frontdoor (FTDR) AI Stock Analysis

• Market Cap: $3.79B
• Dividend Yield: N/A
• Average Volume (3M): 660.89K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.08
• Revenue Growth: 11.88%
• EPS Growth: 18.08%
• Country: US
• Employees: 2,120
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 1.58
• Shares Outstanding: 72,113,200
• 10 Day Avg. Volume: 761,396
• 30 Day Avg. Volume: 660,892
• PEG Ratio: 0.41
• Price to Book (P/B): 17.61
• Price to Sales (P/S): 2.28
• P/FCF Ratio: 18.22
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 2.76
• Enterprise Value/Gross Profit: 5.00
• Enterprise Value/Ebitda: 11.83
• 1Y Price Target: $67.00
• Price Target Upside: 27.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.85
• Revenue Forecast (FY): $2.07B

• Rating: 68 Neutral
• Price Target: $60.00 ▲(14.26% Upside)

Frontdoor's strong financial performance and positive earnings call sentiment are significant strengths, indicating robust growth and strategic execution. However, technical indicators show bearish momentum, and high debt levels pose a risk. The stock's valuation is reasonable, but the lack of a dividend yield may deter some investors.

Positive Factors

Revenue Growth

Frontdoor's strong revenue growth of 14% YoY indicates robust demand for its services and effective strategic execution, supporting long-term expansion.

Nonwarranty Revenue Expansion

The significant growth in nonwarranty revenue reflects successful diversification efforts, enhancing Frontdoor's revenue streams and market resilience.

Cash Generation

Strong cash generation capabilities provide Frontdoor with financial flexibility to invest in growth opportunities and return capital to shareholders.

Negative Factors

High Debt Levels

Despite improved leverage, high debt levels could limit Frontdoor's financial flexibility and increase vulnerability to economic downturns.

Operational Cost Pressures

Rising operational costs are compressing margins, which may impact profitability if not managed effectively, posing a risk to long-term earnings.

Real Estate Market Challenges

Challenges in the real estate market could affect Frontdoor's growth, as fewer home sales may lead to reduced demand for home warranty plans.

frontdoor Business Overview & Revenue Model

Company Description

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. The company serves homeowners under the American Home Shield, HSA, Landmark Home Warranty, OneGuard, Frontdoor, and Streem brands. The company was founded in 1971 and is headquartered in Memphis, Tennessee.

How the Company Makes Money

Frontdoor generates revenue primarily through the sale of home service plans, which are subscription-based agreements that homeowners purchase to receive coverage for repair and replacement services. The company charges customers an annual or monthly fee for these plans, which vary in price based on the level of coverage and services included. Additionally, Frontdoor earns money through service fees paid by customers when they request maintenance or repair services. The company also benefits from partnerships with real estate agents and home sellers, who often recommend Frontdoor's services as part of home transactions, creating a significant referral channel. Furthermore, Frontdoor leverages a network of service professionals to fulfill repair requests, which contributes to cost efficiencies and enhances customer satisfaction, ultimately driving repeat business and customer retention.

frontdoor Financial Statement Overview

Summary

Frontdoor exhibits strong revenue growth and profitability, with effective cash flow management. The company has improved its leverage position, although high debt levels remain a risk. Overall, Frontdoor is financially stable with a positive growth trajectory, but should continue to focus on managing its debt levels to enhance financial health.

Income Statement

Frontdoor has demonstrated consistent revenue growth, with a TTM revenue growth rate of 3.92%. The company maintains a healthy gross profit margin of 54.75% and a net profit margin of 12.83% in the TTM period, indicating strong profitability. However, the EBIT margin has decreased from 19.37% in 2024 to 12.49% in the TTM, suggesting increased operational costs or other expenses impacting earnings before interest and taxes.

Balance Sheet

The company's debt-to-equity ratio has improved from 5.10 in 2024 to 3.79 in the TTM period, reflecting better leverage management. However, the high level of debt relative to equity remains a concern. The return on equity is strong at 108.10% in the TTM, but this is partly due to the low equity base. The equity ratio is not explicitly calculated, but the high debt levels suggest limited equity relative to total assets.

Cash Flow

Frontdoor's free cash flow growth rate is impressive at 14.19% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.93, suggesting efficient conversion of net income into cash. The free cash flow to net income ratio is also robust at 0.93, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.04B	1.84B	1.78B	1.66B	1.60B	1.47B
Gross Profit	1.13B	991.00M	848.00M	676.00M	749.00M	716.00M
EBITDA	477.00M	388.00M	311.00M	153.00M	232.00M	249.00M
Net Income	263.00M	235.00M	171.00M	71.00M	128.00M	112.00M
Balance Sheet
Total Assets	2.23B	2.11B	1.09B	1.08B	1.07B	1.41B
Cash, Cash Equivalents and Short-Term Investments	563.00M	436.00M	325.00M	292.00M	262.00M	597.00M
Total Debt	1.20B	1.22B	610.00M	627.00M	644.00M	993.00M
Total Liabilities	1.91B	1.87B	952.00M	1.02B	1.07B	1.47B
Stockholders Equity	316.00M	239.00M	137.00M	61.00M	3.00M	-61.00M
Cash Flow
Free Cash Flow	345.00M	231.00M	170.00M	102.00M	154.00M	175.00M
Operating Cash Flow	373.00M	270.00M	202.00M	142.00M	185.00M	207.00M
Investing Cash Flow	-554.00M	-622.00M	-32.00M	-35.00M	-31.00M	-31.00M
Financing Cash Flow	369.00M	448.00M	-137.00M	-77.00M	-489.00M	-7.00M

frontdoor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTDR, the sentiment is Negative. The current price of 52.51 is below the 20-day moving average (MA) of 55.60, below the 50-day MA of 62.33, and below the 200-day MA of 54.95, indicating a bearish trend. The MACD of -3.78 indicates Negative momentum. The RSI at 38.46 is Neutral, neither overbought nor oversold. The STOCH value of 65.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FTDR.

frontdoor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROL	79 Outperform	$29.14B	56.46	36.21%	1.13%	11.17%	9.81%
SCI	71 Outperform	$10.92B	21.00	33.48%	1.54%	3.41%	7.94%
FTDR	68 Neutral	$3.79B	14.94	91.16%	―	11.88%	18.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
EJH	40 Neutral	$16.69M	-0.02	-1.75%	―	-2.53%	99.45%

frontdoor Corporate Events

Frontdoor Reports Strong Q3 2025 Financial Results

Frontdoor, Inc. is a leading provider of home warranties and on-demand home repair services in the United States, known for its brands American Home Shield and 2-10 Home Buyers Warranty. The company has over 50 years of experience in the home warranty sector, offering comprehensive coverage for home systems and appliances.

Frontdoor’s Earnings Call Highlights Robust Growth

Frontdoor’s recent earnings call painted a picture of robust financial health and strategic success. The company reported significant revenue and profit growth, improved member retention, and successful expansion in nonwarranty revenue. Despite facing challenges such as inflation and a sluggish real estate market, Frontdoor maintained a positive outlook, demonstrating that its strategic initiatives are yielding results.

Frontdoor Appoints Jason Bailey as New CFO

Frontdoor, Inc. announced the appointment of Jason Bailey as the new Senior Vice President and Chief Financial Officer, effective November 10, 2025, succeeding Jessica Ross. Bailey, who has been with the company since 2018, brings over 25 years of experience in finance and public accounting, and his leadership is expected to guide Frontdoor through its next phase of growth. Ross will continue as an advisor until the end of 2025 to ensure a smooth transition. This transition marks a strategic move for Frontdoor as it positions itself for continued profitable growth in the home warranty and repair services market.

The most recent analyst rating on (FTDR) stock is a Buy with a $77.00 price target. To see the full list of analyst forecasts on frontdoor stock, see the FTDR Stock Forecast page.

Frontdoor Reports Strong Q2 2025 Financial Performance

Frontdoor, Inc. is a leading provider of home warranties and on-demand home repair services, operating primarily in the home services industry with brands like American Home Shield and 2-10 Home Buyers Warranty. In its second-quarter 2025 financial results, Frontdoor reported a 14% increase in revenue to $617 million, a 21% rise in net income to $111 million, and a 26% boost in adjusted EBITDA to $199 million. The company also repurchased $150 million of shares year-to-date through July 2025.

Frontdoor’s Strong Earnings Call Highlights Growth

Frontdoor’s Latest Earnings Call Highlights Strong Financial Performance Amid Market Challenges