EXPEDIA GROUP INC (EXPE) Stock Fundamental Analysis
NASDAQ:EXPE - Nasdaq - US30212P3038 - Common Stock - Currency: USD
Taking everything into account, EXPE scores 5 out of 10 in our fundamental rating. EXPE was compared to 131 industry peers in the Hotels, Restaurants & Leisure industry. EXPE scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on EXPE.
1. Profitability
1.1 Basic Checks
In the past year EXPE was profitable.
EXPE had a positive operating cash flow in the past year.
In multiple years EXPE reported negative net income over the last 5 years.
Of the past 5 years EXPE 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.10%, EXPE is in the better half of the industry, outperforming 61.83% of the companies in the same industry.
EXPE's Return On Equity of 132.42% is amongst the best of the industry. EXPE outperforms 99.24% of its industry peers.
With an excellent Return On Invested Capital value of 17.00%, EXPE belongs to the best of the industry, outperforming 87.02% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EXPE is below the industry average of 15.91%.
The 3 year average ROIC (10.99%) for EXPE is below the current ROIC(17.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.1% | ||
| ROE | 132.42% | ||
| ROIC | 17% |
ROA(3y)3.61%
ROA(5y)-0.96%
ROE(3y)48.88%
ROE(5y)5.49%
ROIC(3y)10.99%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 7.90%, EXPE is doing good in the industry, outperforming 64.12% of the companies in the same industry.
In the last couple of years the Profit Margin of EXPE has grown nicely.
EXPE has a Operating Margin of 12.15%. This is in the better half of the industry: EXPE outperforms 64.12% of its industry peers.
In the last couple of years the Operating Margin of EXPE has grown nicely.
Looking at the Gross Margin, with a value of 89.58%, EXPE belongs to the top of the industry, outperforming 99.24% of the companies in the same industry.
EXPE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.15% | ||
| PM (TTM) | 7.9% | ||
| GM | 89.58% |
OM growth 3Y58.59%
OM growth 5Y8.82%
PM growth 3YN/A
PM growth 5Y14%
GM growth 3Y2.82%
GM growth 5Y1.74%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EXPE is creating value.
Compared to 1 year ago, EXPE has less shares outstanding
EXPE has less shares outstanding than it did 5 years ago.
EXPE has a better debt/assets ratio than last year.
2.2 Solvency
EXPE has an Altman-Z score of 1.15. This is a bad value and indicates that EXPE is not financially healthy and even has some risk of bankruptcy.
EXPE has a worse Altman-Z score (1.15) than 63.36% of its industry peers.
The Debt to FCF ratio of EXPE is 3.11, which is a good value as it means it would take EXPE, 3.11 years of fcf income to pay off all of its debts.
EXPE's Debt to FCF ratio of 3.11 is amongst the best of the industry. EXPE outperforms 83.97% of its industry peers.
EXPE has a Debt/Equity ratio of 5.34. This is a high value indicating a heavy dependency on external financing.
EXPE has a Debt to Equity ratio of 5.34. This is in the lower half of the industry: EXPE underperforms 62.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.34 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 1.15 |
ROIC/WACC1.91
WACC8.88%
2.3 Liquidity
A Current Ratio of 0.75 indicates that EXPE may have some problems paying its short term obligations.
EXPE has a Current ratio (0.75) which is in line with its industry peers.
A Quick Ratio of 0.75 indicates that EXPE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.75, EXPE is in line with its industry, outperforming 45.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.29% over the past year.
The Earnings Per Share has been growing by 14.87% on average over the past years. This is quite good.
EXPE shows a small growth in Revenue. In the last year, the Revenue has grown by 5.69%.
The Revenue has been growing slightly by 2.56% on average over the past years.
EPS 1Y (TTM)21.29%
EPS 3Y104.08%
EPS 5Y14.87%
EPS Q2Q%20.8%
Revenue 1Y (TTM)5.69%
Revenue growth 3Y16.77%
Revenue growth 5Y2.56%
Sales Q2Q%6.41%
3.2 Future
EXPE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.53% yearly.
Based on estimates for the next years, EXPE will show a small growth in Revenue. The Revenue will grow by 5.60% on average per year.
EPS Next Y15.58%
EPS Next 2Y18.08%
EPS Next 3Y19.09%
EPS Next 5Y17.53%
Revenue Next Year4.42%
Revenue Next 2Y5.35%
Revenue Next 3Y6.1%
Revenue Next 5Y5.6%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.76, EXPE is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of EXPE indicates a rather cheap valuation: EXPE is cheaper than 80.92% of the companies listed in the same industry.
EXPE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.87.
Based on the Price/Forward Earnings ratio of 12.15, the valuation of EXPE can be described as correct.
Based on the Price/Forward Earnings ratio, EXPE is valued cheaper than 83.21% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.34, EXPE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 12.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EXPE is valued a bit cheaper than the industry average as 68.70% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EXPE is valued cheaper than 88.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.2 | ||
| EV/EBITDA | 9.94 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EXPE has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as EXPE's earnings are expected to grow with 19.09% in the coming years.
PEG (NY)1.01
PEG (5Y)1.06
EPS Next 2Y18.08%
EPS Next 3Y19.09%
5. Dividend
5.1 Amount
EXPE has a yearly dividend return of 0.76%, which is pretty low.
Compared to an average industry Dividend Yield of 3.96, EXPE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, EXPE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
EXPE has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y18.08%
EPS Next 3Y19.09%
207.44
+0.24 (+0.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners100.21%
Inst Owner Change-1.35%
Ins Owners0.49%
Ins Owner Change0.19%
Market Cap26.37B
Analysts72.86
Price Target199.16 (-3.99%)
Short Float %5.61%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.21%
Min EPS beat(2)1.46%
Max EPS beat(2)20.96%
EPS beat(4)3
Avg EPS beat(4)9.14%
Min EPS beat(4)-0.95%
Max EPS beat(4)20.96%
EPS beat(8)7
Avg EPS beat(8)30.51%
EPS beat(12)8
Avg EPS beat(12)-12.48%
EPS beat(16)12
Avg EPS beat(16)3.75%
Revenue beat(2)1
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-2.83%
Max Revenue beat(2)0.11%
Revenue beat(4)2
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)1.66%
Revenue beat(8)3
Avg Revenue beat(8)-0.81%
Revenue beat(12)3
Avg Revenue beat(12)-1.4%
Revenue beat(16)5
Avg Revenue beat(16)-0.63%
PT rev (1m)3.67%
PT rev (3m)-3.82%
EPS NQ rev (1m)2.23%
EPS NQ rev (3m)-1.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)-2.1%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 12.15 | ||
| P/S | 1.88 | ||
| P/FCF | 13.2 | ||
| P/OCF | 9.49 | ||
| P/B | 31.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.94 |
EPS(TTM)13.16
EY6.34%
EPS(NY)17.07
Fwd EY8.23%
FCF(TTM)15.71
FCFY7.57%
OCF(TTM)21.85
OCFY10.53%
SpS110.27
BVpS6.58
TBVpS-53.65
PEG (NY)1.01
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.1% | ||
| ROE | 132.42% | ||
| ROCE | 23.13% | ||
| ROIC | 17% | ||
| ROICexc | 181.1% | ||
| ROICexgc | N/A | ||
| OM | 12.15% | ||
| PM (TTM) | 7.9% | ||
| GM | 89.58% | ||
| FCFM | 14.25% |
ROA(3y)3.61%
ROA(5y)-0.96%
ROE(3y)48.88%
ROE(5y)5.49%
ROIC(3y)10.99%
ROIC(5y)N/A
ROICexc(3y)20.29%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)14.96%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y125.83%
ROICexc growth 5Y22.57%
OM growth 3Y58.59%
OM growth 5Y8.82%
PM growth 3YN/A
PM growth 5Y14%
GM growth 3Y2.82%
GM growth 5Y1.74%
F-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.34 | ||
| Debt/FCF | 3.11 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 90.29% | ||
| Cap/Sales | 5.57% | ||
| Interest Coverage | 7.92 | ||
| Cash Conversion | 108.18% | ||
| Profit Quality | 180.4% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 1.15 |
F-Score8
WACC8.88%
ROIC/WACC1.91
Cap/Depr(3y)92.88%
Cap/Depr(5y)87.19%
Cap/Sales(3y)5.93%
Cap/Sales(5y)8.19%
Profit Quality(3y)403.1%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.29%
EPS 3Y104.08%
EPS 5Y14.87%
EPS Q2Q%20.8%
EPS Next Y15.58%
EPS Next 2Y18.08%
EPS Next 3Y19.09%
EPS Next 5Y17.53%
Revenue 1Y (TTM)5.69%
Revenue growth 3Y16.77%
Revenue growth 5Y2.56%
Sales Q2Q%6.41%
Revenue Next Year4.42%
Revenue Next 2Y5.35%
Revenue Next 3Y6.1%
Revenue Next 5Y5.6%
EBIT growth 1Y7.31%
EBIT growth 3Y85.19%
EBIT growth 5Y11.61%
EBIT Next Year134.06%
EBIT Next 3Y40.85%
EBIT Next 5Y26.02%
FCF growth 1Y-13.96%
FCF growth 3Y-8.85%
FCF growth 5Y7.7%
OCF growth 1Y-11.08%
OCF growth 3Y-6.28%
OCF growth 5Y2.2%