Expedia Inc

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EXPE : NASDAQ : Services
$119.34 up 0.76 | 0.64%
Today's Range: 117.91 - 119.51
Avg. Daily Volume: 2335500.0
01/18/17 - 4:00 PM ET

Financial Analysis


EXPEDIA INC's gross profit margin for the third 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 0.50 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 59.18% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)2580.911937.75
EBITDA ($mil)615.76426.68
EBIT ($mil)415.12308.13
Net Income ($mil)279.33283.22


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1908.581500.83
Total Assets ($mil)16131.7712403.27
Total Debt ($mil)3210.212475.43
Equity ($mil)3885.762441.05


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin84.4783.64
EBITDA Margin23.8522.01
Operating Margin16.0815.9
Sales Turnover0.520.51
Return on Assets1.176.79
Return on Equity4.8834.53
Debt Q3 FY16 Q3 FY15
Current Ratio0.550.53
Debt/Capital0.450.5
Interest Expense43.3733.26
Interest Coverage9.579.26


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)149.96129.81
Div / share0.260.24
EPS1.812.12
Book value / share25.9118.8
Institutional Own % n/a n/a
Avg Daily Volume2331548.02041064.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 167.36 for the Internet & Catalog Retail industry and a significant premium compared to the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 4.55 indicates a significant premium versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 17.54. The price-to-sales ratio is 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 97.53 Peers 167.36   EXPE 15.69 Peers 24.49

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 18.58 Peers 1561.42   EXPE NM Peers 1.56

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 4.55 Peers 17.54   EXPE -80.92 Peers 288.10

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 2.11 Peers 3.73   EXPE 32.38 Peers 26.52

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

EXPE has a sales growth rate that exceeds its peers.

 

 

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