A Business at a Glance
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Frontdoor is the leading provider of home warranties and new home builder warranties in the United States, as measured by revenue, and operates under the American Home Shield, HSA, OneGuard, Landmark and 2-10 HBW brands. Our customizable home warranties help customers protect and maintain their homes, typically their most valuable asset, from costly and unplanned breakdowns of essential home systems and appliances. Our home warranty customers frequently use our services, as we handle approximately 3.8 million home warranty service requests annually utilizing our nationwide network of approximately 17,000 qualified independent professional contractor firms in a wide range of trades and with diverse skills and capabilities.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 2.1B | 2.1B | 1.8B | 1.8B | 1.7B | 1.6B |
| Net Income | 255M | 255M | 235M | 171M | 71M | 128M |
| EPS | $3.42 | $3.42 | $3.01 | $2.12 | $0.87 | $1.50 |
| Free Cash Flow | 390M | 390M | 231M | 170M | 102M | 154M |
| ROIC | 27.4% | 40.4% | 37.3% | 52.1% | 39.1% | 12.8% |
| Gross Margin | 55.3% | 55.3% | 53.8% | 49.7% | 42.7% | 48.9% |
| Debt/Equity | 6.08 | 6.08 | 6.27 | 6.32 | 14.38 | 312.50 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 418M | 418M | 349M | 268M | 124M | 206M |
| Operating Margin | 20.0% | 20.0% | 18.9% | 15.1% | 7.5% | 12.9% |
| ROE | 105.4% | 106.0% | 125.3% | 173.6% | 225.4% | -433.9% |
| Shares Outstanding | 75M | 75M | 78M | 81M | 82M | 85M |
Frontdoor, Inc. passes 7 of 9 quality checks, indicating strong fundamentals.
Frontdoor, Inc. trades at 17.4x trailing earnings, compared to its 15-year median P/E of 20.8x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 10.8x vs a median of 17.8x. The company's 5-year average ROIC is 36.3% with a gross margin of 50.1%. Total shareholder yield (buybacks) is 6.4%. At current prices, the estimated annualized return to fair value is +8.4%.
Frontdoor, Inc. (FTDR) has a current P/E ratio of 17.4, compared to its historical median P/E of 20.8. The stock is currently considered Fair based on its historical valuation range.
Frontdoor, Inc. (FTDR) has a 5-year average return on invested capital (ROIC) of 36.3%. This indicates strong capital allocation and a potential competitive advantage.
Frontdoor, Inc. (FTDR) has a market capitalization of $4.4B. It is classified as a mid-cap stock.
Frontdoor, Inc. (FTDR) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 6.37%.
Based on historical P/E analysis, Frontdoor, Inc. (FTDR) appears fair. The current P/E of 17.4 is 16% below its historical median of 20.8. The estimated fair value CAGR (P/E method) is 10.8%.
Frontdoor, Inc. (FTDR) operates in the Services-To Dwellings & Other Buildings industry, within the Industrials sector.
Frontdoor, Inc. (FTDR) reported annual revenue of $2.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
Frontdoor, Inc. (FTDR) has a net profit margin of 12.2%. This is a healthy margin.
Frontdoor, Inc. (FTDR) generated $390 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Frontdoor, Inc. (FTDR) has a debt-to-equity ratio of 6.08. This indicates higher leverage, which may increase financial risk.
Frontdoor, Inc. (FTDR) reported earnings per share (EPS) of $3.42 in its most recent fiscal year.
Frontdoor, Inc. (FTDR) has a return on equity (ROE) of 106.0%. This indicates the company generates strong returns for shareholders.
Frontdoor, Inc. (FTDR) has a 5-year average gross margin of 50.1%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 10 years of financial data for Frontdoor, Inc. (FTDR), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Frontdoor, Inc. (FTDR) has a book value per share of $3.25, based on its most recent annual SEC filing.