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.

Rewards

Trading at 32.4% below its fair value

Earnings are forecast to grow 18.33% per year

Earnings grew by 14% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Proven track record with reasonable growth potential.


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

Stable Share Price: EXPE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

EXPE

0.4%

US Online Retail

2.0%

US Market


1 Year Return

-5.6%

EXPE

21.8%

US Online Retail

23.5%

US Market

Return vs Industry: EXPE underperformed the US Online Retail industry which returned 23.5% over the past year.

Return vs Market: EXPE underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

EXPEIndustryMarket
7 Day1.0%0.4%2.0%
30 Day1.2%6.3%4.3%
90 Day-17.8%14.9%12.2%
1 Year-4.5%-5.6%21.9%21.8%26.1%23.5%
3 Year-3.9%-6.8%109.2%109.0%53.1%43.2%
5 Year34.1%27.9%200.5%187.2%75.5%56.1%

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?

31.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EXPE ($110.41) is trading below our estimate of fair value ($163.29)

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


Price To Earnings Ratio

PE vs Industry: EXPE is poor value based on its PE Ratio (32.4x) compared to the Online Retail industry average (32.3x).

PE vs Market: EXPE is poor value based on its PE Ratio (32.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: EXPE is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: EXPE is overvalued based on its PB Ratio (3.8x) compared to the US Online Retail industry average (3x).


Next Steps

Future Growth

How is Expedia Group forecast to perform in the next 1 to 3 years based on estimates from 32 analysts?

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXPE's forecast earnings growth (18.3% per year) is above the savings rate (1.7%).

Earnings vs Market: EXPE's earnings (18.3% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: EXPE's revenue (7.6% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: EXPE's revenue (7.6% 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 (32.2%)


Next Steps

Past Performance

How has Expedia Group performed over the past 5 years?

-6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EXPE has high quality earnings.

Growing Profit Margin: EXPE's current net profit margins (4.3%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: EXPE's earnings have declined by -6% per year over the past 5 years.

Accelerating Growth: EXPE's earnings growth over the past year (14%) exceeds its 5-year average (-6% per year).

Earnings vs Industry: EXPE earnings growth over the past year (14%) exceeded the Online Retail industry 4.9%.


Return on Equity

High ROE: EXPE's Return on Equity (9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Expedia Group's financial position?


Financial Position Analysis

Short Term Liabilities: EXPE's short term assets ($8.0B) do not cover its short term liabilities ($10.6B).

Long Term Liabilities: EXPE's short term assets ($8.0B) exceed its long term liabilities ($5.0B).


Debt to Equity History and Analysis

Debt Level: EXPE's debt to equity ratio (85.2%) is considered high.

Reducing Debt: EXPE's debt to equity ratio has increased from 69.3% to 85.2% over the past 5 years.

Debt Coverage: EXPE's debt is well covered by operating cash flow (46.4%).

Interest Coverage: EXPE's interest payments on its debt are well covered by EBIT (9.1x 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 1.6x debt).


Next Steps

Dividend

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

1.22%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage0.9%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: EXPE's dividend (1.23%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: EXPE's dividend (1.23%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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 (38.1%), 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 well covered by earnings (23.2% 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?

4.6yrs

Average management tenure


CEO

Expedia Group has no CEO, or we have no data on them.


Management Age and Tenure

4.6yrs

Average Tenure

49yo

Average Age

Experienced Management: EXPE's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

8.1yrs

Average Tenure

50yo

Average Age

Experienced Board: EXPE's board of directors are considered experienced (8.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$2,499,15909 Dec 19
Peter Kern
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares23,070
Max PriceUS$108.33
BuyUS$249,56505 Dec 19
Jon Gieselman
EntityIndividual
Shares2,393
Max PriceUS$104.29
BuyUS$1,976,60427 Nov 19
Samuel Altman
EntityIndividual
Shares20,000
Max PriceUS$98.83
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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Barry Diller (77yo)

    Executive Chairman of the Board & Senior Executive

    • Tenure: 14.4yrs
    • Compensation: US$3.62m
  • Robert Dzielak (48yo)

    Chief Legal Officer & Secretary

    • Tenure: 8.3yrs
    • Compensation: US$7.20m
  • Peter Kern (51yo)

    Vice Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: US$6.90m
  • Eric Hart

    Acting CFO & Chief Strategy Officer

    • Tenure: 0.08yrs
  • Susanne Svensson

    Head Of Brand Marketing EMEA

    • Lance Soliday (46yo)

      Senior VP

      • Tenure: 8.3yrs
      • Compensation: US$788.49k
    • Michael Senno

      Vice President of Investor Relations

      • Tucker Moodey

        President of Expedia

        • Arch Singh (49yo)

          Chief People Officer

          • Tenure: 0.9yrs
        • Sarah Gavin

          Vice President of Global Communications & Corporate Brand

          • Tenure: 0.2yrs

        Board Members

        • Barry Diller (77yo)

          Executive Chairman of the Board & Senior Executive

          • Tenure: 14.4yrs
          • Compensation: US$3.62m
        • Victor Kaufman (75yo)

          Director

          • Tenure: 14.4yrs
          • Compensation: US$294.93k
        • Dara Khosrowshahi (49yo)

          Director

          • Tenure: 14.4yrs
          • Compensation: US$294.93k
        • Skip Battle (75yo)

          Independent Director

          • Tenure: 14.4yrs
          • Compensation: US$324.93k
        • Craig Jacobson (66yo)

          Independent Director

          • Tenure: 12.1yrs
          • Compensation: US$335.23k
        • Peter Kern (51yo)

          Vice Chairman of the Board

          • Tenure: 1.6yrs
          • Compensation: US$6.90m
        • Chelsea Clinton (39yo)

          Independent Director

          • Tenure: 2.8yrs
          • Compensation: US$302.88k
        • Alex Von Furstenberg (49yo)

          Director

          • Tenure: 4.1yrs
          • Compensation: US$294.93k
        • Julie Whalen (48yo)

          Independent Director

          • Tenure: 0.6yrs
        • Susan Athey (48yo)

          Independent Director

          • Tenure: 4.1yrs
          • 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$16.201b
        • Shares outstanding: 144.89m
        • 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
        E3X1ETLX (Eurotlx)YesCommon StockITEURJul 2005
        EXPE *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 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. The company facilitates the booking of hotel rooms, alternative accommodations, airline seats, car rentals, and destination services from its travel suppliers; and acts as an agent in the transactions. It serves leisure and corporate travelers, including travel agencies, tour operators, travel supplier direct websites and their call centers. The company also engages in advertising and media business. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Bellevue, Washington. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/17 23:55
        End of Day Share Price2020/01/17 00:00
        Earnings2019/09/30
        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.