Investors should take notice of NASDAQ:TCOM—it offers a great deal for the fundamentals it presents.

Last update: Jul 29, 2024

TRIP.COM GROUP LTD-ADR (NASDAQ:TCOM) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:TCOM showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Analyzing Valuation Metrics

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:TCOM has received a 7 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of TCOM indicates a rather cheap valuation: TCOM is cheaper than 82.22% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TCOM to the average of the S&P500 Index (24.43), we can say TCOM is valued slightly cheaper.
Based on the Price/Forward Earnings ratio, TCOM is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
TCOM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.63, which is the current average of the S&P500 Index.
Based on the Price/Free Cash Flow ratio, TCOM is valued cheaply inside the industry as 92.59% of the companies are valued more expensively.
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.
TCOM's earnings are expected to grow with 16.89% in the coming years. This may justify a more expensive valuation.

Profitability Analysis for NASDAQ:TCOM

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

With a decent Return On Assets value of 4.53%, TCOM is doing good in the industry, outperforming 63.70% of the companies in the same industry.
The Return On Equity of TCOM (8.12%) is better than 61.48% of its industry peers.
TCOM has a Profit Margin of 22.28%. This is amongst the best in the industry. TCOM outperforms 94.81% of its industry peers.
TCOM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 25.44%, TCOM belongs to the best of the industry, outperforming 90.37% of the companies in the same industry.
TCOM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 81.75%, TCOM belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.

Analyzing Health Metrics

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:

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 82.22% of the companies in the same industry.
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.
With a decent Quick ratio value of 1.23, TCOM is doing good in the industry, outperforming 62.96% of the companies in the same industry.

Growth Assessment of 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.
The Earnings Per Share has been growing by 15.24% on average over the past years. This is quite good.
TCOM shows a strong growth in Revenue. In the last year, the Revenue has grown by 122.12%.
The Earnings Per Share is expected to grow by 16.32% on average over the next years. This is quite good.
TCOM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.87% 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.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.