FTDR Stock Analysis: Frontdoor | NASDAQ
Personal Services | NASDAQ, USA | Market Cap: 5.443m USD | 12M Return: 21.6% | US35905A1097 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 48.5M
EPS Trend: 97.2%
Qual. Beats: 1
Rev. Trend: 97.3%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 8 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Frontdoor, Inc. (NASDAQ: FTDR) is a U.S.-based provider of home warranties and new home builder warranties, operating under brands including American Home Shield, HSA, OneGuard, Landmark, and 2-10 HBW. Customers subscribe to annual service plans that cover the repair or replacement of essential home systems and appliances such as electrical, plumbing, HVAC, water heaters, refrigerators, dishwashers, ovens, pools, and spas. The company also offers non-warranty home services through a digital platform that uses video chat, augmented reality, and machine learning to connect homeowners with repair and maintenance professionals. Founded in 1971 and headquartered in Memphis, Tennessee, Frontdoor operates on a recurring subscription-based model that generates steady revenue through annual plan fees.
The home warranty industry sits within the broader Consumer Discretionary sector and is classified as Specialized Consumer Services. It functions as an intermediary between homeowners and a network of independent service contractors, with the warranty provider collecting premiums and assuming the risk of repair costs up to defined coverage limits.
- Real estate market weakness pressures new home builder warranty revenue
- Rising labor and parts costs compress service expense margin
- Customer contract renewals and price increases drive recurring revenue growth
| Net Income: 274.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.18 > 0.02 and ΔFCF/TA 3.71 > 1.0 |
| NWC/Revenue: 11.97% < 20% (prev 10.38%; Δ 1.59% < -1%) |
| CFO/TA 0.19 > 3% & CFO 410.0m > Net Income 274.0m |
| Net Debt (565.0m) to EBITDA (527.0m): 1.07 < 3 |
| Current Ratio: 1.59 > 1.5 & < 3 |
| Outstanding Shares: last quarter (71.1m) vs 12m ago -5.58% < -2% |
| Gross Margin: 52.54% > 18% (prev 51.70%; Δ 0.83% > 0.5%) |
| Asset Turnover: 98.53% > 50% (prev 90.47%; Δ 8.06% > 0%) |
| Interest Coverage Ratio: 5.76 > 6 (EBIT TTM 438.0m / Interest Expense TTM 76.0m) |
| A: 0.12 (Total Current Assets 692.0m - Total Current Liabilities 435.0m) / Total Assets 2.19b |
| B: 0.44 (Retained Earnings 952.0m / Total Assets 2.19b) |
| C: 0.20 (EBIT TTM 438.0m / Avg Total Assets 2.18b) |
| D: 0.15 (Book Value of Equity 284.0m / Total Liabilities 1.90b) |
| Altman-Z'' = 3.70 = AA |
| DSRI: 0.48 (Receivables 11.0m/21.0m, Revenue 2.15b/1.97b) |
| GMI: 0.98 (GM 51.70% / 52.54%) |
| AQI: 0.96 (AQ_t 0.66 / AQ_t-1 0.68) |
| SGI: 1.09 (Revenue 2.15b / 1.97b) |
| TATA: -0.06 (NI 274.0m - CFO 410.0m) / TA 2.19b) |
| Beneish M = -3.43 (Cap -4..+1) = AA |
As of October 25, 2026, the stock is trading at USD 84.34 with a total of 1,092,940 shares traded. Over the past week, the price has changed by +6.76%, over one month by +14.05%, over three months by +19.65% and over the past year by +21.56%.
Current recommended Stop Loss: 80.00 (which is 5.1% or 1.6 ATR below the current price).
Frontdoor has received a consensus analysts rating of 4.14. Therefore, it is recommended to buy FTDR.
- StrongBuy: 4
- Buy: 0
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 95.4 | 13.1% |
P/E Trailing = 20.8443
P/E Forward = 14.4928
P/S = 2.5361
P/B = 17.9389
P/EG = 2.381
Revenue TTM = 2.15b USD
EBIT TTM = 438.0m USD
EBITDA TTM = 527.0m USD
Long Term Debt = 1.13b USD (from longTermDebt, last quarter)
Short Term Debt = 29.0m USD (from shortTermDebt, last quarter)
Debt = 1.19b USD (from shortLongTermDebtTotal, last quarter) + Leases 16.0m
Net Debt = 565.0m USD (calculated: Debt 1.19b - CCE 627.0m)
Enterprise Value = 6.01b USD (5.44b + Debt 1.19b - CCE 627.0m)
Interest Coverage Ratio = 5.76 (Ebit TTM 438.0m / Interest Expense TTM 76.0m)
EV/FCF = 15.56x (Enterprise Value 6.01b / FCF TTM 386.0m)
FCF Yield = 6.43% (FCF TTM 386.0m / Enterprise Value 6.01b)
FCF Margin = 17.98% (FCF TTM 386.0m / Revenue TTM 2.15b)
Net Margin = 12.76% (Net Income TTM 274.0m / Revenue TTM 2.15b)
Gross Margin = 52.54% ((Revenue TTM 2.15b - Cost of Revenue TTM 1.02b) / Revenue TTM)
Gross Margin QoQ = 58.60% (prev 50.55%)
Tobins Q-Ratio = 2.75 (Enterprise Value 6.01b / Total Assets 2.19b)
Interest Expense / Debt = 6.38% (Interest Expense 76.0m / Debt 1.19b)
Taxrate = 24.59% (89.0m / 362.0m)
NOPAT = 330.3m (EBIT 438.0m * (1 - 24.59%))
Current Ratio = 1.59 (Total Current Assets 692.0m / Total Current Liabilities 435.0m)
Debt / Equity = 4.20 (Debt 1.19b / totalStockholderEquity, last quarter 284.0m)
Debt / EBITDA = 1.07 (Net Debt 565.0m / EBITDA 527.0m)
Debt / FCF = 1.46 (Net Debt 565.0m / FCF TTM 386.0m)
Total Stockholder Equity = 268.0m (last 4 quarters mean from totalStockholderEquity)
RoA = 12.57% (Net Income 274.0m / Total Assets 2.19b)
RoE = 102.2% (Net Income TTM 274.0m / Total Stockholder Equity 268.0m)
RoCE = 31.31% (EBIT 438.0m / Capital Employed (Equity 268.0m + L.T.Debt 1.13b))
RoIC = 19.75% (NOPAT 330.3m / Invested Capital 1.67b)
WACC = 8.07% (E(5.44b)/V(6.63b) * Re(8.79%) + D(1.19b)/V(6.63b) * Rd(6.38%) * (1-Tc(0.25)))
Discount Rate = 8.79% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -94.68 | Cagr: -4.57%
[DCF] Terminal Value 77.97% ; FCFF base≈352.8m ; Y1≈404.4m ; Y5≈595.2m
[DCF] Fair Price = 121.8 (EV 8.96b - Net Debt 565.0m = Equity 8.39b / Shares 68.9m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 97.25 | EPS CAGR: 30.31% | SUE: 1.51 | # QB: 1
Revenue Correlation: 97.29 | Revenue CAGR: 8.36% | SUE: 0.25 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.77 | Chg30d=+0.34% | Revisions=+50% | Analysts=5
EPS current Year (2026-12-31): EPS=4.68 | Chg30d=-0.59% | Revisions=+50% | GrowthEPS=+14.5% | GrowthRev=+5.1%
EPS next Year (2027-12-31): EPS=5.13 | Chg30d=-1.31% | Revisions=+50% | GrowthEPS=+9.4% | GrowthRev=+5.7%
[Analyst] Revisions Ratio: +75% (up=9, down=0)