EXPEDIA GROUP INC (EXPE) Stock Fundamental Analysis
NASDAQ:EXPE - Nasdaq - US30212P3038 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to EXPE. EXPE was compared to 135 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 is valued quite cheap, while showing a decent growth score. This is a good 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 5.49% is fine compared to the rest of the industry. EXPE outperforms 70.23% of its industry peers.
The Return On Equity of EXPE (78.87%) is better than 98.47% of its industry peers.
EXPE has a Return On Invested Capital of 13.93%. This is amongst the best in the industry. EXPE outperforms 81.68% of its industry peers.
EXPE had an Average Return On Invested Capital over the past 3 years of 10.99%. This is significantly below the industry average of 16.06%.
The 3 year average ROIC (10.99%) for EXPE is below the current ROIC(13.93%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 78.87% | ||
| ROIC | 13.93% |
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
The Profit Margin of EXPE (8.97%) is better than 70.23% of its industry peers.
In the last couple of years the Profit Margin of EXPE has grown nicely.
The Operating Margin of EXPE (12.15%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of EXPE has grown nicely.
Looking at the Gross Margin, with a value of 89.44%, EXPE belongs to the top of the industry, outperforming 99.24% of the companies in the same industry.
In the last couple of years the Gross Margin of EXPE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.15% | ||
| PM (TTM) | 8.97% | ||
| GM | 89.44% |
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) just above the Cost of Capital (WACC), EXPE is creating some 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.
EXPE has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that EXPE is in the distress zone and has some risk of bankruptcy.
EXPE has a Altman-Z score of 1.41. This is comparable to the rest of the industry: EXPE outperforms 45.04% of its industry peers.
The Debt to FCF ratio of EXPE is 2.69, which is a good value as it means it would take EXPE, 2.69 years of fcf income to pay off all of its debts.
EXPE has a better Debt to FCF ratio (2.69) than 84.73% of its industry peers.
EXPE has a Debt/Equity ratio of 3.35. This is a high value indicating a heavy dependency on external financing.
EXPE has a Debt to Equity ratio (3.35) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.35 | ||
| Debt/FCF | 2.69 | ||
| Altman-Z | 1.41 |
ROIC/WACC1.59
WACC8.74%
2.3 Liquidity
A Current Ratio of 0.72 indicates that EXPE may have some problems paying its short term obligations.
EXPE has a Current ratio of 0.72. This is in the lower half of the industry: EXPE underperforms 63.36% of its industry peers.
EXPE has a Quick Ratio of 0.72. 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 has a Quick ratio (0.72) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.64% over the past year.
EXPE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.87% yearly.
Looking at the last year, EXPE shows a small growth in Revenue. The Revenue has grown by 6.64% in the last year.
The Revenue has been growing slightly by 2.56% on average over the past years.
EPS 1Y (TTM)24.64%
EPS 3Y104.08%
EPS 5Y14.87%
EPS Q2Q%38.95%
Revenue 1Y (TTM)6.64%
Revenue growth 3Y16.77%
Revenue growth 5Y2.56%
Sales Q2Q%10.29%
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 10.48% on average per year.
EXPE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.21% yearly.
EPS Next Y18.93%
EPS Next 2Y18.99%
EPS Next 3Y17.5%
EPS Next 5Y10.48%
Revenue Next Year6.62%
Revenue Next 2Y6.87%
Revenue Next 3Y7.07%
Revenue Next 5Y6.21%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
EXPE is valuated correctly with a Price/Earnings ratio of 16.17.
Compared to the rest of the industry, the Price/Earnings ratio of EXPE indicates a somewhat cheap valuation: EXPE is cheaper than 78.63% 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 29.43.
EXPE is valuated correctly with a Price/Forward Earnings ratio of 13.60.
Based on the Price/Forward Earnings ratio, EXPE is valued cheaper than 85.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EXPE to the average of the S&P500 Index (22.67), we can say EXPE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 13.6 |
4.2 Price Multiples
EXPE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EXPE is cheaper than 64.89% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EXPE is valued cheaply inside the industry as 93.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.95 | ||
| EV/EBITDA | 10.56 |
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 17.50% in the coming years.
PEG (NY)0.85
PEG (5Y)1.09
EPS Next 2Y18.99%
EPS Next 3Y17.5%
5. Dividend
5.1 Amount
EXPE has a yearly dividend return of 0.83%, which is pretty low.
EXPE's Dividend Yield is a higher than the industry average which is at 3.06.
With a Dividend Yield of 0.83, EXPE pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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
DP0%
EPS Next 2Y18.99%
EPS Next 3Y17.5%
197.96
+4.41 (+2.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners97.28%
Inst Owner Change-0.95%
Ins Owners0.45%
Ins Owner Change-0.25%
Market Cap25.51B
Analysts71.16
Price Target212.99 (7.59%)
Short Float %4.45%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.08%
Min EPS beat(2)-0.95%
Max EPS beat(2)15.12%
EPS beat(4)3
Avg EPS beat(4)53.42%
Min EPS beat(4)-0.95%
Max EPS beat(4)187.08%
EPS beat(8)6
Avg EPS beat(8)-17.83%
EPS beat(12)8
Avg EPS beat(12)-10.27%
EPS beat(16)11
Avg EPS beat(16)-1.1%
Revenue beat(2)1
Avg Revenue beat(2)-0.78%
Min Revenue beat(2)-3.22%
Max Revenue beat(2)1.66%
Revenue beat(4)2
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)1.66%
Revenue beat(8)2
Avg Revenue beat(8)-0.98%
Revenue beat(12)3
Avg Revenue beat(12)-0.89%
Revenue beat(16)6
Avg Revenue beat(16)0.33%
PT rev (1m)12.1%
PT rev (3m)14.57%
EPS NQ rev (1m)118.58%
EPS NQ rev (3m)659.09%
EPS NY rev (1m)1.29%
EPS NY rev (3m)-0.46%
Revenue NQ rev (1m)-2.25%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)-1.21%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 13.6 | ||
| P/S | 1.86 | ||
| P/FCF | 10.95 | ||
| P/OCF | 8.27 | ||
| P/B | 16.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.56 |
EPS(TTM)12.24
EY6.18%
EPS(NY)14.56
Fwd EY7.35%
FCF(TTM)18.07
FCFY9.13%
OCF(TTM)23.94
OCFY12.09%
SpS106.25
BVpS12.08
TBVpS-47.37
PEG (NY)0.85
PEG (5Y)1.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 78.87% | ||
| ROCE | 18.96% | ||
| ROIC | 13.93% | ||
| ROICexc | 28.48% | ||
| ROICexgc | N/A | ||
| OM | 12.15% | ||
| PM (TTM) | 8.97% | ||
| GM | 89.44% | ||
| FCFM | 17.01% |
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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.35 | ||
| Debt/FCF | 2.69 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 90.21% | ||
| Cap/Sales | 5.52% | ||
| Interest Coverage | 7.2 | ||
| Cash Conversion | 123.3% | ||
| Profit Quality | 189.66% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 1.41 |
F-Score8
WACC8.74%
ROIC/WACC1.59
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)24.64%
EPS 3Y104.08%
EPS 5Y14.87%
EPS Q2Q%38.95%
EPS Next Y18.93%
EPS Next 2Y18.99%
EPS Next 3Y17.5%
EPS Next 5Y10.48%
Revenue 1Y (TTM)6.64%
Revenue growth 3Y16.77%
Revenue growth 5Y2.56%
Sales Q2Q%10.29%
Revenue Next Year6.62%
Revenue Next 2Y6.87%
Revenue Next 3Y7.07%
Revenue Next 5Y6.21%
EBIT growth 1Y13.43%
EBIT growth 3Y85.19%
EBIT growth 5Y11.61%
EBIT Next Year133.26%
EBIT Next 3Y40.4%
EBIT Next 5Y26.15%
FCF growth 1Y26.3%
FCF growth 3Y-8.85%
FCF growth 5Y7.7%
OCF growth 1Y14.68%
OCF growth 3Y-6.28%
OCF growth 5Y2.2%