TRIP.COM GROUP LTD-ADR (TCOM) Stock Fundamental Analysis
NASDAQ:TCOM - Nasdaq - US89677Q1076 - ADR - Currency: USD
Overall TCOM gets a fundamental rating of 6 out of 10. We evaluated TCOM against 135 industry peers in the Hotels, Restaurants & Leisure industry. TCOM scores excellent on profitability, but there are some minor concerns on its financial health. TCOM is growing strongly while it is still valued neutral. This is a good combination! These ratings would make TCOM suitable for growth investing!
1. Profitability
1.1 Basic Checks
TCOM had positive earnings in the past year.
In the past year TCOM had a positive cash flow from operations.
In multiple years TCOM reported negative net income over the last 5 years.
TCOM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
TCOM's Return On Assets of 7.04% is fine compared to the rest of the industry. TCOM outperforms 77.04% of its industry peers.
TCOM has a better Return On Equity (11.97%) than 73.33% of its industry peers.
TCOM's Return On Invested Capital of 6.54% is in line compared to the rest of the industry. TCOM outperforms 57.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TCOM is significantly below the industry average of 14.12%.
The last Return On Invested Capital (6.54%) for TCOM is above the 3 year average (4.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.04% | ||
| ROE | 11.97% | ||
| ROIC | 6.54% |
ROA(3y)4.1%
ROA(5y)2.05%
ROE(3y)7.11%
ROE(5y)3.52%
ROIC(3y)4.09%
ROIC(5y)N/A
1.3 Margins
TCOM's Profit Margin of 32.03% is amongst the best of the industry. TCOM outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of TCOM has grown nicely.
The Operating Margin of TCOM (26.60%) is better than 93.33% of its industry peers.
In the last couple of years the Operating Margin of TCOM has grown nicely.
The Gross Margin of TCOM (81.25%) is better than 96.30% of its industry peers.
In the last couple of years the Gross Margin of TCOM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.6% | ||
| PM (TTM) | 32.03% | ||
| GM | 81.25% |
OM growth 3YN/A
OM growth 5Y13.49%
PM growth 3YN/A
PM growth 5Y10.25%
GM growth 3Y1.79%
GM growth 5Y0.48%
2. Health
2.1 Basic Checks
TCOM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TCOM has been increased compared to 1 year ago.
The number of shares outstanding for TCOM has been increased compared to 5 years ago.
TCOM has a better debt/assets ratio than last year.
2.2 Solvency
TCOM has an Altman-Z score of 2.66. This is not the best score and indicates that TCOM is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.66, TCOM is in the better half of the industry, outperforming 76.30% of the companies in the same industry.
TCOM has a debt to FCF ratio of 2.08. This is a good value and a sign of high solvency as TCOM would need 2.08 years to pay back of all of its debts.
TCOM has a Debt to FCF ratio of 2.08. This is amongst the best in the industry. TCOM outperforms 83.70% of its industry peers.
TCOM has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.24, TCOM is doing good in the industry, outperforming 77.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.74
WACC8.79%
2.3 Liquidity
A Current Ratio of 1.51 indicates that TCOM should not have too much problems paying its short term obligations.
The Current ratio of TCOM (1.51) is better than 75.56% of its industry peers.
A Quick Ratio of 1.51 indicates that TCOM should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.51, TCOM is doing good in the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.94% over the past year.
TCOM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.52% yearly.
TCOM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.73%.
The Revenue has been growing by 8.36% on average over the past years. This is quite good.
EPS 1Y (TTM)44.94%
EPS 3YN/A
EPS 5Y21.52%
EPS Q2Q%58.76%
Revenue 1Y (TTM)19.73%
Revenue growth 3Y38.59%
Revenue growth 5Y8.36%
Sales Q2Q%23.43%
3.2 Future
Based on estimates for the next years, TCOM will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.40% on average per year.
TCOM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.41% yearly.
EPS Next Y-1.22%
EPS Next 2Y7.47%
EPS Next 3Y10.22%
EPS Next 5Y15.4%
Revenue Next Year15.79%
Revenue Next 2Y15.13%
Revenue Next 3Y14.45%
Revenue Next 5Y12.41%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.68, TCOM is valued correctly.
78.52% of the companies in the same industry are more expensive than TCOM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.03, TCOM is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.87, which indicates a correct valuation of TCOM.
70.37% of the companies in the same industry are more expensive than TCOM, based on the Price/Forward Earnings ratio.
TCOM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 15.87 |
4.2 Price Multiples
TCOM's Enterprise Value to EBITDA ratio is in line with the industry average.
79.26% of the companies in the same industry are more expensive than TCOM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.37 | ||
| EV/EBITDA | 14.52 |
4.3 Compensation for Growth
The decent profitability rating of TCOM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.73
EPS Next 2Y7.47%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
TCOM has a yearly dividend return of 0.45%, which is pretty low.
Compared to an average industry Dividend Yield of 3.56, TCOM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.45, TCOM pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
TCOM has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y7.47%
EPS Next 3Y10.22%
62.25
-1.13 (-1.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners31.11%
Inst Owner Change1%
Ins Owners2.16%
Ins Owner ChangeN/A
Market Cap40.53B
Analysts88.15
Price Target76.23 (22.46%)
Short Float %1.84%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.2%
Min EPS beat(2)10.44%
Max EPS beat(2)23.97%
EPS beat(4)4
Avg EPS beat(4)27.97%
Min EPS beat(4)10.44%
Max EPS beat(4)42.24%
EPS beat(8)8
Avg EPS beat(8)35.05%
EPS beat(12)11
Avg EPS beat(12)49.86%
EPS beat(16)15
Avg EPS beat(16)125.77%
Revenue beat(2)1
Avg Revenue beat(2)0.68%
Min Revenue beat(2)-0.21%
Max Revenue beat(2)1.56%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-1.52%
Max Revenue beat(4)1.56%
Revenue beat(8)4
Avg Revenue beat(8)1.51%
Revenue beat(12)8
Avg Revenue beat(12)2.64%
Revenue beat(16)12
Avg Revenue beat(16)4.75%
PT rev (1m)0.07%
PT rev (3m)-2.29%
EPS NQ rev (1m)2.95%
EPS NQ rev (3m)-11.72%
EPS NY rev (1m)1.51%
EPS NY rev (3m)-5.3%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 15.87 | ||
| P/S | 5.49 | ||
| P/FCF | 15.37 | ||
| P/OCF | 14.91 | ||
| P/B | 2.05 | ||
| P/tB | 4.25 | ||
| EV/EBITDA | 14.52 |
EPS(TTM)3.97
EY6.38%
EPS(NY)3.92
Fwd EY6.3%
FCF(TTM)4.05
FCFY6.5%
OCF(TTM)4.17
OCFY6.71%
SpS11.34
BVpS30.33
TBVpS14.64
PEG (NY)N/A
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.04% | ||
| ROE | 11.97% | ||
| ROCE | 8.41% | ||
| ROIC | 6.54% | ||
| ROICexc | 11.31% | ||
| ROICexgc | 37.59% | ||
| OM | 26.6% | ||
| PM (TTM) | 32.03% | ||
| GM | 81.25% | ||
| FCFM | 35.72% |
ROA(3y)4.1%
ROA(5y)2.05%
ROE(3y)7.11%
ROE(5y)3.52%
ROIC(3y)4.09%
ROIC(5y)N/A
ROICexc(3y)6.72%
ROICexc(5y)N/A
ROICexgc(3y)21.27%
ROICexgc(5y)N/A
ROCE(3y)5.4%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y27.19%
ROICexc growth 3YN/A
ROICexc growth 5Y23.82%
OM growth 3YN/A
OM growth 5Y13.49%
PM growth 3YN/A
PM growth 5Y10.25%
GM growth 3Y1.79%
GM growth 5Y0.48%
F-Score8
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.08 | ||
| Debt/EBITDA | 2.26 | ||
| Cap/Depr | 69.45% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 8.58 | ||
| Cash Conversion | 130.59% | ||
| Profit Quality | 111.52% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 2.66 |
F-Score8
WACC8.79%
ROIC/WACC0.74
Cap/Depr(3y)66.85%
Cap/Depr(5y)60.02%
Cap/Sales(3y)1.65%
Cap/Sales(5y)2.14%
Profit Quality(3y)160%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)44.94%
EPS 3YN/A
EPS 5Y21.52%
EPS Q2Q%58.76%
EPS Next Y-1.22%
EPS Next 2Y7.47%
EPS Next 3Y10.22%
EPS Next 5Y15.4%
Revenue 1Y (TTM)19.73%
Revenue growth 3Y38.59%
Revenue growth 5Y8.36%
Sales Q2Q%23.43%
Revenue Next Year15.79%
Revenue Next 2Y15.13%
Revenue Next 3Y14.45%
Revenue Next 5Y12.41%
EBIT growth 1Y25.19%
EBIT growth 3YN/A
EBIT growth 5Y22.98%
EBIT Next Year12.66%
EBIT Next 3Y17.17%
EBIT Next 5Y19.16%
FCF growth 1Y-11.05%
FCF growth 3Y115.38%
FCF growth 5Y23.98%
OCF growth 1Y-10.81%
OCF growth 3Y99.41%
OCF growth 5Y21.76%