Expedia Group, Inc.
Expedia Group, Inc. Fundamental Analysis
Expedia Group, Inc. (EXPE) shows weak financial fundamentals with a PE ratio of 18.76, profit margin of 8.78%, and ROE of 1.14%. The company generates $14.0B in annual revenue with moderate year-over-year growth of 6.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze EXPE's fundamental strength across five key dimensions:
Efficiency Score
WeakEXPE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEXPE trades at attractive valuation levels.
Growth Score
ExcellentEXPE delivers strong and consistent growth momentum.
Financial Health Score
WeakEXPE carries high financial risk with limited liquidity.
Profitability Score
ModerateEXPE maintains healthy but balanced margins.
Key Financial Metrics
Is EXPE Expensive or Cheap?
P/E Ratio
EXPE trades at 18.76 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, EXPE's PEG of -3.17 indicates potential undervaluation.
Price to Book
The market values Expedia Group, Inc. at 18.90 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.22 times EBITDA. This is generally considered low.
How Well Does EXPE Make Money?
Net Profit Margin
For every $100 in sales, Expedia Group, Inc. keeps $8.78 as profit after all expenses.
Operating Margin
Core operations generate 12.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.14 in profit for every $100 of shareholder equity.
ROA
Expedia Group, Inc. generates $5.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Expedia Group, Inc. generates strong operating cash flow of $3.70B, reflecting robust business health.
Free Cash Flow
Expedia Group, Inc. generates strong free cash flow of $3.52B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $30.10 in free cash annually.
FCF Yield
EXPE converts 15.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
18.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.14
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How EXPE Stacks Against Its Sector Peers
| Metric | EXPE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.76 | 24.93 | Better (Cheaper) |
| ROE | 114.29% | 1149.00% | Weak |
| Net Margin | 8.78% | 749.00% | Weak |
| Debt/Equity | 5.19 | 0.76 | Weak (High Leverage) |
| Current Ratio | 0.73 | 9.21 | Weak Liquidity |
| ROA | 5.29% | 1274.00% | Weak |
EXPE outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Expedia Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
27.06%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
144.60%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
24.86%
Industry Style: Cyclical, Growth, Discretionary
High Growth