Added to YB: 2026-04-07
Pitch date: 2026-04-03
FTDR [bullish]
Frontdoor, Inc.
+2.71%
current return
Author Info
No bio for this author
Company Info
Frontdoor, Inc. provides home warranties and new home builder warranties in the United States. The company offers customizable home warranties that help customers to protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances.
Market Cap
$3.8B
Pitch Price
$54.29
Price Target
125.95 (+126%)
Dividend
N/A
EV/EBITDA
9.15
P/E
15.96
EV/Sales
2.14
Sector
Diversified Consumer Services
Category
value
Frontdoor: A Misread Recurring-Revenue Compounder Hiding in Plain Sight
FTDR: Largest US home warranty provider (2.1M contracts) undervalued at 7.5x fwd EV/EBITDA vs 13.5x historical median despite structural margin expansion to 26% (raised from low-20s) via contractor network density (84% preferred completion). 10.5% FCF yield funds 8.6% annual buyback. Non-warranty rev (HVAC upgrades) +66% YoY at <2% member penetration. DCF PT $73.37 (40% upside), 3Y PT $101.47 (24.6% CAGR), 5Y PT $125.95 (19.1% CAGR). Risks: weather normalization, renewal rate decline, tariffs.
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