NasdaqGS:EXPE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Reasonable growth potential with acceptable track record.


Similar Companies

Share Price & News

How has Expedia Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.6%

EXPE

0.5%

US Online Retail

0.5%

US Market


1 Year Return

15.0%

EXPE

5.6%

US Online Retail

6.8%

US Market

Return vs Industry: EXPE exceeded the US Online Retail industry which returned 5.6% over the past year.

Return vs Market: EXPE exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

EXPEIndustryMarket
7 Day-1.6%0.5%0.5%
30 Day1.4%-3.7%-0.8%
90 Day0.007%-8.2%-0.9%
1 Year16.2%15.0%5.6%5.6%9.2%6.8%
3 Year9.8%6.6%76.0%75.8%45.6%36.2%
5 Year74.7%66.8%172.9%161.1%63.2%45.4%

Price Volatility Vs. Market

How volatile is Expedia Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Expedia Group undervalued compared to its fair value and its price relative to the market?

9.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EXPE ($136.03) is trading below our estimate of fair value ($150.85)

Significantly Below Fair Value: EXPE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EXPE is good value based on its PE Ratio (32.5x) compared to the Online Retail industry average (32.5x).

PE vs Market: EXPE is poor value based on its PE Ratio (32.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: EXPE is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: EXPE is overvalued based on its PB Ratio (4.7x) compared to the US Online Retail industry average (2.6x).


Next Steps

Future Growth

How is Expedia Group forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXPE's forecast earnings growth (19% per year) is above the savings rate (2.7%).

Earnings vs Market: EXPE's earnings (19% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: EXPE's earnings are forecast to grow, but not significantly.

Revenue vs Market: EXPE's revenue (8.7% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: EXPE's revenue (8.7% 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 (26.5%)


Next Steps

Past Performance

How has Expedia Group performed over the past 5 years?

-5.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EXPE's earnings have declined by -5.6% per year over the past 5 years.

Accelerating Growth: EXPE's earnings growth over the past year (129.5%) exceeds its 5-year average (-5.6% per year).

Earnings vs Industry: EXPE earnings growth over the past year (129.5%) exceeded the Online Retail industry -15.1%.


Return on Equity

High ROE: EXPE's Return on Equity (10.8%) is considered low.


Return on Assets

ROA vs Industry: EXPE's Return on Assets is below or equal to the Online Retail industry average last year.


Return on Capital Employed

ROCE Improving: EXPE has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Expedia Group's financial position?


Financial Position Analysis

Short Term Liabilities: EXPE's short term assets ($8.8B) do not cover its short term liabilities ($11.7B)

Long Term Liabilities: EXPE's short term assets (8.8B) exceeds its long term liabilities (4.6B)


Debt to Equity History and Analysis

Debt Level: EXPE's debt to equity ratio (62.6%) is considered high

Reducing Debt: EXPE's debt to equity ratio has increased from 50.6% to 62.6% over the past 5 years.

Debt Coverage: EXPE's debt is well covered by operating cash flow (74.6%).

Interest Coverage: EXPE's interest payments on its debt are well covered by EBIT (9.7x coverage).


Balance Sheet

Inventory Level: EXPE has a low level of unsold assets or inventory.

Debt Coverage by Assets: EXPE's debt is covered by short term assets (assets are 2.375230x debt).


Next Steps

Dividend

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

1.00%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.0%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EXPE's dividend (1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: EXPE's dividend (1%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: EXPE's dividend payments have been volatile in the past 10 years.

Growing Dividend: EXPE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.6%), EXPE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EXPE's dividends in 3 years are forecast to be thoroughly covered by earnings (14.4% payout ratio).


Next Steps

Management

What is the CEO of Expedia Group's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Mark Okerstrom (46yo)

2.2yrs

Tenure

US$13,089,562

Compensation

Mr. Mark D. Okerstrom has been the Chief Executive Officer, President and Director of Expedia Group, Inc. since August 30, 2017. Mr. Okerstrom served as the Chief Financial Officer at Expedia, Inc. since S ...


CEO Compensation Analysis

Compensation vs. Market: Mark has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

2.5yrs

Average Tenure

48yo

Average Age

Experienced Management: EXPE's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

7.8yrs

Average Tenure

50yo

Average Age

Experienced Board: EXPE's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

Insider Buying: EXPE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$430,76209 Aug 19
Craig Jacobson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,300
Max PriceUS$130.53
SellUS$326,38901 Aug 19
Susan Athey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,425
Max PriceUS$134.59

Ownership Breakdown


Management Team

  • Alan Pickerill (52yo)

    Executive VP

    • Tenure: 2.1yrs
    • Compensation: US$5.31m
  • Barry Diller (77yo)

    Executive Chairman & Senior Executive

    • Tenure: 14.2yrs
    • Compensation: US$3.62m
  • Robert Dzielak (48yo)

    Chief Legal Officer & Secretary

    • Tenure: 8yrs
    • Compensation: US$7.20m
  • Mark Okerstrom (46yo)

    President

    • Tenure: 2.2yrs
    • Compensation: US$13.09m
  • Susanne Svensson

    Head Of Brand Marketing EMEA

    • Tenure: 0yrs
  • Lance Soliday (46yo)

    Senior VP

    • Tenure: 8.1yrs
    • Compensation: US$788.49k
  • Michael Senno

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Arch Singh (49yo)

    Chief People Officer

    • Tenure: 0.7yrs
  • Mieke De Schepper (43yo)

    Senior VP & Chief Commercial Officer of Egencia

    • Tenure: 1.8yrs
  • Regi Vengalil

    Head of Corporate Development & Strategy

    • Tenure: 2.8yrs

Board Members

  • Barry Diller (77yo)

    Executive Chairman & Senior Executive

    • Tenure: 14.2yrs
    • Compensation: US$3.62m
  • Victor Kaufman (75yo)

    Director

    • Tenure: 14.2yrs
    • Compensation: US$294.93k
  • Dara Khosrowshahi (49yo)

    Director

    • Tenure: 14.2yrs
    • Compensation: US$294.93k
  • Skip Battle (75yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$324.93k
  • Craig Jacobson (66yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$335.23k
  • Peter Kern (51yo)

    Vice Chairman

    • Tenure: 1.3yrs
    • Compensation: US$6.90m
  • Chelsea Clinton (39yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$302.88k
  • Alex Von Furstenberg (49yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$294.93k
  • Mark Okerstrom (46yo)

    President

    • Tenure: 2.2yrs
    • Compensation: US$13.09m
  • Susan Athey (48yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$294.93k

Company Information

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


Key Information

  • Name: Expedia Group, Inc.
  • Ticker: EXPE
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$22.172b
  • Shares outstanding: 162.99m
  • Website: https://www.expediagroup.com

Number of Employees


Location

  • Expedia Group, Inc.
  • 333 108th Avenue NE
  • Bellevue
  • Washington
  • 98004
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EXPENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2005
E3X1DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2005
EXPESWX (SIX Swiss Exchange)YesCommon StockCHCHFJul 2005
0R1TLSE (London Stock Exchange)YesCommon StockGBUSDJul 2005
EXPEWBAG (Wiener Boerse AG)YesCommon StockATEURJul 2005
EXGR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 0.5 COM USD0.001BRBRLMay 2019

Biography

Expedia Group, Inc., together with its subsidiaries, operates as an online travel company in the United States and internationally. It operates through Core OTA, Trivago, HomeAway, and Egencia segments. Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:56
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.