Frontdoor, Inc.
Frontdoor, Inc. Fundamental Analysis
Frontdoor, Inc. (FTDR) shows strong financial fundamentals with a PE ratio of 16.60, profit margin of 12.28%, and ROE of 99.90%. The company generates $2.1B in annual revenue with strong year-over-year growth of 13.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FTDR's fundamental strength across five key dimensions:
Efficiency Score
ExcellentFTDR demonstrates superior asset utilization.
Valuation Score
ExcellentFTDR trades at attractive valuation levels.
Growth Score
ExcellentFTDR delivers strong and consistent growth momentum.
Financial Health Score
ModerateFTDR shows balanced financial health with some risks.
Profitability Score
ModerateFTDR maintains healthy but balanced margins.
Key Financial Metrics
Is FTDR Expensive or Cheap?
P/E Ratio
FTDR trades at 16.60 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FTDR's PEG of 1.20 indicates fair valuation.
Price to Book
The market values Frontdoor, Inc. at 18.76 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.42 times EBITDA. This is generally considered low.
How Well Does FTDR Make Money?
Net Profit Margin
For every $100 in sales, Frontdoor, Inc. keeps $12.28 as profit after all expenses.
Operating Margin
Core operations generate 22.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $99.90 in profit for every $100 of shareholder equity.
ROA
Frontdoor, Inc. generates $12.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Frontdoor, Inc. produces operating cash flow of $407.88M, showing steady but balanced cash generation.
Free Cash Flow
Frontdoor, Inc. generates strong free cash flow of $383.01M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.45 in free cash annually.
FCF Yield
FTDR converts 8.95% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.20
vs 25 benchmark
P/B Ratio
Price to book value ratio
18.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.00
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How FTDR Stacks Against Its Sector Peers
| Metric | FTDR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.60 | 23.70 | Better (Cheaper) |
| ROE | 99.90% | 1185.00% | Weak |
| Net Margin | 12.28% | 2505.00% | Weak |
| Debt/Equity | 5.15 | 0.77 | Weak (High Leverage) |
| Current Ratio | 1.47 | 2.86 | Neutral |
| ROA | 12.01% | -8133.00% (disorted) | Strong |
FTDR outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Frontdoor, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
65.50%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
165.37%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
133.67%
Industry Style: Cyclical, Growth, Discretionary
High Growth