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In the world of growth stocks, NASDAQ:TCOM shines as a value proposition.

By Mill Chart

Last update: Jul 5, 2024

Our stock screener has spotted TRIP.COM GROUP LTD-ADR (NASDAQ:TCOM) as a growth stock which is not overvalued. NASDAQ:TCOM is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.


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What does the Growth looks like for NASDAQ:TCOM

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:TCOM has received a 7 out of 10:

  • The Earnings Per Share has grown by an impressive 314.08% over the past year.
  • TCOM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.24% yearly.
  • The Revenue has grown by 122.12% in the past year. This is a very strong growth!
  • TCOM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.32% yearly.
  • The Revenue is expected to grow by 12.87% on average over the next years. This is quite good.
  • 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.

How do we evaluate the Valuation for NASDAQ:TCOM?

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:TCOM has earned a 6 for valuation:

  • Compared to the rest of the industry, the Price/Earnings ratio of TCOM indicates a somewhat cheap valuation: TCOM is cheaper than 72.39% of the companies listed in the same industry.
  • TCOM is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
  • 71.64% 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 20.15. TCOM is valued slightly cheaper when compared to this.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TCOM indicates a rather cheap valuation: TCOM is cheaper than 85.07% of the companies listed in the same industry.
  • 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.
  • TCOM's earnings are expected to grow with 16.89% in the coming years. This may justify a more expensive valuation.

How We Gauge Health for NASDAQ:TCOM

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:TCOM has earned a 6 out of 10:

  • Looking at the Altman-Z score, with a value of 2.12, TCOM is in the better half of the industry, outperforming 61.94% of the companies in the same industry.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 2.10, TCOM belongs to the top 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.
  • The Debt to Equity ratio of TCOM (0.33) is better than 73.13% of its industry peers.
  • TCOM's Quick ratio of 1.23 is fine compared to the rest of the industry. TCOM outperforms 63.43% of its industry peers.

Profitability Insights: NASDAQ:TCOM

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:TCOM scores a 6 out of 10:

  • The Return On Assets of TCOM (4.53%) is better than 63.43% of its industry peers.
  • The Return On Equity of TCOM (8.12%) is better than 61.94% of its industry peers.
  • TCOM has a better Profit Margin (22.28%) than 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.
  • In the last couple of years the Operating Margin of TCOM has grown nicely.
  • TCOM has a better Gross Margin (81.75%) than 93.28% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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TRIP.COM GROUP LTD-ADR

NASDAQ:TCOM (11/21/2024, 8:00:01 PM)

Premarket: 63.63 -1.54 (-2.36%)

65.17

+0.38 (+0.59%)

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