Frontdoor Inc. Common Stock (FTDR)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Frontdoor as a subscription-like home warranty business: customers pay annually to protect essential home systems and appliances, which can produce repeatable revenue and cash. The filed record is respectable. In fiscal 2025, revenue was $2.1 billion and net income $255.0 million, up from $1.8 billion and $235.0 million in fiscal 2024. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $645.0 million, net income $125.0 million, and diluted EPS $1.76. FairStock’s Lynch category is Stalwart, citing 17.9% annual profit growth and 7.3% revenue growth over five years. Financial health looks strong on several measures. Trailing free cash flow was $386.0 million, a 7.2% FCF yield at the 2026-10-13 close, with a Piotroski F-score of 9/9 and an Altman Z-score of 3.01. FairStock calculates ROE of 101.86% and ROCE of 12.36%. But Graham would hesitate at the price. FairStock calculates a P/E of 20.54, P/B of 18.98, PEG of 1.63, and EV/EBITDA of 11.26. The Graham Number is only $18.70, leaving a margin of safety of -316.20%, and D/E is 4.17. That combination says the business is steady and cash-generative, but leverage and valuation leave little room for disappointment. At $77.83, I would call it a decent stalwart at a demanding price.

In plain English: Frontdoor sells home warranty plans that cover repairs and replacements for important home systems and appliances. The business looks solid: it earns steady profits and produces a lot of cash. The stock price, however, looks high compared with those profits and the company's assets, so it does not look cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer