NasdaqGS:TREE

Stock Analysis Report

Executive Summary

LendingTree, Inc., through its subsidiary, LendingTree, LLC, operates an online loan marketplace for consumers seeking loans in the United States.

Snowflake

Fundamentals

Reasonable growth potential with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

TREE

1.1%

US Mortgage

1.0%

US Market


1 Year Return

49.9%

TREE

13.0%

US Mortgage

6.7%

US Market

Return vs Industry: TREE exceeded the US Mortgage industry which returned 13% over the past year.

Return vs Market: TREE exceeded the US Market which returned 6.7% over the past year.


Share holder returns

TREEIndustryMarket
7 Day-0.5%1.1%1.0%
30 Day-3.6%-0.5%-1.8%
90 Day-25.6%2.2%-1.8%
1 Year49.9%49.9%15.4%13.0%9.1%6.7%
3 Year255.4%255.4%40.4%30.9%46.1%36.6%
5 Year743.3%743.3%68.9%51.2%66.9%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is LendingTree undervalued based on future cash flows and its price relative to the stock market?

94.46x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: TREE ($312.02) is trading above our estimate of fair value ($128.97)

Significantly Undervalued: TREE is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: TREE is poor value based on its PE Ratio (94.5x) compared to the Mortgage industry average (14.5x).

PE vs Market: TREE is poor value based on its PE Ratio (94.5x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: TREE is poor value based on its PEG Ratio (2.7x)


Price Based on Value of Assets

PB vs Industry: TREE is overvalued based on its PB Ratio (10.8x) compared to the US Mortgage industry average (1.1x).


Next Steps

Future Growth

How is LendingTree expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

35.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: TREE's forecast earnings growth (35.5% per year) is above the savings rate (2.7%).

Earnings vs Market: TREE's earnings (35.5% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TREE's revenue (15.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: TREE's revenue (15.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: TREE's Return on Equity is forecast to be low in 3 years time (18.1%).


Next Steps

Past Performance

How has LendingTree performed over the past 5 years?

36.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TREE has become profitable over the past 5 years, growing earnings by 36.6% per year.

Accelerating Growth: TREE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TREE had negative earnings growth (-50%) over the past year, making it difficult to compare to the Mortgage industry average (31.7%).


Return on Equity

High ROE: TREE's Return on Equity (11.3%) is considered low.


Return on Assets

ROA vs Industry: TREE has a higher Return on Assets than the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: TREE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is LendingTree's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: TREE has a low level of unsold assets or inventory.

Debt Coverage by Assets: TREE's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: TREE's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if TREE has a sufficient allowance for bad loans.

Low Risk Liabilities: TREE reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if TREE has an acceptable proportion of non-loan assets held.

Low Risk Deposits: TREE has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if TREE has an appropriate level of bad loans.


Next Steps

Dividend

What is LendingTree's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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

Growing Dividend: Insufficient data to determine if TREE'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 TREE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of LendingTree's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Doug Lebda (49yo)

11.8yrs

Tenure

US$42,318,238

Compensation

Mr. Douglas R. Lebda, also known as Doug, Founded LendingTree, LLC in June 1996 and served as its Chief Executive Officer and President since January 2008. Mr. Lebda is the Founder of LendingTree, Inc. an ...


CEO Compensation Analysis

Compensation vs. Market: Doug's total compensation ($USD42.32M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.6yrs

Average Tenure

46.5yo

Average Age

Experienced Management: TREE's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

50yo

Average Age

Experienced Board: TREE's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: TREE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$139,69613 Aug 19
Sushil Sharma
EntityIndividual
Shares440
Max PriceUS$317.49
SellUS$312,65412 Aug 19
Peter Horan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$313.34
SellUS$1,480,27511 Jul 19
Neil Salvage
EntityIndividual
Role
President
President
Shares3,483
Max PriceUS$425.00
SellUS$1,814,74107 Jun 19
J. Moriarty
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares4,599
Max PriceUS$395.00
SellUS$577,87502 May 19
G. Thompson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$385.25
SellUS$246,09902 May 19
Gabriel Dalporto
EntityIndividual
Role
Member of the Board of Directors
Director
Shares637
Max PriceUS$386.34
SellUS$615,54301 May 19
Steven Ozonian
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares1,650
Max PriceUS$375.47
SellUS$1,213,96001 Mar 19
Peter Horan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$303.49
SellUS$307,10301 Mar 19
Steven Ozonian
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares975
Max PriceUS$315.03
SellUS$241,63205 Nov 18
Steven Ozonian
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares975
Max PriceUS$252.93

Ownership Breakdown


Management Team

  • Doug Lebda (49yo)

    Founder

    • Tenure: 11.8yrs
    • Compensation: US$42.32m
  • Neil Salvage (46yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$792.69k
  • Paul Tyma

    Chief Technology Officer

    • Tenure: 3.4yrs
  • Brad Wilson (45yo)

    Chief Marketing Officer

    • Tenure: 2.3yrs
  • Carla Shumate (48yo)

    Senior VP & Chief Accounting Office

    • Tenure: 6.8yrs
    • Compensation: US$1.13m
  • J. Moriarty (47yo)

    Chief Financial Officer

    • Tenure: 2.2yrs
    • Compensation: US$601.70k
  • Trent Ziegler

    Vice President of Finance & Investor Relations

    • Tenure: 0yrs
  • Arun Sankaran

    Chief Information Security Officer

    • Tenure: 1yrs
  • Megan Greuling

    Director of PR & Communications

    • Tenure: 0yrs
  • Laura Yens (45yo)

    General Counsel & Corporate Secretary

    • Tenure: 0.7yrs

Board Members

  • Doug Lebda (49yo)

    Founder

    • Tenure: 11.8yrs
    • Compensation: US$42.32m
  • Ken Thompson (69yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$200.22k
  • Tom Davidson (47yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$196.13k
  • Peter Horan (64yo)

    Independent Director

    • Tenure: 11.2yrs
    • Compensation: US$210.28k
  • Craig Troyer (50yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$199.02k
  • Neal Dermer (50yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$191.27k
  • Gabe Dalporto (47yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$250.43k
  • Steve Ozonian (63yo)

    Lead Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$257.13k
  • Robin Henderson (49yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$206.13k
  • Saras Sarasvathy (60yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$196.13k

Company Information

LendingTree, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LendingTree, Inc.
  • Ticker: TREE
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$4.053b
  • Shares outstanding: 12.99m
  • Website: https://www.lendingtree.com

Number of Employees


Location

  • LendingTree, Inc.
  • 11115 Rushmore Drive
  • Charlotte
  • North Carolina
  • 28277
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TREENasdaqGS (Nasdaq Global Select)YesNew Common StockUSUSDAug 2008
T77DB (Deutsche Boerse AG)YesNew Common StockDEEURAug 2008
0JTZLSE (London Stock Exchange)YesNew Common StockGBUSDAug 2008

Biography

LendingTree, Inc., through its subsidiary, LendingTree, LLC, operates an online loan marketplace for consumers seeking loans in the United States. Its mortgage products comprise purchase and refinance prod ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:12
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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