Expedia Inc

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EXPE : NASDAQ : Services
$117.64 up 0.03 | 0.03%
Today's Range: 116.72 - 118.91
Avg. Daily Volume: 2,037,800
07/26/16 - 3:59 PM ET

Financial Analysis


EXPEDIA INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. EXPEDIA INC has weak liquidity. Currently, the Quick Ratio is 0.52 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 178.42% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)1903.961373.4
EBITDA ($mil)124.6863.69
EBIT ($mil)-70.58-35.8
Net Income ($mil)-121.8644.14


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)2134.722075.27
Total Assets ($mil)16390.0410135.09
Total Debt ($mil)3238.271746.86
Equity ($mil)4631.71663.54


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin79.677.33
EBITDA Margin6.544.63
Operating Margin-3.71-2.61
Sales Turnover0.440.59
Return on Assets3.654.5
Return on Equity12.9227.44
Debt Q1 FY16 Q1 FY15
Current Ratio0.550.65
Debt/Capital0.410.51
Interest Expense43.9627.99
Interest Coverage-1.61-1.28


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)149.78127.48
Div / share0.240.18
EPS-0.810.34
Book value / share30.9213.05
Institutional Own % n/a n/a
Avg Daily Volume2051574.02900394.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 223.43 for the Internet & Catalog Retail industry and a value on par with the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 3.77 indicates a premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 17.72. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, EXPEDIA INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
EXPE 25.34 Peers 223.43   EXPE 14.22 Peers 31.99

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

EXPE is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

EXPE is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
EXPE 17.04 Peers 139.60   EXPE NM Peers 0.92

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

EXPE is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

EXPE's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EXPE 3.77 Peers 17.72   EXPE 33.33 Peers 264.09

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

EXPE is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, EXPE is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EXPE 2.42 Peers 3.56   EXPE 21.33 Peers 23.75

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

EXPE is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

EXPE trails its peers on the basis of sales growth

 

 

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