Opinions
Stockchase Insights
eXp World Holdings
EXPI-Q
HOLD
Mar 03, 2023
N/A
Stock price when the opinion was issued
REAL ESTATE
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EXPI is now trading at 30x times' Forward P/E. In the 4Q, EXPI’s revenue declined -9% to $933M, missing the estimates of $1.06B and EPS was -$0.04 also missing estimates of -$0.01. Amid a challenging macro backdrop, we think these results are not too bad.
The company has been growing and repurchasing shares more aggressively recently, also paying dividends.
These are supported by strong cash flow in the trailing twelve months of $210M, which declined -12% compared to $247M last year.EXPI’s operational performance depends largely on the health of the real estate market, we think the recovery could be strong EXPI if interest rates stop rising.
There is still a lot of risk here, but the worst is likely over.
There is also small cap risk, but the company does have $120M net cash.
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