Frontdoor, Inc. (FTDR) Fundamental Analysis: Bull vs. Bear Case

FTDR

Frontdoor, Inc.

Fundamental data last updated:August 11, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Personal Products & Services

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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.

VALUATION

P/E

16.86 Market Cap ($M USD)

$4.36B

Forward P/E

10.93 PEG

0.20 PRICE TO SALES

2.06 PRICE TO BOOK

19.06 EV / EBITDA

9.63 5-Year Average P/E

Free Cash Flow Yield

8.83%

DCF Value

$53.52

Graham Number

$16.43

Price to FCF

11.33 EV to FCF

12.84 Earnings Yield

5.93%

FCF Yield

8.83%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.68

Next Year EPS Growth Estimate

$5.68

Next Year Revenue Growth Estimate

$2.51B

Return on Equity (ROE)

99.90%

FREE CASH FLOW

Operating Margin

19.54%

Debt-to-Equity

5.01 Piotroski F-Score

8 Altman Z-Score

3.62 Return on Invested Capital (ROIC)

24.17%

Current Ratio

1.47 Quick Ratio

1.47 Net Debt to EBITDA

1.13 Interest Coverage

5.24 Gross Profit margin

51.20%

FCF PER SHARE

$5.45

REVENUE PER SHARE

$30.01

Gainseekers Quantitative Analysis

Summary

Frontdoor, Inc. presents a compelling yet complex valuation picture. Despite trading above its DCF value and Graham Number, the Forward P/E of 11.38 suggests the market anticipates robust earnings growth. The Altman Z-score of 3.72 indicates financial stability, while an earnings yield of 5.70% reflects a reasonable return relative to its price. However, the Price/Book ratio of 19.84 raises eyebrows, hinting at potential overvaluation. Overall, the stock’s financial health appears solid, but its valuation metrics demand scrutiny.

AI Exposure / Tech Reliance

Operating in the Personal Products & Services industry, Frontdoor, Inc. is well-positioned to leverage AI and modern tech advancements. The sector's inherent need for innovation and customer service enhancement aligns with AI-driven efficiencies. This adaptability could bolster its competitive edge in a rapidly evolving market landscape.

The Bull Case

For the discerning GARP investor, Frontdoor, Inc. offers an enticing proposition. With an impressive ROIC of 27.32% and a Piotroski F-Score of 7, the company demonstrates strong capital efficiency and financial health. Its operating margin of 22.10% and a solid FCF yield of 8.48% underscore its ability to generate substantial cash flow, reflecting robust pricing power and operational prowess. These metrics suggest a company capable of delivering sustained value.

The Bear Case

Yet, the stock is not without its pitfalls. A Price/Book ratio nearing 20 and a Price/Sales ratio of 2.14 suggest the market may be overestimating its intrinsic value. The debt/equity ratio of 5.01 is alarmingly high, indicating potential leverage risks. Additionally, trading just 9.52% below its 52-week high, the stock appears technically overextended, raising concerns about its near-term upside potential.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$69.33

Institutional Ownership %

1-Year Beta

1.56 Insider Buying % (6 Mo)

Distance to 52-Week High

13.98%

Distance to 52-Week Low

21.94%

EARNINGS SURPRISE %

10.61%

50-DAY SMA

$60.48

200-DAY SMA

$60.39

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.