Latest news with #FTDR
Yahoo
24-05-2025
- Business
- Yahoo
Is It Time To Consider Buying Frontdoor, Inc. (NASDAQ:FTDR)?
While Frontdoor, Inc. (NASDAQ:FTDR) might not have the largest market cap around , it received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. While good news for shareholders, the company has traded much higher in the past year. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. But what if there is still an opportunity to buy? Let's take a look at Frontdoor's outlook and value based on the most recent financial data to see if the opportunity still exists. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Good news, investors! Frontdoor is still a bargain right now. According to our valuation, the intrinsic value for the stock is $75.49, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because Frontdoor's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity. See our latest analysis for Frontdoor Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Frontdoor, it is expected to deliver a relatively unexciting earnings growth of 4.6%, which doesn't help build up its investment thesis. Growth doesn't appear to be a main reason for a buy decision for the company, at least in the near term. Are you a shareholder? Even though growth is relatively muted, since FTDR is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation. Are you a potential investor? If you've been keeping an eye on FTDR for a while, now might be the time to enter the stock. Its future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy FTDR. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. You'd be interested to know, that we found 1 warning sign for Frontdoor and you'll want to know about it. If you are no longer interested in Frontdoor, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
24-05-2025
- Business
- Yahoo
Is It Time To Consider Buying Frontdoor, Inc. (NASDAQ:FTDR)?
While Frontdoor, Inc. (NASDAQ:FTDR) might not have the largest market cap around , it received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. While good news for shareholders, the company has traded much higher in the past year. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. But what if there is still an opportunity to buy? Let's take a look at Frontdoor's outlook and value based on the most recent financial data to see if the opportunity still exists. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Good news, investors! Frontdoor is still a bargain right now. According to our valuation, the intrinsic value for the stock is $75.49, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because Frontdoor's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity. See our latest analysis for Frontdoor Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Frontdoor, it is expected to deliver a relatively unexciting earnings growth of 4.6%, which doesn't help build up its investment thesis. Growth doesn't appear to be a main reason for a buy decision for the company, at least in the near term. Are you a shareholder? Even though growth is relatively muted, since FTDR is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation. Are you a potential investor? If you've been keeping an eye on FTDR for a while, now might be the time to enter the stock. Its future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy FTDR. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. You'd be interested to know, that we found 1 warning sign for Frontdoor and you'll want to know about it. If you are no longer interested in Frontdoor, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
15-05-2025
- Business
- Yahoo
FTDR Q1 Earnings Call: Membership Growth and Product Expansion Drive Results, Guidance Raised
Home warranty company Frontdoor (NASDAQ:FTDR) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 12.7% year on year to $426 million. The company expects next quarter's revenue to be around $602.5 million, close to analysts' estimates. Its non-GAAP profit of $0.64 per share was 70.1% above analysts' consensus estimates. Is now the time to buy FTDR? Find out in our full research report (it's free). Revenue: $426 million vs analyst estimates of $417.2 million (12.7% year-on-year growth, 2.1% beat) Adjusted EPS: $0.64 vs analyst estimates of $0.38 (70.1% beat) Adjusted EBITDA: $100 million vs analyst estimates of $76.22 million (23.5% margin, 31.2% beat) The company slightly lifted its revenue guidance for the full year to $2.04 billion at the midpoint from $2.02 billion EBITDA guidance for the full year is $510 million at the midpoint, above analyst estimates of $458.8 million Operating Margin: 14.1%, in line with the same quarter last year Free Cash Flow Margin: 27.5%, up from 19.3% in the same quarter last year Home Service Plans: 2.1 million, up 140,000 year on year Market Capitalization: $3.98 billion Frontdoor's first quarter results reflected significant momentum in both financial performance and membership growth, driven by the integration of the 2-10 Home Buyers Warranty acquisition and strategic marketing initiatives. Management attributed the quarter's outcome to higher direct-to-consumer (DTC) unit growth, improved member retention, and ongoing expansion of non-warranty revenue streams such as HVAC replacement programs and new partnerships. CEO Bill Cobb highlighted targeted marketing and digital upgrades, stating, "Our actions are working to drive organic unit growth. Demand is up, conversion is up, and as a result, our DTC member count is up." Looking ahead, Frontdoor's leadership raised its full-year revenue and adjusted EBITDA guidance, citing favorable cost controls, sustained member growth, and the scaling of new business lines. CFO Jessica Ross warned that macroeconomic uncertainty and potential tariff impacts have been factored into guidance, but emphasized that the company's proactive margin management and dynamic pricing provide flexibility. Management expects the combination of higher renewal rates, contribution from acquired businesses, and increased marketing spend to support continued growth. Frontdoor's first quarter performance was shaped by robust DTC growth, successful execution in non-warranty offerings, and disciplined cost management despite macroeconomic uncertainty. DTC Channel Growth: Direct-to-consumer membership rose 15% from last year, benefiting from improved marketing effectiveness, targeted digital advertising, and a revised promotional strategy focused on shorter, high-impact campaigns. This approach prioritized member count growth over immediate revenue per unit. 2-10 Integration Progress: The integration of the 2-10 Home Buyers Warranty acquisition continued to support both volume and retention gains. Management credited the addition for a stronger real estate channel and noted that process improvements and expanded service offerings are on track as planned. Retention Initiatives: Retention reached nearly 80%, aided by expanded onboarding engagement, an enhanced calling program to reduce cancellations, and increased use of preferred contractors for service calls. Management also pointed to product differentiation, including mobile app features and video chat with experts, as retention drivers. Non-Warranty Revenue Expansion: New programs such as the HVAC replacement offering and expanded partnerships, including Moen for smart water shutoff valves, contributed to the growing non-warranty revenue base. Management raised expectations for these initiatives as adoption grew and contractor participation increased. Margin Management Amid Inflation: Despite supplier price pressures and tariffs, cost inflation remained flat in the quarter. Improved supply chain management, preferred contractor usage, and dynamic pricing strategies allowed Frontdoor to offset inflation and maintain stable margins. Management's outlook for the remainder of the year centers on sustaining membership growth, expanding non-warranty offerings, and carefully managing cost pressures to deliver improved profitability. Membership Growth Focus: Continued investment in marketing and digital engagement aims to drive further organic DTC growth, with management emphasizing member count as a top strategic priority. Non-Warranty Expansion: The scaling of programs like HVAC replacement and structural warranties is expected to diversify revenue, while new partnerships are projected to add incremental growth. Cost and Tariff Uncertainty: Management cautioned that supplier pricing, tariffs, and macroeconomic volatility remain risks. However, proactive supply chain and pricing strategies are in place to protect margins if inflation accelerates. Mark Hughes (Truist Securities): Asked about tariff impacts and HVAC equipment costs; management responded that inflation was flat in Q1 but is monitoring suppliers closely and has accounted for tariff uncertainty in guidance. Jeffrey Schmitt (William Blair): Inquired about the sustainability of promotional pricing in the DTC channel; CEO Bill Cobb explained the shift to shorter, pulsed promotions and affirmed confidence in sustaining current strategies to prioritize member growth. Sergio Segura (KeyBanc): Questioned the drivers of outperformance and how supplier price increases are being managed; CFO Jessica Ross cited non-warranty revenue strength, favorable claims costs, and supply chain relationships as key factors. Daniel Pfeiffer (JPMorgan): Asked about the confidence behind the raised gross margin outlook and how tariff risk is incorporated; management stated that favorable Q1 performance is flowing through to full-year guidance with built-in caution for possible inflation. Isaac Sellhausen (Oppenheimer): Sought clarity on real estate channel growth despite a slow housing market and on retention rate drivers; management pointed to the 2-10 integration and ongoing retention initiatives, including enhanced member engagement and new digital features. In coming quarters, the StockStory team will be watching (1) whether DTC membership growth continues amid changing promotional tactics and macroeconomic headwinds, (2) the pace of non-warranty revenue expansion through HVAC and new partnerships, and (3) Frontdoor's ability to maintain or improve margins despite potential supplier price increases and tariffs. Progress on integration of acquired businesses and retention initiatives will also be important milestones for tracking execution. Frontdoor currently trades at a forward P/E ratio of 17.7×. At this valuation, is it a buy or sell post earnings? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
