(FTDR) Frontdoor - Overview
Sector: Consumer Cyclical | Industry: Personal Services | Exchange: NASDAQ (USA) | Market Cap: 4.305m USD | Total Return: 13.6% in 12m
Avg Turnover: 27.6M
EPS Trend: 97.4%
Qual. Beats: 0
Rev. Trend: 97.1%
Qual. Beats: 6
Warnings
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
Frontdoor, Inc. (FTDR) is a leading provider of home service plans in the United States, operating through established brands such as American Home Shield and HSA. The company utilizes a subscription-based business model where customers pay annual fees for the repair or replacement of major home systems and appliances, including HVAC, plumbing, and electrical components.
The home warranty sector relies on a network of independent contractors to fulfill service requests, allowing companies like Frontdoor to maintain a capital-light structure without employing a full-time labor force for repairs. Beyond traditional warranties, Frontdoor has expanded into the on-demand home services market through a digital platform that integrates video chat and augmented reality to assist homeowners with DIY maintenance and troubleshooting.
Investors can evaluate the companys historical margin trends and valuation multiples through the data available on ValueRay. Founded in 1971, the Memphis-based company currently serves a large installed base of subscribers, benefiting from the recurring revenue inherent in the specialized consumer services industry.
- Annual service plan renewal rates drive recurring revenue and predictable cash flow
- Real estate market volatility impacts new home warranty sales and customer acquisition
- Rising contractor costs and appliance inflation pressure gross margins and service profitability
- Strategic expansion into on-demand home services diversifies revenue beyond traditional warranties
- Implementation of video chat and AI diagnostics reduces service call dispatch expenses
| Net Income: 260.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.18 > 0.02 and ΔFCF/TA 4.83 > 1.0 |
| NWC/Revenue: 9.91% < 20% (prev 7.40%; Δ 2.51% < -1%) |
| CFO/TA 0.19 > 3% & CFO 410.0m > Net Income 260.0m |
| Net Debt (598.0m) to EBITDA (506.0m): 1.18 < 3 |
| Current Ratio: 1.47 > 1.5 & < 3 |
| Outstanding Shares: last quarter (72.2m) vs 12m ago -5.37% < -2% |
| Gross Margin: 55.26% > 18% (prev 0.55%; Δ 5.47k% > 0.5%) |
| Asset Turnover: 98.90% > 50% (prev 89.16%; Δ 9.75% > 0%) |
| Interest Coverage Ratio: 5.32 > 6 (EBITDA TTM 506.0m / Interest Expense TTM 79.0m) |
| A: 0.10 (Total Current Assets 661.0m - Total Current Liabilities 451.0m) / Total Assets 2.16b |
| B: 0.38 (Retained Earnings 826.0m / Total Assets 2.16b) |
| C: 0.20 (EBIT TTM 420.0m / Avg Total Assets 2.14b) |
| D: 0.42 (Book Value of Equity 819.0m / Total Liabilities 1.94b) |
| Altman-Z'' = 3.64 = AA |
| DSRI: 0.81 (Receivables 10.0m/11.0m, Revenue 2.12b/1.89b) |
| GMI: 0.99 (GM 55.26% / 54.52%) |
| AQI: 0.95 (AQ_t 0.67 / AQ_t-1 0.70) |
| SGI: 1.12 (Revenue 2.12b / 1.89b) |
| TATA: -0.07 (NI 260.0m - CFO 410.0m) / TA 2.16b) |
| Beneish M = -3.21 (Cap -4..+1) = AA |
As of May 31, 2026, the stock is trading at USD 62.07 with a total of 561,105 shares traded.
Over the past week, the price has changed by +0.94%,
over one month by +2.44%,
over three months by -9.48% and
over the past year by +13.56%.
Frontdoor has received a consensus analysts rating of 3.83. Therefore, it is recommended to buy FTDR.
- StrongBuy: 3
- Buy: 0
- Hold: 2
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 74.2 | 19.5% |
P/E Trailing = 17.5143
P/E Forward = 14.0252
P/S = 2.0328
P/B = 18.6411
P/EG = 2.381
Revenue TTM = 2.12b USD
EBIT TTM = 420.0m USD
EBITDA TTM = 506.0m USD
Long Term Debt = 1.14b USD (from longTermDebt, last quarter)
Short Term Debt = 29.0m USD (from shortTermDebt, last quarter)
Debt = 1.20b USD (from shortLongTermDebtTotal, last quarter) + Leases 17.0m
Net Debt = 598.0m USD (calculated: Debt 1.20b - CCE 603.0m)
Enterprise Value = 4.90b USD (4.31b + Debt 1.20b - CCE 603.0m)
Interest Coverage Ratio = 5.32 (Ebit TTM 420.0m / Interest Expense TTM 79.0m)
EV/FCF = 12.74x (Enterprise Value 4.90b / FCF TTM 385.0m)
FCF Yield = 7.85% (FCF TTM 385.0m / Enterprise Value 4.90b)
FCF Margin = 18.17% (FCF TTM 385.0m / Revenue TTM 2.12b)
Net Margin = 12.27% (Net Income TTM 260.0m / Revenue TTM 2.12b)
Gross Margin = 55.26% ((Revenue TTM 2.12b - Cost of Revenue TTM 948.0m) / Revenue TTM)
Gross Margin QoQ = 55.09% (prev 49.19%)
Tobins Q-Ratio = 2.27 (Enterprise Value 4.90b / Total Assets 2.16b)
Interest Expense / Debt = 6.58% (Interest Expense 79.0m / Debt 1.20b)
Taxrate = 19.61% (10.0m / 51.0m)
NOPAT = 337.6m (EBIT 420.0m * (1 - 19.61%))
Current Ratio = 1.47 (Total Current Assets 661.0m / Total Current Liabilities 451.0m)
Debt / Equity = 5.22 (Debt 1.20b / totalStockholderEquity, last quarter 230.0m)
Debt / EBITDA = 1.18 (Net Debt 598.0m / EBITDA 506.0m)
Debt / FCF = 1.55 (Net Debt 598.0m / FCF TTM 385.0m)
Total Stockholder Equity = 260.2m (last 4 quarters mean from totalStockholderEquity)
RoA = 12.14% (Net Income 260.0m / Total Assets 2.16b)
RoE = 99.90% (Net Income TTM 260.0m / Total Stockholder Equity 260.2m)
RoCE = 30.04% (EBIT 420.0m / Capital Employed (Equity 260.2m + L.T.Debt 1.14b))
RoIC = 19.38% (NOPAT 337.6m / Invested Capital 1.74b)
WACC = 8.29% (E(4.31b)/V(5.51b) * Re(9.13%) + D(1.20b)/V(5.51b) * Rd(6.58%) * (1-Tc(0.20)))
Discount Rate = 9.13% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -86.67 | Cagr: -3.58%
[DCF] Terminal Value 77.97% ; FCFF base≈341.0m ; Y1≈390.9m ; Y5≈575.3m
[DCF] Fair Price = 114.7 (EV 8.66b - Net Debt 598.0m = Equity 8.06b / Shares 70.2m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 97.38 | EPS CAGR: 34.80% | SUE: 0.55 | # QB: 0
Revenue Correlation: 97.12 | Revenue CAGR: 8.04% | SUE: 1.67 | # QB: 6
EPS current Quarter (2026-06-30): EPS=1.76 | Chg30d=-0.76% | Revisions=-33% | Analysts=5
EPS next Quarter (2026-09-30): EPS=1.75 | Chg30d=+0.74% | Revisions=-11% | Analysts=5
EPS current Year (2026-12-31): EPS=4.54 | Chg30d=+1.40% | Revisions=+25% | GrowthEPS=+11.0% | GrowthRev=+4.2%
EPS next Year (2027-12-31): EPS=5.03 | Chg30d=+1.37% | Revisions=+25% | GrowthEPS=+10.7% | GrowthRev=+6.1%
[Analyst] Revisions Ratio: -33%