
97.40 USD (+25.2%)
5 analysts
What does it do?
Frontdoor, Inc. is a US company providing home repair and maintenance services through its brands American Home Shield and Frontdoor, operating under a subscription and warranty contract model.
Key points
from its scores- ✓High-quality business8.9
- ✓Good share-price trend8.3
- ✓Very solid balance sheet7.7
- ✕Little or no dividend1.5
- ✕Unfavourable risk and backdrop3.8
AI analysis
bottom line, main risk, context and newsBusiness quality and cash generation justify the premium, but moderate revenue growth (4.50%) limits near-term upside.
Frontdoor shows solid financial health (score 7.72) with moderate debt (ND/EBITDA 1.08), exceptional quality (ROIC 41.29%, ROE 101.86%) and 18.90% earnings growth, although its valuation (P/E 20.53) is not particularly cheap and it pays no dividend.
Dependence on a subscription model in a cyclical sector (consumer discretionary) could suffer if consumer spending weakens, impacting customer retention and revenue growth.
Context and risks
No relevant recent news and no material exposure to current macro factors. The home services business does not significantly depend on commodities, shipping routes or interest rates, and its net debt is moderate (ND/EBITDA 1.08).
Is Frontdoor stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Consumer Cyclical median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 20.5 | 17.8 | +15% |
| EV / EBITDA | 11.5 | 11.2 | +2% |
| Price / book | 19.0 | 2.9 | +561% |
| Price / sales | 2.5 | 1.3 | +99% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.6 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 97.40 USD, +25.2% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 20.5
- Forward P/E
- 15.0
- EV / EBITDA
- 11.5
- Price / book
- 19.0
- Price / sales
- 2.5
- PEG
- 2.38
- Market cap
- 5.4B USD
- Enterprise value
- 5.9B USD
Profitability
- ROE
- 101.9%
- ROA
- 12.4%
- ROIC (approx.)
- 41.3%
- Gross margin
- 55.5%
- Operating margin
- 28.2%
- Net margin
- 12.8%
- Free cash flow
- 333.6M USD
- FCF yield
- 6.2%
- Cash conversion
- 65%
Solvency
- Total debt
- 1.2B USD
- Net debt
- 557.0M USD
- Cash
- 627.0M USD
- EBITDA
- 516.0M USD
- Net debt / EBITDA
- 1.08
- Debt / equity
- 416.90
- Current ratio
- 1.59
- Quick ratio
- 1.49
Growth
- Revenue growth
- +4.5%
- Earnings growth
- +18.9%
- EPS (TTM)
- 3.79 USD
- EPS (forward)
- 5.19 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.53
- Analyst consensus
- Buy (5)
- Target price
- 97.40 USD
- 52-week range
- 48.47 – 93.43
Recent news
All FTDR news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about Frontdoor
Is Frontdoor stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Consumer Cyclical median (within 15%). Valuation score: 6.6 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 97.40 USD, +25.2% versus the price. This is not investment advice.
What score does Frontdoor get on MeridIAn Screener?
It scores 6.6 out of 10, rank 445 of 2,130 (better than 77% of the companies analysed). Its strongest category is Quality / Moat (8.9) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is Frontdoor's P/E ratio?
Its P/E is 20.5: the share price equals 20.5 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 15.0.
How much is Frontdoor worth on the stock market?
Its market capitalisation is 5.4B USD and its enterprise value, debt included, is 5.9B USD.
How much debt does Frontdoor have?
Its net debt (debt minus cash) is 557.0M USD. That is 1.08 times its EBITDA; the Consumer Cyclical median is 1.91.
Does Frontdoor pay a dividend?
It pays no dividend, or almost none.
How has Frontdoor stock performed over the last year?
It has risen 20.6% over the last year, excluding dividends. Over the last 52 weeks it has traded between 48.47 and 93.43 USD. Past performance does not guarantee future results.
What do analysts think of Frontdoor?
5 analysts cover it; their average recommendation is “Buy” and their average target is 97.40 USD (+25.2% versus the price). It is an estimate, not market data.
