frontdoor (FTDR) AI Stock Analysis

• Market Cap: $4.03B
• Dividend Yield: N/A
• Average Volume (3M): 739.88K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.07
• 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: 652,600
• 30 Day Avg. Volume: 739,884
• 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: 1.40
• Enterprise Value/Revenue: 2.76
• Enterprise Value/Gross Profit: 5.00
• Enterprise Value/Ebitda: 11.83
• 1Y Price Target: $67.00
• Price Target Upside: 19.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 3.9
• Revenue Forecast (FY): $2.08B

• Rating: 72 Outperform
• Price Target: $58.00 ▲(3.72% Upside)

Frontdoor's overall stock score reflects strong financial performance and positive earnings call sentiment, which are the most significant factors. The technical analysis indicates a bearish trend, which slightly offsets the positive aspects. The company's valuation is reasonable, and the recent executive change is viewed positively, supporting future growth.

Positive Factors

Revenue Growth

The 14% revenue growth indicates strong demand for Frontdoor's services, suggesting a robust market position and potential for sustained expansion.

Nonwarranty Revenue Expansion

The significant increase in nonwarranty revenue highlights successful diversification efforts, reducing reliance on traditional warranty services and enhancing growth prospects.

Executive Leadership

The new CFO, Jason Bailey, brings extensive experience, expected to guide strategic growth, enhancing financial management and operational efficiency.

Negative Factors

High Debt Levels

Despite improved leverage, high debt levels could limit financial flexibility, posing risks to long-term stability and growth potential.

Inflation Impact

Inflationary pressures on contract claims costs could erode margins, affecting profitability and necessitating strategic cost management.

Real Estate Market Challenges

The challenging real estate market may hinder growth in home warranty sales, impacting revenue streams tied to real estate transactions.

frontdoor Business Overview & Revenue Model

Company Description

Frontdoor, Inc. (FTDR) is a leading provider of home service plans in the United States, focusing on offering protection and maintenance services for homeowners. The company operates primarily in the home warranty sector, providing services that cover the repair or replacement of major home systems and appliances, such as heating and cooling systems, plumbing, and electrical systems. Frontdoor's core brands include American Home Shield, HSA Home Warranty, and OneGuard Home Warranty, catering to a diverse customer base seeking peace of mind in home ownership.

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: Neutral
• Last Price: 55.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTDR, the sentiment is Neutral. The current price of 55.92 is above the 20-day moving average (MA) of 53.33, below the 50-day MA of 58.14, and above the 200-day MA of 54.91, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 53.90 is Neutral, neither overbought nor oversold. The STOCH value of 86.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FTDR.

frontdoor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROL	79 Outperform	$28.82B	55.84	36.21%	1.12%	11.17%	9.81%
FTDR	72 Outperform	$4.03B	15.84	91.16%	―	11.88%	18.08%
SCI	67 Neutral	$10.99B	21.14	33.48%	1.64%	3.41%	7.94%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
EJH	40 Neutral	$41.00M	-0.02	-1.75%	―	-2.53%	99.45%

frontdoor Corporate Events

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.