279.66 USD
+8.1 (+2.98%)
279.5 USD
-0.16 (-0.06%)
Taking everything into account, EXPE scores 6 out of 10 in our fundamental rating. 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on EXPE. With these ratings, EXPE could be worth investigating further for value investing!.
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.
- 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 5.53% is fine compared to the rest of the industry. EXPE outperforms 71.43% of its industry peers.
- With an excellent Return On Equity value of 103.81%, EXPE belongs to the best of the industry, outperforming 95.49% of the companies in the same industry.
- EXPE has a better Return On Invested Capital (18.46%) than 91.73% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EXPE is in line with the industry average of 10.34%.
- The 3 year average ROIC (10.99%) for EXPE 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
- EXPE has a Profit Margin of 9.66%. This is in the better half of the industry: EXPE outperforms 72.93% of its industry peers.
- EXPE's Profit Margin has improved in the last couple of years.
- EXPE's Operating Margin of 13.72% is fine compared to the rest of the industry. EXPE outperforms 66.17% of its industry peers.
- EXPE's Operating Margin has improved in the last couple of years.
- EXPE's Gross Margin of 89.94% is amongst the best of the industry. EXPE outperforms 98.50% of its industry peers.
- In the last couple of years the Gross Margin of EXPE 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), EXPE 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 1.55, we must say that EXPE is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of EXPE (1.55) is comparable to the rest of the industry.
- EXPE has a debt to FCF ratio of 2.07. This is a good value and a sign of high solvency as EXPE would need 2.07 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 2.07, EXPE belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- A Debt/Equity ratio of 3.34 is on the high side and indicates that EXPE has dependencies on debt financing.
- With a Debt to Equity ratio value of 3.34, EXPE perfoms like the industry average, outperforming 44.36% of the companies in the same industry.
- Although EXPE 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 | 1.55 |
ROIC/WACC2.32
WACC7.94%
2.3 Liquidity
- EXPE has a Current Ratio of 0.74. 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 Current ratio of 0.74. This is in the lower half of the industry: EXPE underperforms 60.90% of its industry peers.
- EXPE has a Quick Ratio of 0.74. 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 (0.74) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
- EXPE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.19%, which is quite impressive.
- EXPE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.87% yearly.
- The Revenue has been growing slightly by 7.29% 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)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.
- EXPE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.82% yearly.
EPS Next Y24.43%
EPS Next 2Y22.05%
EPS Next 3Y21.81%
EPS Next 5Y17.91%
Revenue Next Year7.5%
Revenue Next 2Y7.38%
Revenue Next 3Y7.28%
Revenue Next 5Y6.82%
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 accelerating.
- 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
- A Price/Earnings ratio of 19.15 indicates a rather expensive valuation of EXPE.
- Compared to the rest of the industry, the Price/Earnings ratio of EXPE indicates a somewhat cheap valuation: EXPE is cheaper than 73.68% of the companies listed in the same industry.
- EXPE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 15.34, the valuation of EXPE can be described as correct.
- EXPE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EXPE is cheaper than 75.19% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, EXPE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.15 | ||
| Fwd PE | 15.34 |
4.2 Price Multiples
- EXPE's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, EXPE is valued cheaper than 93.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.43 | ||
| EV/EBITDA | 11.57 |
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 an outstanding 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 21.81% in the coming years.
PEG (NY)0.78
PEG (5Y)1.29
EPS Next 2Y22.05%
EPS Next 3Y21.81%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.54%, EXPE is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.19, EXPE has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, EXPE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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 2Y22.05%
EPS Next 3Y21.81%
EXPEDIA GROUP INC / EXPE FAQ
Can you provide the ChartMill fundamental rating for EXPEDIA GROUP INC?
ChartMill assigns a fundamental rating of 6 / 10 to EXPE.
What is the valuation status of EXPEDIA GROUP INC (EXPE) stock?
ChartMill assigns a valuation rating of 7 / 10 to EXPEDIA GROUP INC (EXPE). This can be considered as Undervalued.
Can you provide the profitability details for EXPEDIA GROUP INC?
EXPEDIA GROUP INC (EXPE) has a profitability rating of 8 / 10.
What is the financial health of EXPEDIA GROUP INC (EXPE) stock?
The financial health rating of EXPEDIA GROUP INC (EXPE) is 5 / 10.