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FTDR

Frontdoor NasdaqGS:FTDR Stock Report

Last Price

US$20.90

Market Cap

US$1.7b

7D

-5.0%

1Y

-48.8%

Updated

27 Sep, 2022

Data

Company Financials +
FTDR fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance4/6
Financial Health2/6
Dividends0/6

FTDR Stock Overview

Frontdoor, Inc. provides home service plans in the United States.

Frontdoor Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Frontdoor
Historical stock prices
Current Share PriceUS$20.90
52 Week HighUS$44.60
52 Week LowUS$20.10
Beta0.59
1 Month Change-9.49%
3 Month Change-12.74%
1 Year Change-48.84%
3 Year Change-56.66%
5 Year Changen/a
Change since IPO-30.33%

Recent News & Updates

Sep 16
Is Frontdoor (NASDAQ:FTDR) A Risky Investment?

Is Frontdoor (NASDAQ:FTDR) A Risky Investment?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Shareholder Returns

FTDRUS Consumer ServicesUS Market
7D-5.0%-4.8%-5.8%
1Y-48.8%-30.5%-22.1%

Return vs Industry: FTDR underperformed the US Consumer Services industry which returned -32.2% over the past year.

Return vs Market: FTDR underperformed the US Market which returned -23.7% over the past year.

Price Volatility

Is FTDR's price volatile compared to industry and market?
FTDR volatility
FTDR Average Weekly Movement5.8%
Consumer Services Industry Average Movement8.5%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: FTDR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: FTDR's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19712,081Bill Cobbhttps://www.frontdoorhome.com

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, 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 also offers ProConnect on-demand home services business and Streem, a technology platform that uses augmented reality, computer vision, and machine learning that helps home service professionals quickly and accurately diagnose breakdowns and complete repairs.

Frontdoor Fundamentals Summary

How do Frontdoor's earnings and revenue compare to its market cap?
FTDR fundamental statistics
Market CapUS$1.67b
Earnings (TTM)US$118.00m
Revenue (TTM)US$1.65b

14.4x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FTDR income statement (TTM)
RevenueUS$1.65b
Cost of RevenueUS$899.00m
Gross ProfitUS$750.00m
Other ExpensesUS$632.00m
EarningsUS$118.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 03, 2022

Earnings per share (EPS)1.45
Gross Margin45.48%
Net Profit Margin7.16%
Debt/Equity Ratio10,300.0%

How did FTDR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is FTDR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FTDR?

Other financial metrics that can be useful for relative valuation.

FTDR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA9x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does FTDR's PE Ratio compare to its peers?

FTDR PE Ratio vs Peers
The above table shows the PE ratio for FTDR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average28.3x
MCW Mister Car Wash
19.9x5.4%US$2.7b
TMX Terminix Global Holdings
69.3x50.3%US$4.6b
CSV Carriage Services
8.7x-1.8%US$464.2m
HRB H&R Block
12.4x4.2%US$6.9b
FTDR Frontdoor
14.4x23.7%US$1.7b

Price-To-Earnings vs Peers: FTDR is good value based on its Price-To-Earnings Ratio (14.4x) compared to the peer average (27.6x).


Price to Earnings Ratio vs Industry

How does FTDR's PE Ratio compare vs other companies in the US Consumer Services Industry?

Price-To-Earnings vs Industry: FTDR is good value based on its Price-To-Earnings Ratio (14.4x) compared to the US Consumer Services industry average (16.3x)


Price to Earnings Ratio vs Fair Ratio

What is FTDR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FTDR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.4x
Fair PE Ratio25x

Price-To-Earnings vs Fair Ratio: FTDR is good value based on its Price-To-Earnings Ratio (14.4x) compared to the estimated Fair Price-To-Earnings Ratio (25.1x).


Share Price vs Fair Value

What is the Fair Price of FTDR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FTDR ($20.9) is trading below our estimate of fair value ($81.23)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


23.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FTDR's forecast earnings growth (23.7% per year) is above the savings rate (1.9%).

Earnings vs Market: FTDR's earnings (23.7% per year) are forecast to grow faster than the US market (14.7% per year).

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

Revenue vs Market: FTDR's revenue (6.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: FTDR's revenue (6.2% 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 (93.6%).


Discover growth companies

Past Performance

How has Frontdoor performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-6.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FTDR has high quality earnings.

Growing Profit Margin: FTDR's current net profit margins (7.2%) are higher than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: FTDR's earnings have declined by 6.5% per year over the past 5 years.

Accelerating Growth: FTDR's earnings growth over the past year (24.2%) exceeds its 5-year average (-6.5% per year).

Earnings vs Industry: FTDR earnings growth over the past year (24.2%) exceeded the Consumer Services industry 9.3%.


Return on Equity

High ROE: Whilst FTDR's Return on Equity (1966.67%) is outstanding, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Frontdoor's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: FTDR's short term assets ($310.0M) do not cover its short term liabilities ($404.0M).

Long Term Liabilities: FTDR's short term assets ($310.0M) do not cover its long term liabilities ($666.0M).


Debt to Equity History and Analysis

Debt Level: FTDR's net debt to equity ratio (5816.7%) is considered high.

Reducing Debt: FTDR's debt to equity ratio has increased from 1.9% to 10300% over the past 5 years.

Debt Coverage: FTDR's debt is well covered by operating cash flow (25.9%).

Interest Coverage: FTDR's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Frontdoor Dividend Yield vs Market
How does Frontdoor dividend yield compare to the market?
SegmentDividend Yield
Company (Frontdoor)n/a
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Consumer Services)2.1%
Analyst forecast in 3 Years (Frontdoor)n/a

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as FTDR has not reported any payouts.


Discover strong dividend paying companies

Management

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

1.9yrs

Average management tenure


CEO

Bill Cobb (65 yo)

0.25yr

Tenure

US$395,005

Compensation

Mr. William C. Cobb, also known as Bill, serves as Chairman of the Board at Frontdoor, Inc. and has been its Director since October 2018 and serves as its Chief Executive Officer since June 01, 2022. Mr. C...


Leadership Team

Experienced Management: FTDR's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: FTDR's board of directors are considered experienced (3.9 years average tenure).


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

NasdaqGS:FTDR Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
25 May 22BuyUS$100,000Anna CatalanoIndividual4,000US$25.00
25 May 22BuyUS$122,650Peter CellaIndividual5,000US$24.53
23 May 22BuyUS$255,100William CobbIndividual10,000US$25.51
08 Nov 21BuyUS$176,175Peter CellaIndividual5,000US$35.24

Ownership Breakdown

What is the ownership structure of FTDR?
Owner TypeNumber of SharesOwnership Percentage
State or Government00%
Individual Insiders288,8060.3%
Hedge Funds10,606,22411.6%
Institutions80,832,00788.1%

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


Top Shareholders

Top 25 shareholders own 87.63% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
16.14%
BlackRock, Inc.
13,151,882$274.9m124.36%0.01%
13.02%
ArrowMark Colorado Holdings, LLC
10,606,224$221.7m11.1%2.61%
9.31%
The Vanguard Group, Inc.
7,585,448$158.5m-9.92%no data
7.56%
Janus Henderson Group plc
6,162,479$128.8m-4.72%0.07%
6.61%
Mackenzie Financial Corporation
5,385,015$112.5m-1.08%0.14%
5.09%
FMR LLC
4,147,149$86.7m-64.03%0.01%
3.61%
State Street Global Advisors, Inc.
2,943,484$61.5m109.97%no data
2.75%
Millennium Management LLC
2,242,239$46.9m366.22%0.06%
2.62%
NewSouth Capital Management, Inc.
2,133,035$44.6m12.45%2.12%
1.85%
Geode Capital Management, LLC
1,504,008$31.4m32.57%no data
1.83%
Van Berkom and Associates Inc.
1,492,298$31.2m-19.24%1.26%
1.61%
Paradice Investment Management Pty Ltd.
1,313,683$27.5m1.3%0.98%
1.6%
Fuller & Thaler Asset Management, Inc.
1,305,434$27.3m-7.05%0.19%
1.47%
Reinhart Partners, Inc.
1,195,579$25.0m10.73%1.41%
1.32%
Eaton Vance Management
1,072,529$22.4m-2.33%0.01%
1.31%
Dimensional Fund Advisors LP
1,065,192$22.3m6.24%0.01%
1.3%
Renaissance Technologies LLC
1,062,718$22.2m-18.97%0.03%
1.28%
D. E. Shaw & Co., L.P.
1,046,679$21.9m48.38%0.04%
1.24%
Fort Washington Investment Advisors, Inc.
1,009,459$21.1m-14.74%0.16%
1.2%
Hawk Ridge Management LLC
978,820$20.5m-25%1.49%
1.07%
J. Goldman & Co., L.P.
870,893$18.2m0%1.41%
1.05%
Northern Trust Global Investments
858,248$17.9m62.13%no data
0.98%
Loomis Sayles & Company, L.P.
800,824$16.7m0%0.03%
0.94%
Norges Bank Investment Management
763,098$15.9m0%no data
0.87%
Charles Schwab Investment Management, Inc.
711,032$14.9m34.36%no data

Company Information

Frontdoor, Inc.'s 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
  • Implied Market Cap: US$1.672b
  • Shares outstanding: 81.49m
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/27 00:00
End of Day Share Price2022/09/27 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.