: TREE underperforms 88.89% of its industry peers.
TREE has a Return On Invested Capital of 8.53%. This is in the better half of the industry: TREE outperforms 72.22% 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's Operating Margin of 6.13% is in line compared to the rest of the industry. TREE outperforms 50.00% of its industry peers.
TREE's Operating Margin has declined in the last couple of years.
TREE has a Gross Margin of 96.14%. This is amongst the best in the industry. TREE outperforms 90.74% of its industry peers.
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
TREE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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
Based on the Altman-Z score of 0.90, we must say that TREE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.90, TREE is in line with its industry, outperforming 59.26% of the companies in the same industry.
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.
The Debt to FCF ratio of TREE (6.35) is comparable to the rest of the industry.
A Debt/Equity ratio of 3.26 is on the high side and indicates that TREE has dependencies on debt financing.
TREE has a Debt to Equity ratio (3.26) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 6.35 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.77
WACC11.04%
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 has a Current ratio of 1.22. This is comparable to the rest of the industry: TREE outperforms 55.56% of its industry peers.
A Quick Ratio of 1.22 indicates that TREE should not have too much problems paying its short term obligations.
The Quick ratio of TREE (1.22) 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
TREE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 91.55%, which is quite impressive.
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.
The Revenue has grown by 51.65% 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)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
TREE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.00% yearly.
Based on estimates for the next years, TREE will show a quite strong growth in Revenue. The Revenue will grow by 8.68% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 18.06, which indicates a rather expensive current valuation of TREE.
Based on the Price/Earnings ratio, TREE is valued a bit more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. TREE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.07, the valuation of TREE can be described as correct.
62.96% of the companies in the same industry are cheaper than TREE, based on the Price/Forward Earnings ratio.
TREE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.06 | ||
| Fwd PE | 15.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TREE is on the same level as its industry peers.
TREE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.98 | ||
| EV/EBITDA | 15.79 |
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 26.56% in the coming years.
PEG (NY)0.48
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 |
73.68
-0.06 (-0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners84.8%
Inst Owner Change-2.28%
Ins Owners18.64%
Ins Owner Change6.69%
Market Cap1.00B
Analysts83.33
Price Target73.44 (-0.33%)
Short Float %5.67%
Short Ratio1.93
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)9.76%
PT rev (3m)13.21%
EPS NQ rev (1m)-6.46%
EPS NQ rev (3m)2.81%
EPS NY rev (1m)1.65%
EPS NY rev (3m)5.16%
Revenue NQ rev (1m)2.2%
Revenue NQ rev (3m)10.93%
Revenue NY rev (1m)4.04%
Revenue NY rev (3m)5.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.06 | ||
| Fwd PE | 15.07 | ||
| P/S | 0.99 | ||
| P/FCF | 12.98 | ||
| P/OCF | 11.25 | ||
| P/B | 8.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.79 |
EPS(TTM)4.08
EY5.54%
EPS(NY)4.89
Fwd EY6.64%
FCF(TTM)5.68
FCFY7.71%
OCF(TTM)6.55
OCFY8.89%
SpS74.31
BVpS8.67
TBVpS-22.33
PEG (NY)0.48
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 | 0.9 |
F-Score7
WACC11.04%
ROIC/WACC0.77
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 Year257.72%
EBIT Next 3Y63.31%
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%