📊 FTDR Key Takeaways
Is Frontdoor, Inc. (FTDR) a Good Investment?
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.
Frontdoor shows solid core fundamentals with high gross margins, strong operating profitability, and robust free cash flow generation relative to revenue. Net income and diluted EPS are still growing despite flat revenue, which suggests disciplined cost control and efficient capital return, but the lack of top-line growth and elevated leverage constrain the overall outlook. The business appears financially resilient, yet future fundamental upside likely depends on reaccelerating revenue while maintaining cash flow strength and managing debt.
Why Buy Frontdoor, Inc. Stock? 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
- Strong profitability profile with 55.3% gross margin, 16.1% operating margin, and 12.2% net margin
- Excellent cash generation, with $416M operating cash flow and $390M free cash flow representing an 18.6% FCF margin
- Healthy near-term liquidity, supported by $566M in cash and a 1.55x current and quick ratio
FTDR Stock Risks: Frontdoor, Inc. Investment Risks
- 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
- Revenue was flat year over year, raising concern about limited organic growth momentum
- High leverage, with $1.17B in long-term debt and 4.85x debt-to-equity, increases financial risk
- Interest coverage of 4.3x is adequate but not especially strong, leaving less cushion if earnings weaken or borrowing costs rise
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
- Revenue growth and membership/customer retention trends
- Debt reduction progress and interest coverage improvement
Frontdoor, Inc. (FTDR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Frontdoor, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
FTDR Profit Margin, ROE & Profitability Analysis
FTDR vs Services Sector: How Frontdoor, Inc. Compares
How Frontdoor, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Frontdoor, Inc. Stock Overvalued? FTDR Valuation Analysis 2026
Based on fundamental analysis, Frontdoor, Inc. has mixed fundamental signals relative to the Services 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.
Frontdoor, Inc. Balance Sheet: FTDR Debt, Cash & Liquidity
FTDR Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
FTDR Quarterly Earnings & 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.
Frontdoor, Inc. Dividends, Buybacks & Capital Allocation
FTDR SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (HOLD) with 78% combined 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. ChatGPT: Strong profitability profile with 55.3% gross margin, 16.1% operating margin, and 12.2% net margin. Excellent cash generation, with $416M operating cash flow and $390M free cash flow representing an 18.6% FCF margin.
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. ChatGPT: Revenue was flat year over year, raising concern about limited organic growth momentum. High leverage, with $1.17B in long-term debt and 4.85x debt-to-equity, increases financial risk.
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 April 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: 16%), net margin of 12.2% (sector avg: 10%). 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 Services stocks?
Vs Services sector averages: Net margin 12.2% (avg: 10%), ROE 105.4% (avg: 16%), current ratio 1.55 (avg: 1.5).
Is Frontdoor, Inc. carrying too much debt?
FTDR has a debt-to-equity ratio of 4.85x, which is above the Services sector average of 0.7x. However, the current ratio of 1.55 suggests adequate short-term liquidity.
Why is FTDR's return on equity (ROE) so high?
Frontdoor, Inc. has a return on equity of 105.4%, significantly above the Services sector average of 16%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 12.2% net margin.