EXPEDIA GROUP INC (1EXPE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1EXPE - US30212P3038 - Common Stock
257.4 EUR
+68.68 (+36.39%)
We assign a fundamental rating of 6 out of 10 to 1EXPE. 1EXPE was compared to 62 industry peers in the Hotels, Restaurants & Leisure industry. While 1EXPE has a great profitability rating, there are some minor concerns on its financial health. 1EXPE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1EXPE was profitable.
- 1EXPE had a positive operating cash flow in the past year.
- In multiple years 1EXPE reported negative net income over the last 5 years.
- 1EXPE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- 1EXPE's Return On Assets of 5.53% is fine compared to the rest of the industry. 1EXPE outperforms 62.30% of its industry peers.
- 1EXPE has a better Return On Equity (103.81%) than 98.36% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 18.46%, 1EXPE belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
- 1EXPE had an Average Return On Invested Capital over the past 3 years of 10.99%. This is in line with the industry average of 12.01%.
- The 3 year average ROIC (10.99%) for 1EXPE is below the current ROIC(18.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.53% | ||
| ROE | 103.81% | ||
| ROIC | 18.46% |
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
- 1EXPE has a better Profit Margin (9.66%) than 67.21% of its industry peers.
- In the last couple of years the Profit Margin of 1EXPE has grown nicely.
- 1EXPE's Operating Margin of 13.72% is fine compared to the rest of the industry. 1EXPE outperforms 62.30% of its industry peers.
- 1EXPE's Operating Margin has improved in the last couple of years.
- 1EXPE has a Gross Margin of 89.94%. This is amongst the best in the industry. 1EXPE outperforms 90.16% of its industry peers.
- In the last couple of years the Gross Margin of 1EXPE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.72% | ||
| PM (TTM) | 9.66% | ||
| GM | 89.94% |
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), 1EXPE is creating value.
- The number of shares outstanding for 1EXPE has been reduced compared to 1 year ago.
- 1EXPE has less shares outstanding than it did 5 years ago.
- 1EXPE has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.63, we must say that 1EXPE is in the distress zone and has some risk of bankruptcy.
- 1EXPE has a Altman-Z score (1.63) which is comparable to the rest of the industry.
- 1EXPE has a debt to FCF ratio of 2.07. This is a good value and a sign of high solvency as 1EXPE would need 2.07 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 2.07, 1EXPE is doing good in the industry, outperforming 78.69% of the companies in the same industry.
- 1EXPE has a Debt/Equity ratio of 3.34. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 3.34, 1EXPE is in line with its industry, outperforming 47.54% of the companies in the same industry.
- Although 1EXPE does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.34 | ||
| Debt/FCF | 2.07 | ||
| Altman-Z | 1.63 |
ROIC/WACC2.35
WACC7.87%
2.3 Liquidity
- A Current Ratio of 0.74 indicates that 1EXPE may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.74, 1EXPE is in line with its industry, outperforming 47.54% of the companies in the same industry.
- A Quick Ratio of 0.74 indicates that 1EXPE may have some problems paying its short term obligations.
- The Quick ratio of 1EXPE (0.74) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 26.19% over the past year.
- The Earnings Per Share has been growing by 14.87% on average over the past years. This is quite good.
- Looking at the last year, 1EXPE shows a small growth in Revenue. The Revenue has grown by 7.29% in the last year.
- Measured over the past years, 1EXPE shows a small growth in Revenue. The Revenue has been growing by 2.56% on average per year.
EPS 1Y (TTM)26.19%
EPS 3Y104.08%
EPS 5Y14.87%
EPS Q2Q%23.49%
Revenue 1Y (TTM)7.29%
Revenue growth 3Y16.77%
Revenue growth 5Y2.56%
Sales Q2Q%8.67%
3.2 Future
- The Earnings Per Share is expected to grow by 17.91% on average over the next years. This is quite good.
- Based on estimates for the next years, 1EXPE will show a small growth in Revenue. The Revenue will grow by 6.82% on average per year.
EPS Next Y24.85%
EPS Next 2Y23%
EPS Next 3Y21.8%
EPS Next 5Y17.91%
Revenue Next Year7.5%
Revenue Next 2Y7.38%
Revenue Next 3Y7.28%
Revenue Next 5Y6.82%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- 1EXPE is valuated rather expensively with a Price/Earnings ratio of 20.48.
- 72.13% of the companies in the same industry are more expensive than 1EXPE, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.25. 1EXPE is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 16.15 indicates a correct valuation of 1EXPE.
- 77.05% of the companies in the same industry are more expensive than 1EXPE, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of 1EXPE to the average of the S&P500 Index (25.98), we can say 1EXPE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 16.15 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1EXPE is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, 1EXPE is valued a bit cheaper than the industry average as 70.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.22 | ||
| EV/EBITDA | 12.75 |
4.3 Compensation for Growth
- 1EXPE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 1EXPE has an outstanding profitability rating, which may justify a higher PE ratio.
- 1EXPE's earnings are expected to grow with 21.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)1.38
EPS Next 2Y23%
EPS Next 3Y21.8%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.54%, 1EXPE is not a good candidate for dividend investing.
- 1EXPE's Dividend Yield is comparable with the industry average which is at 1.36.
- Compared to an average S&P500 Dividend Yield of 1.82, 1EXPE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
DPN/A
EPS Next 2Y23%
EPS Next 3Y21.8%
EXPEDIA GROUP INC / 1EXPE.MI FAQ
Can you provide the ChartMill fundamental rating for EXPEDIA GROUP INC?
ChartMill assigns a fundamental rating of 6 / 10 to 1EXPE.MI.
What is the valuation status of EXPEDIA GROUP INC (1EXPE.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to EXPEDIA GROUP INC (1EXPE.MI). This can be considered as Fairly Valued.
What is the profitability of 1EXPE stock?
EXPEDIA GROUP INC (1EXPE.MI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for 1EXPE stock?
The Price/Earnings (PE) ratio for EXPEDIA GROUP INC (1EXPE.MI) is 20.48 and the Price/Book (PB) ratio is 27.4.
What is the expected EPS growth for EXPEDIA GROUP INC (1EXPE.MI) stock?
The Earnings per Share (EPS) of EXPEDIA GROUP INC (1EXPE.MI) is expected to grow by 24.85% in the next year.