Is Frontdoor Stock a Good Investment?

Frontdoor Investment Advice

  FTDR
To provide specific investment advice or recommendations on Frontdoor stock, we recommend investors consider the following general factors when evaluating Frontdoor. This will help you to make an informed decision on whether to include Frontdoor in one of your diversified portfolios:
  • Examine Frontdoor's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Frontdoor's leadership team and their track record. Good management can help Frontdoor navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Diversified Consumer Services space and any emerging trends that could impact Frontdoor's business and its evolving consumer preferences.
  • Compare Frontdoor's performance and market position to its competitors. Analyze how Frontdoor is positioned in terms of product offerings, innovation, and market share.
  • Check if Frontdoor pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Frontdoor's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Frontdoor stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Frontdoor is a good investment.
 
Sell
 
Buy
Cautious Hold
Our advice module provides unbiased investment recommendation that can be used to complement current average analyst sentiment on Frontdoor. Our advice engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon. To make sure Frontdoor is not overpriced, please confirm all Frontdoor fundamentals, including its price to book, book value per share, retained earnings, as well as the relationship between the net income and target price . Given that Frontdoor has a number of shares shorted of 2.8 M, we urge you to verify Frontdoor market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance

GoodDetails

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Almost mirrors the marketDetails

Investor Sentiment

InterestedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine Frontdoor Stock

Researching Frontdoor's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 100.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.83. Frontdoor had not issued any dividends in recent years.
To determine if Frontdoor is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Frontdoor's research are outlined below:
Frontdoor currently holds 610 M in liabilities. Frontdoor has a current ratio of 0.75, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Frontdoor's use of debt, we should always consider it together with its cash and equity.
Over 100.0% of the company shares are owned by institutional investors
Latest headline from thelincolnianonline.com: Royce Associates LP Reduces Holdings in Frontdoor, Inc.

Frontdoor Quarterly Liabilities And Stockholders Equity

1.22 Billion

Frontdoor uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Frontdoor. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Frontdoor's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
6th of March 2024
Upcoming Quarterly Report
View
2nd of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
6th of March 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View
Earnings surprises can significantly impact Frontdoor's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Frontdoor's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2021-05-06
2021-03-310.080.10.0225 
2021-02-18
2020-12-310.050.080.0360 
2020-05-06
2020-03-310.170.210.0423 
2022-05-05
2022-03-310.090.04-0.0555 
2019-05-08
2019-03-310.130.190.0646 
2020-02-26
2019-12-310.180.250.0738 
2019-11-05
2019-09-300.660.730.0710 
2018-11-05
2018-09-300.590.670.0813 

Know Frontdoor's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Frontdoor is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Frontdoor backward and forwards among themselves. Frontdoor's institutional investor refers to the entity that pools money to purchase Frontdoor's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Fidelity International Ltd2024-06-30
1.3 M
Nuveen Asset Management, Llc2024-06-30
1.3 M
Arrowstreet Capital Limited Partnership2024-06-30
1.3 M
Swedbank Ab2024-09-30
1.2 M
Charles Schwab Investment Management Inc2024-09-30
M
Millennium Management Llc2024-06-30
908.9 K
Northern Trust Corp2024-09-30
845.4 K
Fmr Inc2024-09-30
835.7 K
Fort Washington Investment Advisors Inc2024-09-30
699.6 K
Blackrock Inc2024-06-30
13.9 M
Vanguard Group Inc2024-09-30
9.6 M
Note, although Frontdoor's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Frontdoor's market capitalization trends

The company currently falls under 'Mid-Cap' category with a current market capitalization of 4.27 B.

Market Cap

0.0

Frontdoor's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.39  0.20 
Return On Capital Employed 0.40  0.24 
Return On Assets 0.16  0.09 
Return On Equity 1.25  1.19 
The company has Profit Margin (PM) of 0.13 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.27 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.27.
Determining Frontdoor's profitability involves analyzing its financial statements and using various financial metrics to determine if Frontdoor is a good buy. For example, gross profit margin measures Frontdoor's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Frontdoor's profitability and make more informed investment decisions.

Evaluate Frontdoor's management efficiency

Frontdoor has return on total asset (ROA) of 0.1871 % which means that it generated a profit of $0.1871 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 1.0833 %, meaning that it created $1.0833 on every $100 dollars invested by stockholders. Frontdoor's management efficiency ratios could be used to measure how well Frontdoor manages its routine affairs as well as how well it operates its assets and liabilities. As of 11/22/2024, Return On Tangible Assets is likely to drop to 0.20. In addition to that, Return On Capital Employed is likely to drop to 0.24. At this time, Frontdoor's Non Current Assets Total are relatively stable compared to the past year. As of 11/22/2024, Non Currrent Assets Other is likely to grow to about 20.2 M, while Net Tangible Assets are likely to drop (557.5 M).
Last ReportedProjected for Next Year
Book Value Per Share 1.69  1.38 
Tangible Book Value Per Share(6.34)(6.65)
Enterprise Value Over EBITDA 10.26  10.45 
Price Book Value Ratio 20.69  19.66 
Enterprise Value Multiple 10.26  10.45 
Price Fair Value 20.69  19.66 
Management at Frontdoor focuses on leveraging technology and optimizing operations. We evaluate the impact of these focuses on the company's financial health and stock performance.
Beta
1.032

Basic technical analysis of Frontdoor Stock

As of the 22nd of November, Frontdoor shows the Mean Deviation of 1.32, coefficient of variation of 648.85, and Downside Deviation of 1.45. Frontdoor technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Please confirm Frontdoor coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to decide if Frontdoor is priced favorably, providing market reflects its regular price of 57.44 per share. Given that Frontdoor has jensen alpha of 0.1841, we urge you to verify Frontdoor's prevailing market performance to make sure the company can sustain itself at a future point.

Frontdoor's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Frontdoor insiders, such as employees or executives, is commonly permitted as long as it does not rely on Frontdoor's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Frontdoor insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Frontdoor's Outstanding Corporate Bonds

Frontdoor issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Frontdoor uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Frontdoor bonds can be classified according to their maturity, which is the date when Frontdoor has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Frontdoor's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Frontdoor's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Frontdoor's intraday indicators

Frontdoor intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Frontdoor stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Frontdoor Corporate Filings

13A
13th of November 2024
An amended filing to the original Schedule 13G
ViewVerify
8K
4th of November 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
F4
16th of August 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
29th of March 2024
Other Reports
ViewVerify
Frontdoor time-series forecasting models is one of many Frontdoor's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Frontdoor's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Frontdoor Stock media impact

Far too much social signal, news, headlines, and media speculation about Frontdoor that are available to investors today. That information is available publicly through Frontdoor media outlets and privately through word of mouth or via Frontdoor internal channels. However, regardless of the origin, that massive amount of Frontdoor data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Frontdoor news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Frontdoor relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Frontdoor's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Frontdoor alpha.

Frontdoor Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Frontdoor can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Frontdoor Historical Investor Sentiment

Investor biases related to Frontdoor's public news can be used to forecast risks associated with an investment in Frontdoor. The trend in average sentiment can be used to explain how an investor holding Frontdoor can time the market purely based on public headlines and social activities around Frontdoor. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Frontdoor's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Frontdoor and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Frontdoor news discussions. The higher the estimate score, the more favorable the investor's outlook on Frontdoor.

Frontdoor Corporate Management

Evan IversonSenior OfficerProfile
Raj MidhaChief Marketing Officer and Strategy OfficerProfile
Meredith DiagostinoVice OfficerProfile
Chastitie BrimChief VPProfile
Kerri JonesSenior OfficerProfile
Allison SitchVice RelationsProfile

Additional Tools for Frontdoor Stock Analysis

When running Frontdoor's price analysis, check to measure Frontdoor's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Frontdoor is operating at the current time. Most of Frontdoor's value examination focuses on studying past and present price action to predict the probability of Frontdoor's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Frontdoor's price. Additionally, you may evaluate how the addition of Frontdoor to your portfolios can decrease your overall portfolio volatility.