EXPEDIA GROUP INC (EXPE) Stock Fundamental Analysis
NASDAQ:EXPE - Nasdaq - US30212P3038 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to EXPE. EXPE was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. While EXPE has a great profitability rating, there are some minor concerns on its financial health. EXPE is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
EXPE had positive earnings in the past year.
EXPE had a positive operating cash flow in the past year.
In multiple years EXPE reported negative net income over the last 5 years.
EXPE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
EXPE's Return On Assets of 4.45% is fine compared to the rest of the industry. EXPE outperforms 65.41% 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.
EXPE had an Average Return On Invested Capital over the past 3 years of 10.99%. This is below the industry average of 13.81%.
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's Profit Margin of 8.43% is fine compared to the rest of the industry. EXPE outperforms 66.92% of its industry peers.
EXPE's Profit Margin has improved in the last couple of years.
EXPE's Operating Margin of 12.05% is fine compared to the rest of the industry. EXPE outperforms 61.65% of its industry peers.
In the last couple of years the Operating Margin of EXPE has grown nicely.
EXPE has a Gross Margin of 89.52%. This is amongst the best in the industry. EXPE outperforms 99.25% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EXPE 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
Based on the Altman-Z score of 1.07, we must say that EXPE is in the distress zone and has some risk of bankruptcy.
EXPE's Altman-Z score of 1.07 is on the low side compared to the rest of the industry. EXPE is outperformed by 65.41% 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.
EXPE has a better Debt to FCF ratio (2.61) 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | 1.07 |
ROIC/WACC1.93
WACC8.41%
2.3 Liquidity
EXPE has a Current 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.
Looking at the Current ratio, with a value of 0.73, EXPE is doing worse than 60.15% of the companies in the same industry.
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 44.36% 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.
The Earnings Per Share has been growing by 14.87% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.57% in the past year.
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
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.
The Revenue is expected to grow by 5.60% on average over the next years.
EPS Next Y17.21%
EPS Next 2Y18.21%
EPS Next 3Y19.37%
EPS Next 5Y17.53%
Revenue Next Year4.24%
Revenue Next 2Y5.29%
Revenue Next 3Y6.01%
Revenue Next 5Y5.6%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 14.28 indicates a correct valuation of EXPE.
Based on the Price/Earnings ratio, EXPE is valued cheaply inside the industry as 84.96% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. EXPE is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 10.38, the valuation of EXPE can be described as very reasonable.
Based on the Price/Forward Earnings ratio, EXPE is valued cheaply inside the industry as 87.97% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of EXPE to the average of the S&P500 Index (21.76), we can say EXPE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.28 | ||
| Fwd PE | 10.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EXPE is valued a bit cheaper than 75.19% of the companies in the same industry.
EXPE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EXPE is cheaper than 93.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.47 | ||
| EV/EBITDA | 8.87 |
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.
The decent profitability rating of EXPE may justify a higher PE ratio.
A more expensive valuation may be justified as EXPE's earnings are expected to grow with 19.37% in the coming years.
PEG (NY)0.83
PEG (5Y)0.96
EPS Next 2Y18.21%
EPS Next 3Y19.37%
5. Dividend
5.1 Amount
EXPE has a yearly dividend return of 0.91%, which is pretty low.
EXPE's Dividend Yield is a higher than the industry average which is at 3.53.
With a Dividend Yield of 0.91, EXPE pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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 2Y18.21%
EPS Next 3Y19.37%
177.55
-0.25 (-0.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners100.3%
Inst Owner Change0%
Ins Owners0.48%
Ins Owner Change0.13%
Market Cap22.57B
Analysts72.56
Price Target192.11 (8.2%)
Short Float %5.96%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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)-7.23%
PT rev (3m)-11.52%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-1.91%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-1.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.28 | ||
| Fwd PE | 10.38 | ||
| P/S | 1.64 | ||
| P/FCF | 9.47 | ||
| P/OCF | 7.15 | ||
| P/B | 21.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.87 |
EPS(TTM)12.43
EY7%
EPS(NY)17.1
Fwd EY9.63%
FCF(TTM)18.75
FCFY10.56%
OCF(TTM)24.84
OCFY13.99%
SpS108.48
BVpS8.43
TBVpS-51.79
PEG (NY)0.83
PEG (5Y)0.96
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 | 1.07 |
F-Score8
WACC8.41%
ROIC/WACC1.93
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 Y17.21%
EPS Next 2Y18.21%
EPS Next 3Y19.37%
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%