Fundamentals snapshot
FTDR · NMS · Consumer Cyclical · Personal Services
Current price
$79.99
52-week range
$48.47 - $93.43
Market cap
$5.51B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net debt $557.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Frontdoor sells home warranty plans, which are like insurance policies for your appliances and home systems such as plumbing or air conditioning. The company makes most of its money from customers paying a yearly fee for these plans, creating a steady stream of recurring revenue (predictable income that comes in at regular intervals). This business model is valuable because it can make the company's earnings more stable than if it relied on one-time sales.
Frontdoor's origins trace back to 1971, establishing itself as a pioneer in the home services industry. A major turning point was in 2018 when it separated from its parent company, ServiceMaster, to become an independent, publicly traded entity. This move allowed Frontdoor to focus entirely on its home warranty and services business. A key part of its recent history includes the acquisition of 2-10 Home Buyers Warranty, which significantly expanded its presence in the new home construction market.
Think of Frontdoor as a safety net for your home's major appliances and systems. For a yearly fee, the company provides home warranty plans that cover the cost of repairing or replacing things like your air conditioner, refrigerator, plumbing, or electrical systems when they break down from normal use. They connect homeowners with a large network of pre-screened contractors to get the repair work done. Beyond these warranty plans, the company also offers on-demand home services for various repairs and maintenance tasks, even for those who aren't warranty subscribers.
This is the core of Frontdoor's business, operating primarily through well-known brands like American Home Shield, HSA, OneGuard, and 2-10 HBW. Homeowners pay an annual subscription fee for a service plan that covers the repair or replacement of essential home systems and appliances. This segment generates the vast majority of the company's revenue, primarily through customer renewals and new plans sold directly to consumers or through real estate transactions.
This is a smaller but rapidly growing part of the company. It offers services to homeowners who may not have a warranty plan but need immediate help with repairs or maintenance. This includes things like pre-season HVAC tune-ups and a popular program for upgrading older HVAC systems. This part of the business makes money by charging for each individual service, providing a way for the company to earn revenue outside of its main subscription model.
The company's main focus is on growing its number of home warranty customers, both by attracting new ones and making sure existing ones renew their plans. They are also heavily invested in expanding their non-warranty services, like the HVAC upgrade program, seeing it as a major source of future growth. Another key priority is using technology, such as video chat and augmented reality, to make the process of diagnosing and fixing home problems faster and more efficient for customers.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net debt $557.0M. Interest coverage 5.1x.
Frontdoor, Inc.'s profit covers its interest bill about 5.1 times over. which is stronger than most peers shown here.
Total debt $1.18B Interest coverage 5.06x This is the baseline the peer rows are being compared against.
Total debt $7.78B Interest coverage 2.85x -44% vs FTDR Carries about 1.8x less debt cushion than FTDR.
Total debt $1.12B Interest coverage 25.42x +402% vs FTDR Carries about 5.0x more debt cushion than FTDR.
Total debt $1.56B Interest coverage 4.75x -6% vs FTDR Has roughly the same debt cushion as FTDR.
Total debt $422.35M Interest coverage 3.82x -25% vs FTDR Carries about 1.3x less debt cushion than FTDR.
Total debt $963.40M Interest coverage 2.51x -50% vs FTDR Carries about 2.0x less debt cushion than FTDR.
What you should know
The numbers
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Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know