frontdoor (FTDR) AI Stock Analysis

• Market Cap: $4.17B
• Dividend Yield: N/A
• Average Volume (3M): 668.66K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.11
• Revenue Growth: 5.53%
• EPS Growth: 36.30%
• Country: US
• Employees: 2,120
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Personal Products & Services
• EPS (TTM): 0.64
• Shares Outstanding: 73,585,800
• 10 Day Avg. Volume: 533,899
• 30 Day Avg. Volume: 668,659
• PEG Ratio: -0.57
• Price to Book (P/B): 27.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.68
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 2.04
• Enterprise Value/Ebitda: 1.31
• 1Y Price Target: $61.00
• Price Target Upside: 8.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: $65.00 ▲(15.66%Upside)

Frontdoor's strong financial performance and positive earnings call results are key drivers of the high score. The technical analysis indicates bullish momentum, although the overbought conditions warrant caution. Valuation is reasonable, but the lack of dividend yield could be a consideration for some investors. The overall outlook is positive, driven by growth in revenue, membership, and a solid financial strategy.

Positive Factors

Earnings Performance

Frontdoor reported its 11th straight earnings beat with adjusted EPS of $0.64 versus consensus of $0.38.

Financial Strategy

Cash flows are at record levels and share buybacks are accelerating as well.

Growth Prospects

Revenues increased by 13%, surpassing expectations, driven by pricing and higher volumes.

Negative Factors

Direct Revenue Decline

Direct revenues decreased by 9% as a result of a higher level of promotional activity.

Revenue Guidance

The stock traded down 19% likely due to the weaker-than-expected 2025 revenue guide.

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 makes money primarily through the sale of home service plans, which are subscription-based products providing coverage for the repair and replacement of home systems and appliances. Customers pay monthly or annual fees for these plans, generating a steady stream of revenue. Additionally, the company earns from service fees charged when a service request is made, which covers part of the costs associated with dispatching service professionals to perform repairs. Frontdoor also engages in strategic partnerships with real estate companies and other entities to market its service plans, further enhancing its revenue streams. These partnerships help Frontdoor reach a broader customer base, contributing significantly to its earnings.

frontdoor Financial Statement Overview

Summary

Frontdoor demonstrates robust financial health with strong revenue and profit growth, efficient cost management, and solid cash generation capabilities. Despite high leverage, the company maintains a good balance between debt and equity, alongside exceptional returns on equity. Continuous monitoring of debt levels and cash reserves is recommended to sustain financial stability.

Income Statement

The income statement shows a strong performance with significant revenue growth from 2020 to TTM, reaching $1.89 billion. Gross profit margin remains healthy at approximately 52.9% for TTM, indicating efficient cost management. The net profit margin has improved to 12.6% in TTM, reflecting enhanced profitability. The EBIT margin of 20.6% and EBITDA margin of 22.1% in TTM suggest solid operational efficiency. Overall, the company exhibits robust growth and profitability trends.

Balance Sheet

The balance sheet reflects a leveraged position with a debt-to-equity ratio of 6.13 in TTM, indicating high reliance on debt financing. However, the equity ratio improved to 9.3%, showing an increase in equity relative to assets. Return on equity (ROE) stood at a strong 120.2% in TTM, highlighting effective use of equity to generate profits. While the high leverage poses a risk, the improving equity position and strong ROE are positive indicators.

Cash Flow

The cash flow statement displays a commendable increase in free cash flow, growing from $102 million in 2022 to $274 million in TTM, representing strong cash generation capabilities. The operating cash flow to net income ratio of 1.3 indicates efficient conversion of profits into cash. The free cash flow to net income ratio of 1.15 also underscores solid cash profitability. The company shows strong cash flow management, although fluctuations in cash reserves warrant attention.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.89B	1.84B	1.78B	1.66B	1.60B	1.47B
	Gross Profit
1.00B	952.00M	848.00M	676.00M	749.00M	682.00M
	EBIT
366.00M	357.00M	267.00M	154.00M	240.00M	215.00M
	EBITDA
417.00M	408.00M	311.00M	153.00M	232.00M	231.00M
	Net Income Common Stockholders
238.00M	235.00M	171.00M	71.00M	128.00M	112.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
506.00M	436.00M	325.00M	292.00M	262.00M	597.00M
	Total Assets
2.12B	2.11B	1.09B	1.08B	1.07B	1.41B
	Total Debt
1.21B	1.22B	610.00M	627.00M	644.00M	993.00M
	Net Debt
707.00M	798.00M	285.00M	335.00M	382.00M	396.00M
	Total Liabilities
1.92B	1.87B	953.00M	1.02B	1.07B	1.47B
	Stockholders Equity
198.00M	239.00M	137.00M	61.00M	3.00M	-61.00M
Cash Flow		Free Cash Flow
274.00M	231.00M	170.00M	102.00M	154.00M	175.00M
	Operating Cash Flow
310.00M	270.00M	202.00M	142.00M	185.00M	207.00M
	Investing Cash Flow
-565.00M	-622.00M	-32.00M	-35.00M	-31.00M	-31.00M
	Financing Cash Flow
383.00M	447.00M	-137.00M	-77.00M	-489.00M	-7.00M

frontdoor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTDR, the sentiment is Positive. The current price of 56.2 is above the 20-day moving average (MA) of 55.47, above the 50-day MA of 48.30, and above the 200-day MA of 50.96, indicating a bullish trend. The MACD of 2.20 indicates Positive momentum. The RSI at 63.57 is Neutral, neither overbought nor oversold. The STOCH value of 64.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTDR.

frontdoor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTDR	78 Outperform	$4.17B	18.25	132.22%	―	5.53%	36.30%
ROL	78 Outperform	$27.56B	57.72	37.83%	1.16%	9.46%	9.04%
SCI	73 Outperform	$11.36B	21.98	32.71%	1.60%	2.40%	4.07%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
HRB	49 Neutral	$7.36B	13.46	657.13%	2.73%	3.71%	-8.07%

frontdoor Corporate Events

Frontdoor Stockholders Approve Key Governance Decisions

On May 14, 2025, Frontdoor held its 2025 Annual Meeting for Stockholders, where 94.43% of the company’s shares were represented. During the meeting, stockholders elected eight directors for a one-year term, ratified Deloitte & Touche LLP as the independent public accounting firm for fiscal 2025, and approved the executive officer compensation on an advisory basis. These decisions are expected to influence the company’s governance and financial oversight for the coming year.

The most recent analyst rating on (FTDR) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on frontdoor stock, see the FTDR Stock Forecast page.