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 133 industry peers in the Hotels, Restaurants & Leisure industry. While TCOM belongs to the best of the industry regarding profitability, 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 has a Return On Assets of 7.04%. This is in the better half of the industry: TCOM outperforms 76.69% of its industry peers.
TCOM has a Return On Equity of 11.97%. This is in the better half of the industry: TCOM outperforms 72.93% of its industry peers.
TCOM has a Return On Invested Capital of 6.54%. This is comparable to the rest of the industry: TCOM outperforms 57.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TCOM is significantly below the industry average of 13.97%.
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
The Profit Margin of TCOM (32.03%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of TCOM has grown nicely.
With an excellent Operating Margin value of 26.60%, TCOM belongs to the best of the industry, outperforming 93.23% of the companies in the same industry.
In the last couple of years the Operating Margin of TCOM has grown nicely.
TCOM has a better Gross Margin (81.25%) than 95.49% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TCOM is destroying value.
Compared to 1 year ago, TCOM has more shares outstanding
TCOM has more shares outstanding than it did 5 years ago.
TCOM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.62 indicates that TCOM is not a great score, but indicates only limited risk for bankruptcy at the moment.
TCOM has a better Altman-Z score (2.62) than 70.68% of its industry peers.
The Debt to FCF ratio of TCOM is 2.08, which is a good value as it means it would take TCOM, 2.08 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TCOM (2.08) is better than 84.21% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that TCOM is not too dependend on debt financing.
TCOM has a better Debt to Equity ratio (0.24) than 76.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.73
WACC8.97%
2.3 Liquidity
TCOM has a Current Ratio of 1.51. This is a normal value and indicates that TCOM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TCOM (1.51) is better than 73.68% of its industry peers.
A Quick Ratio of 1.51 indicates that TCOM should not have too much problems paying its short term obligations.
TCOM has a Quick ratio of 1.51. This is in the better half of the industry: TCOM outperforms 76.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
TCOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.63%, which is quite impressive.
Measured over the past years, TCOM shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.52% on average per year.
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)24.63%
EPS 3YN/A
EPS 5Y21.52%
EPS Q2Q%-0.67%
Revenue 1Y (TTM)19.73%
Revenue growth 3Y38.59%
Revenue growth 5Y8.36%
Sales Q2Q%16.17%
3.2 Future
TCOM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.42% yearly.
The Revenue is expected to grow by 12.09% on average over the next years. This is quite good.
EPS Next Y-1.22%
EPS Next 2Y7.47%
EPS Next 3Y10.22%
EPS Next 5Y12.42%
Revenue Next Year15.79%
Revenue Next 2Y15.13%
Revenue Next 3Y14.45%
Revenue Next 5Y12.09%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.57, the valuation of TCOM can be described as correct.
TCOM's Price/Earnings ratio is a bit cheaper when compared to the industry. TCOM is cheaper than 79.70% of the companies in the same industry.
When comparing the Price/Earnings ratio of TCOM to the average of the S&P500 Index (26.59), we can say TCOM is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.44 indicates a correct valuation of TCOM.
76.69% of the companies in the same industry are more expensive than TCOM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, TCOM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 13.44 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TCOM.
TCOM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TCOM is cheaper than 81.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.23 | ||
| EV/EBITDA | 13.99 |
4.3 Compensation for Growth
TCOM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.72
EPS Next 2Y7.47%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, TCOM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.82, TCOM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.49, TCOM pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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%
61.96
-0.4 (-0.64%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners31.11%
Inst Owner Change0.65%
Ins Owners2.16%
Ins Owner ChangeN/A
Market Cap40.34B
Analysts87.14
Price Target75.6 (22.01%)
Short Float %1.88%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)1.98%
PT rev (3m)-3.11%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-11.57%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.57 | ||
| Fwd PE | 13.44 | ||
| P/S | 5.44 | ||
| P/FCF | 15.23 | ||
| P/OCF | 14.77 | ||
| P/B | 2.03 | ||
| P/tB | 4.21 | ||
| EV/EBITDA | 13.99 |
EPS(TTM)3.98
EY6.42%
EPS(NY)4.61
Fwd EY7.44%
FCF(TTM)4.07
FCFY6.57%
OCF(TTM)4.2
OCFY6.77%
SpS11.39
BVpS30.47
TBVpS14.71
PEG (NY)N/A
PEG (5Y)0.72
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 | 2.62 |
F-Score8
WACC8.97%
ROIC/WACC0.73
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)24.63%
EPS 3YN/A
EPS 5Y21.52%
EPS Q2Q%-0.67%
EPS Next Y-1.22%
EPS Next 2Y7.47%
EPS Next 3Y10.22%
EPS Next 5Y12.42%
Revenue 1Y (TTM)19.73%
Revenue growth 3Y38.59%
Revenue growth 5Y8.36%
Sales Q2Q%16.17%
Revenue Next Year15.79%
Revenue Next 2Y15.13%
Revenue Next 3Y14.45%
Revenue Next 5Y12.09%
EBIT growth 1Y25.19%
EBIT growth 3YN/A
EBIT growth 5Y22.98%
EBIT Next Year13.49%
EBIT Next 3Y16.59%
EBIT Next 5Y16.39%
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%