FRONTDOOR INC (FTDR) Stock Fundamental Analysis
NASDAQ:FTDR - Nasdaq - US35905A1097 - Common Stock - Currency: USD
Overall FTDR gets a fundamental rating of 6 out of 10. We evaluated FTDR against 73 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FTDR was profitable.
FTDR had a positive operating cash flow in the past year.
Each year in the past 5 years FTDR has been profitable.
FTDR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.15%, FTDR belongs to the best of the industry, outperforming 87.67% of the companies in the same industry.
The Return On Equity of FTDR (98.33%) is better than 97.26% of its industry peers.
With an excellent Return On Invested Capital value of 15.66%, FTDR belongs to the best of the industry, outperforming 93.15% 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 11.99%.
The last Return On Invested Capital (15.66%) for FTDR is well below the 3 year average (20.06%), which needs to be investigated, but indicates that FTDR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.15% | ||
| ROE | 98.33% | ||
| ROIC | 15.66% |
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
Looking at the Profit Margin, with a value of 12.76%, FTDR belongs to the top of the industry, outperforming 89.04% of the companies in the same industry.
FTDR's Profit Margin has improved in the last couple of years.
FTDR's Operating Margin of 19.54% is amongst the best of the industry. FTDR outperforms 84.93% of its industry peers.
In the last couple of years the Operating Margin of FTDR has remained more or less at the same level.
Looking at the Gross Margin, with a value of 53.69%, FTDR is in the better half of the industry, outperforming 69.86% of the companies in the same industry.
FTDR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.54% | ||
| PM (TTM) | 12.76% | ||
| GM | 53.69% |
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
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
Compared to 5 years ago, FTDR has less shares outstanding
FTDR has a worse debt/assets ratio than last year.
2.2 Solvency
FTDR has an Altman-Z score of 2.96. This is not the best score and indicates that FTDR is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of FTDR (2.96) is better than 75.34% of its industry peers.
FTDR has a debt to FCF ratio of 5.17. This is a neutral value as FTDR would need 5.17 years to pay back of all of its debts.
FTDR has a Debt to FCF ratio of 5.17. This is in the better half of the industry: FTDR outperforms 71.23% of its industry peers.
FTDR has a Debt/Equity ratio of 4.90. This is a high value indicating a heavy dependency on external financing.
FTDR has a Debt to Equity ratio of 4.90. This is in the lower half of the industry: FTDR underperforms 76.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.9 | ||
| Debt/FCF | 5.17 | ||
| Altman-Z | 2.96 |
ROIC/WACC1.82
WACC8.62%
2.3 Liquidity
FTDR has a Current Ratio of 1.32. 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 1.32 is in line compared to the rest of the industry. FTDR outperforms 58.90% of its industry peers.
FTDR has a Quick Ratio of 1.32. 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 (1.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.31% over the past year.
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%.
Measured over the past years, FTDR shows a small growth in Revenue. The Revenue has been growing by 6.19% on average per year.
EPS 1Y (TTM)45.31%
EPS 3Y21.57%
EPS 5Y12.08%
EPS Q2Q%45.45%
Revenue 1Y (TTM)3.54%
Revenue growth 3Y4.78%
Revenue growth 5Y6.19%
Sales Q2Q%12.7%
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.
FTDR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.23% yearly.
EPS Next Y-6.38%
EPS Next 2Y1.33%
EPS Next 3Y5.79%
EPS Next 5Y-8.44%
Revenue Next Year10.46%
Revenue Next 2Y8.44%
Revenue Next 3Y8.42%
Revenue Next 5Y5.23%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.47 indicates a correct valuation of FTDR.
Based on the Price/Earnings ratio, FTDR is valued cheaply inside the industry as 82.19% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.22. FTDR is valued slightly cheaper when compared to this.
FTDR is valuated correctly with a Price/Forward Earnings ratio of 14.93.
FTDR's Price/Forward Earnings ratio is rather cheap when compared to the industry. FTDR is cheaper than 80.82% of the companies in the same industry.
FTDR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.47 | ||
| Fwd PE | 14.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTDR is valued a bit cheaper than the industry average as 71.23% of the companies are valued more expensively.
FTDR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FTDR is cheaper than 84.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.4 | ||
| EV/EBITDA | 10.49 |
4.3 Compensation for Growth
FTDR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.2
EPS Next 2Y1.33%
EPS Next 3Y5.79%
5. Dividend
5.1 Amount
FTDR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
51.5
+4.97 (+10.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners103.82%
Inst Owner Change0.49%
Ins Owners0.42%
Ins Owner Change17.56%
Market Cap3.81B
Analysts78.33
Price Target55.42 (7.61%)
Short Float %2.78%
Short Ratio2.13
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)82.84%
Min EPS beat(2)29.34%
Max EPS beat(2)136.35%
EPS beat(4)4
Avg EPS beat(4)75.96%
Min EPS beat(4)24.26%
Max EPS beat(4)136.35%
EPS beat(8)8
Avg EPS beat(8)153.79%
EPS beat(12)10
Avg EPS beat(12)117.23%
EPS beat(16)13
Avg EPS beat(16)89.66%
Revenue beat(2)1
Avg Revenue beat(2)-0.12%
Min Revenue beat(2)-2.3%
Max Revenue beat(2)2.06%
Revenue beat(4)1
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-2.3%
Max Revenue beat(4)2.06%
Revenue beat(8)2
Avg Revenue beat(8)-0.39%
Revenue beat(12)4
Avg Revenue beat(12)-0.41%
Revenue beat(16)4
Avg Revenue beat(16)-0.82%
PT rev (1m)0%
PT rev (3m)-3.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.08%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)3.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.47 | ||
| Fwd PE | 14.93 | ||
| P/S | 2.07 | ||
| P/FCF | 16.4 | ||
| P/OCF | 14.04 | ||
| P/B | 15.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.49 |
EPS(TTM)3.56
EY6.91%
EPS(NY)3.45
Fwd EY6.7%
FCF(TTM)3.14
FCFY6.1%
OCF(TTM)3.67
OCFY7.12%
SpS24.93
BVpS3.23
TBVpS-15.92
PEG (NY)N/A
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.15% | ||
| ROE | 98.33% | ||
| ROCE | 20.71% | ||
| ROIC | 15.66% | ||
| ROICexc | 20.9% | ||
| ROICexgc | N/A | ||
| OM | 19.54% | ||
| PM (TTM) | 12.76% | ||
| GM | 53.69% | ||
| FCFM | 12.6% |
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 Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.9 | ||
| Debt/FCF | 5.17 | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 100% | ||
| Cap/Sales | 2.12% | ||
| Interest Coverage | 9.23 | ||
| Cash Conversion | 67.92% | ||
| Profit Quality | 98.72% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 2.96 |
F-Score6
WACC8.62%
ROIC/WACC1.82
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)45.31%
EPS 3Y21.57%
EPS 5Y12.08%
EPS Q2Q%45.45%
EPS Next Y-6.38%
EPS Next 2Y1.33%
EPS Next 3Y5.79%
EPS Next 5Y-8.44%
Revenue 1Y (TTM)3.54%
Revenue growth 3Y4.78%
Revenue growth 5Y6.19%
Sales Q2Q%12.7%
Revenue Next Year10.46%
Revenue Next 2Y8.44%
Revenue Next 3Y8.42%
Revenue Next 5Y5.23%
EBIT growth 1Y36.88%
EBIT growth 3Y14.79%
EBIT growth 5Y6.56%
EBIT Next Year36.79%
EBIT Next 3Y15.9%
EBIT Next 5Y4.19%
FCF growth 1Y35.67%
FCF growth 3Y14.64%
FCF growth 5Y5.44%
OCF growth 1Y33.5%
OCF growth 3Y13.57%
OCF growth 5Y6.26%