Frontdoor, Inc. (FTDR) stock analysis
Close on Nov 11, 2026Market cap $6.74BP/E 24.4Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed11 of 30 checks passed
Frontdoor passes 11 of the 30 checks behind our score; 8 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 2/6
- Past performance
- 5/6
- Financial health
- 3/6
- Dividend
- 0/6
What stands out
Return on equity over 15%
Return on equity was 90.0% over the last twelve months and averaged 158% over five years.
Earnings grew over 5 years
Net income grew 17.9% a year on average over the last five fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 57.8% a year over the last three fiscal years.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 36.3% of total debt.
What to watch
Margin of safety under 20%
The price is 14.3% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $97.86 is above our fair value estimate of $85.59.
High debt
Debt is 366% of shareholders' equity, above the 40% we consider low.
Revenue growing under 10% a year
Revenue grew 8.0% a year over the last three fiscal years, short of the 10% we look for.
Valuation1/6
P/E above its 5-year median
Frontdoor's P/E of 24.4 is above its own 5-year median of 18.8.
P/E below the industry
Frontdoor's P/E of 24.4 is below the Business Services median of 26.9.
EV/EBITDA above its 5-year median
Frontdoor's EV/EBITDA of 13.7 is above its 5-year median of 11.3.
P/B above the industry
Frontdoor's price-to-book of 21.40 is above the Business Services median of 2.98.
Trading above fair value
The share price of $97.86 is above our fair value estimate of $85.59.
Margin of safety under 20%
The price is 14.3% above fair value, so there is no margin of safety.
Growth2/6
Revenue growing under 10% a year
Revenue grew 8.0% a year over the last three fiscal years, short of the 10% we look for.
EPS growing 10%+ a year
Diluted EPS grew 57.8% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew 8.0% over the last twelve months, against a 5-year average of 17.9% a year.
Growing slower than the industry
Revenue grew 6.9% over the last twelve months; the Business Services median is 9.1%.
Guidance raised
Frontdoor raised its Full-Year 2026 Revenue outlook on Aug 6, 2026.
Gross margin slipping
Gross margin was 55.0% over the last twelve months, against 55.3% a year earlier.
Past performance5/6
Return on equity over 15%
Return on equity was 90.0% over the last twelve months and averaged 158% over five years.
Return on invested capital
Needs operating income and invested capital.
Return on equity above the industry
Frontdoor's return on equity of 90.0% is above the Business Services median of 1.4%.
Earnings grew over 5 years
Net income grew 17.9% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 13.0% over the last twelve months, against a 5-year average of 9.4%.
Net margin above the industry
Frontdoor's net margin of 13.0% is above the Business Services median of -1.7%.
Financial health3/6
High debt
Debt is 366% of shareholders' equity, above the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 36.3% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets cover short-term debts
Current assets are 1.75 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 3.94; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Frontdoor has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$85.59
The share price is 14% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 22.8× | 18.8× | 26.9× | $91.57 | 44% |
| EV/EBITDA | 13.8× | 11.3× | 16.4× | $98.80 | 39% |
| Earnings power | 9.9% cost of equity | – | – | $38.82 | 17% |
| Fair value | $85.59 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 18.8
- Business Services median 26.9
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $62.60M
- Value traded per 1% price move
- $33.31M
Downside
Medium risk
- Typical loss in a bad month
- 17.7%
- Volatility (annualized)
- 43%
- Sharpe ratio, 1 year
- 2.12
- Beta to the S&P 500 (5Y)
- 1.00
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2015 to 2025
Gross margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +13.6% | +8.0% | +7.3% | – | |
| Gross profit | +16.8% | +17.7% | +10.1% | – | |
| Net income | +8.5% | +53.1% | +17.9% | – | |
| EPS, diluted | +13.6% | +57.8% | +21.2% | – | |
| Free cash flow | +68.8% | +56.4% | +17.4% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 23.0% | -93.3% | 106.0% | |
| Return on assets | – | 8.4% | 12.0% | |
| Current ratio | – | 1.55 | 1.55 | |
| Debt to equity | – | -15.98 | 4.85 | |
| Capex to revenue | 1.1% | 2.2% | 1.2% | |
| Diluted shares | 85M | 86M | 75M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Frontdoor generated $1.22B from operations and spent $895.00M on capital expenditure, dividends and share buybacks. 19% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 12.2% | 0.99× | 8.83× | 106.0% |
| FY2024 | 12.8% | 1.15× | 8.52× | 125.3% |
| FY2023 | 9.6% | 1.64× | 11.02× | 173.6% |
| FY2022 | 4.3% | 1.55× | 34.14× | 225.4% |
| FY2021 | 8.0% | 1.30× | -41.93× | -433.9% |
| FY2020 | 7.6% | 1.11× | -11.06× | -93.3% |
| FY2019 | 11.2% | 1.19× | -4.38× | -58.5% |
| FY2018 | 9.9% | 1.02× | 7.75× | 78.9% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$255.00M
- Cash generatingOperating cash flow above zero$416.00M
- Return on assets improvedROA up on the prior year21.6% → 12.1%
- Earnings backed by cashOperating cash flow above net income$416.00M vs $255.00M
- Less leverageLong-term debt to assets fell55.5% → 53.4%
- Better liquidityCurrent ratio rose1.32 → 1.55
- No dilutionShare count did not rise78M → 75M
- Gross margin improvedGross margin up on the prior year53.77% → 55.28%
- More efficientAsset turnover rose1.69 → 0.99
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