Frontdoor Current Valuation vs. Return On Asset

FTDR Stock  USD 59.54  1.08  1.85%   
Considering Frontdoor's profitability and operating efficiency indicators, Frontdoor is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in December. Profitability indicators assess Frontdoor's ability to earn profits and add value for shareholders. At this time, Frontdoor's Price To Sales Ratio is relatively stable compared to the past year. As of 11/26/2024, EV To Sales is likely to grow to 2.52, while Days Sales Outstanding is likely to drop 1.17. At this time, Frontdoor's Accumulated Other Comprehensive Income is relatively stable compared to the past year. As of 11/26/2024, Interest Income is likely to grow to about 15.8 M, while Net Income From Continuing Ops is likely to drop slightly above 103.6 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.530.4972
Notably Up
Very volatile
Net Profit Margin0.110.0961
Fairly Up
Slightly volatile
Operating Profit Margin0.190.1708
Moderately Up
Slightly volatile
Pretax Profit Margin0.150.1287
Fairly Up
Slightly volatile
Return On Assets0.0880.157
Way Down
Pretty Stable
For Frontdoor profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Frontdoor to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Frontdoor utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Frontdoor's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Frontdoor over time as well as its relative position and ranking within its peers.
  

Frontdoor's Revenue Breakdown by Earning Segment

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Is Diversified Consumer Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Frontdoor. If investors know Frontdoor will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Frontdoor listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.467
Earnings Share
3.02
Revenue Per Share
23.483
Quarterly Revenue Growth
0.031
Return On Assets
0.1871
The market value of Frontdoor is measured differently than its book value, which is the value of Frontdoor that is recorded on the company's balance sheet. Investors also form their own opinion of Frontdoor's value that differs from its market value or its book value, called intrinsic value, which is Frontdoor's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Frontdoor's market value can be influenced by many factors that don't directly affect Frontdoor's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Frontdoor's value and its price as these two are different measures arrived at by different means. Investors typically determine if Frontdoor is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Frontdoor's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Frontdoor Return On Asset vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Frontdoor's current stock value. Our valuation model uses many indicators to compare Frontdoor value to that of its competitors to determine the firm's financial worth.
Frontdoor is rated # 5 in current valuation category among its peers. It is one of the top stocks in return on asset category among its peers . The ratio of Current Valuation to Return On Asset for Frontdoor is about  24,910,158,332 . As of 11/26/2024, Return On Assets is likely to drop to 0.09. Comparative valuation analysis is a catch-all technique that is used if you cannot value Frontdoor by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Frontdoor Current Valuation vs. Competition

Frontdoor is rated # 5 in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Discretionary industry is currently estimated at about 65.48 Billion. Frontdoor holds roughly 4.66 Billion in current valuation claiming about 7% of stocks in Consumer Discretionary industry.

Frontdoor Return On Asset vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Frontdoor

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
4.66 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Frontdoor

Return On Asset

 = 

Net Income

Total Assets

 = 
0.19
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Frontdoor Return On Asset Comparison

Frontdoor is currently under evaluation in return on asset category among its peers.

Frontdoor Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Frontdoor, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Frontdoor will eventually generate negative long term returns. The profitability progress is the general direction of Frontdoor's change in net profit over the period of time. It can combine multiple indicators of Frontdoor, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive IncomeM6.3 M
Interest Income15 M15.8 M
Operating Income304 M245.9 M
Net Income From Continuing Ops172 M103.6 M
Income Before Tax229 M143.5 M
Total Other Income Expense Net-75 M-78.8 M
Net Income Applicable To Common Shares63.9 M99.3 M
Net Income171 M103.5 M
Income Tax Expense57 M39.8 M
Net Interest Income-24 M-25.2 M
Non Operating Income Net Other-27 M-25.6 M
Change To Netincome48.3 M50.7 M
Net Income Per Share 2.12  1.23 
Income Quality 1.06  1.09 
Net Income Per E B T 0.75  0.58 

Frontdoor Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Frontdoor. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Frontdoor position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Frontdoor's important profitability drivers and their relationship over time.

Use Frontdoor in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Frontdoor position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Frontdoor will appreciate offsetting losses from the drop in the long position's value.

Frontdoor Pair Trading

Frontdoor Pair Trading Analysis

The ability to find closely correlated positions to Frontdoor could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Frontdoor when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Frontdoor - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Frontdoor to buy it.
The correlation of Frontdoor is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Frontdoor moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Frontdoor moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Frontdoor can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Frontdoor position

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USD Crypto Assets
USD Crypto Assets Theme
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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.