62.88 USD
+0.78 (+1.26%)
62.87 USD
-0.01 (-0.02%)
We assign a fundamental rating of 5 out of 10 to TCOM. TCOM was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. TCOM has an excellent profitability rating, but there are concerns on its financial health. TCOM is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- In the past year TCOM was profitable.
- In multiple years TCOM reported negative net income over the last 5 years.
- TCOM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 11.52%, TCOM belongs to the best of the industry, outperforming 86.47% of the companies in the same industry.
- The Return On Equity of TCOM (18.53%) is better than 75.94% of its industry peers.
- TCOM's Return On Invested Capital of 7.03% is fine compared to the rest of the industry. TCOM outperforms 61.65% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TCOM is significantly below the industry average of 10.34%.
- 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
- The Profit Margin of TCOM (52.16%) is better than 99.25% of its industry peers.
- In the last couple of years the Profit Margin of TCOM has grown nicely.
- Looking at the Operating Margin, with a value of 26.01%, TCOM belongs to the top of the industry, outperforming 92.48% of the companies in the same industry.
- TCOM's Operating Margin has improved in the last couple of years.
- TCOM's Gross Margin of 80.72% is amongst the best of the industry. TCOM outperforms 94.74% of its industry peers.
- TCOM's Gross Margin has been stable in the last couple of years.
| 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
- The number of shares outstanding for TCOM has been increased compared to 5 years ago.
- Compared to 1 year ago, TCOM has an improved debt to assets ratio.
2.2 Solvency
- TCOM has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
- TCOM has a Debt to Equity ratio of 0.07. This is amongst the best in the industry. TCOM outperforms 82.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.95
WACC7.4%
2.3 Liquidity
- TCOM has a Current Ratio of 1.48. This is a normal value and indicates that TCOM is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.48, TCOM is in the better half of the industry, outperforming 70.68% of the companies in the same industry.
- A Quick Ratio of 1.48 indicates that TCOM should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.48, TCOM is in the better half of the industry, outperforming 74.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
- TCOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 82.17%, which is quite impressive.
- Measured over the past years, TCOM shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.05% on average per year.
- TCOM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.45%.
- Measured over the past years, TCOM shows a quite strong growth in Revenue. The Revenue has been growing by 8.36% on average per year.
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
- The Earnings Per Share is expected to grow by 12.24% on average over the next years. This is quite good.
- 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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
- The Price/Earnings ratio is 9.11, which indicates a very decent valuation of TCOM.
- Compared to the rest of the industry, the Price/Earnings ratio of TCOM indicates a rather cheap valuation: TCOM is cheaper than 92.48% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of TCOM to the average of the S&P500 Index (27.21), we can say TCOM is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 13.69, the valuation of TCOM can be described as correct.
- Based on the Price/Forward Earnings ratio, TCOM is valued a bit cheaper than the industry average as 79.70% of the companies are valued more expensively.
- TCOM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.11 | ||
| Fwd PE | 13.69 |
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 | 12.72 |
4.3 Compensation for Growth
- 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.
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 0.51%, TCOM is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.19, TCOM has a dividend in line with its industry peers.
- With a Dividend Yield of 0.51, TCOM pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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.