EXPEDIA GROUP INC (EXPE) Stock Fundamental Analysis
NASDAQ:EXPE - Nasdaq - US30212P3038 - Common Stock - Currency: USD
EXPE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. EXPE has an excellent profitability rating, but there are some minor concerns on its financial health. EXPE scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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
EXPE's Return On Assets of 4.45% is fine compared to the rest of the industry. EXPE outperforms 67.67% of its industry peers.
Looking at the Return On Equity, with a value of 108.49%, EXPE belongs to the top of the industry, outperforming 98.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.19%, EXPE belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EXPE is below the industry average of 13.97%.
The last Return On Invested Capital (16.19%) for EXPE is above the 3 year average (10.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 108.49% | ||
| ROIC | 16.19% |
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
EXPE has a better Profit Margin (8.43%) than 67.67% of its industry peers.
In the last couple of years the Profit Margin of EXPE has grown nicely.
EXPE has a Operating Margin of 12.05%. This is in the better half of the industry: EXPE outperforms 60.15% of its industry peers.
In the last couple of years the Operating Margin of EXPE has grown nicely.
The Gross Margin of EXPE (89.52%) is better than 99.25% of its industry peers.
In the last couple of years the Gross Margin of EXPE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.05% | ||
| PM (TTM) | 8.43% | ||
| GM | 89.52% |
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
EXPE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
EXPE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EXPE has less shares outstanding
Compared to 1 year ago, EXPE has an improved debt to assets ratio.
2.2 Solvency
EXPE has an Altman-Z score of 1.06. This is a bad value and indicates that EXPE is not financially healthy and even has some risk of bankruptcy.
EXPE has a Altman-Z score of 1.06. This is in the lower half of the industry: EXPE underperforms 66.17% of its industry peers.
EXPE has a debt to FCF ratio of 2.61. This is a good value and a sign of high solvency as EXPE would need 2.61 years to pay back of all of its debts.
The Debt to FCF ratio of EXPE (2.61) is better than 83.46% of its industry peers.
A Debt/Equity ratio of 4.17 is on the high side and indicates that EXPE has dependencies on debt financing.
EXPE has a Debt to Equity ratio (4.17) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | 1.06 |
ROIC/WACC1.9
WACC8.53%
2.3 Liquidity
A Current Ratio of 0.73 indicates that EXPE may have some problems paying its short term obligations.
The Current ratio of EXPE (0.73) is worse than 60.90% of its industry peers.
EXPE has a Quick Ratio of 0.73. This is a bad value and indicates that EXPE is not financially healthy enough and could expect problems in meeting its short term obligations.
EXPE's Quick ratio of 0.73 is in line compared to the rest of the industry. EXPE outperforms 43.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.51% over the past year.
Measured over the past years, EXPE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.87% on average per year.
EXPE shows a small growth in Revenue. In the last year, the Revenue has grown by 5.57%.
Measured over the past years, EXPE shows a small growth in Revenue. The Revenue has been growing by 2.56% on average per year.
EPS 1Y (TTM)21.51%
EPS 3Y104.08%
EPS 5Y14.87%
EPS Q2Q%90.48%
Revenue 1Y (TTM)5.57%
Revenue growth 3Y16.77%
Revenue growth 5Y2.56%
Sales Q2Q%3.43%
3.2 Future
The Earnings Per Share is expected to grow by 17.53% on average over the next years. This is quite good.
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 Y17.66%
EPS Next 2Y18.08%
EPS Next 3Y19.35%
EPS Next 5Y17.53%
Revenue Next Year4.24%
Revenue Next 2Y5.29%
Revenue Next 3Y6.01%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.94, the valuation of EXPE can be described as correct.
83.46% of the companies in the same industry are more expensive than EXPE, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.55, EXPE is valued a bit cheaper.
The Price/Forward Earnings ratio is 10.16, which indicates a very decent valuation of EXPE.
87.22% of the companies in the same industry are more expensive than EXPE, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.40. EXPE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 10.16 |
4.2 Price Multiples
EXPE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EXPE is cheaper than 75.94% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EXPE is valued cheaply inside the industry as 93.98% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.25 | ||
| EV/EBITDA | 8.69 |
4.3 Compensation for Growth
EXPE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EXPE has a very decent profitability rating, which may justify a higher PE ratio.
EXPE's earnings are expected to grow with 19.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)0.94
EPS Next 2Y18.08%
EPS Next 3Y19.35%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, EXPE is not a good candidate for dividend investing.
EXPE's Dividend Yield is a higher than the industry average which is at 3.82.
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 | 0.92% |
5.2 History
EXPE has paid a dividend for at least 10 years, which is 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 3Y19.35%
173.32
-0.74 (-0.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners97.28%
Inst Owner Change2.77%
Ins Owners0.45%
Ins Owner Change0.08%
Market Cap22.03B
Analysts72.56
Price Target192.11 (10.84%)
Short Float %4.8%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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)18.04%
Min EPS beat(2)15.12%
Max EPS beat(2)20.96%
EPS beat(4)3
Avg EPS beat(4)11.89%
Min EPS beat(4)-0.95%
Max EPS beat(4)20.96%
EPS beat(8)7
Avg EPS beat(8)33.12%
EPS beat(12)8
Avg EPS beat(12)-10.7%
EPS beat(16)11
Avg EPS beat(16)-0.68%
Revenue beat(2)1
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-2.83%
Max Revenue beat(2)1.66%
Revenue beat(4)1
Avg Revenue beat(4)-1.42%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)1.66%
Revenue beat(8)2
Avg Revenue beat(8)-1.11%
Revenue beat(12)3
Avg Revenue beat(12)-1.05%
Revenue beat(16)5
Avg Revenue beat(16)-0.44%
PT rev (1m)-8.75%
PT rev (3m)-11.43%
EPS NQ rev (1m)-1.31%
EPS NQ rev (3m)-2.24%
EPS NY rev (1m)1.6%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)-2.3%
Revenue NQ rev (3m)-2.56%
Revenue NY rev (1m)-1.42%
Revenue NY rev (3m)-2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 10.16 | ||
| P/S | 1.6 | ||
| P/FCF | 9.25 | ||
| P/OCF | 6.98 | ||
| P/B | 20.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.69 |
EPS(TTM)12.43
EY7.17%
EPS(NY)17.06
Fwd EY9.85%
FCF(TTM)18.75
FCFY10.82%
OCF(TTM)24.84
OCFY14.33%
SpS108.48
BVpS8.43
TBVpS-51.79
PEG (NY)0.79
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 108.49% | ||
| ROCE | 22.04% | ||
| ROIC | 16.19% | ||
| ROICexc | 86.31% | ||
| ROICexgc | N/A | ||
| OM | 12.05% | ||
| PM (TTM) | 8.43% | ||
| GM | 89.52% | ||
| FCFM | 17.28% |
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 Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | 2.61 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 91.5% | ||
| Cap/Sales | 5.62% | ||
| Interest Coverage | 6.7 | ||
| Cash Conversion | 125.87% | ||
| Profit Quality | 204.9% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 1.06 |
F-Score8
WACC8.53%
ROIC/WACC1.9
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)21.51%
EPS 3Y104.08%
EPS 5Y14.87%
EPS Q2Q%90.48%
EPS Next Y17.66%
EPS Next 2Y18.08%
EPS Next 3Y19.35%
EPS Next 5Y17.53%
Revenue 1Y (TTM)5.57%
Revenue growth 3Y16.77%
Revenue growth 5Y2.56%
Sales Q2Q%3.43%
Revenue Next Year4.24%
Revenue Next 2Y5.29%
Revenue Next 3Y6.01%
Revenue Next 5Y5.6%
EBIT growth 1Y7.85%
EBIT growth 3Y85.19%
EBIT growth 5Y11.61%
EBIT Next Year132.97%
EBIT Next 3Y40.8%
EBIT Next 5Y26.02%
FCF growth 1Y-16.88%
FCF growth 3Y-8.85%
FCF growth 5Y7.7%
OCF growth 1Y-12.42%
OCF growth 3Y-6.28%
OCF growth 5Y2.2%