EXPEDIA GROUP INC (EXPE) Stock Fundamental Analysis
USA - NASDAQ:EXPE - US30212P3038 - Common Stock
224.98 USD
-3.26 (-1.43%)
224.98 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to EXPE. EXPE was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. While EXPE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. EXPE is not valued too expensively and it also shows a decent growth rate.
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.
Of the past 5 years EXPE 4 years had a positive operating cash flow.
1.2 Ratios
EXPE has a better Return On Assets (4.10%) than 60.15% of its industry peers.
EXPE has a better Return On Equity (132.42%) than 98.50% of its industry peers.
The Return On Invested Capital of EXPE (17.00%) is better than 85.71% of its industry peers.
EXPE had an Average Return On Invested Capital over the past 3 years of 10.99%. This is below the industry average of 15.68%.
The 3 year average ROIC (10.99%) for EXPE is below the current ROIC(17.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.1% | ||
| ROE | 132.42% | ||
| ROIC | 17% |
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 better Profit Margin (7.90%) than 66.17% of its industry peers.
EXPE's Profit Margin has improved in the last couple of years.
EXPE has a better Operating Margin (12.15%) than 64.66% of its industry peers.
EXPE's Operating Margin has improved in the last couple of years.
EXPE's Gross Margin of 89.58% is amongst the best of the industry. EXPE outperforms 97.74% of its industry peers.
In the last couple of years the Gross Margin of EXPE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.15% | ||
| PM (TTM) | 7.9% | ||
| GM | 89.58% |
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.
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.
Compared to 1 year ago, EXPE has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.19, we must say that EXPE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.19, EXPE is doing worse than 63.16% of the companies in the same industry.
EXPE has a debt to FCF ratio of 3.11. This is a good value and a sign of high solvency as EXPE would need 3.11 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.11, EXPE belongs to the best of the industry, outperforming 81.20% of the companies in the same industry.
A Debt/Equity ratio of 5.34 is on the high side and indicates that EXPE has dependencies on debt financing.
EXPE's Debt to Equity ratio of 5.34 is on the low side compared to the rest of the industry. EXPE is outperformed by 61.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.34 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 1.19 |
ROIC/WACC2.02
WACC8.41%
2.3 Liquidity
EXPE has a Current Ratio of 0.75. 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 0.75, EXPE is doing worse than 60.15% of the companies in the same industry.
A Quick Ratio of 0.75 indicates that EXPE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.75, EXPE is in line with its industry, outperforming 45.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.29% over the past year.
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 5.69% in the last 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)21.29%
EPS 3Y104.08%
EPS 5Y14.87%
EPS Q2Q%20.8%
Revenue 1Y (TTM)5.69%
Revenue growth 3Y16.77%
Revenue growth 5Y2.56%
Sales Q2Q%6.41%
3.2 Future
The Earnings Per Share is expected to grow by 15.50% on average over the next years. This is quite good.
Based on estimates for the next years, EXPE will show a small growth in Revenue. The Revenue will grow by 6.25% on average per year.
EPS Next Y18.05%
EPS Next 2Y17.92%
EPS Next 3Y17.55%
EPS Next 5Y15.5%
Revenue Next Year5.46%
Revenue Next 2Y5.98%
Revenue Next 3Y6.57%
Revenue Next 5Y6.25%
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 17.10, which indicates a rather expensive current valuation of EXPE.
Based on the Price/Earnings ratio, EXPE is valued a bit cheaper than 75.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, EXPE is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.22, which indicates a correct valuation of EXPE.
Based on the Price/Forward Earnings ratio, EXPE is valued a bit cheaper than 78.20% of the companies in the same industry.
EXPE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 13.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EXPE indicates a somewhat cheap valuation: EXPE is cheaper than 63.16% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EXPE indicates a rather cheap valuation: EXPE is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.94 | ||
| EV/EBITDA | 10.67 |
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.
A more expensive valuation may be justified as EXPE's earnings are expected to grow with 17.55% in the coming years.
PEG (NY)0.95
PEG (5Y)1.15
EPS Next 2Y17.92%
EPS Next 3Y17.55%
5. Dividend
5.1 Amount
EXPE has a yearly dividend return of 0.72%, which is pretty low.
EXPE's Dividend Yield is a higher than the industry average which is at 3.93.
Compared to an average S&P500 Dividend Yield of 2.38, EXPE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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 2Y17.92%
EPS Next 3Y17.55%
224.98
-3.26 (-1.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners100.21%
Inst Owner Change-1.57%
Ins Owners0.49%
Ins Owner Change0.27%
Market Cap27.83B
Analysts72.56
Price Target227.5 (1.12%)
Short Float %5.78%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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)11.21%
Min EPS beat(2)1.46%
Max EPS beat(2)20.96%
EPS beat(4)3
Avg EPS beat(4)9.14%
Min EPS beat(4)-0.95%
Max EPS beat(4)20.96%
EPS beat(8)7
Avg EPS beat(8)30.51%
EPS beat(12)8
Avg EPS beat(12)-12.48%
EPS beat(16)12
Avg EPS beat(16)3.75%
Revenue beat(2)1
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-2.83%
Max Revenue beat(2)0.11%
Revenue beat(4)2
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)1.66%
Revenue beat(8)3
Avg Revenue beat(8)-0.81%
Revenue beat(12)3
Avg Revenue beat(12)-1.4%
Revenue beat(16)5
Avg Revenue beat(16)-0.63%
PT rev (1m)14.23%
PT rev (3m)18.42%
EPS NQ rev (1m)-3.43%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)2.13%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)2.11%
Revenue NY rev (1m)1%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 13.22 | ||
| P/S | 1.99 | ||
| P/FCF | 13.94 | ||
| P/OCF | 10.02 | ||
| P/B | 33.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.67 |
EPS(TTM)13.16
EY5.85%
EPS(NY)17.02
Fwd EY7.56%
FCF(TTM)16.14
FCFY7.17%
OCF(TTM)22.45
OCFY9.98%
SpS113.3
BVpS6.76
TBVpS-55.12
PEG (NY)0.95
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.1% | ||
| ROE | 132.42% | ||
| ROCE | 23.13% | ||
| ROIC | 17% | ||
| ROICexc | 181.1% | ||
| ROICexgc | N/A | ||
| OM | 12.15% | ||
| PM (TTM) | 7.9% | ||
| GM | 89.58% | ||
| FCFM | 14.25% |
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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.34 | ||
| Debt/FCF | 3.11 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 90.29% | ||
| Cap/Sales | 5.57% | ||
| Interest Coverage | 7.92 | ||
| Cash Conversion | 108.18% | ||
| Profit Quality | 180.4% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 1.19 |
F-Score8
WACC8.41%
ROIC/WACC2.02
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)21.29%
EPS 3Y104.08%
EPS 5Y14.87%
EPS Q2Q%20.8%
EPS Next Y18.05%
EPS Next 2Y17.92%
EPS Next 3Y17.55%
EPS Next 5Y15.5%
Revenue 1Y (TTM)5.69%
Revenue growth 3Y16.77%
Revenue growth 5Y2.56%
Sales Q2Q%6.41%
Revenue Next Year5.46%
Revenue Next 2Y5.98%
Revenue Next 3Y6.57%
Revenue Next 5Y6.25%
EBIT growth 1Y7.31%
EBIT growth 3Y85.19%
EBIT growth 5Y11.61%
EBIT Next Year134.06%
EBIT Next 3Y40.85%
EBIT Next 5Y27.05%
FCF growth 1Y-13.96%
FCF growth 3Y-8.85%
FCF growth 5Y7.7%
OCF growth 1Y-11.08%
OCF growth 3Y-6.28%
OCF growth 5Y2.2%