Fundamentals snapshot
TREE · NMS · Financial Services · Insurance Brokers
Current price
$27.94
52-week range
$23.50 - $68.93
Market cap
$392.27M
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 $325.30M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
LendingTree is like a big online mall for financial products, where people can shop for things like mortgages, credit cards, and insurance. Most of its money comes from connecting customers with lenders and insurance companies, and this is important because it shows how many people are using their service to compare options.
LendingTree was founded in 1996 by Doug Lebda, who saw an opportunity to simplify the process of comparing loan offers. The company went public in 2000 and was later acquired by IAC/InterActiveCorp in 2003. In 2008, it was spun off as Tree.com, Inc., and in 2015, it refocused on its core brand, changing its name back to LendingTree, Inc.. Over the years, LendingTree has expanded its offerings beyond mortgages through strategic acquisitions, broadening its reach in the financial services marketplace.
LendingTree operates as an online marketplace that connects consumers with a variety of financial institutions and lenders. Instead of directly providing loans or insurance, LendingTree acts as an intermediary, allowing users to compare offers from multiple providers for products like mortgages, personal loans, credit cards, and insurance. The company makes money by charging these financial institutions and insurers for access to potential customers, essentially facilitating competition among lenders to benefit the borrower.
The Home segment focuses on mortgage-related services, including purchase mortgages, refinance mortgages, and home equity loans and lines of credit. This part of LendingTree's business helps consumers find and compare offers for buying a home, refinancing an existing mortgage, or tapping into their home's equity. Revenue in this segment is sensitive to changes in interest rates, as higher or lower rates can significantly impact the demand for home loans and refinancing.
This segment encompasses a wide range of credit products for consumers. It includes services for credit cards, personal loans, small business loans, auto loans, and deposit accounts. LendingTree also offers debt settlement services within this segment. The performance of the Consumer segment is influenced by the overall demand for credit and the willingness of lenders to extend credit.
The Insurance segment provides consumers with tools, information, and access to insurance quotes for various types of coverage, such as auto, home, life, and health insurance. Through platforms like QuoteWizard, consumers can compare offers from different insurance providers. This segment also includes ValuePenguin, a personal finance website offering analysis on financial topics. LendingTree has recently ceased the sale of insurance policies, shifting its focus within this segment.
LendingTree's strategy revolves around leveraging its brand recognition and technology to foster competition among financial service providers. Management is focused on creating a diversified marketplace that isn't overly reliant on any single product cycle, such as mortgages, which can be heavily influenced by interest rates. By expanding its offerings across home, consumer, and insurance categories, the company aims to provide a comprehensive platform for consumers seeking financial products and to drive consistent growth through a scalable digital model.
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 $325.3M. Interest coverage 3.2x.
LendingTree, Inc.'s profit covers its interest bill about 3.2 times over. which is weaker than most peers shown here.
Total debt $436.06M Interest coverage 3.16x This is the baseline the peer rows are being compared against.
Total debt $12.20M Interest coverage 108.67x +3,343% vs TREE Carries about 34.4x more debt cushion than TREE.
Total debt $1.94M Interest coverage 18.63x +490% vs TREE Carries about 5.9x more debt cushion than TREE.
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