Positioning no disclosures inside 60 days, left as found
Options no verdict drawn today, left as found
Ethical does not pass the values gate
Price75.45 USD
Fair value105.00
Ethical score70.0/100
Our investment reviews on this name
2026-10-02Read Markdown75.45+0.0% to today
2026-08-30Read Markup83.68-9.8% to today
2026-07-30Read Distribution75.69-0.3% to today ✓
2026-07-02Read Markup68.83+9.6% to today ✓
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Frontdoor, Inc. holds its Markdown at $75.45. Consolidating, no directional conviction, held for 20 days.
As held on the ledger · 2026-10-01
Phase
Markdown · caution
Quantitative state
Consolidating, no directional conviction, held for 20 days
Price at the screen
$75.45
Valuation
19.86 trailing · 14.53 forward price to earnings
Values screen
FAIL· score 70.0
Beta
1.51
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
55.60%
Below 33%
Interest-bearing debt is 55.6% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
0.00%
Below 33%
Cash held in interest-bearing accounts and securities is 0.0% of assets, under the one-third limit.
Pass
Receivables
26.89%
Below 49%
Money owed to the company is 26.9% of assets, under the 49% limit.
Pass
Revenue purity
1.05%
Below 5%
Only 1.1% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Frontdoor,'s business is in a permissible area, but its interest-bearing debt is about 56% of the company, well over the ~33% line, so it does not pass on the financial screens.
Read as at 2026-10-04. It updates when the underlying figures move, and past reads are kept below.
Fair value range in USD, drawn from the 2026-10-01 screen. The gold marker is the market price at the same screen. A 39.2% margin of safety to the base estimate.
Third-party analyst targets: 5 covering, consensus Buy. The average target sits +27% from the screen price.
Reading the gap · Both our model and the analysts see meaningful upside from here.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-10-01 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Home warranties look defensive until housing slows
Picture a family watching their boiler fail mid-winter. Frontdoor steps in with a policy that covers the repair bill. The numbers show a 121% return on equity and a clean pass on the ethical screen, yet revenue advances only 6% a year and the shares sit just 8% below our fair value.
Why we pass. A 15 times forward earnings multiple is hardly cheap for modest growth and unknown competitive protection. Median analyst targets rest at $76, almost exactly where the stock trades today.
Risk sits in the housing cycle and discretionary consumer spending. Any dip in home sales or repair activity can cut volumes quickly even when reported returns look strong. Analysis, not advice.
The risks · The things to watch: it already moves more than the market on an average day; it carries a real debt load, which raises the stakes if revenue slips.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
FTDR trades on Nasdaq. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-10-02Markdown · changed$75.45-9.8%Entry 6
The framework has shifted from markup to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 9.8% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 3% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 18%. Our forward projection puts the odds of a 10% gain over the next month near 32%. The street (5 analysts) rates it none, with a mean price target of $74.
2026-08-30Markup · changed$83.68+10.6%Entry 5
The framework has shifted from distribution to markup since the last review. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 10.6% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 3% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 18%. Our forward projection puts the odds of a 10% gain over the next month near 32%. The street (5 analysts) rates it none, with a mean price target of $74.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved up 10.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 3% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 18%. Our forward projection puts the odds of a 10% gain over the next month near 32%. The street (5 analysts) rates it none, with a mean price target of $74.
2026-07-18Markup$68.83+0.0%Entry 3
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 3% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 18%. Our forward projection puts the odds of a 10% gain over the next month near 32%. The street (5 analysts) rates it none, with a mean price target of $74.
2026-07-03Markup$68.83+0.0%Entry 2
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows good risk-adjusted returns.
2026-07-02Markup$68.83Entry 1
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows good risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
