TRIPADVISOR INC (TRIP) Stock Fundamental Analysis
NASDAQ:TRIP - US8969452015 - Common Stock
17.64 USD
-0.32 (-1.78%)
17.56 USD
-0.08 (-0.45%)
TRIP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 69 industry peers in the Interactive Media & Services industry. TRIP has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on TRIP.
1. Profitability
1.1 Basic Checks
TRIP had positive earnings in the past year.
TRIP had a positive operating cash flow in the past year.
In multiple years TRIP reported negative net income over the last 5 years.
TRIP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.27%, TRIP is in the better half of the industry, outperforming 62.32% of the companies in the same industry.
With a decent Return On Equity value of 10.37%, TRIP is doing good in the industry, outperforming 79.71% of the companies in the same industry.
With an excellent Return On Invested Capital value of 6.98%, TRIP belongs to the best of the industry, outperforming 81.16% of the companies in the same industry.
TRIP had an Average Return On Invested Capital over the past 3 years of 5.01%. This is significantly below the industry average of 12.98%.
The last Return On Invested Capital (6.98%) for TRIP is above the 3 year average (5.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 10.37% | ||
| ROIC | 6.98% |
ROA(3y)0.46%
ROA(5y)-3.96%
ROE(3y)1.33%
ROE(5y)-9.48%
ROIC(3y)5.01%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of TRIP (3.48%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TRIP has declined.
TRIP has a Operating Margin of 7.65%. This is in the better half of the industry: TRIP outperforms 69.57% of its industry peers.
In the last couple of years the Operating Margin of TRIP has declined.
With an excellent Gross Margin value of 93.64%, TRIP belongs to the best of the industry, outperforming 94.20% of the companies in the same industry.
In the last couple of years the Gross Margin of TRIP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.65% | ||
| PM (TTM) | 3.48% | ||
| GM | 93.64% |
OM growth 3YN/A
OM growth 5Y-12.01%
PM growth 3YN/A
PM growth 5Y-49.23%
GM growth 3Y0.39%
GM growth 5Y-0.24%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRIP is destroying value.
TRIP has more shares outstanding than it did 1 year ago.
TRIP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TRIP has an improved debt to assets ratio.
2.2 Solvency
TRIP has an Altman-Z score of 1.64. This is a bad value and indicates that TRIP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.64, TRIP is in line with its industry, outperforming 53.62% of the companies in the same industry.
TRIP has a debt to FCF ratio of 7.15. This is a slightly negative value and a sign of low solvency as TRIP would need 7.15 years to pay back of all of its debts.
TRIP has a Debt to FCF ratio (7.15) which is in line with its industry peers.
TRIP has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.37, TRIP is doing worse than 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 7.15 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.75
WACC9.27%
2.3 Liquidity
A Current Ratio of 1.24 indicates that TRIP should not have too much problems paying its short term obligations.
TRIP has a worse Current ratio (1.24) than 68.12% of its industry peers.
TRIP has a Quick Ratio of 1.24. This is a normal value and indicates that TRIP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.24, TRIP is doing worse than 68.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The earnings per share for TRIP have decreased by -0.71% in the last year.
Measured over the past years, TRIP shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.84% on average per year.
The Revenue has been growing slightly by 3.03% in the past year.
Measured over the past years, TRIP shows a small growth in Revenue. The Revenue has been growing by 3.30% on average per year.
EPS 1Y (TTM)-0.71%
EPS 3YN/A
EPS 5Y-5.84%
EPS Q2Q%17.95%
Revenue 1Y (TTM)3.03%
Revenue growth 3Y26.71%
Revenue growth 5Y3.3%
Sales Q2Q%6.44%
3.2 Future
Based on estimates for the next years, TRIP will show a very strong growth in Earnings Per Share. The EPS will grow by 55.84% on average per year.
TRIP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.56% yearly.
EPS Next Y18.01%
EPS Next 2Y23.75%
EPS Next 3Y23.57%
EPS Next 5Y55.84%
Revenue Next Year5.86%
Revenue Next 2Y6.76%
Revenue Next 3Y6.82%
Revenue Next 5Y6.56%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 12.60, the valuation of TRIP can be described as correct.
Based on the Price/Earnings ratio, TRIP is valued a bit cheaper than the industry average as 76.81% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.06, TRIP is valued rather cheaply.
TRIP is valuated reasonably with a Price/Forward Earnings ratio of 8.79.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRIP indicates a rather cheap valuation: TRIP is cheaper than 85.51% of the companies listed in the same industry.
TRIP is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRIP is valued a bit cheaper than the industry average as 79.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TRIP is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.98 | ||
| EV/EBITDA | 8.95 |
4.3 Compensation for Growth
TRIP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TRIP has a very decent profitability rating, which may justify a higher PE ratio.
TRIP's earnings are expected to grow with 23.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)N/A
EPS Next 2Y23.75%
EPS Next 3Y23.57%
5. Dividend
5.1 Amount
TRIP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.64
-0.32 (-1.78%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners113.48%
Inst Owner Change7.27%
Ins Owners1.03%
Ins Owner Change44.01%
Market Cap2.05B
Analysts55.2
Price Target19.18 (8.73%)
Short Float %18.55%
Short Ratio5.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)142.02%
Min EPS beat(2)12.28%
Max EPS beat(2)271.76%
EPS beat(4)4
Avg EPS beat(4)84.01%
Min EPS beat(4)10.75%
Max EPS beat(4)271.76%
EPS beat(8)8
Avg EPS beat(8)111.27%
EPS beat(12)9
Avg EPS beat(12)96.55%
EPS beat(16)10
Avg EPS beat(16)65.18%
Revenue beat(2)1
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-2.19%
Max Revenue beat(2)0.8%
Revenue beat(4)2
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-2.19%
Max Revenue beat(4)0.8%
Revenue beat(8)4
Avg Revenue beat(8)-0.22%
Revenue beat(12)8
Avg Revenue beat(12)0.39%
Revenue beat(16)10
Avg Revenue beat(16)0.21%
PT rev (1m)7.75%
PT rev (3m)11.08%
EPS NQ rev (1m)-7.26%
EPS NQ rev (3m)-5.86%
EPS NY rev (1m)3.55%
EPS NY rev (3m)1.56%
Revenue NQ rev (1m)-1.98%
Revenue NQ rev (3m)-2.48%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 8.79 | ||
| P/S | 1.1 | ||
| P/FCF | 11.98 | ||
| P/OCF | 7.94 | ||
| P/B | 3.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.95 |
EPS(TTM)1.4
EY7.94%
EPS(NY)2.01
Fwd EY11.37%
FCF(TTM)1.47
FCFY8.35%
OCF(TTM)2.22
OCFY12.59%
SpS16.1
BVpS5.4
TBVpS-2.16
PEG (NY)0.7
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 10.37% | ||
| ROCE | 8.84% | ||
| ROIC | 6.98% | ||
| ROICexc | 27.83% | ||
| ROICexgc | N/A | ||
| OM | 7.65% | ||
| PM (TTM) | 3.48% | ||
| GM | 93.64% | ||
| FCFM | 9.14% |
ROA(3y)0.46%
ROA(5y)-3.96%
ROE(3y)1.33%
ROE(5y)-9.48%
ROIC(3y)5.01%
ROIC(5y)N/A
ROICexc(3y)10.77%
ROICexc(5y)N/A
ROICexgc(3y)333.92%
ROICexgc(5y)N/A
ROCE(3y)6.35%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y55.67%
ROICexc growth 3YN/A
ROICexc growth 5Y-2.57%
OM growth 3YN/A
OM growth 5Y-12.01%
PM growth 3YN/A
PM growth 5Y-49.23%
GM growth 3Y0.39%
GM growth 5Y-0.24%
F-Score7
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 7.15 | ||
| Debt/EBITDA | 3.75 | ||
| Cap/Depr | 100% | ||
| Cap/Sales | 4.65% | ||
| Interest Coverage | 2.2 | ||
| Cash Conversion | 112.17% | ||
| Profit Quality | 263.08% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 1.64 |
F-Score7
WACC9.27%
ROIC/WACC0.75
Cap/Depr(3y)72.4%
Cap/Depr(5y)61.97%
Cap/Sales(3y)3.77%
Cap/Sales(5y)5.28%
Profit Quality(3y)1613.33%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-0.71%
EPS 3YN/A
EPS 5Y-5.84%
EPS Q2Q%17.95%
EPS Next Y18.01%
EPS Next 2Y23.75%
EPS Next 3Y23.57%
EPS Next 5Y55.84%
Revenue 1Y (TTM)3.03%
Revenue growth 3Y26.71%
Revenue growth 5Y3.3%
Sales Q2Q%6.44%
Revenue Next Year5.86%
Revenue Next 2Y6.76%
Revenue Next 3Y6.82%
Revenue Next 5Y6.56%
EBIT growth 1Y-1.38%
EBIT growth 3YN/A
EBIT growth 5Y-9.11%
EBIT Next Year238.52%
EBIT Next 3Y63.1%
EBIT Next 5Y39.31%
FCF growth 1Y-14.5%
FCF growth 3Y9.04%
FCF growth 5Y-27.14%
OCF growth 1Y-0.77%
OCF growth 3Y10.06%
OCF growth 5Y-19.43%