Despite its growth, NASDAQ:TCOM remains within the realm of affordability.

Last update: Aug 16, 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.

What does the Growth looks like for NASDAQ:TCOM

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:TCOM was assigned a score of 7 for growth:

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.
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!
Based on estimates for the next years, TCOM will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.32% on average per year.
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.

Unpacking NASDAQ:TCOM's Valuation Rating

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:TCOM, the assigned 7 reflects its valuation:

Based on the Price/Earnings ratio, TCOM is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
TCOM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.34.
TCOM is valuated reasonably with a Price/Forward Earnings ratio of 11.51.
80.00% 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 20.80. TCOM is valued slightly cheaper when compared to this.
TCOM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TCOM is cheaper than 89.63% of the companies 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 16.69% in the coming years. This may justify a more expensive valuation.

Unpacking NASDAQ:TCOM's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:TCOM has received a 6 out of 10:

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 82.22% 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 has a Debt to Equity ratio of 0.33. This is in the better half of the industry: TCOM outperforms 74.07% of its industry peers.
With a decent Current ratio value of 1.23, TCOM is doing good in the industry, outperforming 62.22% of the companies in the same industry.
TCOM has a Quick ratio of 1.23. This is in the better half of the industry: TCOM outperforms 65.93% of its industry peers.

Understanding NASDAQ:TCOM's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:TCOM, the assigned 6 is noteworthy for profitability:

TCOM has a Return On Assets of 4.53%. This is in the better half of the industry: TCOM outperforms 64.44% of its industry peers.
The Return On Equity of TCOM (8.12%) is better than 64.44% of its industry peers.
TCOM's Profit Margin of 22.28% is amongst the best of the industry. TCOM outperforms 94.81% of its industry peers.
In the last couple of years the Profit Margin of TCOM has grown nicely.
TCOM has a better Operating Margin (25.44%) than 90.37% of its industry peers.
TCOM's Operating Margin has improved in the last couple of years.
TCOM's Gross Margin of 81.75% is amongst the best of the industry. TCOM outperforms 94.07% of its industry peers.

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

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

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.