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LENDINGTREE INC (TREE) Stock Fundamental Analysis

NASDAQ:TREE - Nasdaq - US52603B1070 - Common Stock - Currency: USD

35.44  -2.21 (-5.87%)

Premarket: 35.44 0 (0%)

Fundamental Rating

4

TREE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 52 industry peers in the Consumer Finance industry. TREE may be in some trouble as it scores bad on both profitability and health. TREE is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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3

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.
TREE Yearly Net Income VS EBIT VS OCF VS FCFTREE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M

1.2 Ratios

The Return On Assets of TREE (-7.09%) is worse than 88.46% of its industry peers.
TREE has a worse Return On Equity (-53.11%) than 90.38% of its industry peers.
The Return On Invested Capital of TREE (7.08%) is better than 73.08% of its industry peers.
Industry RankSector Rank
ROA -7.09%
ROE -53.11%
ROIC 7.08%
ROA(3y)-12.12%
ROA(5y)-7.02%
ROE(3y)-75.77%
ROE(5y)-45.03%
ROIC(3y)N/A
ROIC(5y)N/A
TREE Yearly ROA, ROE, ROICTREE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60 -80

1.3 Margins

TREE has a Operating Margin (5.20%) which is comparable to the rest of the industry.
TREE's Operating Margin has declined in the last couple of years.
The Gross Margin of TREE (96.15%) is better than 90.38% of its industry peers.
TREE's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 5.2%
PM (TTM) N/A
GM 96.15%
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%
TREE Yearly Profit, Operating, Gross MarginsTREE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TREE is destroying value.
Compared to 1 year ago, TREE has more shares outstanding
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.
TREE Yearly Shares OutstandingTREE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
TREE Yearly Total Debt VS Total AssetsTREE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

TREE has an Altman-Z score of 0.35. This is a bad value and indicates that TREE is not financially healthy and even has some risk of bankruptcy.
TREE's Altman-Z score of 0.35 is in line compared to the rest of the industry. TREE outperforms 40.38% of its industry peers.
TREE has a debt to FCF ratio of 11.11. This is a negative value and a sign of low solvency as TREE would need 11.11 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.11, TREE is in line with its industry, outperforming 44.23% of the companies in the same industry.
TREE has a Debt/Equity ratio of 3.74. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.74, TREE is doing worse than 61.54% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 3.74
Debt/FCF 11.11
Altman-Z 0.35
ROIC/WACC0.8
WACC8.85%
TREE Yearly LT Debt VS Equity VS FCFTREE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 1.20 indicates that TREE should not have too much problems paying its short term obligations.
TREE has a Current ratio (1.20) which is in line with its industry peers.
TREE has a Quick Ratio of 1.20. This is a normal value and indicates that TREE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.20, TREE is in line with its industry, outperforming 53.85% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.2
Quick Ratio 1.2
TREE Yearly Current Assets VS Current LiabilitesTREE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 27.84% over the past year.
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 51.96% 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)27.84%
EPS 3Y27.33%
EPS 5Y-10.75%
EPS Q2Q%41.43%
Revenue 1Y (TTM)51.96%
Revenue growth 3Y-6.42%
Revenue growth 5Y-4.04%
Sales Q2Q%42.88%

3.2 Future

TREE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.13% yearly.
TREE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.55% yearly.
EPS Next Y30.69%
EPS Next 2Y17.13%
EPS Next 3Y19.7%
EPS Next 5Y21.13%
Revenue Next Year12.74%
Revenue Next 2Y10.06%
Revenue Next 3Y8.88%
Revenue Next 5Y7.55%

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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
TREE Yearly Revenue VS EstimatesTREE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 500M 1B
TREE Yearly EPS VS EstimatesTREE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 2 4 6 8 10

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.15, which indicates a very decent valuation of TREE.
Compared to the rest of the industry, the Price/Earnings ratio of TREE is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.03, TREE is valued rather cheaply.
TREE is valuated reasonably with a Price/Forward Earnings ratio of 8.07.
TREE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TREE is cheaper than 63.46% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, TREE is valued rather cheaply.
Industry RankSector Rank
PE 10.15
Fwd PE 8.07
TREE Price Earnings VS Forward Price EarningsTREE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

TREE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TREE is cheaper than 73.08% of the companies in the same industry.
TREE's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 10.79
EV/EBITDA 11.41
TREE Per share dataTREE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 60

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.
A more expensive valuation may be justified as TREE's earnings are expected to grow with 19.70% in the coming years.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y17.13%
EPS Next 3Y19.7%

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0

5. Dividend

5.1 Amount

TREE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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LENDINGTREE INC

NASDAQ:TREE (5/21/2025, 8:00:01 PM)

Premarket: 35.44 0 (0%)

35.44

-2.21 (-5.87%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)05-01 2025-05-01/amc
Earnings (Next)07-23 2025-07-23/bmo
Inst Owners82.02%
Inst Owner Change6.48%
Ins Owners18%
Ins Owner Change22.1%
Market Cap479.86M
Analysts84.62
Price Target64.94 (83.24%)
Short Float %4.08%
Short Ratio1.1
Dividend
Industry RankSector 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)1211.59%
Min EPS beat(2)48.67%
Max EPS beat(2)2374.51%
EPS beat(4)4
Avg EPS beat(4)614.46%
Min EPS beat(4)16.04%
Max EPS beat(4)2374.51%
EPS beat(8)8
Avg EPS beat(8)429.35%
EPS beat(12)12
Avg EPS beat(12)342.51%
EPS beat(16)16
Avg EPS beat(16)321.9%
Revenue beat(2)1
Avg Revenue beat(2)2.1%
Min Revenue beat(2)-4.05%
Max Revenue beat(2)8.25%
Revenue beat(4)3
Avg Revenue beat(4)4.67%
Min Revenue beat(4)-4.05%
Max Revenue beat(4)9.94%
Revenue beat(8)4
Avg Revenue beat(8)0.47%
Revenue beat(12)4
Avg Revenue beat(12)-1.19%
Revenue beat(16)4
Avg Revenue beat(16)-1.33%
PT rev (1m)-4.02%
PT rev (3m)-9.05%
EPS NQ rev (1m)16.52%
EPS NQ rev (3m)22.5%
EPS NY rev (1m)18.35%
EPS NY rev (3m)25.05%
Revenue NQ rev (1m)-1.72%
Revenue NQ rev (3m)-4.72%
Revenue NY rev (1m)-2.14%
Revenue NY rev (3m)-2.8%
Valuation
Industry RankSector Rank
PE 10.15
Fwd PE 8.07
P/S 0.49
P/FCF 10.79
P/OCF 8.52
P/B 4.63
P/tB N/A
EV/EBITDA 11.41
EPS(TTM)3.49
EY9.85%
EPS(NY)4.39
Fwd EY12.39%
FCF(TTM)3.28
FCFY9.26%
OCF(TTM)4.16
OCFY11.74%
SpS71.8
BVpS7.66
TBVpS-23.62
PEG (NY)0.33
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -7.09%
ROE -53.11%
ROCE 8.96%
ROIC 7.08%
ROICexc 9.12%
ROICexgc 272.68%
OM 5.2%
PM (TTM) N/A
GM 96.15%
FCFM 4.57%
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 Turnover1.25
Health
Industry RankSector Rank
Debt/Equity 3.74
Debt/FCF 11.11
Debt/EBITDA 5.22
Cap/Depr 50.29%
Cap/Sales 1.22%
Interest Coverage 250
Cash Conversion 75.9%
Profit Quality N/A
Current Ratio 1.2
Quick Ratio 1.2
Altman-Z 0.35
F-Score7
WACC8.85%
ROIC/WACC0.8
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)27.84%
EPS 3Y27.33%
EPS 5Y-10.75%
EPS Q2Q%41.43%
EPS Next Y30.69%
EPS Next 2Y17.13%
EPS Next 3Y19.7%
EPS Next 5Y21.13%
Revenue 1Y (TTM)51.96%
Revenue growth 3Y-6.42%
Revenue growth 5Y-4.04%
Sales Q2Q%42.88%
Revenue Next Year12.74%
Revenue Next 2Y10.06%
Revenue Next 3Y8.88%
Revenue Next 5Y7.55%
EBIT growth 1Y108.4%
EBIT growth 3Y79.39%
EBIT growth 5Y-9.36%
EBIT Next Year255.54%
EBIT Next 3Y66.58%
EBIT Next 5Y41.32%
FCF growth 1Y24.54%
FCF growth 3Y-20.82%
FCF growth 5Y-16.25%
OCF growth 1Y22.15%
OCF growth 3Y-23.28%
OCF growth 5Y-15.43%