* Note: Prices are in Million (M) USD.
Description:
front door, inc. The company is headquartered in Memphis, Tennessee.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $421 M
Debt : $1,219 M
EBITDA : $406 M
Net Debt (Debt - Cash): $798 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Consumer Discretionary
Industry: Personal Services
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 20.55
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $168 M
Average Revenue: $1,408 M
Revenue Converted To Free Cash FLow(%): 12%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 11.02%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,843 M
Revenue 4 Years Ago (2020-12-31): $1,474 M
Last 5 Years Average Revenue Growth: 5%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $78 M
Share Count 5 Years Ago (2020-12-31): $86 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.52
Trailing 12-Month Earnings Per Share (EPS): $2.96
Average Earnings Per Share (EPS): $2.74
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 775%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $56
52-Week Low: $36
Threshold Price (15% Above 52-Week Low): $41
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $4,340 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 19 points to above Frontdoor Inc (FTDR) stock.
Last 7 Years Avg PE (Limited to last 7 years of EPS data) 21, Fair Value PE 12, Industry Based PE is 18 and Growth based PE is 10. Based on these all values average assigned is 15.25.
Value-Trades has assined P/E value 15.25. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.74.
The fair value of Frontdoor Inc (FTDR) stock should be (15.25 x $2.74) = $41.79