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While growth is established for NASDAQ:TCOM, the stock's valuation remains reasonable.

By Mill Chart

Last update: Jul 26, 2024

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.


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What does the Growth looks like for NASDAQ:TCOM

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:TCOM has achieved a 7 out of 10:

  • TCOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 314.08%, which is quite impressive.
  • The Earnings Per Share has been growing by 15.24% on average over the past years. This is quite good.
  • 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.
  • TCOM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.87% yearly.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

How do we evaluate the Valuation for NASDAQ:TCOM?

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:TCOM boasts a 7 out of 10:

  • TCOM's Price/Earnings ratio is rather cheap when compared to the industry. TCOM is cheaper than 81.48% of the companies in the same industry.
  • TCOM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.29.
  • The Price/Forward Earnings ratio is 11.98, which indicates a very decent valuation of TCOM.
  • 79.26% of the companies in the same industry are more expensive than TCOM, based on the Price/Forward Earnings ratio.
  • TCOM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.35.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TCOM indicates a rather cheap valuation: TCOM is cheaper than 91.11% 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.
  • The decent profitability rating of TCOM may justify a higher PE ratio.
  • A more expensive valuation may be justified as TCOM's earnings are expected to grow with 16.89% in the coming years.

Exploring NASDAQ:TCOM's Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:TCOM, the assigned 6 reflects its health status:

  • The Debt to FCF ratio of TCOM is 2.10, which is a good value as it means it would take TCOM, 2.10 years of fcf income to pay off all of its debts.
  • TCOM's Debt to FCF ratio of 2.10 is amongst the best of the industry. TCOM outperforms 82.22% of its industry peers.
  • TCOM has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
  • TCOM's Debt to Equity ratio of 0.33 is fine compared to the rest of the industry. TCOM outperforms 73.33% of its industry peers.
  • The Quick ratio of TCOM (1.23) is better than 62.96% of its industry peers.

Profitability Analysis for NASDAQ:TCOM

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:TCOM has achieved a 6:

  • TCOM has a Return On Assets of 4.53%. This is in the better half of the industry: TCOM outperforms 63.70% of its industry peers.
  • Looking at the Return On Equity, with a value of 8.12%, TCOM is in the better half of the industry, outperforming 61.48% of the companies in the same industry.
  • Looking at the Profit Margin, with a value of 22.28%, TCOM belongs to the top of the industry, outperforming 94.81% of the companies in the same industry.
  • In the last couple of years the Profit Margin of TCOM has grown nicely.
  • TCOM has a Operating Margin of 25.44%. This is amongst the best in the industry. TCOM outperforms 91.11% of its industry peers.
  • TCOM's Operating Margin has improved in the last couple of years.
  • The Gross Margin of TCOM (81.75%) is better than 93.33% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of TCOM

Disclaimer

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 (9/6/2024, 8:00:00 PM)

After market: 47.5 -0.06 (-0.13%)

47.56

-0.16 (-0.34%)

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