Frontdoor, Inc. key statistics and ratios
In fiscal 2025, Frontdoor, Inc. had return on equity of 106.0%, a net margin of 12.2%, debt equal to 491.3% of equity and a current ratio of 1.55. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.
Financial ratios
| Fiscal year | 2016Dec 2016 | 2017Dec 2017 | 2018Dec 2018 | 2019Dec 2019 | 2020Dec 2020 | 2021Dec 2021 | 2022Dec 2022 | 2023Dec 2023 | 2024Dec 2024 | 2025Dec 2025 | LTMJun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross margin | 48.4% | 49.0% | 45.5% | 49.7% | 48.6% | 48.9% | 42.7% | 49.7% | 53.8% | 55.3% | 55.5% |
| Net margin | 12.2% | 13.8% | 9.9% | 11.2% | 7.6% | 8.0% | 4.3% | 9.6% | 12.8% | 12.2% | 12.8% |
| Free-cash-flow margin | 14.1% | 15.5% | 12.9% | 13.0% | 11.9% | 9.6% | 6.1% | 9.6% | 12.5% | 18.6% | 18.0% |
| Return on equity | 22.1% | 26.2% | 78.9% | — | — | — | — | 173.6% | 125.3% | 106.0% | 104.2% |
| Return on assets | — | 11.3% | 10.2% | 13.4% | 8.4% | 10.3% | 6.6% | 15.8% | 14.7% | 12.0% | 12.7% |
| Asset turnover | — | 0.82 | 1.02 | 1.19 | 1.11 | 1.30 | 1.55 | 1.64 | 1.15 | 0.99 | 0.99 |
| Current ratio | — | 1.05 | 0.96 | 1.27 | 1.55 | 0.78 | 0.91 | 1.10 | 1.32 | 1.55 | 1.59 |
| Debt to equity | 0.0% | 1.4% | — | — | — | >999% | 998.4% | 439.7% | 509.6% | 491.3% | 413.4% |
| Effective tax rate | 36.2% | 27.3% | 25.3% | 25.0% | 24.8% | 23.2% | 23.7% | 24.9% | 23.9% | 24.9% | 24.6% |
| SG&A as % of revenue | 28.0% | 27.0% | 26.9% | 28.7% | 31.7% | 31.9% | 31.3% | 32.6% | 33.2% | 32.0% | 31.8% |
| Capital spending as % of revenue | 1.1% | 1.3% | 2.1% | 1.6% | 2.2% | 1.9% | 2.4% | 1.8% | 2.1% | 1.2% | 1.1% |
| Free cash flow ÷ net income | 116.1% | 111.9% | 129.6% | 116.3% | 156.3% | 120.3% | 143.7% | 99.4% | 98.3% | 152.9% | 140.9% |
| Dividends ÷ net income | 70.2% | 39.4% | 109.6% | — | — | — | — | — | — | — | — |
| Dividends and buybacks ÷ free cash flow | 60.4% | 35.2% | 84.6% | — | — | 66.9% | 57.8% | 71.2% | 69.7% | 72.6% | 77.7% |
| Quarter | 2024 Q3Sept 2024 | 2024 Q4Dec 2024 | 2025 Q1Mar 2025 | 2025 Q2Jun 2025 | 2025 Q3Sept 2025 | 2025 Q4Dec 2025 | 2026 Q1Mar 2026 | 2026 Q2Jun 2026 |
|---|---|---|---|---|---|---|---|---|
| Gross margin | 56.7% | 48.4% | 55.2% | 57.7% | 57.1% | 49.2% | 55.0% | 58.6% |
| Net margin | 18.5% | 2.4% | 8.7% | 18.0% | 17.2% | 0.5% | 9.1% | 19.4% |
| Free-cash-flow margin | 3.0% | 13.1% | 27.5% | 19.4% | 9.4% | 21.9% | 25.1% | 18.6% |
| Current ratio | 1.42 | 1.32 | 1.34 | 1.49 | 1.73 | 1.55 | 1.47 | 1.59 |
| Debt to equity | 223.0% | 501.7% | 602.5% | 466.9% | 373.4% | 484.7% | 507.4% | 408.5% |
| SG&A as % of revenue | 28.5% | 40.8% | 35.4% | 27.9% | 28.2% | 39.5% | 35.9% | 27.3% |
Financial health
- Short-term assets cover short-term liabilities $692m of assets due within a year against $435m of liabilities due within a year.
- Short-term assets cover long-term liabilities Not assessable from the reported split. Not assessable.
- More cash than debt $627m of cash against $1.2bn of debt.
- Debt below 40% of shareholders' equity Debt is 408% of equity.
- Debt burden no higher than five years ago Debt to equity moved from 30400% to 408% over five years.
- A year's operating cash flow covers at least 20% of debt $410m of operating cash flow against $1.2bn of debt.
- Operating profit covers interest at least five times over Interest not separately reported. Not assessable.
Moat
Strong moat
How hard Frontdoor's competitive advantage looks for rivals to wear away, judged from 9 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.
- Returns on capital 20 / 20
Cash operating profit has been a median 21.2% of total assets over 8 years.
- Pricing power 15 / 20
Gross margin has been a median 48.1%, moving by 3.5 percentage points (standard deviation) across 9 years.
- Durability 11 / 20
Net margin has been a median 10.6%; its worst year was 6.1%.
- Cash conversion 16 / 20
Free cash flow was positive in 8 of 8 years, at a median 12.6% of revenue.
- Discipline 20 / 20
The diluted share count fell 15.4% over five years; stock-based pay has been a median 1.4% of revenue.
AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (82 before it).
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