Frontdoor (spun off from ServiceMaster) is the parent company of four home service plan brands: American Home Shield, HSA, Landmark and OneGuard. Together, they serve more than two million customers across the U.S. through a network of 15,000 pre-qualified contractor firms that employ over 45,000 technicians. The company’s customizable home service plans help customers protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances.
FTDR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for frontdoor inc. To summarize, we found that frontdoor inc ranked in the 25th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for frontdoor inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 7.3; that's higher than 74.29% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
The company's compound free cash flow growth rate over the past 2.02 years comes in at -0.03%; that's greater than merely 21.75% of US stocks we're applying DCF forecasting to.
frontdoor inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 19.01% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as FTDR, try AXL, LB, TJX, WMG, and BVH.
(Source: frontdoor inc) Frontdoor, Inc. (FTDR) operates a stable and profitable business. Recurring renewals account for two-thirds of the company's revenue, and FTDR has demonstrated the ability to raise the prices without seeing a drop in their customer retention rate. FTDR has struggled to grow the size of their customer...
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Frontdoor, Inc. (NASDAQ:FTDR), the nation’s leading provider of home service plans, today announced it will release its second-quarter 2020 financial results on Wednesday, August 5, 2020. The company will hold a conference call to discuss its financial and operating results at 3:30 p.m. Central time (4:30 p.m. Eastern time) on Wednesday, August 5, 2020.