Is Frontdoor, Inc. (FTDR) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 25.1% / 30% | 9.0% / 30% | 0.2% / 30% | 1.08% / 5% | ✓ HALAL |
| DJIM | 25.1% / 33% | 9.0% / 33% | 0.2% / 33% | 1.08% / 5% | ✓ HALAL |
| MSCI | 57.9% / 33% | 20.7% / 33% | 0.5% / 33% | 1.08% / 5% | ✗ NOT HALAL |
| S&P | 25.1% / 33% | 9.0% / 33% | 0.2% / 33% | 1.08% / 5% | ✓ HALAL |
| FTSE | 57.9% / 33% | 20.7% / 33% | 0.5% / 50% | 1.08% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 55.3% | |
| Operating Margin | 3.0% | |
| Net Margin | 12.2% | |
| Return on Equity (ROE) | 106.0% | |
| Return on Assets (ROA) | 11.7% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $416M |
| Free Cash Flow | $390M |
| Total Debt | $1.2B |
| Debt-to-Equity | 500.4 |
| Current Ratio | 1.6 |
| Total Assets | $2.1B |
Price & Trading
| Last Close | $55.84 |
| 50-Day MA | $60.01 |
| 200-Day MA | $59.74 |
| Avg Volume | 608K |
| Beta | 1.3 |
|
52-Week Range
$35.61
| |
About Frontdoor, Inc. (FTDR)
Frontdoor, Inc. provides home warranties and new home builder warranties in the United States. The company offers customizable home warranties that help customers to protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. Its home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as pools, spas, and pumps; and heating, ventilation, and air conditioning systems. It also offers non-warranty home services through website and application; a one-stop app experience for home repair and maintenance using video chat, augmented reality, and computer vision and machining learning. The company operates under the American Home Shield, HSA, OneGuard, Landmark, and 2-10 HBW brand names. Frontdoor, Inc. was founded in 1971 and is headquartered in Memphis, Tennessee.
Purification Calculator
As a halal stock with 1.08% impermissible income, you need to purify your dividends.
Related Halal Stocks in Consumer Cyclical
Frequently Asked Questions
Is Frontdoor, Inc. (FTDR) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Frontdoor, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Frontdoor, Inc.'s debt ratio?
Frontdoor, Inc.'s debt ratio is 25.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 57.9%.
Does Frontdoor, Inc. require dividend purification?
Yes, Frontdoor, Inc. has an impermissible income ratio of 1.08%, which means 1.08% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Frontdoor, Inc.'s key financial metrics?
Frontdoor, Inc. has a market capitalization of $3.9B, trailing P/E ratio of 15.7, and revenue of $2.1B. The company maintains a gross margin of 55.3% and a net margin of 12.2%. Return on equity stands at 106.0%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.