FRONTDOOR INC (FTDR) Stock Fundamental Analysis
NASDAQ:FTDR - Nasdaq - US35905A1097 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FTDR. FTDR was compared to 72 industry peers in the Diversified Consumer Services industry. While FTDR has a great profitability rating, there are some minor concerns on its financial health. FTDR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FTDR was profitable.
In the past year FTDR had a positive cash flow from operations.
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
With an excellent Return On Assets value of 11.22%, FTDR belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
With an excellent Return On Equity value of 120.20%, FTDR belongs to the best of the industry, outperforming 98.61% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.43%, FTDR belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FTDR is significantly above the industry average of 10.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.22% | ||
| ROE | 120.2% | ||
| ROIC | 16.43% |
ROA(3y)11.14%
ROA(5y)10.67%
ROE(3y)113.49%
ROE(5y)N/A
ROIC(3y)20.06%
ROIC(5y)20.49%
1.3 Margins
FTDR has a better Profit Margin (12.59%) than 79.17% of its industry peers.
In the last couple of years the Profit Margin of FTDR has grown nicely.
Looking at the Operating Margin, with a value of 19.63%, FTDR belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
In the last couple of years the Operating Margin of FTDR has remained more or less at the same level.
With a decent Gross Margin value of 54.50%, FTDR is doing good in the industry, outperforming 68.06% of the companies in the same industry.
FTDR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.63% | ||
| PM (TTM) | 12.59% | ||
| GM | 54.5% |
OM growth 3Y9.55%
OM growth 5Y0.35%
PM growth 3Y16.86%
PM growth 5Y2.61%
GM growth 3Y3.19%
GM growth 5Y1.6%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FTDR is creating value.
The number of shares outstanding for FTDR has been reduced compared to 1 year ago.
FTDR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FTDR has a worse debt to assets ratio.
2.2 Solvency
FTDR has an Altman-Z score of 3.21. This indicates that FTDR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.21, FTDR is in the better half of the industry, outperforming 73.61% of the companies in the same industry.
The Debt to FCF ratio of FTDR is 4.35, which is a neutral value as it means it would take FTDR, 4.35 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FTDR (4.35) is better than 70.83% of its industry peers.
FTDR has a Debt/Equity ratio of 5.88. This is a high value indicating a heavy dependency on external financing.
FTDR has a Debt to Equity ratio of 5.88. This is in the lower half of the industry: FTDR underperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.88 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 3.21 |
ROIC/WACC2.08
WACC7.88%
2.3 Liquidity
FTDR has a Current Ratio of 1.34. This is a normal value and indicates that FTDR is financially healthy and should not expect problems in meeting its short term obligations.
FTDR's Current ratio of 1.34 is in line compared to the rest of the industry. FTDR outperforms 55.56% of its industry peers.
FTDR has a Quick Ratio of 1.34. 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 of 1.34. This is comparable to the rest of the industry: FTDR outperforms 56.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
FTDR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.54%, which is quite impressive.
The Earnings Per Share has been growing by 12.08% on average over the past years. This is quite good.
FTDR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.54%.
FTDR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.19% yearly.
EPS 1Y (TTM)37.54%
EPS 3Y21.57%
EPS 5Y12.08%
EPS Q2Q%28.35%
Revenue 1Y (TTM)3.54%
Revenue growth 3Y4.78%
Revenue growth 5Y6.19%
Sales Q2Q%13.84%
3.2 Future
FTDR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.44% yearly.
The Revenue is expected to grow by 5.23% on average over the next years.
EPS Next Y6.74%
EPS Next 2Y5.81%
EPS Next 3Y8.91%
EPS Next 5Y-8.44%
Revenue Next Year11.53%
Revenue Next 2Y9%
Revenue Next 3Y8.94%
Revenue Next 5Y5.23%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.52, which indicates a correct valuation of FTDR.
Based on the Price/Earnings ratio, FTDR is valued cheaper than 80.56% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.99. FTDR is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.13, which indicates a correct valuation of FTDR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTDR indicates a somewhat cheap valuation: FTDR is cheaper than 70.83% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FTDR to the average of the S&P500 Index (36.36), we can say FTDR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 15.13 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than FTDR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FTDR is valued cheaper than 80.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.29 | ||
| EV/EBITDA | 11.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FTDR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.16
PEG (5Y)1.2
EPS Next 2Y5.81%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
No dividends for FTDR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
56.92
+0.76 (+1.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners104.01%
Inst Owner Change-1.01%
Ins Owners0.59%
Ins Owner Change26.43%
Market Cap4.19B
Analysts78.33
Price Target56.78 (-0.25%)
Short Float %2.13%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)101.17%
Min EPS beat(2)65.99%
Max EPS beat(2)136.35%
EPS beat(4)4
Avg EPS beat(4)63.99%
Min EPS beat(4)24.26%
Max EPS beat(4)136.35%
EPS beat(8)8
Avg EPS beat(8)130.9%
EPS beat(12)11
Avg EPS beat(12)127.56%
EPS beat(16)13
Avg EPS beat(16)91.92%
Revenue beat(2)2
Avg Revenue beat(2)1.18%
Min Revenue beat(2)0.3%
Max Revenue beat(2)2.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-2.3%
Max Revenue beat(4)2.06%
Revenue beat(8)3
Avg Revenue beat(8)-0.32%
Revenue beat(12)5
Avg Revenue beat(12)-0.24%
Revenue beat(16)5
Avg Revenue beat(16)-0.73%
PT rev (1m)0%
PT rev (3m)2.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)17.64%
EPS NY rev (1m)0%
EPS NY rev (3m)14.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 15.13 | ||
| P/S | 2.22 | ||
| P/FCF | 15.29 | ||
| P/OCF | 13.51 | ||
| P/B | 21.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.37 |
EPS(TTM)3.92
EY6.89%
EPS(NY)3.76
Fwd EY6.61%
FCF(TTM)3.72
FCFY6.54%
OCF(TTM)4.21
OCFY7.4%
SpS25.68
BVpS2.69
TBVpS-16.32
PEG (NY)2.16
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.22% | ||
| ROE | 120.2% | ||
| ROCE | 21.73% | ||
| ROIC | 16.43% | ||
| ROICexc | 23.35% | ||
| ROICexgc | N/A | ||
| OM | 19.63% | ||
| PM (TTM) | 12.59% | ||
| GM | 54.5% | ||
| FCFM | 14.5% |
ROA(3y)11.14%
ROA(5y)10.67%
ROE(3y)113.49%
ROE(5y)N/A
ROIC(3y)20.06%
ROIC(5y)20.49%
ROICexc(3y)32.6%
ROICexc(5y)35.97%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)26.55%
ROCE(5y)27.11%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-20.72%
ROICexc growth 5Y-13.8%
OM growth 3Y9.55%
OM growth 5Y0.35%
PM growth 3Y16.86%
PM growth 5Y2.61%
GM growth 3Y3.19%
GM growth 5Y1.6%
F-Score6
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.88 | ||
| Debt/FCF | 4.35 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 67.92% | ||
| Cap/Sales | 1.9% | ||
| Interest Coverage | 7.89 | ||
| Cash Conversion | 73.11% | ||
| Profit Quality | 115.13% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 3.21 |
F-Score6
WACC7.88%
ROIC/WACC2.08
Cap/Depr(3y)101.38%
Cap/Depr(5y)97.36%
Cap/Sales(3y)2.11%
Cap/Sales(5y)2.09%
Profit Quality(3y)113.66%
Profit Quality(5y)123.69%
High Growth Momentum
Growth
EPS 1Y (TTM)37.54%
EPS 3Y21.57%
EPS 5Y12.08%
EPS Q2Q%28.35%
EPS Next Y6.74%
EPS Next 2Y5.81%
EPS Next 3Y8.91%
EPS Next 5Y-8.44%
Revenue 1Y (TTM)3.54%
Revenue growth 3Y4.78%
Revenue growth 5Y6.19%
Sales Q2Q%13.84%
Revenue Next Year11.53%
Revenue Next 2Y9%
Revenue Next 3Y8.94%
Revenue Next 5Y5.23%
EBIT growth 1Y33.94%
EBIT growth 3Y14.79%
EBIT growth 5Y6.56%
EBIT Next Year49.5%
EBIT Next 3Y17.39%
EBIT Next 5Y4.19%
FCF growth 1Y138.26%
FCF growth 3Y14.64%
FCF growth 5Y5.44%
OCF growth 1Y101.3%
OCF growth 3Y13.57%
OCF growth 5Y6.26%