LENDINGTREE INC (TREE) Stock Fundamental Analysis
NASDAQ:TREE - US52603B1070 - Common Stock
67.95 USD
+0.54 (+0.8%)
67.95 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to TREE. TREE was compared to 54 industry peers in the Consumer Finance industry. TREE has a bad profitability rating. Also its financial health evaluation is rather negative. TREE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TREE had positive earnings in the past year.
In the past year TREE had a positive cash flow from operations.
In the past 5 years TREE reported 4 times negative net income.
In the past 5 years TREE always reported a positive cash flow from operatings.
1.2 Ratios
TREE has a Return On Assets of -6.46%. This is amonst the worse of the industry: TREE underperforms 90.74% of its industry peers.
Looking at the Return On Equity, with a value of -45.71%, TREE is doing worse than 88.89% of the companies in the same industry.
TREE has a better Return On Invested Capital (8.53%) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.46% | ||
| ROE | -45.71% | ||
| ROIC | 8.53% |
ROA(3y)-12.12%
ROA(5y)-7.02%
ROE(3y)-75.77%
ROE(5y)-45.03%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
TREE's Operating Margin of 6.13% is in line compared to the rest of the industry. TREE outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of TREE has declined.
The Gross Margin of TREE (96.14%) is better than 90.74% of its industry peers.
In the last couple of years the Gross Margin of TREE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.13% | ||
| PM (TTM) | N/A | ||
| GM | 96.14% |
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%
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
Compared to 5 years ago, TREE has more shares outstanding
Compared to 1 year ago, TREE has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.83, we must say that TREE is in the distress zone and has some risk of bankruptcy.
TREE has a Altman-Z score of 0.83. This is comparable to the rest of the industry: TREE outperforms 55.56% of its industry peers.
The Debt to FCF ratio of TREE is 6.35, which is on the high side as it means it would take TREE, 6.35 years of fcf income to pay off all of its debts.
TREE has a Debt to FCF ratio (6.35) which is comparable to the rest of the industry.
A Debt/Equity ratio of 3.26 is on the high side and indicates that TREE has dependencies on debt financing.
TREE has a Debt to Equity ratio of 3.26. This is comparable to the rest of the industry: TREE outperforms 40.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 6.35 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.78
WACC10.93%
2.3 Liquidity
TREE has a Current Ratio of 1.22. This is a normal value and indicates that TREE is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.22, TREE perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
A Quick Ratio of 1.22 indicates that TREE should not have too much problems paying its short term obligations.
TREE has a Quick ratio of 1.22. This is comparable to the rest of the industry: TREE outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 91.55% over the past year.
The earnings per share for TREE have been decreasing by -10.75% on average. This is quite bad
The Revenue has grown by 51.65% 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)91.55%
EPS 3Y27.33%
EPS 5Y-10.75%
EPS Q2Q%109.26%
Revenue 1Y (TTM)51.65%
Revenue growth 3Y-6.42%
Revenue growth 5Y-4.04%
Sales Q2Q%19.05%
3.2 Future
The Earnings Per Share is expected to grow by 16.00% on average over the next years. This is quite good.
TREE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.68% yearly.
EPS Next Y37.43%
EPS Next 2Y23.61%
EPS Next 3Y26.56%
EPS Next 5Y16%
Revenue Next Year18.12%
Revenue Next 2Y12.73%
Revenue Next 3Y9.6%
Revenue Next 5Y8.68%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.65, which indicates a correct valuation of TREE.
Based on the Price/Earnings ratio, TREE is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
TREE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.13.
The Price/Forward Earnings ratio is 13.90, which indicates a correct valuation of TREE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TREE is on the same level as its industry peers.
TREE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.65 | ||
| Fwd PE | 13.9 |
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 | 11.97 | ||
| EV/EBITDA | 14.88 |
4.3 Compensation for Growth
TREE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TREE's earnings are expected to grow with 26.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y23.61%
EPS Next 3Y26.56%
5. Dividend
5.1 Amount
TREE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
67.95
+0.54 (+0.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners84.8%
Inst Owner Change-2.28%
Ins Owners18.64%
Ins Owner Change24.04%
Market Cap925.48M
Analysts83.33
Price Target69.36 (2.08%)
Short Float %5.48%
Short Ratio1.83
Dividend
| Industry Rank | Sector 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)29.36%
Min EPS beat(2)10.05%
Max EPS beat(2)48.67%
EPS beat(4)4
Avg EPS beat(4)612.96%
Min EPS beat(4)10.05%
Max EPS beat(4)2374.51%
EPS beat(8)8
Avg EPS beat(8)395.95%
EPS beat(12)12
Avg EPS beat(12)337.66%
EPS beat(16)16
Avg EPS beat(16)292.65%
Revenue beat(2)0
Avg Revenue beat(2)-2.25%
Min Revenue beat(2)-4.05%
Max Revenue beat(2)-0.44%
Revenue beat(4)2
Avg Revenue beat(4)2.08%
Min Revenue beat(4)-4.05%
Max Revenue beat(4)8.25%
Revenue beat(8)4
Avg Revenue beat(8)1.37%
Revenue beat(12)4
Avg Revenue beat(12)-0.79%
Revenue beat(16)4
Avg Revenue beat(16)-1.25%
PT rev (1m)6.92%
PT rev (3m)6.81%
EPS NQ rev (1m)1.02%
EPS NQ rev (3m)8.59%
EPS NY rev (1m)1.65%
EPS NY rev (3m)5.16%
Revenue NQ rev (1m)7.51%
Revenue NQ rev (3m)1.74%
Revenue NY rev (1m)4.04%
Revenue NY rev (3m)4.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.65 | ||
| Fwd PE | 13.9 | ||
| P/S | 0.91 | ||
| P/FCF | 11.97 | ||
| P/OCF | 10.37 | ||
| P/B | 7.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.88 |
EPS(TTM)4.08
EY6%
EPS(NY)4.89
Fwd EY7.2%
FCF(TTM)5.68
FCFY8.36%
OCF(TTM)6.55
OCFY9.64%
SpS74.31
BVpS8.67
TBVpS-22.33
PEG (NY)0.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.46% | ||
| ROE | -45.71% | ||
| ROCE | 10.8% | ||
| ROIC | 8.53% | ||
| ROICexc | 11.51% | ||
| ROICexgc | 1279.41% | ||
| OM | 6.13% | ||
| PM (TTM) | N/A | ||
| GM | 96.14% | ||
| FCFM | 7.64% |
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 Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 6.35 | ||
| Debt/EBITDA | 4.52 | ||
| Cap/Depr | 51.49% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.73% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 0.83 |
F-Score7
WACC10.93%
ROIC/WACC0.78
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)91.55%
EPS 3Y27.33%
EPS 5Y-10.75%
EPS Q2Q%109.26%
EPS Next Y37.43%
EPS Next 2Y23.61%
EPS Next 3Y26.56%
EPS Next 5Y16%
Revenue 1Y (TTM)51.65%
Revenue growth 3Y-6.42%
Revenue growth 5Y-4.04%
Sales Q2Q%19.05%
Revenue Next Year18.12%
Revenue Next 2Y12.73%
Revenue Next 3Y9.6%
Revenue Next 5Y8.68%
EBIT growth 1Y165.34%
EBIT growth 3Y79.39%
EBIT growth 5Y-9.36%
EBIT Next Year257.72%
EBIT Next 3Y63.31%
EBIT Next 5Y38.43%
FCF growth 1Y71.29%
FCF growth 3Y-20.82%
FCF growth 5Y-16.25%
OCF growth 1Y61.96%
OCF growth 3Y-23.28%
OCF growth 5Y-15.43%