62.02 USD
-0.38 (-0.61%)
61.81 USD
-0.21 (-0.34%)
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 not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- TCOM had positive earnings in the past year.
- In multiple years TCOM reported negative net income over the last 5 years.
- Of the past 5 years TCOM 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of TCOM (11.52%) is better than 86.36% of its industry peers.
- The Return On Equity of TCOM (18.53%) is better than 76.52% of its industry peers.
- TCOM's Return On Invested Capital of 7.03% is fine compared to the rest of the industry. TCOM outperforms 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 10.37%.
- 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's Profit Margin of 52.16% is amongst the best of the industry. TCOM outperforms 99.24% of its industry peers.
- TCOM's Profit Margin has improved in the last couple of years.
- The Operating Margin of TCOM (26.01%) is better than 92.42% of its industry peers.
- TCOM's Operating Margin has improved in the last couple of years.
- TCOM has a better Gross Margin (80.72%) than 94.70% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TCOM is destroying value.
- The number of shares outstanding for TCOM has been increased compared to 1 year ago.
- The number of shares outstanding for TCOM has been increased compared to 5 years ago.
- TCOM has a better debt/assets ratio than last year.
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's Debt to Equity ratio of 0.07 is amongst the best of the industry. TCOM outperforms 82.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.98
WACC7.19%
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.
- With a decent Current ratio value of 1.48, TCOM is doing good in the industry, outperforming 70.45% of the companies in the same industry.
- TCOM has a Quick 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.
- TCOM has a better Quick ratio (1.48) than 74.24% of its industry peers.
| 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.
- 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.
- 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.
- TCOM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.06% yearly.
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
- With a Price/Earnings ratio of 8.95, the valuation of TCOM can be described as very reasonable.
- 91.67% 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 (28.39), we can say TCOM is valued rather cheaply.
- With a Price/Forward Earnings ratio of 13.45, TCOM is valued correctly.
- Based on the Price/Forward Earnings ratio, TCOM is valued a bit cheaper than the industry average as 79.55% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. TCOM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 13.45 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TCOM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.73 |
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.
- 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.