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 136 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.
The reported net income has been mixed in the past 5 years: EXPE reported negative net income in multiple years.
Of the past 5 years EXPE 4 years had a positive operating cash flow.
1.2 Ratios
EXPE has a better Return On Assets (5.49%) than 71.32% of its industry peers.
EXPE has a better Return On Equity (78.87%) than 99.26% of its industry peers.
With an excellent Return On Invested Capital value of 13.93%, EXPE belongs to the best of the industry, outperforming 82.35% 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 15.70%.
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
With a decent Profit Margin value of 8.97%, EXPE is doing good in the industry, outperforming 71.32% of the companies in the same industry.
EXPE's Profit Margin has improved in the last couple of years.
EXPE has a Operating Margin of 12.15%. This is in the better half of the industry: EXPE outperforms 60.29% of its industry peers.
EXPE's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 89.44%, EXPE belongs to the best of the industry, outperforming 99.26% of the companies in the same industry.
EXPE's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EXPE is still creating some value.
EXPE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for EXPE has been reduced compared to 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 1.25. This is a bad value and indicates that EXPE is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.25, EXPE perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
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 84.56% 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 of 3.35. This is comparable to the rest of the industry: EXPE outperforms 47.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.35 | ||
| Debt/FCF | 2.69 | ||
| Altman-Z | 1.25 |
ROIC/WACC1.71
WACC8.14%
2.3 Liquidity
A Current Ratio of 0.72 indicates that EXPE may have some problems paying its short term obligations.
With a Current ratio value of 0.72, EXPE is not doing good in the industry: 61.76% of the companies in the same industry are doing better.
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 in line with its industry peers.
| 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.
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 6.64% in the past 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
The Earnings Per Share is expected to grow by 16.52% on average over the next years. This is quite good.
EXPE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.36% yearly.
EPS Next Y19.07%
EPS Next 2Y18.72%
EPS Next 3Y17.92%
EPS Next 5Y16.52%
Revenue Next Year6.22%
Revenue Next 2Y6.57%
Revenue Next 3Y6.91%
Revenue Next 5Y6.36%
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.
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 12.35, which indicates a correct valuation of EXPE.
83.09% of the companies in the same industry are more expensive than EXPE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.29. EXPE is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.37 indicates a reasonable valuation of EXPE.
EXPE's Price/Forward Earnings ratio is rather cheap when compared to the industry. EXPE is cheaper than 86.03% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.08. EXPE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EXPE is valued a bit cheaper than 69.85% 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 91.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.36 | ||
| EV/EBITDA | 8.38 |
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 17.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.65
PEG (5Y)0.83
EPS Next 2Y18.72%
EPS Next 3Y17.92%
5. Dividend
5.1 Amount
EXPE has a Yearly Dividend Yield of 1.07%. Purely for dividend investing, there may be better candidates out there.
EXPE's Dividend Yield is a higher than the industry average which is at 3.96.
Compared to an average S&P500 Dividend Yield of 2.57, EXPE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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
DP0%
EPS Next 2Y18.72%
EPS Next 3Y17.92%
151.15
-1.42 (-0.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners97.28%
Inst Owner Change0.01%
Ins Owners0.45%
Ins Owner Change-0.18%
Market Cap19.48B
Analysts72.73
Price Target217.11 (43.64%)
Short Float %4.92%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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)0.1%
PT rev (3m)14.27%
EPS NQ rev (1m)-11.53%
EPS NQ rev (3m)104.55%
EPS NY rev (1m)0.12%
EPS NY rev (3m)1.42%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-2.29%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 10.37 | ||
| P/S | 1.42 | ||
| P/FCF | 8.36 | ||
| P/OCF | 6.31 | ||
| P/B | 12.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.38 |
EPS(TTM)12.24
EY8.1%
EPS(NY)14.57
Fwd EY9.64%
FCF(TTM)18.07
FCFY11.96%
OCF(TTM)23.94
OCFY15.84%
SpS106.25
BVpS12.08
TBVpS-47.37
PEG (NY)0.65
PEG (5Y)0.83
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 | 1.25 |
F-Score8
WACC8.14%
ROIC/WACC1.71
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 Y19.07%
EPS Next 2Y18.72%
EPS Next 3Y17.92%
EPS Next 5Y16.52%
Revenue 1Y (TTM)6.64%
Revenue growth 3Y16.77%
Revenue growth 5Y2.56%
Sales Q2Q%10.29%
Revenue Next Year6.22%
Revenue Next 2Y6.57%
Revenue Next 3Y6.91%
Revenue Next 5Y6.36%
EBIT growth 1Y13.43%
EBIT growth 3Y85.19%
EBIT growth 5Y11.61%
EBIT Next Year134.86%
EBIT Next 3Y41.12%
EBIT Next 5Y26.76%
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%