ScoreWhy is Frontdoor, Inc. ?
1
High Management Efficiency with a high ROCE of 60.18%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.28 times
3
Poor long term growth as Operating profit has grown by an annual rate 12.18% of over the last 5 years
4
Flat results in Sep 25
- INTEREST(HY) At USD 42 MM has Grown at 110%
- ROCE(HY) Lowest at 91.16%
5
With ROCE of 44.28%, it has a very expensive valuation with a 5.55 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 54.14%, its profits have risen by 11.4% ; the PEG ratio of the company is 1.3
6
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Market Beating performance in long term as well as near term
- Along with generating 54.14% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow 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.
54.14%
1.51
41.89%
S&P 500
14.9%
0.77
19.29%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.08%
EBIT Growth (5y)
12.18%
EBIT to Interest (avg)
6.31
Debt to EBITDA (avg)
1.28
Net Debt to Equity (avg)
3.48
Sales to Capital Employed (avg)
1.92
Tax Ratio
23.72%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
60.18%
ROE (avg)
130.97%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
14.46
EV to EBIT
12.53
EV to EBITDA
10.34
EV to Capital Employed
5.55
EV to Sales
2.54
PEG Ratio
1.32
Dividend Yield
NA
ROCE (Latest)
44.28%
ROE (Latest)
88.22%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 373 MM
RAW MATERIAL COST(Y)
Fallen by 1.7% (YoY
CASH AND EQV(HY)
Highest at USD 1,125 MM
NET SALES(Q)
Highest at USD 618 MM
PRE-TAX PROFIT(Q)
At USD 145 MM has Grown at 63.84%
NET PROFIT(Q)
At USD 108.22 MM has Grown at 57.4%
-8What is not working for the Company
INTEREST(HY)
At USD 42 MM has Grown at 110%
ROCE(HY)
Lowest at 91.16%
Here's what is working for Frontdoor, Inc.
Operating Cash Flow
Highest at USD 373 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 618 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Sales
At USD 618 MM has Grown at 25.8%
over average net sales of the previous four periods of USD 491.25 MMMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Pre-Tax Profit
At USD 145 MM has Grown at 63.84%
over average net sales of the previous four periods of USD 88.5 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 108.22 MM has Grown at 57.4%
over average net sales of the previous four periods of USD 68.75 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Cash and Eqv
Highest at USD 1,125 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by 1.7% (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
Depreciation
Highest at USD 26 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Frontdoor, Inc.
Interest
At USD 42 MM has Grown at 110%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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