Frontdoor, Inc. (FTDR)
Consumer Cyclical · NMS · US
Fundamentals
Valuation and ratings
Frontdoor, Inc. trades at USD75.85, which is 52% below the USD115.65 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 61 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 21.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Frontdoor, Inc.
Frontdoor, Inc. provides home warranties and new home builder warranties in the United States. The company offers customizable home warranties that help customers to protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. Its home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as pools, spas, and pumps; and heating, ventilation, and air conditioning systems. It also offers non-warranty home services through website and application; a one-stop app experience for home repair and maintenance using video chat, augmented reality, and computer vision and machining learning. The company operates under the American Home Shield, HSA, OneGuard, Landmark, and 2-10 HBW brand names. Frontdoor, Inc. was founded in 1971 and is headquartered in Memphis, Tennessee.
FTDR passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
11 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$97.78M · 0.1% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$77.23M · 0.0% of book
- Marshall Wace, MARSHALL WACE, LLP$29.15M · 0.0% of book
- Ken Griffin, CITADEL ADVISORS LLC$9.66M · 0.0% of book
- Paul Tudor Jones, TUDOR INVESTMENT CORP ET AL$6.88M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Frontdoor, Inc. (FTDR) undervalued?
Against our discounted cash flow estimate of USD115.65, FTDR at USD75.85 is 52% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own FTDR?
11 of the institutions we track reported a position in FTDR in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is FTDR's P/E ratio?
FTDR trades at 21.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for FTDR, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.