FrontDoor inc (FTDR): An opportunity to buy the biggest home warranty player at its lowest valuation in its history at a 41% IRR (2x in 2 years)
Current Price: ~$35 | 2-year Price Target: $65-$75 | NASDAQ: FTDR Join the mailing list for future blogs: Click here Model: Available to download here ( https://docs.google.com/spreadsheets/d/1snVZOkAikZAPWc0xeMMFYKBcvGHuSLFZ/edit?usp=drive_link&ouid=100501050702536154043&rtpof=true&sd=true ) Company & Industry Overview FrontDoor Inc. is the owner of American Home Shield (along with other brands), the largest home warranty brand in the States, and collectively with other brands has approximately 2 million warranties out of approximately five million warranties (5 million houses out of 127 million houses) that generated $1.7 billion in 2023 out of a $4 billion industry. They have also recently launched an app, which provides on-demand services and consultation. Four segments of revenue: Renewals (2nd year of Warranty), DTC (1st year of Warranty acquired directly, website, etc), Real-estate (1st year of Warranty attached to an existing home transaction), others (App,