📊 FTDR Key Takeaways
Is FTDR a Good Investment? Thesis Analysis
Frontdoor demonstrates robust financial health with strong free cash flow generation (18.6% FCF margin) and exceptional profitability ratios, though revenue growth stagnation is concerning. The company's high ROE of 105.4% and consistent net income growth (+8.5% YoY) indicate effective capital deployment despite elevated leverage.
Why Buy FTDR? Key Strengths
- Exceptional free cash flow generation at $390M with 18.6% FCF margin, well above operating cash flow conversion
- Strong profitability with 55.3% gross margin and 12.2% net margin demonstrating pricing power and operational efficiency
- Outstanding return on equity at 105.4% and ROA of 11.9%, indicating effective capital utilization despite high leverage
- Solid liquidity position with $566M cash and 1.55x current ratio providing operational flexibility
- Net income growth of 8.5% YoY with EPS growth of 13.6% showing earnings leverage
FTDR Investment Risks to Consider
- Stagnant revenue growth at 0.0% YoY indicates market saturation or competitive pressures in core service business
- Excessive leverage with 4.85x debt-to-equity ratio and $1.2B long-term debt creates financial fragility in economic downturns
- Interest coverage of 4.3x is adequate but leaves limited margin for operational disruptions or rising rates
- Heavy reliance on existing customer base with flat revenue suggests limited organic growth prospects
- Minimal capital expenditure at $26M may indicate underinvestment in technology or competitive capabilities
Key Metrics to Watch
- Revenue growth trajectory and customer acquisition/retention rates to address stagnation
- Debt reduction progress and debt-to-equity ratio improvement toward healthier leverage levels
- Operating cash flow sustainability and free cash flow consistency as primary value driver
- Market share trends in residential services sector and pricing power dynamics
FTDR Financial Metrics
💡 AI Analyst Insight
Frontdoor, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
FTDR Profitability Ratios
FTDR vs Default Sector
How Frontdoor, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FTDR Overvalued or Undervalued?
Based on fundamental analysis, Frontdoor, Inc. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
FTDR Balance Sheet & Liquidity
FTDR 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Frontdoor, Inc.'s revenue has grown significantly by 31% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.12 reflects profitable operations.
FTDR Growth Metrics (YoY)
FTDR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $540.0M | $100.0M | $1.30 |
| Q2 2025 | $542.0M | $92.0M | $1.18 |
| Q1 2025 | $378.0M | $34.0M | $0.43 |
| Q3 2024 | $524.0M | $71.0M | $0.89 |
| Q2 2024 | $523.0M | $70.0M | $0.85 |
| Q1 2024 | $367.0M | $22.0M | $0.27 |
| Q3 2023 | $484.0M | $28.0M | $0.34 |
| Q2 2023 | $487.0M | $33.0M | $0.40 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FTDR Capital Allocation
FTDR SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Frontdoor, Inc. (CIK: 0001727263)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FTDR
What is the AI rating for FTDR?
Frontdoor, Inc. (FTDR) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FTDR's key strengths?
Claude: Exceptional free cash flow generation at $390M with 18.6% FCF margin, well above operating cash flow conversion. Strong profitability with 55.3% gross margin and 12.2% net margin demonstrating pricing power and operational efficiency.
What are the risks of investing in FTDR?
Claude: Stagnant revenue growth at 0.0% YoY indicates market saturation or competitive pressures in core service business. Excessive leverage with 4.85x debt-to-equity ratio and $1.2B long-term debt creates financial fragility in economic downturns.
What is FTDR's revenue and growth?
Frontdoor, Inc. reported revenue of $2.1B.
Does FTDR pay dividends?
Frontdoor, Inc. does not currently pay dividends.
Where can I find FTDR SEC filings?
Official SEC filings for Frontdoor, Inc. (CIK: 0001727263) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FTDR's EPS?
Frontdoor, Inc. has a diluted EPS of $3.42.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FTDR a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Frontdoor, Inc. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is FTDR stock overvalued or undervalued?
Valuation metrics for FTDR: ROE of 105.4% (sector avg: 15%), net margin of 12.2% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy FTDR stock in 2026?
Our dual AI analysis gives Frontdoor, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is FTDR's free cash flow?
Frontdoor, Inc.'s operating cash flow is $416.0M, with capital expenditures of $26.0M. FCF margin is 18.6%.
How does FTDR compare to other Default stocks?
Vs Default sector averages: Net margin 12.2% (avg: 12%), ROE 105.4% (avg: 15%), current ratio 1.55 (avg: 1.8).