eXp World Holdings Inc (EXPI, Financial), a pioneering firm in the real estate industry, has demonstrated a notable performance in the stock market with a current market capitalization of $1.69 billion. Over the past week, the company's stock price has seen a modest gain of 0.28%, and a more significant surge of 14.10% over the last three months. Currently priced at $10.9, eXp World Holdings is significantly undervalued according to the GF Value of $15.7, despite a previous GF Value of $17.61, indicating a shift from being modestly to significantly undervalued.
Company Overview
eXp World Holdings Inc operates primarily in the United States and Canada, with additional operations in various global markets including the UK, Australia, and India. The company is revolutionizing the real estate landscape through its cloud-based brokerage and immersive technology platforms, which enhance business efficiency and reduce traditional operational costs. Its diverse service offerings include real estate brokerage, technology products, and mortgage brokerage services, among others.
Assessing Profitability
Despite challenging market conditions, eXp World Holdings maintains a Profitability Rank of 5/10. The company's operating margin stands at -0.18%, which is better than 24.8% of its peers in the industry. Other profitability metrics such as ROE and ROA are -10.65% and -6.11% respectively, positioning eXp above 16.05% and 12.28% of companies in the sector. Additionally, its Return on Invested Capital (ROIC) is -3.27%, surpassing 12.11% of competitors. Over the past decade, eXp has been profitable for four years, outperforming 20.01% of its peers.
Growth Trajectory
The company's growth metrics are impressive, with a Growth Rank of 3/10. It has achieved a 33.00% 3-year revenue growth rate per share, better than 85.67% of companies, and a 5-year rate of 49.30%, surpassing 96.16% of its peers. These figures highlight eXp's robust expansion in revenue, reflecting its successful adaptation and innovation in the real estate sector.
Notable Shareholders
Among the notable investors, Jim Simons leads with 1,701,516 shares, representing 1.1% of the company. Following him are Paul Tudor Jones (Trades, Portfolio) and Steven Cohen (Trades, Portfolio), holding 421,943 and 38,860 shares respectively. Their investments underscore confidence in eXp's business model and future prospects.
Competitive Landscape
eXp World Holdings competes with firms like DigitalBridge Group Inc (DBRG, Financial) with a market cap of $2.17 billion, Kennedy-Wilson Holdings Inc (KW, Financial) valued at $1.33 billion, and Cushman & Wakefield PLC (CWK, Financial) with a market cap of $2.41 billion. These companies represent a diverse range of market caps within the real estate sector, highlighting the competitive environment in which eXp operates.
Conclusion
In conclusion, eXp World Holdings Inc's recent stock performance is a reflection of its innovative business model and strong growth metrics. The company's current valuation suggests it is significantly undervalued, presenting a potentially attractive opportunity for investors. With solid growth prospects and a competitive position in the industry, eXp is well-positioned to maintain its upward trajectory in the evolving real estate market.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
