NASDAQ:TCOM is showing decent growth, but is still valued reasonably.

Uncover the potential of TRIP.COM GROUP LTD-ADR (NASDAQ:TCOM), a growth stock that our stock screener found to be reasonably priced. NASDAQ:TCOM is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

A Closer Look at Growth for NASDAQ:TCOM

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:TCOM has earned a 7 for growth:

• TCOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 314.19%, which is quite impressive.
• Measured over the past years, TCOM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.40% on average per year.
• Looking at the last year, TCOM shows a very strong growth in Revenue. The Revenue has grown by 122.12%.
• TCOM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.20% yearly.
• TCOM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.60% yearly.
• 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.

Evaluating Valuation: NASDAQ:TCOM

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:TCOM scores a 6 out of 10:

• 72.39% of the companies in the same industry are more expensive than TCOM, based on the Price/Earnings ratio.
• The average S&P500 Price/Earnings ratio is at 28.05. TCOM is valued slightly cheaper when compared to this.
• 67.91% of the companies in the same industry are more expensive than TCOM, based on the Price/Forward Earnings ratio.
• The average S&P500 Price/Forward Earnings ratio is at 19.81. TCOM is valued slightly cheaper when compared to this.
• 85.07% of the companies in the same industry are more expensive than TCOM, based on the Price/Free Cash Flow ratio.
• TCOM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• TCOM has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as TCOM's earnings are expected to grow with 15.20% in the coming years.

Exploring NASDAQ:TCOM's Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:TCOM scores a 6 out of 10:

• The Altman-Z score of TCOM (2.17) is better than 63.43% of its industry peers.
• TCOM has a debt to FCF ratio of 2.10. This is a good value and a sign of high solvency as TCOM would need 2.10 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 2.10, TCOM belongs to the best of the industry, outperforming 82.09% of the companies in the same industry.
• A Debt/Equity ratio of 0.33 indicates that TCOM is not too dependend on debt financing.
• TCOM's Debt to Equity ratio of 0.33 is fine compared to the rest of the industry. TCOM outperforms 73.88% of its industry peers.
• The Quick ratio of TCOM (1.23) is better than 63.43% of its industry peers.

How do we evaluate the Profitability for NASDAQ:TCOM?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:TCOM, the assigned 6 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 4.53%, TCOM is in the better half of the industry, outperforming 61.94% of the companies in the same industry.
• TCOM's Return On Equity of 8.12% is fine compared to the rest of the industry. TCOM outperforms 61.19% of its industry peers.
• TCOM's Profit Margin of 22.28% is amongst the best of the industry. TCOM outperforms 94.78% of its industry peers.
• TCOM's Profit Margin has improved in the last couple of years.
• The Operating Margin of TCOM (25.44%) is better than 91.04% of its industry peers.
• TCOM's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 81.75%, TCOM belongs to the top of the industry, outperforming 92.54% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of TCOM for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.