FRONTDOOR INC (FTDR)
US35905A1097 - Common Stock
Overall FTDR gets a fundamental rating of 5 out of 10. We evaluated FTDR against 65 industry peers in the Diversified Consumer Services industry. While FTDR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FTDR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year FTDR was profitable.
FTDR had a positive operating cash flow in the past year.
FTDR had positive earnings in each of the past 5 years.
In the past 5 years FTDR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FTDR (15.70%) is better than 93.75% of its industry peers.
Looking at the Return On Equity, with a value of 125.74%, FTDR belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
FTDR has a better Return On Invested Capital (26.77%) than 93.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FTDR is significantly above the industry average of 15.00%.
The 3 year average ROIC (23.03%) for FTDR is below the current ROIC(26.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.7% | ||
| ROE | 125.74% | ||
| ROIC | 26.77% |
ROA(3y)11.41%
ROA(5y)10.89%
ROE(3y)2214.04%
ROE(5y)N/A
ROIC(3y)23.03%
ROIC(5y)21.55%
1.3 Margins
FTDR has a better Profit Margin (9.61%) than 87.50% of its industry peers.
FTDR's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 15.06%, FTDR is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
FTDR's Operating Margin has declined in the last couple of years.
The Gross Margin of FTDR (49.72%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of FTDR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.06% | ||
| PM (TTM) | 9.61% | ||
| GM | 49.72% |
OM growth 3Y0.94%
OM growth 5Y-2.39%
PM growth 3Y8.13%
PM growth 5Y-0.67%
GM growth 3Y0.78%
GM growth 5Y1.84%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FTDR is creating value.
Compared to 1 year ago, FTDR has less shares outstanding
The number of shares outstanding for FTDR has been reduced compared to 5 years ago.
FTDR has a better debt/assets ratio than last year.
2.2 Solvency
FTDR has an Altman-Z score of 4.37. This indicates that FTDR is financially healthy and has little risk of bankruptcy at the moment.
FTDR's Altman-Z score of 4.37 is amongst the best of the industry. FTDR outperforms 85.94% of its industry peers.
FTDR has a debt to FCF ratio of 3.47. This is a good value and a sign of high solvency as FTDR would need 3.47 years to pay back of all of its debts.
FTDR has a better Debt to FCF ratio (3.47) than 76.56% of its industry peers.
A Debt/Equity ratio of 4.24 is on the high side and indicates that FTDR has dependencies on debt financing.
The Debt to Equity ratio of FTDR (4.24) is worse than 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.24 | ||
| Debt/FCF | 3.47 | ||
| Altman-Z | 4.37 |
ROIC/WACC3.02
WACC8.86%
2.3 Liquidity
A Current Ratio of 1.10 indicates that FTDR should not have too much problems paying its short term obligations.
FTDR's Current ratio of 1.10 is in line compared to the rest of the industry. FTDR outperforms 43.75% of its industry peers.
FTDR has a Quick Ratio of 1.10. This is a normal value and indicates that FTDR is financially healthy and should not expect problems in meeting its short term obligations.
FTDR has a Quick ratio (1.10) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
FTDR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 82.54%, which is quite impressive.
Measured over the past 5 years, FTDR shows a small growth in Earnings Per Share. The EPS has been growing by 7.39% on average per year.
The Revenue has been growing slightly by 7.10% in the past year.
FTDR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.19% yearly.
EPS 1Y (TTM)82.54%
EPS 3Y14.31%
EPS 5Y7.39%
EPS growth Q2Q53.85%
Revenue 1Y (TTM)7.1%
Revenue growth 3Y6.49%
Revenue growth 5Y7.19%
Revenue growth Q2Q7.65%
3.2 Future
Based on estimates for the next years, FTDR will show a decrease in Earnings Per Share. The EPS will decrease by -3.57% on average per year.
FTDR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y4.37%
EPS Next 2Y7.35%
EPS Next 3Y9.31%
EPS Next 5Y-3.57%
Revenue Next Year3.32%
Revenue Next 2Y4.62%
Revenue Next 3Y5.41%
Revenue Next 5Y4.95%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FTDR is valuated correctly with a Price/Earnings ratio of 13.50.
Compared to the rest of the industry, the Price/Earnings ratio of FTDR indicates a somewhat cheap valuation: FTDR is cheaper than 79.69% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.92. FTDR is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.94, which indicates a correct valuation of FTDR.
Based on the Price/Forward Earnings ratio, FTDR is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FTDR to the average of the S&P500 Index (21.49), we can say FTDR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 12.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTDR indicates a somewhat cheap valuation: FTDR is cheaper than 78.13% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FTDR is valued a bit cheaper than 79.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.16 | ||
| EV/EBITDA | 8.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of FTDR may justify a higher PE ratio.
PEG (NY)3.09
PEG (5Y)1.83
EPS Next 2Y7.35%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
No dividends for FTDR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRONTDOOR INC
NASDAQ:FTDR (4/26/2024, 7:00:00 PM)
After market: 31.05 0 (0%)31.05
+0.36 (+1.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.42B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 12.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.09
PEG (5Y)1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.7% | ||
| ROE | 125.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.06% | ||
| PM (TTM) | 9.61% | ||
| GM | 49.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)82.54%
EPS 3Y14.31%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.1%
Revenue growth 3Y6.49%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
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