DB:3I5

Stock Analysis Report

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Executive Summary

frontdoor, inc. provides home service plans in the United States.


Snowflake Analysis

Proven track record with moderate growth potential.


Similar Companies

Share Price & News

How has frontdoor's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3I5 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.6%

3I5

0.1%

DE Consumer Services

1.6%

DE Market


1 Year Return

-3.1%

3I5

9.2%

DE Consumer Services

2.5%

DE Market

Return vs Industry: 3I5 underperformed the German Consumer Services industry which returned 9.2% over the past year.

Return vs Market: 3I5 underperformed the German Market which returned 2.5% over the past year.


Shareholder returns

3I5IndustryMarket
7 Day-3.6%0.1%1.6%
30 Day-5.5%-0.5%-1.4%
90 Day22.1%10.4%16.4%
1 Year-3.1%-3.1%11.0%9.2%4.8%2.5%
3 Yearn/a-5.2%-10.0%1.2%-7.1%
5 Yearn/a-44.4%-58.8%9.4%-5.2%

Price Volatility Vs. Market

How volatile is frontdoor's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is frontdoor undervalued compared to its fair value and its price relative to the market?

49.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3I5 (€37.6) is trading below our estimate of fair value (€73.86)

Significantly Below Fair Value: 3I5 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3I5 is poor value based on its PE Ratio (24.5x) compared to the Consumer Services industry average (15.4x).

PE vs Market: 3I5 is poor value based on its PE Ratio (24.5x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: 3I5 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 3I5 has negative assets, so we can't compare its PB Ratio to the XE Consumer Services industry average.


Next Steps

Future Growth

How is frontdoor forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3I5's forecast earnings growth (14.8% per year) is above the savings rate (0.2%).

Earnings vs Market: 3I5's earnings (14.8% per year) are forecast to grow slower than the German market (22.5% per year).

High Growth Earnings: 3I5's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3I5's revenue (8.1% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: 3I5's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3I5's Return on Equity is forecast to be very high in 3 years time (291.2%).


Next Steps

  • Explore growth companies in the Consumer Services industry.

Past Performance

How has frontdoor performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3I5 has high quality earnings.

Growing Profit Margin: 3I5's current net profit margins (11%) are higher than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: 3I5's earnings have grown by 4.1% per year over the past 5 years.

Accelerating Growth: 3I5's earnings growth over the past year (22.2%) exceeds its 5-year average (4.1% per year).

Earnings vs Industry: 3I5 earnings growth over the past year (22.2%) underperformed the Consumer Services industry 57.7%.


Return on Equity

High ROE: 3I5's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is frontdoor's financial position?


Financial Position Analysis

Short Term Liabilities: 3I5 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 3I5 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 3I5 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 3I5's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: 3I5's debt is well covered by operating cash flow (20.3%).

Interest Coverage: 3I5's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Next Steps

Dividend

What is frontdoor current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 3I5's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 3I5's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 3I5's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3I5's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3I5's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Rex Tibbens (51yo)

2.17yrs

Tenure

US$5,523,315

Compensation

Mr. Rexford J. Tibbens also known as Rex, has been President and Chief Executive Officer of frontdoor, inc. since May 15, 2018 and as its Director since September 2018. He was Chief Operating Officer of Ly ...


CEO Compensation Analysis

Compensation vs Market: Rex's total compensation ($USD5.52M) is above average for companies of similar size in the German market ($USD2.40M).

Compensation vs Earnings: Rex's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rexford Tibbens
President2.17yrsUS$5.52m0.031% $1.0m
Brian Turcotte
Senior VP & CFO2yrsUS$1.88m0.011% $372.5k
Jeffrey Fiarman
Senior VP1.92yrsUS$1.73m0.0044% $144.6k
Sena Kwawu
Senior Vice President of Operations0.33yrno datano data
Chastitie Brim
VP, Chief Accounting Officer & Controllerno datano data0.0040% $128.4k
Piras Thiyagarajan
Senior VP & CTO1.5yrsno datano data
Matt Davis
VP of Investor Relations & Treasurerno datano datano data
Jason Marshall
Senior VP & Chief Marketing Officer0.33yrno datano data
Jennifer Alessandra
Senior VP & Chief People Officer1.33yrsno datano data
Scott Brown
Senior Vice President of Customer Experience1.75yrsno datano data

1.6yrs

Average Tenure

51yo

Average Age

Experienced Management: 3I5's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Rexford Tibbens
President2.17yrsUS$5.52m0.031% $1.0m
Richard Fox
Independent Director1.75yrsUS$220.00k0.017% $537.9k
Liane Pelletier
Independent Director1.83yrsUS$200.00k0.0094% $306.8k
William Cobb
Independent Chairmanno dataUS$370.00k0.019% $629.5k
Anna Catalano
Independent Director1.83yrsUS$200.00k0.0094% $306.8k
Peter Cella
Independent Director1.75yrsUS$210.00k0.037% $1.2m
Brian McAndrews
Independent Director1.75yrsUS$200.00k0.0092% $300.3k

1.8yrs

Average Tenure

62yo

Average Age

Experienced Board: 3I5's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

frontdoor, inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: frontdoor, inc.
  • Ticker: 3I5
  • Exchange: DB
  • Founded: 1971
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: US$3.672b
  • Listing Market Cap: US$3.250b
  • Shares outstanding: 85.38m
  • Website: https://www.frontdoorhome.com

Number of Employees


Location

  • frontdoor, inc.
  • 150 Peabody Place
  • Suite 300
  • Memphis
  • Tennessee
  • 38103
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FTDRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 2018
3I5DB (Deutsche Boerse AG)YesCommon StockDEEURSep 2018

Biography

frontdoor, inc. provides home service plans in the United States. The company’s home service plans cover the repair or replacement of principal components of approximately 21 household systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and central heating, ventilation, and air conditioning systems. It serves homeowners under the American Home Shield, HSA, Landmark, OneGuard, Frontdoor, Candu, and Streem brands. frontdoor, inc. was founded in 1971 and is headquartered in Memphis, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 21:32
End of Day Share Price2020/07/09 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.