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Upturn AI SWOT - About
FTDR 
Frontdoor Inc (FTDR)
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Upturn Advisory Summary
04/01/2025: FTDR (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -14.51% | Avg. Invested days 41 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.90B USD | Price to earnings Ratio 13.06 | 1Y Target Price 55.25 |
Price to earnings Ratio 13.06 | 1Y Target Price 55.25 | ||
Volume (30-day avg) 951657 | Beta 1.18 | 52 Weeks Range 29.41 - 63.49 | Updated Date 04/1/2025 |
52 Weeks Range 29.41 - 63.49 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 3.01 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 12.75% | Operating Margin (TTM) 2.36% |
Management Effectiveness
Return on Assets (TTM) 13.3% | Return on Equity (TTM) 125.33% |
Valuation
Trailing PE 13.06 | Forward PE 13.21 | Enterprise Value 3722503168 | Price to Sales(TTM) 1.54 |
Enterprise Value 3722503168 | Price to Sales(TTM) 1.54 | ||
Enterprise Value to Revenue 1.97 | Enterprise Value to EBITDA 9.34 | Shares Outstanding 73893504 | Shares Floating 74318831 |
Shares Outstanding 73893504 | Shares Floating 74318831 | ||
Percent Insiders 0.43 | Percent Institutions 107.01 |
Analyst Ratings
Rating 4 | Target Price 56.25 | Buy 1 | Strong Buy 3 |
Buy 1 | Strong Buy 3 | ||
Hold 1 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Frontdoor Inc
Company Overview
History and Background
Frontdoor, Inc. was established in 2018, spun off from ServiceMaster Global Holdings. ServiceMaster had acquired American Home Shield in 1989, which became the cornerstone of Frontdoor's home warranty business. The spinoff allowed Frontdoor to focus on its home services offerings.
Core Business Areas
- Home Warranty: Provides service contracts that cover the repair or replacement of major home systems and appliances. Brands include American Home Shield.
- Streem: A virtual home expert platform that uses video to remotely diagnose and resolve issues with home appliances and systems.
- Breaze: Connects homeowners with local, vetted contractors for on-demand home services.
Leadership and Structure
Bill Cobb serves as the Chairman and CEO. The company has a board of directors and a structured management team overseeing finance, operations, marketing, and technology.
Top Products and Market Share
Key Offerings
- American Home Shield: Home warranty plans covering repair/replacement of appliances and home systems. Competitors include Cinch Home Services, Choice Home Warranty, and Select Home Warranty. American Home Shield has the largest market share in home warranty. It is hard to pinpoint the exact figures and fluctuate, but estimations are between 35% to 45%.
- Streem: Virtual tech platform facilitating remote home repair diagnostics using live video. Competitors include Puls and other on-demand home repair platforms. Revenue isn't explicitly broken out. User growth is a key metric being monitored.
- Breaze: On-demand contractor services connecting homeowners with pre-screened professionals. Competitors include Angi (ANGI), Thumbtack, and TaskRabbit. Revenue and marketshare are growing.
Market Dynamics
Industry Overview
The home services market is large and fragmented. Growth is driven by aging housing stock, increased homeownership, and a desire for convenience. Technological advancements, like virtual diagnostics, are increasingly important.
Positioning
Frontdoor is the largest player in the home warranty market, with a significant brand presence. Its technology offerings, Streem and Breaze, aim to modernize and expand its service portfolio. Its competitive advantage lies in brand recognition, scale, and breadth of service offerings.
Total Addressable Market (TAM)
The TAM for home services is estimated to be hundreds of billions of dollars annually. Frontdoor is targeting the home warranty segment as well as expanding into the broader on-demand home services market, allowing significant room for growth.
Upturn SWOT Analysis
Strengths
- Strong brand recognition (American Home Shield)
- Large customer base
- Extensive service provider network
- Recurring revenue model (home warranty)
- Technological innovation (Streem, Breaze)
Weaknesses
- High customer acquisition costs
- Fluctuations in housing market affect sales
- Customer service complaints
- Dependence on third-party service providers
- Exposure to extreme weather events impacting claims
Opportunities
- Expanding into new geographic markets
- Cross-selling opportunities across service lines
- Leveraging technology to improve efficiency and customer experience
- Partnerships with real estate companies and home builders
- Growth in the aging housing stock
Threats
- Competition from other home warranty providers and on-demand service platforms
- Economic downturn impacting consumer spending
- Changes in regulations affecting the home warranty industry
- Rising costs of repairs and replacements
- Negative publicity related to customer service issues
Competitors and Market Share
Key Competitors
- ANGI
- HSM
- CINF
- CHW
Competitive Landscape
Frontdoor benefits from brand recognition and scale. Angi and others compete on price and breadth of services. Differentiation through technology is crucial.
Major Acquisitions
Streem
- Year: 2019
- Acquisition Price (USD millions): 32
- Strategic Rationale: Expanded technology capabilities in remote diagnostics and service delivery.
Growth Trajectory and Initiatives
Historical Growth: Growth has been driven by increased market penetration in the home warranty segment and the expansion of its technology-enabled services. A fluctuating housing market has had a variable impact on performance.
Future Projections: Analysts project continued growth, driven by the increasing demand for home services and the company's investments in technology. Projections should be checked in financial publications.
Recent Initiatives: Recent initiatives include the expansion of Streem and Breaze, improvements to the customer experience, and efforts to reduce operating costs.
Summary
Frontdoor dominates the home warranty market, backed by strong brand recognition. Expansion of Streem and Breaze offers growth opportunities. However, fluctuating housing market conditions and customer service concerns pose challenges, requiring the company to focus on improving efficiency and customer satisfaction to solidify its market position and capitalize on the growing home services demand.
Similar Companies
ANGI
ANGI Homeservices Inc
ANGI
ANGI Homeservices Inc
CINF
Cincinnati Financial Corporation
CINF
Cincinnati Financial Corporation
MSM
MSC Industrial Direct Company Inc
MSM
MSC Industrial Direct Company Inc
Sources and Disclaimers
Data Sources:
- Frontdoor Inc. SEC Filings (10-K, 10-Q, 8-K)
- Market Research Reports on Home Services and Home Warranty Industry
- Analyst Reports from major investment banks
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on independent research and consultation with a qualified financial advisor. Data is subject to change and may not be entirely accurate. Market share estimations are approximate.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Frontdoor Inc
Exchange NASDAQ | Headquaters Memphis, TN, United States | ||
IPO Launch date 2018-09-13 | Chairman of the Board & CEO Mr. William C. Cobb | ||
Sector Consumer Cyclical | Industry Personal Services | Full time employees 2120 | Website https://www.frontdoorhome.com |
Full time employees 2120 | Website https://www.frontdoorhome.com | ||
Frontdoor, Inc. provides home and new home structural warranties in the United States. Its customizable home warranties help customers protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. The company's home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and heating, ventilation, and air conditioning systems. It also offers non-warranty home services through website and app; a one-stop app experience for home repair and maintenance using video chat, augmented reality, and video collaboration tools; and insurance-backed products, including builders' coverage and surety for a home's workmanship, distribution systems, and/or load-bearing structural components. The company operates under the American Home Shield, HSA, OneGuard, Landmark, and 2-10 HBW brand names. The company was founded in 1971 and is headquartered in Memphis, Tennessee.
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