FTDR - Embedded Expectations Analysis - 2020 05 29
frontdoor, inc. (FTDR:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 23.0x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may be concerned about their Candu expansion, leverage, and direct-to-consumer marketing strategiesSpecifically, management may have concerns about macro environment uncertainty, and they may be exaggerating their ability to manage their leverage and generate sufficient cash to service debt obligations. In addition, they may lack confidence in their ability to expand Candu to new geographies, execute national and local direct-to-consumer marketing strategies, and meet growth expectations in their direct-to-consumer and renewal channels. Moreover, they may be concerned about available technology acquisition opportunities and their reduction in planned new hires in critical positions, and they may be exaggerating their cost reduction opportunitie
Frontdoor is a provider of home service plans in the U.S., and operates under the American Home Shield, HSA, OneGuard and Landmark brands. The company's home service plans help customers protect and maintain their homes, typically their asset, from costly and unplanned breakdowns of essential home systems and appliances. The company's home service plans cover the repair or replacement of main components of household systems and appliances, including electrical, plumbing, central heating, ventilation and air conditioning systems, water heaters, refrigerators, dishwashers and ranges/ovens/cooktops. The company serves customers across various states and the District of Columbia.
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