LendingTree, Inc.

TREE

$28.01

+0.68%

N/A+$0.19

Financial Services

Financial - Credit Services

NASDAQ

Active Trading

LendingTree, Inc., primarily operating through its subsidiary LT Intermediate Company, LLC, maintains a robust online platform serving consumers throughout the United States. ...

Fundamental Analysis of TREE

Key Strengths

Strong brand recognition and leading online marketplace for financial products.

Diversified revenue streams across mortgages, consumer loans, insurance, and other financial services.

Risk Factors

High financial leverage with debt-to-equity of 1.348 and debt to market cap of 0.884, increasing bankruptcy risk.

Earnings volatility due to cyclical mortgage and consumer credit markets; economic downturn could depress demand.

Profitability

Net Margin14.32%

Operating Margin8.32%

Valuation

P/E Ratio2.12x

Current Ratio1.85

Efficiency

ROE69.56%

ROA19.93%

Fundamental Analysis of TREE

LendingTree operates a leading online marketplace for financial products, connecting consumers with lenders and insurance providers. The company benefits from a strong brand and a diversified portfolio of segments (Home, Consumer, Insurance) and properties (e.g., QuoteWizard, ValuePenguin). As of the latest TTM data, the stock trades at a very low P/E of 2.39, reflecting depressed earnings but also potential undervaluation. However, this is accompanied by high volatility and leverage. The company has a robust gross margin of 96.4%, indicating low direct costs, but operating margins (8.3%) and net margins (14.3%) are moderate. Return on equity is exceptionally high at 69.6%, driven by high leverage, while ROA stands at 19.9%, showing efficient asset use. The current ratio of 1.846 and quick ratio of 1.846 indicate strong liquidity, but the debt-to-equity ratio of 1.348 and net debt to EBITDA of 2.328 signal elevated leverage. Revenue growth has been challenging, with a negative trend, while EPS growth (TTM) is strongly positive due to a one-time tax benefit (effective tax rate -188.7%). Free cash flow is positive (FCF per share $5.29) and the FCF yield is 16.7%, indicating good cash generation. The company has made strategic acquisitions and investments in technology (R&D to revenue 3.4%) to enhance its platform. Despite cyclicality and regulatory risks, the overall valuation appears attractive, but financial leverage and market competition remain key concerns.

Key Strengths of TREE

Strong brand recognition and leading online marketplace for financial products.
Diversified revenue streams across mortgages, consumer loans, insurance, and other financial services.
High gross margins (96.4%) and efficient asset utilization (ROA 19.9%).
Exceptional return on equity (69.6%) driven by high leverage and profitability.
Strong cash generation: operating cash flow per share $6.16 and free cash flow per share $5.29.
Substantial market opportunity for expanding into new financial products and digital services.
Multiple online properties (e.g., QuoteWizard, ValuePenguin, Stash) enhance customer reach and data assets.

Risk Factors of TREE

High financial leverage with debt-to-equity of 1.348 and debt to market cap of 0.884, increasing bankruptcy risk.
Earnings volatility due to cyclical mortgage and consumer credit markets; economic downturn could depress demand.
Dependence on third-party technology providers and risks of data breaches or system failures.
Regulatory changes in financial services, including consumer lending, data privacy, and insurance distribution.
Intense competition from other online marketplaces and direct lenders, pressuring margins.
Negative revenue growth and declining operating margins; profitability may not be sustainable without cost controls.
Potential dilution from stock-based compensation (SBC is 1.9% of revenue) and future capital needs.
High beta (2.08) exposes investors to pronounced market swings.

Market Cap vs Revenue & Earnings

Earnings

n/a

Revenue

n/a

Market cap

$390.82M

2.1x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Last Reportedn/a

Earnings per share (EPS)n/a

Gross Margin96.41%

Net Profit Margin14.32%

Debt/Equity Ratio1.35

Profitability Bridge (Current vs YoY)

How gross, operating and net margins shifted versus last year.

Revenue / Net Income / FCF History (USD B)

Growth Signals of TREE

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Revenue	—	—	—	—	Flat
Diluted EPS	—	—	—	—	Flat
Free Cash Flow	—	—	—	—	Flat

Profitability of TREE

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Net Margin	—	3.05%	—	—	Flat
Operating Margin	—	7.21%	—	—	Flat
ROE	—	—	—	—	Flat

Financial Health of TREE

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Current Ratio	—	1.846	—	—	Flat
Quick Ratio	—	1.846	—	—	Flat
Debt / Equity	—	1.348	—	—	Flat

Valuation of TREE

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
P/E	—	16.05x	—	—	Flat
P/B	—	1.93x	—	—	Flat

Supply Chain of TREE

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Proxies

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Plutux is not an investment adviser. Market data and AI-generated analysis are for information and education only, not investment advice. Disclaimer