Expedia Inc

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EXPE : NASDAQ : Services
$115.99 up 2.89 | 2.56%
Today's Range: 112.64 - 116.08
Avg. Daily Volume: 1,974,000
09/28/16 - 4:00 PM ET

Financial Analysis


EXPEDIA INC's gross profit margin for the second 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 0.53 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 99.05% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)2195.871662.6
EBITDA ($mil)240.04209.41
EBIT ($mil)39.84103.25
Net Income ($mil)31.65449.64


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)2377.193410.37
Total Assets ($mil)16728.5411831.93
Total Debt ($mil)3213.882472.54
Equity ($mil)4202.32111.11


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin82.1981.36
EBITDA Margin10.9312.59
Operating Margin1.816.21
Sales Turnover0.460.52
Return on Assets1.156.9
Return on Equity4.6138.69
Debt Q2 FY16 Q2 FY15
Current Ratio0.560.84
Debt/Capital0.430.54
Interest Expense42.9428.52
Interest Coverage0.933.62


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)149.59129.12
Div / share0.240.18
EPS0.213.38
Book value / share28.0916.35
Institutional Own % n/a n/a
Avg Daily Volume2073064.02230366.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 164.53 for the Internet & Catalog Retail industry and a significant premium compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 3.87 indicates a premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 17.77. 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 71.57 Peers 164.53   EXPE 14.00 Peers 29.41

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 16.65 Peers 123.81   EXPE NM Peers 0.83

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 3.87 Peers 17.77   EXPE -75.33 Peers 641.66

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 2.10 Peers 3.71   EXPE 26.72 Peers 24.32

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

EXPE is keeping pace with its peers on the basis of sales growth.

 

 

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