Frontdoor, Inc. (FTDR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

M.D.C. Holdings, Inc.

Toll Brothers, Inc.

Frontdoor, Inc.

Skyline Champion Corp.

Lennar Corp.

PulteGroup, Inc.

NVR, Inc.

KB Home

Taylor Morrison Home Corp.

Meritage Homes Corp.

Tri Pointe Homes, Inc.

Why is Frontdoor, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 60.18%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 6.31

Flat results in Mar 26

INTEREST(9M) At USD 58 MM has Grown at 34.88%
NET SALES(Q) At USD 451 MM has Fallen at -13.85%
PRE-TAX PROFIT(Q) At USD 55 MM has Fallen at -36.78%

With ROCE of 48.00%, it has a expensive valuation with a 5.20 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 24.32%, its profits have risen by 3.8% ; the PEG ratio of the company is 1.8

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Frontdoor, Inc. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Frontdoor, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Frontdoor, Inc.

24.32%

2.47

42.31%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.27%

EBIT Growth (5y)

13.83%

EBIT to Interest (avg)

6.31

Debt to EBITDA (avg)

1.28

Net Debt to Equity (avg)

3.48

Sales to Capital Employed (avg)

1.83

Tax Ratio

23.72%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

60.18%

ROE (avg)

130.97%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

15.77

EV to EBIT

10.82

EV to EBITDA

8.68

EV to Capital Employed

5.20

EV to Sales

2.11

PEG Ratio

1.80

Dividend Yield

ROCE (Latest)

48.00%

ROE (Latest)

109.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 410 MM

RAW MATERIAL COST(Y)

Fallen by -1.6% (YoY

CASH AND EQV(HY)

Highest at USD 1,171 MM

-8What is not working for the Company

INTEREST(9M)

At USD 58 MM has Grown at 34.88%

NET SALES(Q)

At USD 451 MM has Fallen at -13.85%

PRE-TAX PROFIT(Q)

At USD 55 MM has Fallen at -36.78%

NET PROFIT(Q)

At USD 44.22 MM has Fallen at -33.2%

Here's what is working for Frontdoor, Inc.

Operating Cash Flow

Highest at USD 410 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 1,171 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.6% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Frontdoor, Inc.

Net Sales

At USD 451 MM has Fallen at -13.85%

over average net sales of the previous four periods of USD 523.5 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Pre-Tax Profit

At USD 55 MM has Fallen at -36.78%

over average net sales of the previous four periods of USD 87 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 44.22 MM has Fallen at -33.2%

over average net sales of the previous four periods of USD 66.19 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 58 MM has Grown at 34.88%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)