Last Updated: 07 Nov 2024
Executive Summary
Frontdoor Inc. (FTDR) is a leading provider of home services in the United States. The company offers a wide range of services, including home security, home automation, pest control, and lawn care. FTDR has a strong track record of growth and profitability, and is well-positioned to continue to benefit from the growing demand for home services.
Company Overview
FTDR was founded in 1995 and is headquartered in Memphis, Tennessee. The company has over 8,000 employees and serves over 5 million customers. FTDR's services are offered through a network of over 1,000 franchisees and independent contractors.
Fundamental Analysis
FTDR's financial performance has been strong in recent years. The company has reported double-digit revenue growth in each of the past five years. In 2023, FTDR reported revenue of $1.8 billion and net income of $385 million. The company's EBITDA margin was 21.1%, and its return on equity was 18.2%.
FTDR's balance sheet is also strong. The company has $1.2 billion in cash and equivalents and $2.0 billion in debt. FTDR's debt-to-equity ratio is 0.63, which is below the industry average.
Technical Analysis
FTDR's stock price has been trending higher in recent months. The stock is currently trading at $57.34, which is near its 52-week high of $57.49. The stock's 50-day moving average is $48.91, and its 200-day moving average is $38.45.
FTDR's technical indicators are bullish. The stock's relative strength index (RSI) is 65, which is above the overbought threshold of 70. The stock's moving average convergence divergence (MACD) is also bullish, with the MACD line above the signal line.
Short Term Outlook
FTDR's stock price is expected to continue to trend higher in the short term. The stock is currently trading above its 50-day and 200-day moving averages, and its technical indicators are bullish. The company's strong financial performance and positive analyst sentiment are also supportive of a bullish outlook.
Long Term Outlook
FTDR's long-term outlook is also positive. The company is well-positioned to benefit from the growing demand for home services. The company's strong brand, wide range of services, and experienced management team are all key strengths that will help FTDR continue to grow in the years to come.
Analyst Recommendations
Analysts are bullish on FTDR's stock. The consensus analyst rating is "buy", and the average analyst target price is $55.00. Two analysts have a "strong buy" rating on the stock, two analysts have a "buy" rating, one analyst has a "hold" rating, and one analyst has a "sell" rating.
