Frontdoor (FTDR) Fundamental Analysis: Revenue, Earnings & Valuation

8.76 / 10

Outperform

FTDR's fundamental score of 8.76/10 reflects superior asset quality (Asset-MV group 2) and equity cushion (Equity ratio group 4), but revenue-to-market and profit-to-market values are only moderate. Gross profit margin at 56.87% places it in group 3, while cost of sales ratio is in group 2. Current assets represent 31.21% of total assets (group 2), and non-current assets 68.84% (group 3), suggesting a mature asset base. Liabilities remain manageable with a long-term debt to working capital ratio of 5.14 (group 3). Overall, the balance sheet is solid, though income statement efficiency could improve.

Analysis Checks(6/10)

Revenue-MV

Value0.11

Score1/3

Weight-5.94%

1M Return-1.97%

Gross profit margin (%)

Value56.87

Score2/3

Weight5.07%

1M Return1.31%

Equity ratio (Total liabilities / Shareholders’ equity attributable to parent company) (%)

Value6.05

Score3/3

Weight34.52%

1M Return8.45%

Profit-MV

Value0.92

Score0/3

Weight-1.74%

1M Return-0.43%

Non-current assets / Total assets (%)

Value68.84

Score3/3

Weight27.98%

1M Return6.63%

Cash-UP

Value-0.91

Score1/3

Weight-29.95%

1M Return-10.92%

Long-term debt to working capital ratio (%)

Value5.14

Score1/3

Weight-2.00%

1M Return-0.53%

Cost of sales ratio (%)

Value43.13

Score2/3

Weight5.07%

1M Return1.32%

Asset-MV

Value-0.50

Score2/3

Weight38.79%

1M Return8.74%

Current assets / Total assets (%)

Value31.21

Score3/3

Weight28.19%

1M Return6.69%

Is FTDR fundamentally strong?

FTDR scores 8.76/10 on fundamentals and holds a Discounted valuation at present. Backed by its 91.17% ROE, 12.83% net margin, 16.25 P/E ratio, 13.22 P/B ratio, and 17.43% earnings growth, these metrics solidify its Outperform investment rating.