LendingTree, Inc.
LendingTree, Inc. Fundamental Analysis
LendingTree, Inc. (TREE) shows strong financial fundamentals with a PE ratio of 2.72, profit margin of 15.02%, and ROE of 85.96%. The company generates $1.2B in annual revenue with strong year-over-year growth of 24.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze TREE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTREE demonstrates superior asset utilization.
Valuation Score
ExcellentTREE trades at attractive valuation levels.
Growth Score
ModerateTREE shows steady but slowing expansion.
Financial Health Score
ModerateTREE shows balanced financial health with some risks.
Profitability Score
ExcellentTREE achieves industry-leading margins.
Key Financial Metrics
Is TREE Expensive or Cheap?
P/E Ratio
TREE trades at 2.72 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TREE's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values LendingTree, Inc. at 1.62 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.03 times EBITDA. This is generally considered low.
How Well Does TREE Make Money?
Net Profit Margin
For every $100 in sales, LendingTree, Inc. keeps $15.02 as profit after all expenses.
Operating Margin
Core operations generate 8.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $85.96 in profit for every $100 of shareholder equity.
ROA
LendingTree, Inc. generates $20.95 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 $85.66M, signaling weaker underlying cash strength.
Free Cash Flow
LendingTree, Inc. produces free cash flow of $73.77M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.29 in free cash annually.
FCF Yield
TREE converts 14.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.86
vs 25 benchmark
ROA
Return on assets percentage
0.21
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How TREE Stacks Against Its Sector Peers
| Metric | TREE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.72 | 18.88 | Better (Cheaper) |
| ROE | 85.96% | 801.00% | Weak |
| Net Margin | 15.02% | 2213.00% | Weak |
| Debt/Equity | 1.44 | 1.03 | Weak (High Leverage) |
| Current Ratio | 1.89 | 615.97 | Neutral |
| ROA | 20.95% | -19854.00% (disorted) | Strong |
TREE 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 LendingTree, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
17.57%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
400.24%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
81.49%
Industry Style: Value, Dividend, Cyclical
High Growth