Frontdoor, Inc.
$62.08
+0.65%Frontdoor, Inc. provides home service plans in the United States. The company's home service plans cover the repair or replacement of principal components of approximately 20 home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and central heating, ventilation, and air conditioning systems. It also offers ProConnect on-demand home services business and Streem, a technology platform that uses augmented reality, computer vision, and machine learning that helps home service professionals quickly and accurately diagnose breakdowns and complete repairs. The company serves homeowners under the American Home Shield, HSA, Landmark Home Warranty, OneGuard, Frontdoor, and Streem brands. The company was founded in 1971 and is headquartered in Memphis, Tennessee.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 17.8).
Valuation inputs: P/E 17.8, earnings yield +5.6%, momentum +0.6%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +1.1%, ROIC +17.0%).
Profitability stack: net margin +12.2%, ROE +1.1%, ROIC +17.0%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +88.7%, momentum +0.6%, net margin +12.2%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Frontdoor, Inc. Market vs Earnings Trajectory
Loading price and EPS data...
Frontdoor, Inc. Fair Value Envelope
Frontdoor, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.
Frontdoor, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Frontdoor, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Frontdoor, Inc. Street Expectations Map
Wall Street analysts project that FTDR stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 69.33, with estimates ranging from a low of 67.00 to a high of 71.00.
The consensus 1-year price target stands at 69.33, with estimates ranging from a low of 67.00 to a high of 71.00.
Analyst Consensus Analysis
Upside Potential
Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Frontdoor, Inc. Insider Positioning
During the last 12 months, insiders have sold $8.85M worth of FTDR shares, with no buying activity reported.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
0
0.00
15.0K
1.01M
-1.0M
-$1.01M
6-9 Months
0
0.00
0
0.00
+0
+$0
9-12 Months
0
0.00
139.1K
7.84M
-7.8M
-$7.84M
Top Buyers
No buying activity
Top Sellers
Fiarman Jeffrey
Officer: Svp & Chief Legal Officer
$8.29M
Collins Kathryn M
Officer: Svp & Chief Revenue Officer
$556K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $8.85M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Insider Participation
2 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
No Dividend Yield Data
FTDR has not reported any dividend yield values in the available annual periods.
ftdr Dividend History
Learning Layer
Related Guides
Build conviction on FTDR by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.