Recent News
On February 17, 2026, Breach Inlet Capital Management disclosed a new roughly $10 million stake in Frontdoor, signaling an institutional accumulation event. On February 3, 2026, an analyst house maintained an Outperform rating on Frontdoor following the company’s recent operational updates and guidance commentary.
Technical Analysis
Directional indicators: DI+ at 30.92 and increasing while DI- sits at 16.50 and decreasing; ADX at 27.2 indicates a strong trend. Together these readings produce a bullish directional bias that supports the near-term upside implied by momentum indicators.
MACD: MACD at 2.30 and increasing with the MACD line above its signal (1.22) — this cross-above and rising MACD signals bullish momentum and reinforces the likelihood of further upside continuation over the coming weeks.
MRO: MRO reads 21.28 and is increasing; because MRO is positive, price sits above the model target and carries a technical tendency toward consolidation or pullback, tempering the momentum-led push higher.
RSI: RSI at 55.18 and increasing reflects mild bullish momentum without overbought extremes, supporting scope for another leg up before an overextension risk appears.
Price vs. moving averages and cloud: Close at $66.59 trades above the 12-day EMA ($64.17, increasing), 20-day average ($61.93), 50-day ($59.49) and 200-day average ($59.36); price also sits above the Ichimoku cloud (Senkou A $58.99, Senkou B $57.23), which together reinforce a bullish price positioning and reduce near-term downside risk to the superTrend lower support at $62.88.
Volatility & breadth: 42-day and 52-week volatilities near 3% with subdued short-term beta (42-day beta 0.02, 52-week beta 0.70) suggest price moves may track company-specific momentum rather than broad market swings, supporting a controlled trend continuation scenario.
Fundamental Analysis
Profitability and margins: EBIT margin 26.26% and operating margin 25.45% sit above the industry peer mean and median (industry peer mean EBIT margin -11.76%, industry peer median 15.05%; industry peer mean operating margin -12.57%, industry peer median 15.05%), indicating materially stronger operating profitability versus typical peers. Gross margin stands at 57.21%, consistent with a high-margin business model for warranty and service revenue.
Earnings and surprise: Reported EPS of $0.23 versus an estimate of $0.13 produced an EPS surprise of 76.92%, reflecting recent upside to per‑share results; forward EPS sits at $1.239, and forward PE near 78.11x.
Revenue and growth cadence: Total revenue $617,000,000 with reported revenue growth at 0.0% (YoY readouts in the provided data show -100% for QoQ and YoY entries); interpret revenue as stable in the period under review while near-term quarter comparisons show larger swings in the reported series. QoQ and YoY percentage fields should guide caution when reading short-term comp metrics.
Cash, leverage, and coverage: Cash and short-term investments $563,000,000 and net debt $617,000,000 produce a net leverage footprint; debt-to-equity 3.79x (379%) and debt-to-EBITDA 6.51x indicate elevated leverage after recent strategic actions. Interest coverage at 8.1x provides a material buffer versus interest expense, but the capital structure remains a constraining factor for valuation upside until leverage meaningfully contracts.
Cash flow and returns: Free cash flow $58,000,000 with free cash flow yield 1.24% and cash conversion ratio 2.10; return on equity 33.54% and return on invested capital 8.04% reflect efficient capital returns on the equity base while invested capital returns trail equity returns due to leverage. Asset turnover 0.28x sits above the industry peer mean (0.098) and median (0.069), indicating relatively efficient revenue generation from assets.
Valuation context: P/B at 14.76x and P/S at 7.56x appear elevated relative to many peers (industry peer median P/B 4.30, P/S median 10.71 for some peers), while enterprise multiple reads 28.79x. WMDST values the stock as under-valued, a view driven by above-peer operating margins and recent EPS upside but tempered by high leverage and stretched market multiples that justify a cautious re-rating timeline.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2026-02-26 |
| NEXT REPORT DATE: | 2026-05-28 |
| CASH FLOW | Begin Period Cash Flow | $ 562.0 M |
| Operating Cash Flow | $ 64.0 M | |
| Capital Expenditures | $ -6.00 M | |
| Change In Working Capital | $ -90.00 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 1.0 M | |
| End Period Cash Flow | $ 563.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 617.0 M | |
| Forward Revenue | $ 130.6 M | |
| COSTS | ||
| Cost Of Revenue | $ 264.0 M | |
| Depreciation | $ 9.0 M | |
| Depreciation and Amortization | $ 22.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 460.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 353.0 M | |
| EBITDA | $ 184.0 M | |
| EBIT | $ 162.0 M | |
| Operating Income | $ 157.0 M | |
| Interest Income | $ 6.0 M | |
| Interest Expense | $ 20.0 M | |
| Net Interest Income | $ -14.00 M | |
| Income Before Tax | $ 142.0 M | |
| Tax Provision | $ 37.0 M | |
| Tax Rate | 25.8 % | |
| Net Income | $ 106.0 M | |
| Net Income From Continuing Operations | $ 105.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.13 | |
| EPS Actual | $ 0.23 | |
| EPS Difference | $ 0.10 | |
| EPS Surprise | 76.923 % | |
| Forward EPS | $ 1.24 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.2 B | |
| Intangible Assets | $ 1.4 B | |
| Net Tangible Assets | $ -1.05 B | |
| Total Current Assets | $ 695.0 M | |
| Cash and Short-Term Investments | $ 563.0 M | |
| Cash | $ 563.0 M | |
| Net Receivables | $ 10.0 M | |
| Inventory | — | |
| Long-Term Investments | $ 15.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 104.0 M | |
| Short-Term Debt | $ 29.0 M | |
| Total Current Liabilities | $ 401.0 M | |
| Net Debt | $ 617.0 M | |
| Total Debt | $ 1.2 B | |
| Total Liabilities | $ 1.9 B | |
| EQUITY | ||
| Total Equity | $ 316.0 M | |
| Retained Earnings | $ 784.0 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 4.36 | |
| Shares Outstanding | 72.433 M | |
| Revenue Per-Share | $ 8.52 | |
| VALUATION | Market Capitalization | $ 4.7 B |
| Enterprise Value | $ 5.3 B | |
| Enterprise Multiple | 28.794 | |
| Enterprise Multiple QoQ | 11.218 % | |
| Enterprise Multiple YoY | 37.538 % | |
| Enterprise Multiple IPRWA | high: 53.904 median: 51.776 FTDR: 28.794 mean: 25.625 low: -49.3 |
|
| EV/R | 8.587 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 7.047 | |
| Asset To Liability | 1.165 | |
| Debt To Capital | 0.791 | |
| Debt To Assets | 0.538 | |
| Debt To Assets QoQ | -3.037 % | |
| Debt To Assets YoY | 3750.68 % | |
| Debt To Assets IPRWA | high: 0.857 FTDR: 0.538 mean: 0.476 median: 0.45 low: 0.274 |
|
| Debt To Equity | 3.791 | |
| Debt To Equity QoQ | -20.402 % | |
| Debt To Equity YoY | 5720.881 % | |
| Debt To Equity IPRWA | FTDR: 3.791 high: 3.21 median: 1.225 mean: 0.768 low: -4.077 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 14.757 | |
| Price To Book QoQ | -11.074 % | |
| Price To Book YoY | 7.522 % | |
| Price To Book IPRWA | FTDR: 14.757 high: 7.23 median: 4.3 mean: 1.351 low: -11.82 |
|
| Price To Earnings (P/E) | 40.745 | |
| Price To Earnings QoQ | 18.946 % | |
| Price To Earnings YoY | 18.959 % | |
| Price To Earnings IPRWA | high: 92.833 median: 68.822 mean: 50.09 FTDR: 40.745 low: -42.923 |
|
| PE/G Ratio | -13.285 | |
| Price To Sales (P/S) | 7.558 | |
| Price To Sales QoQ | 11.069 % | |
| Price To Sales YoY | 14.145 % | |
| Price To Sales IPRWA | high: 31.99 mean: 15.45 median: 10.705 FTDR: 7.558 low: 6.832 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 78.11 | |
| Forward PE/G | -25.468 | |
| Forward P/S | 56.357 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | — | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.281 | |
| Asset Turnover Ratio QoQ | -2.407 % | |
| Asset Turnover Ratio YoY | -37.336 % | |
| Asset Turnover Ratio IPRWA | FTDR: 0.281 high: 0.206 mean: 0.098 median: 0.069 low: 0.058 |
|
| Receivables Turnover | 61.7 | |
| Receivables Turnover Ratio QoQ | 5.0 % | |
| Receivables Turnover Ratio YoY | -25.869 % | |
| Receivables Turnover Ratio IPRWA | FTDR: 61.7 high: 15.129 median: 15.129 mean: 10.767 low: 2.935 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 1.479 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -35.231 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | -34.478 % | |
| Cash Conversion Cycle Days IPRWA | high: 25.264 median: -24.795 mean: -30.526 FTDR: -35.231 low: -67.066 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.099 | |
| CapEx To Revenue | -0.01 | |
| CapEx To Depreciation | -0.667 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.5 B | |
| Net Invested Capital | $ 1.5 B | |
| Invested Capital | $ 1.5 B | |
| Net Tangible Assets | $ -1.05 B | |
| Net Working Capital | $ 294.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.404 | |
| Current Ratio | 1.733 | |
| Current Ratio QoQ | 16.29 % | |
| Current Ratio YoY | 22.11 % | |
| Current Ratio IPRWA | FTDR: 1.733 high: 0.883 mean: 0.617 median: 0.558 low: 0.541 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 6.511 | |
| Cost Of Debt | 1.235 % | |
| Interest Coverage Ratio | 8.1 | |
| Interest Coverage Ratio QoQ | -2.41 % | |
| Interest Coverage Ratio YoY | -43.75 % | |
| Interest Coverage Ratio IPRWA | high: 9.896 FTDR: 8.1 median: 3.449 mean: 1.096 low: -11.431 |
|
| Operating Cash Flow Ratio | 0.314 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 36.71 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.532 % | |
| Revenue Growth | 0.0 % | |
| Revenue Growth QoQ | -100.0 % | |
| Revenue Growth YoY | -100.0 % | |
| Revenue Growth IPRWA | high: 9.738 % FTDR: 0.0 % median: -0.69 % mean: -19.431 % low: -81.679 % |
|
| Earnings Growth | -3.067 % | |
| Earnings Growth QoQ | -101.983 % | |
| Earnings Growth YoY | -135.412 % | |
| Earnings Growth IPRWA | high: 46.729 % median: -1.136 % FTDR: -3.067 % mean: -29.197 % low: -152.863 % |
|
| MARGINS | ||
| Gross Margin | 57.212 % | |
| Gross Margin QoQ | -0.844 % | |
| Gross Margin YoY | 1.149 % | |
| Gross Margin IPRWA | FTDR: 57.212 % high: 35.276 % median: 25.096 % mean: 10.112 % low: -34.618 % |
|
| EBIT Margin | 26.256 % | |
| EBIT Margin QoQ | -2.409 % | |
| EBIT Margin YoY | -1.356 % | |
| EBIT Margin IPRWA | FTDR: 26.256 % high: 21.411 % median: 15.053 % mean: -11.755 % low: -97.729 % |
|
| Return On Sales (ROS) | 25.446 % | |
| Return On Sales QoQ | -3.085 % | |
| Return On Sales YoY | -4.399 % | |
| Return On Sales IPRWA | FTDR: 25.446 % high: 23.424 % median: 15.053 % mean: -12.571 % low: -101.71 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 58.0 M | |
| Free Cash Flow Yield | 1.244 % | |
| Free Cash Flow Yield QoQ | -56.473 % | |
| Free Cash Flow Yield YoY | 178.3 % | |
| Free Cash Flow Yield IPRWA | FTDR: 1.244 % high: 1.17 % median: -0.692 % mean: -1.29 % low: -5.682 % |
|
| Free Cash Growth | -51.667 % | |
| Free Cash Growth QoQ | -2115.094 % | |
| Free Cash Growth YoY | -37.311 % | |
| Free Cash Growth IPRWA | high: 102.031 % FTDR: -51.667 % mean: -77.791 % median: -136.787 % low: -835.14 % |
|
| Free Cash To Net Income | 0.547 | |
| Cash Flow Margin | 20.421 % | |
| Cash Flow To Earnings | 1.189 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 4.819 % | |
| Return On Assets QoQ | -6.807 % | |
| Return On Assets YoY | -41.764 % | |
| Return On Assets IPRWA | FTDR: 4.819 % high: 2.013 % median: 0.646 % mean: -0.675 % low: -5.635 % |
|
| Return On Capital Employed (ROCE) | 8.872 % | |
| Return On Equity (ROE) | 0.335 | |
| Return On Equity QoQ | -23.545 % | |
| Return On Equity YoY | -12.45 % | |
| Return On Equity IPRWA | FTDR: 0.335 high: 0.301 mean: 0.128 median: 0.075 low: 0.027 |
|
| DuPont ROE | 37.259 % | |
| Return On Invested Capital (ROIC) | 8.035 % | |
| Return On Invested Capital QoQ | -7.548 % | |
| Return On Invested Capital YoY | -126.67 % | |
| Return On Invested Capital IPRWA | FTDR: 8.035 % high: 3.727 % median: 2.511 % mean: -1.267 % low: -12.836 % |
|