62.48 USD
-1.49 (-2.33%)
62.44 USD
-0.04 (-0.06%)
Taking everything into account, TCOM scores 5 out of 10 in our fundamental rating. TCOM was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. While TCOM belongs to the best of the industry regarding profitability, there are concerns on its financial health. TCOM is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
- TCOM had positive earnings in the past year.
- The reported net income has been mixed in the past 5 years: TCOM reported negative net income in multiple years.
- Of the past 5 years TCOM 4 years had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 11.52%, TCOM belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
- TCOM's Return On Equity of 18.53% is fine compared to the rest of the industry. TCOM outperforms 76.52% of its industry peers.
- TCOM has a better Return On Invested Capital (7.03%) than 62.12% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TCOM is significantly below the industry average of 10.36%.
- The last Return On Invested Capital (7.03%) for TCOM is above the 3 year average (4.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.52% | ||
| ROE | 18.53% | ||
| ROIC | 7.03% |
ROA(3y)4.1%
ROA(5y)2.05%
ROE(3y)7.11%
ROE(5y)3.52%
ROIC(3y)4.09%
ROIC(5y)N/A
1.3 Margins
- TCOM has a better Profit Margin (52.16%) than 99.24% of its industry peers.
- TCOM's Profit Margin has improved in the last couple of years.
- TCOM has a Operating Margin of 26.01%. This is amongst the best in the industry. TCOM outperforms 92.42% of its industry peers.
- In the last couple of years the Operating Margin of TCOM has grown nicely.
- TCOM has a better Gross Margin (80.72%) than 94.70% of its industry peers.
- In the last couple of years the Gross Margin of TCOM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.01% | ||
| PM (TTM) | 52.16% | ||
| GM | 80.72% |
OM growth 3YN/A
OM growth 5Y13.49%
PM growth 3YN/A
PM growth 5Y10.25%
GM growth 3Y1.79%
GM growth 5Y0.48%
2. Health
2.1 Basic Checks
- TCOM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, TCOM has more shares outstanding
- TCOM has more shares outstanding than it did 5 years ago.
- TCOM has a better debt/assets ratio than last year.
2.2 Solvency
- A Debt/Equity ratio of 0.07 indicates that TCOM is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.07, TCOM belongs to the top of the industry, outperforming 82.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.97
WACC7.21%
2.3 Liquidity
- A Current Ratio of 1.48 indicates that TCOM should not have too much problems paying its short term obligations.
- TCOM has a Current ratio of 1.48. This is in the better half of the industry: TCOM outperforms 70.45% of its industry peers.
- A Quick Ratio of 1.48 indicates that TCOM should not have too much problems paying its short term obligations.
- TCOM has a Quick ratio of 1.48. This is in the better half of the industry: TCOM outperforms 74.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 82.17% over the past year.
- TCOM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.05% yearly.
- Looking at the last year, TCOM shows a quite strong growth in Revenue. The Revenue has grown by 17.45% in the last year.
- TCOM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.36% yearly.
EPS 1Y (TTM)82.17%
EPS 3YN/A
EPS 5Y21.05%
EPS Q2Q%214.97%
Revenue 1Y (TTM)17.45%
Revenue growth 3Y38.59%
Revenue growth 5Y8.36%
Sales Q2Q%15.33%
3.2 Future
- Based on estimates for the next years, TCOM will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.24% 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 13.06% on average per year.
EPS Next Y77.39%
EPS Next 2Y6.73%
EPS Next 3Y9.41%
EPS Next 5Y12.24%
Revenue Next Year16.69%
Revenue Next 2Y15.22%
Revenue Next 3Y14.59%
Revenue Next 5Y13.06%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- TCOM is valuated reasonably with a Price/Earnings ratio of 9.03.
- 91.67% of the companies in the same industry are more expensive than TCOM, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.25. TCOM is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 13.56, the valuation of TCOM can be described as correct.
- Based on the Price/Forward Earnings ratio, TCOM is valued a bit cheaper than 79.55% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, TCOM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.03 | ||
| Fwd PE | 13.56 |
4.2 Price Multiples
- TCOM's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.18 |
4.3 Compensation for Growth
- 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.
PEG (NY)0.12
PEG (5Y)0.43
EPS Next 2Y6.73%
EPS Next 3Y9.41%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.07%, TCOM is not a good candidate for dividend investing.
- TCOM's Dividend Yield is comparable with the industry average which is at 1.21.
- Compared to an average S&P500 Dividend Yield of 1.82, TCOM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
5.2 History
- TCOM has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y6.73%
EPS Next 3Y9.41%
TRIP.COM GROUP LTD-ADR / TCOM FAQ
What is the ChartMill fundamental rating of TRIP.COM GROUP LTD-ADR (TCOM) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TCOM.
What is the valuation status of TRIP.COM GROUP LTD-ADR (TCOM) stock?
ChartMill assigns a valuation rating of 5 / 10 to TRIP.COM GROUP LTD-ADR (TCOM). This can be considered as Fairly Valued.
What is the profitability of TCOM stock?
TRIP.COM GROUP LTD-ADR (TCOM) has a profitability rating of 7 / 10.
What is the financial health of TRIP.COM GROUP LTD-ADR (TCOM) stock?
The financial health rating of TRIP.COM GROUP LTD-ADR (TCOM) is 3 / 10.