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 135 industry peers in the Hotels, Restaurants & Leisure industry. EXPE scores excellent on profitability, but there are some minor concerns on its financial health. EXPE may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
EXPE had positive earnings in the past year.
In the past year EXPE had a positive cash flow from operations.
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
The Return On Assets of EXPE (4.45%) is better than 68.89% of its industry peers.
The Return On Equity of EXPE (108.49%) is better than 98.52% of its industry peers.
With an excellent Return On Invested Capital value of 16.19%, EXPE belongs to the best of the industry, outperforming 83.70% of the companies in the same industry.
EXPE had an Average Return On Invested Capital over the past 3 years of 10.99%. This is below the industry average of 14.12%.
The 3 year average ROIC (10.99%) for EXPE is below the current ROIC(16.19%), indicating increased profibility in the last year.
| 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 Profit Margin of 8.43%. This is in the better half of the industry: EXPE outperforms 68.15% of its industry peers.
EXPE's Profit Margin has improved in the last couple of years.
EXPE's Operating Margin of 12.05% is in line compared to the rest of the industry. EXPE outperforms 60.00% 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 99.26% of its industry peers.
EXPE's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for EXPE has been reduced compared to 1 year ago.
EXPE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EXPE has been reduced compared to a year ago.
2.2 Solvency
EXPE has an Altman-Z score of 1.03. This is a bad value and indicates that EXPE is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of EXPE (1.03) is worse than 68.15% 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.
With an excellent Debt to FCF ratio value of 2.61, EXPE belongs to the best of the industry, outperforming 82.96% of the companies in the same industry.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | 1.03 |
ROIC/WACC1.94
WACC8.35%
2.3 Liquidity
A Current Ratio of 0.73 indicates that EXPE may have some problems paying its short term obligations.
EXPE's Current ratio of 0.73 is on the low side compared to the rest of the industry. EXPE is outperformed by 60.00% 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 43.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
EXPE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.51%, which is quite impressive.
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.
Looking at the last year, EXPE shows a small growth in Revenue. The Revenue has grown by 5.57% in the last year.
EXPE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.56% yearly.
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
Based on estimates for the next years, EXPE will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.52% on average per year.
Based on estimates for the next years, EXPE will show a small growth in Revenue. The Revenue will grow by 6.36% on average per year.
EPS Next Y17.66%
EPS Next 2Y18.08%
EPS Next 3Y19.35%
EPS Next 5Y16.52%
Revenue Next Year4.38%
Revenue Next 2Y5.28%
Revenue Next 3Y5.98%
Revenue Next 5Y6.36%
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
The Price/Earnings ratio is 13.07, which indicates a correct valuation of EXPE.
Based on the Price/Earnings ratio, EXPE is valued cheaper than 82.96% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. EXPE is valued rather cheaply when compared to this.
EXPE is valuated reasonably with a Price/Forward Earnings ratio of 9.52.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EXPE indicates a rather cheap valuation: EXPE is cheaper than 89.63% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.43. EXPE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.07 | ||
| Fwd PE | 9.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EXPE is valued a bit cheaper than the industry average as 76.30% of the companies are valued more expensively.
92.59% of the companies in the same industry are more expensive than EXPE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.7 | ||
| EV/EBITDA | 8.28 |
4.3 Compensation for Growth
The 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)0.74
PEG (5Y)0.88
EPS Next 2Y18.08%
EPS Next 3Y19.35%
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, EXPE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.55, EXPE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, EXPE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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 3Y19.35%
162.52
-2.97 (-1.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners97.28%
Inst Owner Change2.5%
Ins Owners0.45%
Ins Owner Change-0.21%
Market Cap20.73B
Analysts73.02
Price Target207.07 (27.41%)
Short Float %5.44%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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)-4.62%
PT rev (3m)6.12%
EPS NQ rev (1m)-1.45%
EPS NQ rev (3m)-3.02%
EPS NY rev (1m)1.6%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)-2.25%
Revenue NQ rev (3m)-2.63%
Revenue NY rev (1m)-1.73%
Revenue NY rev (3m)-2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.07 | ||
| Fwd PE | 9.52 | ||
| P/S | 1.5 | ||
| P/FCF | 8.7 | ||
| P/OCF | 6.56 | ||
| P/B | 19.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.28 |
EPS(TTM)12.43
EY7.65%
EPS(NY)17.06
Fwd EY10.5%
FCF(TTM)18.68
FCFY11.49%
OCF(TTM)24.76
OCFY15.23%
SpS108.11
BVpS8.4
TBVpS-51.61
PEG (NY)0.74
PEG (5Y)0.88
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 | 1.03 |
F-Score8
WACC8.35%
ROIC/WACC1.94
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 5Y16.52%
Revenue 1Y (TTM)5.57%
Revenue growth 3Y16.77%
Revenue growth 5Y2.56%
Sales Q2Q%3.43%
Revenue Next Year4.38%
Revenue Next 2Y5.28%
Revenue Next 3Y5.98%
Revenue Next 5Y6.36%
EBIT growth 1Y7.85%
EBIT growth 3Y85.19%
EBIT growth 5Y11.61%
EBIT Next Year134.86%
EBIT Next 3Y41.12%
EBIT Next 5Y26.76%
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%