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Market Cap

US$4.7b

Last Updated

2021/04/13 23:51 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


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: FTDR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FTDR's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.4%

FTDR

-3.0%

US Consumer Services

1.3%

US Market


1 Year Return

48.3%

FTDR

23.6%

US Consumer Services

53.9%

US Market

Return vs Industry: FTDR exceeded the US Consumer Services industry which returned 25.7% over the past year.

Return vs Market: FTDR underperformed the US Market which returned 57.9% over the past year.


Shareholder returns

FTDRIndustryMarket
7 Day0.4%-3.0%1.3%
30 Day-1.3%-17.8%2.8%
90 Day2.1%-11.9%6.6%
1 Year48.3%48.3%23.9%23.6%56.6%53.9%
3 Yearn/a34.9%30.5%62.7%52.3%
5 Yearn/a197.1%179.4%120.5%95.9%

Long-Term 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

Valuation

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

42.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FTDR ($55.37) is trading below our estimate of fair value ($95.01)

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


Price To Earnings Ratio

PE vs Industry: FTDR is poor value based on its PE Ratio (42.1x) compared to the US Consumer Services industry average (26.1x).

PE vs Market: FTDR is poor value based on its PE Ratio (42.1x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: FTDR is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

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


Future Growth

How is frontdoor forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FTDR's forecast earnings growth (19% per year) is above the savings rate (2%).

Earnings vs Market: FTDR's earnings (19% per year) are forecast to grow faster than the US market (18.6% per year).

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

Revenue vs Market: FTDR's revenue (10.4% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: FTDR's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FTDR's Return on Equity is forecast to be very high in 3 years time (49.6%).


Past Performance

How has frontdoor performed over the past 5 years?

0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FTDR has high quality earnings.

Growing Profit Margin: FTDR's current net profit margins (7.6%) are lower than last year (11.2%).


Past Earnings Growth Analysis

Earnings Trend: FTDR's earnings have grown by 0.7% per year over the past 5 years.

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

Earnings vs Industry: FTDR had negative earnings growth (-26.8%) over the past year, making it difficult to compare to the Consumer Services industry average (-0.4%).


Return on Equity

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


Financial Health

How is frontdoor's financial position?


Financial Position Analysis

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

Long Term Liabilities: FTDR 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: FTDR has negative shareholder equity, which is a more serious situation than a high debt level.

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

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

Interest Coverage: FTDR's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate FTDR'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 FTDR's dividends per share have been stable in the past.

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


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Rex Tibbens (51 yo)

2.92yrs

Tenure

US$5,265,975

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 serves as a Director at Arrival L...


CEO Compensation Analysis

Compensation vs Market: Rex's total compensation ($USD5.27M) is about average for companies of similar size in the US market ($USD5.10M).

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


Leadership Team

Experienced Management: FTDR's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: FTDR's board of directors are not considered experienced ( 2.5 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.


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: FTDR
  • Exchange: NasdaqGS
  • Founded: 1971
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: US$4.709b
  • Shares outstanding: 85.56m
  • Website: https://www.frontdoorhome.com

Number of Employees


Location

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

Listings


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 20 home systems and appliances, i...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/13 23:51
End of Day Share Price2021/04/13 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.