LENDINGTREE INC (TREE)
US52603B1070 - Common Stock
We assign a fundamental rating of 3 out of 10 to TREE. TREE was compared to 51 industry peers in the Consumer Finance industry. TREE scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. TREE is quite expensive at the moment. It does show a decent 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.
The reported net income has been mixed in the past 5 years: TREE reported negative net income in multiple years.
In the past 5 years TREE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -15.25%, TREE is doing worse than 84.31% of the companies in the same industry.
With a Return On Equity value of -98.61%, TREE is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 0.92%, TREE perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.25% | ||
| ROE | -98.61% | ||
| ROIC | 0.92% |
ROA(3y)-8.53%
ROA(5y)-5.56%
ROE(3y)-57.86%
ROE(5y)-36.48%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 1.26%, TREE is doing worse than 60.78% of the companies in the same industry.
TREE's Operating Margin has declined in the last couple of years.
The Gross Margin of TREE (94.24%) is better than 92.16% of its industry peers.
TREE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.26% | ||
| PM (TTM) | N/A | ||
| GM | 94.24% |
OM growth 3YN/A
OM growth 5Y-32.55%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.08%
GM growth 5Y-0.21%
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.
Compared to 1 year ago, TREE has more shares outstanding
TREE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TREE has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.14, we must say that TREE is in the distress zone and has some risk of bankruptcy.
TREE has a Altman-Z score (0.14) which is in line with its industry peers.
The Debt to FCF ratio of TREE is 9.61, which is on the high side as it means it would take TREE, 9.61 years of fcf income to pay off all of its debts.
TREE's Debt to FCF ratio of 9.61 is in line compared to the rest of the industry. TREE outperforms 49.02% of its industry peers.
TREE has a Debt/Equity ratio of 4.23. This is a high value indicating a heavy dependency on external financing.
TREE's Debt to Equity ratio of 4.23 is on the low side compared to the rest of the industry. TREE is outperformed by 72.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.23 | ||
| Debt/FCF | 9.61 | ||
| Altman-Z | 0.14 |
ROIC/WACC0.14
WACC6.66%
2.3 Liquidity
TREE has a Current Ratio of 2.60. This indicates that TREE is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TREE (2.60) is better than 74.51% of its industry peers.
A Quick Ratio of 2.60 indicates that TREE has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.60, TREE is doing good in the industry, outperforming 74.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 2.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 113.08% over the past year.
TREE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.77% yearly.
Looking at the last year, TREE shows a very negative growth in Revenue. The Revenue has decreased by -31.73% in the last year.
Measured over the past years, TREE shows a decrease in Revenue. The Revenue has been decreasing by -2.54% on average per year.
EPS 1Y (TTM)113.08%
EPS 3Y14.22%
EPS 5Y-16.77%
EPS growth Q2Q-26.32%
Revenue 1Y (TTM)-31.73%
Revenue growth 3Y-9.59%
Revenue growth 5Y-2.54%
Revenue growth Q2Q-33.51%
3.2 Future
The Earnings Per Share is expected to grow by 4.38% on average over the next years.
The Revenue is expected to grow by 6.11% on average over the next years.
EPS Next Y0.21%
EPS Next 2Y24.29%
EPS Next 3Y14.55%
EPS Next 5Y4.38%
Revenue Next Year-1.21%
Revenue Next 2Y7.1%
Revenue Next 3Y6.51%
Revenue Next 5Y6.11%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.58, the valuation of TREE can be described as rather expensive.
Based on the Price/Earnings ratio, TREE is valued a bit more expensive than 64.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of TREE to the average of the S&P500 Index (24.55), we can say TREE is valued inline with the index average.
A Price/Forward Earnings ratio of 21.54 indicates a rather expensive valuation of TREE.
TREE's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.92. TREE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 21.54 |
4.2 Price Multiples
TREE's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as TREE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.66 | ||
| EV/EBITDA | 29.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TREE does not grow enough to justify the current Price/Earnings ratio.
TREE's earnings are expected to grow with 14.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)102.52
PEG (5Y)N/A
EPS Next 2Y24.29%
EPS Next 3Y14.55%
5. Dividend
5.1 Amount
No dividends for TREE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LENDINGTREE INC
NASDAQ:TREE (5/2/2024, 2:46:59 PM)
49.21
+1.32 (+2.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap641.70M
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)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 21.54 | ||
| 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)102.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.25% | ||
| ROE | -98.61% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.26% | ||
| PM (TTM) | N/A | ||
| GM | 94.24% | ||
| 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 Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.6 | ||
| Quick Ratio | 2.6 | ||
| 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)113.08%
EPS 3Y14.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y0.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-31.73%
Revenue growth 3Y-9.59%
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
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y