Expedia Inc

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EXPE : NASDAQ : Services
$128.01 up 0.97 | 0.76%
Today's Range: 126.46 - 128.25
Avg. Daily Volume: 1859700.0
03/24/17 - 1:30 PM ET

Financial Analysis


EXPEDIA INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. EXPEDIA INC has weak liquidity. Currently, the Quick Ratio is 0.53 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 15.05% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)2092.831698.57
EBITDA ($mil)387.67261.42
EBIT ($mil)187.4285.27
Net Income ($mil)79.46-12.54


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)1887.861721.36
Total Assets ($mil)15777.5515503.81
Total Debt ($mil)3159.343631.0
Equity ($mil)4132.34864.39


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin83.0780.82
EBITDA Margin18.5215.39
Operating Margin8.965.02
Sales Turnover0.560.43
Return on Assets1.784.93
Return on Equity6.8215.71
Debt Q4 FY16 Q4 FY15
Current Ratio0.560.5
Debt/Capital0.430.43
Interest Expense42.8836.43
Interest Coverage4.372.34


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)150.03150.26
Div / share0.260.24
EPS0.51-0.09
Book value / share27.5432.37
Institutional Own % n/a n/a
Avg Daily Volume1911981.02321782.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 157.94 for the Internet & Catalog Retail industry and a significant premium compared to the S&P 500 average of 26.73. To use another comparison, its price-to-book ratio of 4.75 indicates a significant premium versus the S&P 500 average of 2.98 and a significant discount versus the industry average of 17.25. 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 72.23 Peers 157.94   EXPE 12.54 Peers 23.42

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 19.11 Peers 91.13   EXPE 0.36 Peers 2.94

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.

 

Discount. 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 trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EXPE 4.75 Peers 17.25   EXPE -68.53 Peers 157.34

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 2.24 Peers 3.94   EXPE 31.49 Peers 26.63

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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