LendingTree, Inc.
LendingTree, Inc. Fundamental Analysis
LendingTree, Inc. (TREE) shows moderate financial fundamentals with a PE ratio of 35.31, profit margin of 1.34%, and ROE of 12.23%. The company generates $1.1B in annual revenue with strong year-over-year growth of 33.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TREE's fundamental strength across five key dimensions:
Efficiency Score
WeakTREE struggles to generate sufficient returns from assets.
Valuation Score
ModerateTREE shows balanced valuation metrics.
Growth Score
ExcellentTREE delivers strong and consistent growth momentum.
Financial Health Score
ModerateTREE shows balanced financial health with some risks.
Profitability Score
WeakTREE struggles to sustain strong margins.
Key Financial Metrics
Is TREE Expensive or Cheap?
P/E Ratio
TREE trades at 35.31 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TREE's PEG of 0.28 indicates potential undervaluation.
Price to Book
The market values LendingTree, Inc. at 3.78 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 1.27 times EBITDA. This is generally considered low.
How Well Does TREE Make Money?
Net Profit Margin
For every $100 in sales, LendingTree, Inc. keeps $1.34 as profit after all expenses.
Operating Margin
Core operations generate 5.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.23 in profit for every $100 of shareholder equity.
ROA
LendingTree, Inc. generates $1.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
LendingTree, Inc. generates limited operating cash flow of $74.06M, signaling weaker underlying cash strength.
Free Cash Flow
LendingTree, Inc. produces free cash flow of $61.60M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.51 in free cash annually.
FCF Yield
TREE converts 11.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How TREE Stacks Against Its Sector Peers
| Metric | TREE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.31 | 19.28 | Worse (Expensive) |
| ROE | 12.23% | 792.00% | Weak |
| Net Margin | 1.34% | 2238.00% | Weak |
| Debt/Equity | 3.40 | 0.85 | Weak (High Leverage) |
| Current Ratio | 1.43 | 604.98 | Neutral |
| ROA | 1.86% | -20889.00% (disorted) | Weak |
TREE outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews LendingTree, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-21.32%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-326.26%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-58.16%
Industry Style: Value, Dividend, Cyclical
Declining