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EXPE

Expedia Group NasdaqGS:EXPE Stock Report

Last Price

US$113.51

Market Cap

US$17.9b

7D

10.7%

1Y

-23.6%

Updated

14 Aug, 2022

Data

Company Financials +
EXPE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance3/6
Financial Health4/6
Dividends0/6

EXPE Stock Overview

Expedia Group, Inc. operates as an online travel company in the United States and internationally.

Expedia Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Expedia Group
Historical stock prices
Current Share PriceUS$113.51
52 Week HighUS$217.72
52 Week LowUS$88.70
Beta1.61
1 Month Change22.91%
3 Month Change-8.35%
1 Year Change-23.63%
3 Year Change-11.73%
5 Year Change-21.02%
Change since IPO137.27%

Recent News & Updates

Aug 07

Expedia: Q2 2019 Vs. Q2 2022 - Something Doesn't Add Up

We compared the two quarters and something does not add up. Even if we are not at the pre-covid-19 level in air travel, Expedia is delivering better results. We reaffirm our buy rating taking into account more costs in marketing. Last time, we analyzed Expedia very well (EXPE) providing six long-term-upside to our compelling investment case. Despite that, the company lost more than 40% of its entire market cap. Something is not right. Expedia: U.S. Exposure And Travel Recovery Will Play In Its Favour Source: Mare Evidence Lab's previous publication For the first time, we are going deep into the 2019 Q2 results providing a comps analysis with the just released 2022 Q2 numbers. No buy case recap today but from time to time we will refer to the six points in our previous analysis. Half-year 2019 versus half-year 2022 Gross bookings reached $28.3 billion in the first half year of 2019; Gross bookings recorded $26.1 billion in the first half year of 2022;

Aug 01
These 4 Measures Indicate That Expedia Group (NASDAQ:EXPE) Is Using Debt Extensively

These 4 Measures Indicate That Expedia Group (NASDAQ:EXPE) Is Using Debt Extensively

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

EXPEUS HospitalityUS Market
7D10.7%5.8%3.2%
1Y-23.6%-15.1%-10.2%

Return vs Industry: EXPE underperformed the US Hospitality industry which returned -15.1% over the past year.

Return vs Market: EXPE underperformed the US Market which returned -10.2% over the past year.

Price Volatility

Is EXPE's price volatile compared to industry and market?
EXPE volatility
EXPE Average Weekly Movement8.0%
Hospitality Industry Average Movement8.6%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: EXPE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: EXPE's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199614,800Peter Kernhttps://www.expediagroup.com

Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through Retail, B2B, and trivago segments. Its brand portfolio include Brand Expedia, a full-service online travel brand with localized websites; Hotels.com for marketing and distributing lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, and CheapTickets travel websites; ebookers, an online EMEA travel agent for travelers an array of travel options; Hotwire, which offers travel booking services; CarRentals.com, an online car rental booking service; Classic Vacations, a luxury travel specialist; and Expedia Cruise, a provider of advice for travelers booking cruises.

Expedia Group Fundamentals Summary

How do Expedia Group's earnings and revenue compare to its market cap?
EXPE fundamental statistics
Market CapUS$17.88b
Earnings (TTM)US$331.00m
Revenue (TTM)US$10.67b

54.0x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EXPE income statement (TTM)
RevenueUS$10.67b
Cost of RevenueUS$1.63b
Gross ProfitUS$9.04b
Other ExpensesUS$8.71b
EarningsUS$331.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.10
Gross Margin84.75%
Net Profit Margin3.10%
Debt/Equity Ratio199.0%

How did EXPE perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is EXPE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EXPE?

Other financial metrics that can be useful for relative valuation.

EXPE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.9x
Enterprise Value/EBITDA16.9x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

How does EXPE's PE Ratio compare to its peers?

EXPE PE Ratio vs Peers
The above table shows the PE ratio for EXPE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average33.2x
H Hyatt Hotels
45.1x27.3%US$10.1b
HLT Hilton Worldwide Holdings
38.9x14.8%US$37.7b
MAR Marriott International
30.6x14.6%US$53.2b
WH Wyndham Hotels & Resorts
18.4x-0.9%US$6.4b
EXPE Expedia Group
54x33.1%US$17.9b

Price-To-Earnings vs Peers: EXPE is expensive based on its Price-To-Earnings Ratio (54x) compared to the peer average (33.2x).


Price to Earnings Ratio vs Industry

How does EXPE's PE Ratio compare vs other companies in the US Hospitality Industry?

Price-To-Earnings vs Industry: EXPE is expensive based on its Price-To-Earnings Ratio (54x) compared to the US Hospitality industry average (18.4x)


Price to Earnings Ratio vs Fair Ratio

What is EXPE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EXPE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio54x
Fair PE Ratio43.6x

Price-To-Earnings vs Fair Ratio: EXPE is expensive based on its Price-To-Earnings Ratio (54x) compared to the estimated Fair Price-To-Earnings Ratio (43.6x).


Share Price vs Fair Value

What is the Fair Price of EXPE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EXPE ($113.51) is trading below our estimate of fair value ($319.39)

Significantly Below Fair Value: EXPE is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Expedia Group forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


33.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXPE's forecast earnings growth (33.1% per year) is above the savings rate (1.9%).

Earnings vs Market: EXPE's earnings (33.1% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: EXPE's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EXPE's revenue (9% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: EXPE's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EXPE's Return on Equity is forecast to be high in 3 years time (27%)


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Past Performance

How has Expedia Group performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-41.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EXPE has high quality earnings.

Growing Profit Margin: EXPE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: EXPE has become profitable over the past 5 years, growing earnings by -41.3% per year.

Accelerating Growth: EXPE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: EXPE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (51%).


Return on Equity

High ROE: EXPE's Return on Equity (13.8%) is considered low.


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Financial Health

How is Expedia Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: EXPE's short term assets ($11.8B) do not cover its short term liabilities ($13.8B).

Long Term Liabilities: EXPE's short term assets ($11.8B) exceed its long term liabilities ($7.5B).


Debt to Equity History and Analysis

Debt Level: EXPE's net debt to equity ratio (33.5%) is considered satisfactory.

Reducing Debt: EXPE's debt to equity ratio has increased from 55.5% to 199% over the past 5 years.

Debt Coverage: EXPE's debt is well covered by operating cash flow (54.7%).

Interest Coverage: EXPE's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


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Dividend

What is Expedia Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.67%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate EXPE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EXPE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EXPE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EXPE's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: EXPE is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as EXPE has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Peter Kern (54 yo)

2.33yrs

Tenure

US$296,247,749

Compensation

Mr. Peter Maxwell Kern serves as Vice Chairman of the Board at Expedia Group, Inc. since June 20, 2018 and serves as its Director since August 9, 2005. He is Chief Executive Officer at Expedia Group, Inc....


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD296.25M) is above average for companies of similar size in the US market ($USD12.88M).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EXPE's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: EXPE's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EXPE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.5%.


Top Shareholders

Company Information

Expedia Group, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Expedia Group, Inc.
  • Ticker: EXPE
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Implied Market Cap: US$17.884b
  • Shares outstanding: 157.56m
  • Website: https://www.expediagroup.com

Number of Employees


Location

  • Expedia Group, Inc.
  • 1111 Expedia Group Way West
  • Seattle
  • Washington
  • 98119
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.