Education
About Us
Working with TipRanks
Follow Us
Expedia (EXPE)
NASDAQ:EXPE
Top Page
Expedia
(NASDAQ:EXPE)72Outperform
Positive Factors
Financial performance
Solid results driven by better than expected travel demand.
Shareholder returns
Reinstating quarterly dividends since the previous suspension is a positive signal for investors.
Negative Factors
Market dynamics
Preference for Booking Holdings over Expedia due to better profitability influenced by geographic market dynamics.
Expedia (EXPE) vs. S&P 500 (SPY)
Market Cap
$24.32B
Dividend YieldN/A
Average Volume (3M)2.40M
Price to Earnings (P/E)20.9
Beta (1Y)1.50
Revenue Growth6.64%
EPS Growth69.85%
CountryUS
Employees16,500
SectorConsumer Cyclical
Sector Strength53
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)9.05
Shares Outstanding123,333,626
10 Day Avg. Volume2,074,757
30 Day Avg. Volume2,395,844
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)N/A
Price to Sales (P/S)1.82
Price to Cash Flow (P/CF)31.50
P/FCF Ratio31.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$204.83Price Target Upside8.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering30
Expedia Business Overview & Revenue Model
Company DescriptionExpedia Group, Inc. is an online travel company, which engages in the provision of travel products and services to leisure and corporate travellers. It operates through the following business segments: Core Online Travel Agency(OTA), Trivago, Vrbo, and Egencia. The Core OTA segment offers full range of travel and advertising services to worldwide customers through a variety of brands including: Expedia.com and Hotels.com. The Trivago segment involves in sending referrals to online travel companies and travel service providers from its hotel metasearch websites. The Vrbo segment operates an online marketplace for the alternative accommodations industry. The Egencia segment manages travel services to corporate customers worldwide. The company was founded in 1994 and is headquartered in Seattle, WA.
How the Company Makes MoneyExpedia generates revenue primarily through the facilitation of travel bookings across its various platforms, earning income via commissions and service fees. The company partners with a wide range of travel suppliers, including airlines, hotels, car rental companies, and tour operators, to offer an extensive selection of travel options. Key revenue streams include hotel and lodging bookings, which provide a significant portion of its earnings through the merchant model (where Expedia purchases rooms at a discount and sells them at a markup) and the agency model (where Expedia earns a commission on bookings). Additionally, the company earns revenue from advertising and media services, as well as from its Vrbo platform, which focuses on vacation rental properties. Strategic partnerships and collaborations with travel service providers and technology companies further enhance Expedia's offerings and market reach, contributing to its overall financial performance.
Expedia Financial Statement Overview
Summary
Expedia's financial health is strong with impressive revenue growth and profitability. The company has managed to reduce its leverage significantly, which is a positive sign for long-term stability. Cash flows are robust, supporting operational needs and growth investments. However, the low equity ratio and changes in EBITDA margins may require strategic focus to sustain future growth and financial flexibility.Income Statement
Expedia's income statement reflects strong profitability and revenue growth. The gross profit margin remains high at approximately 89.5% for 2024, indicating effective cost management. The net profit margin has improved significantly from previous years, reaching 9.0% in 2024, up from 6.2% in 2023, highlighting enhanced operational efficiency. Revenue growth is robust, with a 6.6% increase from 2023 to 2024. However, EBITDA margin has decreased from 16.1% in 2023 to 11.0% in 2024, suggesting some pressure on earnings before interest, taxes, depreciation, and amortization.78
Positive
Balance Sheet
The balance sheet shows a mixed picture. The debt-to-equity ratio has improved to 0.84 in 2024 from 4.28 in 2023, indicating reduced leverage. The equity ratio is low at 6.95%, reflecting a limited proportion of equity financing. Return on equity (ROE) has increased to 79.3% in 2024, showcasing strong profitability from shareholders' equity. However, the low equity base poses a potential risk of financial instability.70
Positive
Cash Flow
Expedia's cash flow statement is strong, with significant operating cash flow of $3.085 billion in 2024, reflecting robust cash generation capacity. The free cash flow has increased by 67.3% from 2023 to 2024, indicating efficient capital expenditure management. The operating cash flow to net income ratio is high at 2.50, suggesting excellent conversion of income into cash. However, financing cash flow is negative, reflecting outflows that may require careful monitoring.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 13.69B | 12.84B | 11.67B | 8.60B | 5.20B | Gross Profit |
| 12.25B | 11.27B | 10.01B | 7.08B | 3.52B | EBIT |
| 1.32B | 1.03B | 864.00M | 186.00M | -1.53B | EBITDA |
| 2.63B | 2.07B | 1.61B | 1.13B | -1.90B | Net Income Common Stockholders |
| 1.23B | 797.00M | 352.00M | 12.00M | -2.73B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.87B | 5.69B | 4.14B | 4.31B | 3.39B | Total Assets |
| 22.39B | 21.64B | 21.56B | 21.55B | 18.69B | Total Debt |
| 1.31B | 6.57B | 6.55B | 8.81B | 8.73B | Net Debt |
| -4.27B | 906.00M | 2.46B | 4.70B | 5.37B | Total Liabilities |
| 19.59B | 18.86B | 17.83B | 18.00B | 14.66B | Stockholders Equity |
| 1.56B | 1.53B | 2.28B | 2.06B | 2.53B |
| Cash Flow | Free Cash Flow | |||
| 3.08B | 1.84B | 2.78B | 3.08B | -4.63B | Operating Cash Flow |
| 3.08B | 2.69B | 3.44B | 3.75B | -3.83B | Investing Cash Flow |
| -1.26B | -800.00M | -580.00M | -931.00M | -263.00M | Financing Cash Flow |
| -1.75B | -2.10B | -2.62B | -973.00M | 4.08B |
Expedia Technical Analysis
Neutral
188.70
Price Trends
186.63
Positive
179.49
Positive
154.27
Positive
Market Momentum
3.03
Positive
46.18
Neutral
21.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXPE, the sentiment is Neutral. The current price of 188.7 is below the 20-day moving average (MA) of 195.36, above the 50-day MA of 186.63, and above the 200-day MA of 154.27, indicating a neutral trend. The MACD of 3.03 indicates Positive momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 21.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EXPE.
Expedia Risk Analysis
Expedia disclosed 14 risk factors in its most recent earnings report. Expedia reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Expedia Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $38.35B | 17.10 | 8.12% | ― | 27.28% | 49.14% | |
77 Outperform | $160.74B | 28.37 | -146.32% | 0.71% | 11.11% | 47.03% | |
72 Outperform | $24.32B | 20.86 | 79.25% | ― | 6.64% | 69.85% | |
72 Outperform | $87.56B | 34.10 | 31.48% | ― | 11.95% | -44.02% | |
62 Neutral | $1.94B | 835.76 | 0.53% | ― | 2.63% | -58.77% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
58 Neutral | $1.56B | ― | 20.22% | ― | 4.19% | 53.84% |
* Consumer Cyclical Sector Average
Performance Comparison
EXPE
Expedia
188.70
56.20
42.42%
TCOM
Trip.com Group Ltd. Sponsored ADR
59.36
16.24
37.66%
BKNG
Booking Holdings
4,898.40
1,500.50
44.16%
TRIP
TripAdvisor
13.79
-12.98
-48.49%
SABR
Sabre
4.04
1.86
85.32%
ABNB
Airbnb
141.42
-22.45
-13.70%
Expedia Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: 9.35% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance in Q4 2024, with notable growth in B2B and advertising segments. However, there are concerns about softening travel demand in early 2025 and the impact of foreign exchange headwinds. Operational efficiency and brand performance were emphasized as positives, while challenges in the loyalty program for Hotels.com were noted.Highlights
Strong Financial Performance in Q4 2024
Room nights, gross bookings, and revenue all grew double digits. Total gross bookings were $24.4 billion, growing 13%, with a five-point sequential acceleration in both B2C and B2B. EBITDA margin expanded to 20.2%, up 175 basis points.
Record Growth in B2B and Advertising Segments
B2B bookings grew 21% for the full year. Advertising revenue grew 32% in 2024 and contributed 5% of overall revenue.
Successful Brand Performance
Brand Expedia, Hotels.com, and Vrbo saw bookings growth. Global active membership in the loyalty program grew 7%, with a 300 basis points increase in the twelve-month member repeat rate.
Operational Efficiency and Cost Management
Effective expense management led to a decrease in overhead expenses by 1%, resulting in nearly 250 basis points of leverage.
Lowlights
Softening Travel Demand in Early 2025
Some softening in travel demand was noted in January 2025 relative to Q4 2024, with potential pull-forward effects from strong holiday promotions.
Impact of Stronger Dollar and Foreign Exchange Headwinds
The stronger US dollar and foreign exchange headwinds are impacting revenue growth, with approximately two points of negative FX impact expected.
Challenges in Loyalty Program Impacting Hotels.com
The loyalty program rollout has been a drag on bookings for Hotels.com, though it has driven cross-sell for Vrbo.
Company Guidance
During Expedia Group's Q4 2024 earnings call, the company reported robust double-digit growth in room nights, gross bookings, and revenue, surpassing expectations due to strong travel demand and effective execution. Specifically, consumer business bookings accelerated to 9%, with B2B bookings up 24% and advertising revenue growing by 25%. The global expansion efforts contributed to a 4-point sequential increase in bookings outside the U.S. and international room night growth outpaced that in the U.S. with significant gains in Europe and APAC. The company's EBITDA margin expanded 175 basis points, driven by disciplined cost management and increased operational efficiencies. For the full year, Expedia achieved gross bookings of $111 billion and revenue of nearly $14 billion, both up 7%, and generated $2.3 billion in free cash flow, marking a 26% increase. Looking forward to 2025, Expedia expects gross bookings and revenue growth in the 4% to 6% range, with a continued focus on enhancing traveler value, optimizing operational efficiencies, and leveraging AI to further drive growth.Expedia Corporate Events
Executive/Board Changes
Expedia Appoints Scott Schenkel as CFO
Neutral
Dec 19, 2024
Expedia Group announced the appointment of Scott Schenkel as its Chief Financial Officer, effective after the company files its annual report for the fiscal year 2024. Schenkel, with over 30 years of financial leadership experience, is set to bring his expertise in e-commerce to strengthen Expedia’s position as a global travel leader. His compensation package includes a significant base salary, signing bonuses, equity incentives, and relocation assistance, reflecting the company’s commitment to securing top-tier executive talent to drive strategic goals.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.