Recent News
On April 30, 2026 Frontdoor released first-quarter 2026 results and accompanying slides; the company provided Q2 2026 revenue guidance and reiterated full-year 2026 guidance. Analysts and market sites reported that the company raised its Q2 revenue outlook and reaffirmed 2026 guidance, and the company posted investor materials related to the Q1 release.
Technical Analysis
ADX at 16.8 indicates no established trend; price action remains range-bound rather than trending, which aligns with WMDST’s fair-valued stance and argues for monitoring momentum for a decisive directional move.
Directional indicators present a bullish setup: DI+ at 22.26 shows a dip-and-reversal (bullish), while DI- at 16.02 shows a peak-and-reversal (bullish). The combination suggests buying pressure has re-emerged, but the low ADX limits conviction for a sustained trend.
MACD reads 0.39 with a signal line at 0.23 and a dip-and-reverse in MACD — a bullish momentum configuration; MACD sits above its signal line, which constitutes a bullish crossover and supports near-term upward price pressure relative to the current valuation.
MRO at 22.91 sits positive, indicating price currently trades above its modeled target and a moderate mean-reversion risk exists; the positive MRO tempers momentum signals by implying upside may meet downward pressure toward equilibrium.
RSI at 52.61 remains essentially neutral with a recent dip-and-reverse, implying room for further upside before overbought conditions, consistent with the MACD crossover and EMAs.
Price structure favors the bulls in the short run: the close at $65.87 exceeds the 12- and 26-day EMAs ($63.12 and $62.71) and sits above the 20-, 50- and 200-day averages ($62.50, $61.35, $60.55). The close trading above the upper Bollinger band bands suggests recent strength but also increases the probability of short-term reversion toward the mean.
Fundamental Analysis
Revenue totaled $452.0M for the period; year-over-year revenue growth on the provided YoY line registers -59.985%, while a period revenue growth figure shows 4.388% (both figures reported in the dataset). QoQ revenue growth reads -114.714% on the provided QoQ entry. The mixed growth signals require attention when reconciling quarterly seasonality and reported results.
Profitability shows operating income of $66.0M, EBIT of $70.0M and EBITDA of $90.0M. EBIT margin equals 15.49%, which sits above the industry peer low (9.12%) but below the industry peer mean (23.84%) and median (22.36%), placing margins in the lower half of peer performance while still generating positive operating returns.
Net income reached $41.0M and EPS came in at $0.73 versus an estimate of $0.68, producing an EPS surprise of 7.35% (EPS difference $0.05). Forward EPS of $1.2565 implies an elevated forward P/E of 47.42 on the provided forward numbers.
Leverage remains elevated: total debt $1,184.0M against total equity $231.0M produces debt-to-equity of 5.13 (513%), and debt-to-EBITDA stands at 13.16x; interest coverage sits at ~3.68x. High leverage raises sensitivity to changes in operating cash flow despite healthy cash balances of $603.0M and an ending cash flow balance of $603.0M.
Cash flow metrics show operating cash flow $119.0M, free cash flow $113.0M and a free cash flow yield of 2.70%, while free cash to net income at 2.76x indicates cash conversion above reported net income. Cash conversion cycle sits negative at -34.48 days, indicating quick cash recovery from operations relative to payables.
Valuation context: price-to-earnings stands at 81.44 on trailing data and compares above the industry peer mean (71.04) but below the peer median (84.47); price-to-sales at 9.28 exceeds the industry peer median of 10.32? (dataset shows peer median at 10.32395, so PS is slightly below that median), and price-to-book at 18.15 sits well above the industry peer median of 7.14. WMDST values the stock as fair-valued, reflecting mixed margin performance, elevated leverage, modest free-cash yield, and recent momentum signals.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-04-30 |
| NEXT REPORT DATE: | 2026-07-30 |
| CASH FLOW | Begin Period Cash Flow | $ 566.0 M |
| Operating Cash Flow | $ 119.0 M | |
| Capital Expenditures | $ -6.00 M | |
| Change In Working Capital | $ 49.0 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 37.0 M | |
| End Period Cash Flow | $ 603.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 452.0 M | |
| Forward Revenue | $ 244.2 M | |
| COSTS | ||
| Cost Of Revenue | $ 203.0 M | |
| Depreciation | $ 8.0 M | |
| Depreciation and Amortization | $ 20.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 385.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 248.0 M | |
| EBITDA | $ 90.0 M | |
| EBIT | $ 70.0 M | |
| Operating Income | $ 66.0 M | |
| Interest Income | $ 5.0 M | |
| Interest Expense | $ 19.0 M | |
| Net Interest Income | $ -14.00 M | |
| Income Before Tax | $ 51.0 M | |
| Tax Provision | $ 10.0 M | |
| Tax Rate | 19.3 % | |
| Net Income | $ 41.0 M | |
| Net Income From Continuing Operations | $ 41.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.68 | |
| EPS Actual | $ 0.73 | |
| EPS Difference | $ 0.05 | |
| EPS Surprise | 7.353 % | |
| Forward EPS | $ 1.26 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.2 B | |
| Intangible Assets | $ 1.3 B | |
| Net Tangible Assets | $ -1.11 B | |
| Total Current Assets | $ 661.0 M | |
| Cash and Short-Term Investments | $ 603.0 M | |
| Cash | $ 603.0 M | |
| Net Receivables | $ 10.0 M | |
| Inventory | — | |
| Long-Term Investments | $ 18.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 87.0 M | |
| Short-Term Debt | $ 29.0 M | |
| Total Current Liabilities | $ 451.0 M | |
| Net Debt | $ 564.0 M | |
| Total Debt | $ 1.2 B | |
| Total Liabilities | $ 1.9 B | |
| EQUITY | ||
| Total Equity | $ 231.0 M | |
| Retained Earnings | $ 826.0 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 3.28 | |
| Shares Outstanding | 70.527 M | |
| Revenue Per-Share | $ 6.41 | |
| VALUATION | Market Capitalization | $ 4.2 B |
| Enterprise Value | $ 4.8 B | |
| Enterprise Multiple | 53.041 | |
| Enterprise Multiple QoQ | -49.376 % | |
| Enterprise Multiple YoY | 20.355 % | |
| Enterprise Multiple IPRWA | high: 69.629 FTDR: 53.041 median: 49.442 mean: 44.441 low: 4.967 |
|
| EV/R | 10.561 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 9.368 | |
| Asset To Liability | 1.119 | |
| Debt To Capital | 0.837 | |
| Debt To Assets | 0.547 | |
| Debt To Assets QoQ | -1.599 % | |
| Debt To Assets YoY | -4.331 % | |
| Debt To Assets IPRWA | high: 0.597 FTDR: 0.547 mean: 0.393 low: 0.278 median: 0.278 |
|
| Debt To Equity | 5.126 | |
| Debt To Equity QoQ | 4.146 % | |
| Debt To Equity YoY | -16.335 % | |
| Debt To Equity IPRWA | FTDR: 5.126 high: 3.259 median: 3.259 mean: -14.588 low: -83.118 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 18.15 | |
| Price To Book QoQ | 7.397 % | |
| Price To Book YoY | 10.26 % | |
| Price To Book IPRWA | FTDR: 18.15 high: 7.144 median: 7.144 mean: -29.718 low: -170.989 |
|
| Price To Earnings (P/E) | 81.435 | |
| Price To Earnings QoQ | -67.503 % | |
| Price To Earnings YoY | 18.775 % | |
| Price To Earnings IPRWA | high: 101.493 median: 84.474 FTDR: 81.435 mean: 71.042 low: 5.461 |
|
| PE/G Ratio | 0.375 | |
| Price To Sales (P/S) | 9.276 | |
| Price To Sales QoQ | -1.794 % | |
| Price To Sales YoY | 20.952 % | |
| Price To Sales IPRWA | high: 10.324 median: 10.324 FTDR: 9.276 mean: 7.582 low: 1.738 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 47.416 | |
| Forward PE/G | 0.218 | |
| Forward P/S | 17.166 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 49.722 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.21 | |
| Asset Turnover Ratio QoQ | 5.918 % | |
| Asset Turnover Ratio YoY | 4.427 % | |
| Asset Turnover Ratio IPRWA | high: 0.759 mean: 0.228 FTDR: 0.21 low: 0.059 median: 0.059 |
|
| Receivables Turnover | 45.2 | |
| Receivables Turnover Ratio QoQ | 4.388 % | |
| Receivables Turnover Ratio YoY | 11.671 % | |
| Receivables Turnover Ratio IPRWA | FTDR: 45.2 high: 10.928 median: 10.928 mean: 8.389 low: 2.755 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 2.019 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -34.481 | |
| Cash Conversion Cycle Days QoQ | 10.35 % | |
| Cash Conversion Cycle Days YoY | 8.463 % | |
| Cash Conversion Cycle Days IPRWA | high: 32.652 mean: -27.673 FTDR: -34.481 median: -42.346 low: -60.319 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.152 | |
| CapEx To Revenue | -0.013 | |
| CapEx To Depreciation | -0.75 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.4 B | |
| Net Invested Capital | $ 1.4 B | |
| Invested Capital | $ 1.4 B | |
| Net Tangible Assets | $ -1.11 B | |
| Net Working Capital | $ 210.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.337 | |
| Current Ratio | 1.466 | |
| Current Ratio QoQ | -5.58 % | |
| Current Ratio YoY | 9.526 % | |
| Current Ratio IPRWA | FTDR: 1.466 high: 1.151 mean: 0.652 median: 0.566 low: 0.463 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 13.156 | |
| Cost Of Debt | 1.286 % | |
| Interest Coverage Ratio | 3.684 | |
| Interest Coverage Ratio QoQ | 234.928 % | |
| Interest Coverage Ratio YoY | 4.477 % | |
| Interest Coverage Ratio IPRWA | high: 42.818 mean: 12.04 median: 3.831 FTDR: 3.684 low: 3.673 |
|
| Operating Cash Flow Ratio | 0.131 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 36.5 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.027 % | |
| Revenue Growth | 4.388 % | |
| Revenue Growth QoQ | -114.714 % | |
| Revenue Growth YoY | -59.985 % | |
| Revenue Growth IPRWA | high: 1105.897 % mean: 222.159 % FTDR: 4.388 % median: -1.356 % low: -2.927 % |
|
| Earnings Growth | 217.391 % | |
| Earnings Growth QoQ | -354.428 % | |
| Earnings Growth YoY | 58.637 % | |
| Earnings Growth IPRWA | FTDR: 217.391 % high: 14.667 % median: -14.912 % mean: -100.122 % low: -427.174 % |
|
| MARGINS | ||
| Gross Margin | 54.867 % | |
| Gross Margin QoQ | 11.536 % | |
| Gross Margin YoY | -0.772 % | |
| Gross Margin IPRWA | high: 56.968 % FTDR: 54.867 % mean: 32.048 % median: 26.125 % low: 22.955 % |
|
| EBIT Margin | 15.487 % | |
| EBIT Margin QoQ | 204.802 % | |
| EBIT Margin YoY | -1.763 % | |
| EBIT Margin IPRWA | high: 43.399 % mean: 23.841 % median: 22.364 % FTDR: 15.487 % low: 9.119 % |
|
| Return On Sales (ROS) | 14.602 % | |
| Return On Sales QoQ | 216.129 % | |
| Return On Sales YoY | -7.377 % | |
| Return On Sales IPRWA | high: 43.235 % mean: 23.683 % median: 22.12 % FTDR: 14.602 % low: 9.119 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 113.0 M | |
| Free Cash Flow Yield | 2.695 % | |
| Free Cash Flow Yield QoQ | 16.014 % | |
| Free Cash Flow Yield YoY | -24.93 % | |
| Free Cash Flow Yield IPRWA | high: 36.932 % mean: 9.037 % FTDR: 2.695 % median: 1.994 % low: 1.502 % |
|
| Free Cash Growth | 18.947 % | |
| Free Cash Growth QoQ | -70.299 % | |
| Free Cash Growth YoY | -85.86 % | |
| Free Cash Growth IPRWA | high: 198.562 % median: 70.834 % FTDR: 18.947 % mean: -27.198 % low: -336.967 % |
|
| Free Cash To Net Income | 2.756 | |
| Cash Flow Margin | 13.053 % | |
| Cash Flow To Earnings | 1.439 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.904 % | |
| Return On Assets QoQ | 1969.565 % | |
| Return On Assets YoY | 8.8 % | |
| Return On Assets IPRWA | high: 26.825 % mean: 6.047 % FTDR: 1.904 % low: 0.73 % median: 0.73 % |
|
| Return On Capital Employed (ROCE) | 4.086 % | |
| Return On Equity (ROE) | 0.177 | |
| Return On Equity QoQ | 2048.789 % | |
| Return On Equity YoY | -5.02 % | |
| Return On Equity IPRWA | FTDR: 0.177 high: 0.086 median: 0.086 mean: -6.976 low: -34.79 |
|
| DuPont ROE | 17.337 % | |
| Return On Invested Capital (ROIC) | 4.025 % | |
| Return On Invested Capital QoQ | 227.769 % | |
| Return On Invested Capital YoY | 8.403 % | |
| Return On Invested Capital IPRWA | high: 59.26 % mean: 13.956 % FTDR: 4.025 % median: 2.725 % low: 1.878 % |
|