Frontdoor, Inc. (FTDR) AI Stock Analysis

Frontdoor, Inc., based in Memphis, Tennessee, provides home service plans covering the repair or replacement of major components across more than 20 home systems and appliances. Its plans protect electrical, plumbing, and HVAC systems, along with household appliances, electronics, pools, spas, and pumps. Through its ProConnect segment, Frontdoor offers on-demand home maintenance services by connecting customers with qualified professionals. In addition, the company utilizes Streem, an acquired platform leveraging augmented reality, computer vision, and machine learning, to allow service professionals to diagnose breakdowns accurately and streamline repairs.

Between FY2021 and FY2025, Frontdoor grew revenue at a 5-year CAGR of 7.3%, moving from $1.60B in FY2021 to $2.09B in FY2025. Annual net income expanded from $128.0M in FY2021 to $255.0M in FY2025, after dipping to $71.0M in FY2022. Gross margin improved from 46.8% in FY2021 to 51.0% in FY2025, while operating margin rose from 15.0% to 19.4% over the same timeframe. In the latest quarter ended June 30, 2026, quarterly revenue grew 4.5% year-over-year, and quarterly earnings rose 18.9% year-over-year. Trailing twelve month revenue stood at $2.15B with a profit margin of 12.8%.

As of June 30, 2026, Frontdoor held $627.0M in cash and short-term investments against total debt of $1.18B, resulting in net debt of $549.0M. Shareholders' equity was $284.0M, and the current ratio stood at 1.59, with a debt-to-equity ratio of 4.14. In FY2025, the company generated $415.0M in operating cash flow and $389.0M in free cash flow. Capital expenditures totaled $26.0M, while $283.0M was directed toward share buybacks. The company reduced its share count by 16.0% over five years.

Frontdoor closed at $79.00 with a trailing P/E of 20.8x, compared to the median of 18.0x for its US-listed Consumer Cyclical peers. Its forward P/E of 14.5x sits slightly above the peer median of 14.1x, while its price-to-sales ratio of 2.5x trades above the peer median of 0.7x. The company's EV/EBITDA multiple is 10.7x, below the peer median of 11.1x. Over the past year, Frontdoor delivered a return of 22.0%, outperforming the S&P 500 (SPY) return of 16.8%. Over a 5-year span, its return of 85.0% surpassed the index return of 83.0%.

Wall Street coverage includes 4 Strong Buy and 3 Hold ratings. The mean price target of $95.40 represents a 20.8% premium over the last close of $79.00. For the fiscal year ending December 31, 2026, analysts estimate revenue of $2.20B and EPS of $4.68, reflecting 14.5% earnings growth. For FY2027, 5 analysts project revenue of $2.32B and EPS of $5.13. Frontdoor beat EPS estimates in each of the last 4 quarters, with its next earnings report scheduled for November 5, 2026.

This page is an AI-written research summary of Frontdoor, Inc. (FTDR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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