Don't overlook NASDAQ:TCOM—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Aug 19, 2024

Uncover the potential of TRIP.COM GROUP LTD-ADR (NASDAQ:TCOM) as our stock screener's choice for an undervalued stock. NASDAQ:TCOM maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

A Closer Look at Valuation for NASDAQ:TCOM

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:

78.52% of the companies in the same industry are more expensive than TCOM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TCOM to the average of the S&P500 Index (29.43), we can say TCOM is valued rather cheaply.
TCOM is valuated reasonably with a Price/Forward Earnings ratio of 11.73.
80.00% of the companies in the same industry are more expensive than TCOM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.82, TCOM is valued a bit cheaper.
Based on the Price/Free Cash Flow ratio, TCOM is valued cheaply inside the industry as 89.63% of the companies are valued more expensively.
The 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 16.69% in the coming years. This may justify a more expensive valuation.

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 63.70% of its industry peers.
TCOM's Return On Equity of 8.12% is fine compared to the rest of the industry. TCOM outperforms 65.93% of its industry peers.
With an excellent Profit Margin value of 22.28%, TCOM belongs to the best 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 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 has a better Gross Margin (81.75%) than 94.07% of its industry peers.

Health Analysis for NASDAQ:TCOM

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.
TCOM's Debt to FCF ratio of 2.10 is amongst the best of the industry. TCOM outperforms 83.70% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that TCOM is not too dependend on debt financing.
TCOM has a better Debt to Equity ratio (0.33) than 72.59% of its industry peers.
TCOM's Current ratio of 1.23 is fine compared to the rest of the industry. TCOM outperforms 62.96% of its industry peers.
With a decent Quick ratio value of 1.23, TCOM is doing good in the industry, outperforming 66.67% of the companies in the same industry.

Growth Assessment of 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.
Measured over the past years, TCOM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.24% on average per year.
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.
Based on estimates for the next years, TCOM will show a quite strong growth in Revenue. The Revenue will grow by 12.87% on average per year.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of TCOM contains the most current fundamental analsysis.

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.