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 9.66% of over the last 5 years
4
Flat results in Jun 25
- ROCE(HY) Lowest at 109.83%
- INTEREST(Q) Highest at USD 22 MM
5
With ROCE of 41.49%, it has a very expensive valuation with a 5.62 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 -9.41%, its profits have risen by 35.2% ; the PEG ratio of the company is 0.4
6
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 12.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.41% returns
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.
-8.8%
1.23
44.11%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.74%
EBIT Growth (5y)
9.66%
EBIT to Interest (avg)
6.31
Debt to EBITDA (avg)
1.28
Net Debt to Equity (avg)
3.48
Sales to Capital Employed (avg)
2.03
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
21.69
EV to EBIT
13.54
EV to EBITDA
11.73
EV to Capital Employed
5.62
EV to Sales
2.64
PEG Ratio
0.39
Dividend Yield
NA
ROCE (Latest)
41.49%
ROE (Latest)
131.93%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 334 MM
RAW MATERIAL COST(Y)
Fallen by 0.6% (YoY
CASH AND EQV(HY)
Highest at USD 1,068 MM
NET SALES(Q)
Highest at USD 617 MM
OPERATING PROFIT(Q)
Highest at USD 189 MM
OPERATING PROFIT MARGIN(Q)
Highest at 30.63 %
PRE-TAX PROFIT(Q)
Highest at USD 146 MM
NET PROFIT(Q)
Highest at USD 111 MM
EPS(Q)
Highest at USD 1.49
-9What is not working for the Company
ROCE(HY)
Lowest at 109.83%
INTEREST(Q)
Highest at USD 22 MM
Here's what is working for Frontdoor, Inc.
Operating Cash Flow
Highest at USD 334 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 617 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Sales
At USD 617 MM has Grown at 30.58%
over average net sales of the previous four periods of USD 472.5 MMMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 189 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 30.63 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 146 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 146 MM has Grown at 72.27%
over average net sales of the previous four periods of USD 84.75 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 111 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 111 MM has Grown at 69.98%
over average net sales of the previous four periods of USD 65.3 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 1.49
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Cash and Eqv
Highest at USD 1,068 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by 0.6% (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.
Interest
Highest at USD 22 MM
in the last five periods and Increased by 10% (QoQ)MOJO 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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