TRIPADVISOR INC (TRIP) Stock Fundamental Analysis
NASDAQ:TRIP - Nasdaq - US8969452015 - Common Stock - Currency: USD
Taking everything into account, TRIP scores 5 out of 10 in our fundamental rating. TRIP was compared to 70 industry peers in the Interactive Media & Services industry. TRIP has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on TRIP.
1. Profitability
1.1 Basic Checks
TRIP had positive earnings in the past year.
TRIP had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TRIP reported negative net income in multiple years.
Of the past 5 years TRIP 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 0.20%, TRIP is doing good in the industry, outperforming 61.43% of the companies in the same industry.
The Return On Equity of TRIP (0.53%) is better than 64.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.62%, TRIP is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TRIP is significantly below the industry average of 11.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 0.53% | ||
| ROIC | 4.62% |
ROA(3y)0.46%
ROA(5y)-3.96%
ROE(3y)1.33%
ROE(5y)-9.48%
ROIC(3y)5.01%
ROIC(5y)N/A
1.3 Margins
TRIP has a Profit Margin of 0.27%. This is in the better half of the industry: TRIP outperforms 61.43% of its industry peers.
In the last couple of years the Profit Margin of TRIP has declined.
Looking at the Operating Margin, with a value of 6.16%, TRIP is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
TRIP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 92.86%, TRIP belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
In the last couple of years the Gross Margin of TRIP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.16% | ||
| PM (TTM) | 0.27% | ||
| GM | 92.86% |
OM growth 3YN/A
OM growth 5Y-12.01%
PM growth 3YN/A
PM growth 5Y-49.23%
GM growth 3Y0.39%
GM growth 5Y-0.24%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRIP is destroying value.
Compared to 1 year ago, TRIP has more shares outstanding
TRIP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TRIP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.96 indicates that TRIP is not a great score, but indicates only limited risk for bankruptcy at the moment.
TRIP's Altman-Z score of 1.96 is fine compared to the rest of the industry. TRIP outperforms 68.57% of its industry peers.
TRIP has a debt to FCF ratio of 12.66. This is a negative value and a sign of low solvency as TRIP would need 12.66 years to pay back of all of its debts.
TRIP has a Debt to FCF ratio of 12.66. This is comparable to the rest of the industry: TRIP outperforms 57.14% of its industry peers.
TRIP has a Debt/Equity ratio of 0.93. This is a neutral value indicating TRIP is somewhat dependend on debt financing.
TRIP has a Debt to Equity ratio of 0.93. This is in the lower half of the industry: TRIP underperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 12.66 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.51
WACC8.97%
2.3 Liquidity
TRIP has a Current Ratio of 2.10. This indicates that TRIP is financially healthy and has no problem in meeting its short term obligations.
TRIP has a Current ratio (2.10) which is comparable to the rest of the industry.
A Quick Ratio of 2.10 indicates that TRIP has no problem at all paying its short term obligations.
With a Quick ratio value of 2.10, TRIP perfoms like the industry average, outperforming 55.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
TRIP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.55%.
The Earnings Per Share has been decreasing by -5.84% on average over the past years.
Looking at the last year, TRIP shows a small growth in Revenue. The Revenue has grown by 2.63% in the last year.
Measured over the past years, TRIP shows a small growth in Revenue. The Revenue has been growing by 3.30% on average per year.
EPS 1Y (TTM)1.55%
EPS 3YN/A
EPS 5Y-5.84%
EPS Q2Q%-21.05%
Revenue 1Y (TTM)2.63%
Revenue growth 3Y26.71%
Revenue growth 5Y3.3%
Sales Q2Q%5.38%
3.2 Future
The Earnings Per Share is expected to grow by 27.72% on average over the next years. This is a very strong growth
Based on estimates for the next years, TRIP will show a small growth in Revenue. The Revenue will grow by 6.53% on average per year.
EPS Next Y9.42%
EPS Next 2Y13%
EPS Next 3Y17.22%
EPS Next 5Y27.72%
Revenue Next Year5.37%
Revenue Next 2Y6.28%
Revenue Next 3Y6.74%
Revenue Next 5Y6.53%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.08, the valuation of TRIP can be described as reasonable.
Based on the Price/Earnings ratio, TRIP is valued cheaper than 84.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of TRIP to the average of the S&P500 Index (28.33), we can say TRIP is valued rather cheaply.
The Price/Forward Earnings ratio is 8.29, which indicates a very decent valuation of TRIP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRIP indicates a rather cheap valuation: TRIP is cheaper than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.37, TRIP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.08 | ||
| Fwd PE | 8.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRIP is valued cheaper than 82.86% of the companies in the same industry.
TRIP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TRIP is cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.84 | ||
| EV/EBITDA | 7.53 |
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.
A more expensive valuation may be justified as TRIP's earnings are expected to grow with 17.22% in the coming years.
PEG (NY)0.96
PEG (5Y)N/A
EPS Next 2Y13%
EPS Next 3Y17.22%
5. Dividend
5.1 Amount
TRIP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.89
+0.47 (+4.12%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners84.67%
Inst Owner Change0.34%
Ins Owners0.65%
Ins Owner Change2.8%
Market Cap1.67B
Analysts55.83
Price Target18.43 (55%)
Short Float %8.43%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.01%
Min EPS beat(2)10.75%
Max EPS beat(2)41.26%
EPS beat(4)4
Avg EPS beat(4)132.49%
Min EPS beat(4)3.23%
Max EPS beat(4)474.73%
EPS beat(8)6
Avg EPS beat(8)71.78%
EPS beat(12)8
Avg EPS beat(12)75.46%
EPS beat(16)9
Avg EPS beat(16)48.54%
Revenue beat(2)1
Avg Revenue beat(2)-0.23%
Min Revenue beat(2)-1.2%
Max Revenue beat(2)0.74%
Revenue beat(4)1
Avg Revenue beat(4)-1.47%
Min Revenue beat(4)-3.48%
Max Revenue beat(4)0.74%
Revenue beat(8)5
Avg Revenue beat(8)0.42%
Revenue beat(12)9
Avg Revenue beat(12)1.03%
Revenue beat(16)10
Avg Revenue beat(16)1.68%
PT rev (1m)-3.56%
PT rev (3m)-4.55%
EPS NQ rev (1m)-5.67%
EPS NQ rev (3m)-62.22%
EPS NY rev (1m)0.4%
EPS NY rev (3m)1.98%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-3.97%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.08 | ||
| Fwd PE | 8.29 | ||
| P/S | 0.91 | ||
| P/FCF | 23.84 | ||
| P/OCF | 11.59 | ||
| P/B | 1.77 | ||
| P/tB | 17.95 | ||
| EV/EBITDA | 7.53 |
EPS(TTM)1.31
EY11.02%
EPS(NY)1.43
Fwd EY12.06%
FCF(TTM)0.5
FCFY4.19%
OCF(TTM)1.03
OCFY8.63%
SpS13.07
BVpS6.72
TBVpS0.66
PEG (NY)0.96
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 0.53% | ||
| ROCE | 5.85% | ||
| ROIC | 4.62% | ||
| ROICexc | 10.27% | ||
| ROICexgc | 469.84% | ||
| OM | 6.16% | ||
| PM (TTM) | 0.27% | ||
| GM | 92.86% | ||
| FCFM | 3.81% |
ROA(3y)0.46%
ROA(5y)-3.96%
ROE(3y)1.33%
ROE(5y)-9.48%
ROIC(3y)5.01%
ROIC(5y)N/A
ROICexc(3y)10.77%
ROICexc(5y)N/A
ROICexgc(3y)333.92%
ROICexgc(5y)N/A
ROCE(3y)6.35%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y55.67%
ROICexc growth 3YN/A
ROICexc growth 5Y-2.57%
OM growth 3YN/A
OM growth 5Y-12.01%
PM growth 3YN/A
PM growth 5Y-49.23%
GM growth 3Y0.39%
GM growth 5Y-0.24%
F-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 12.66 | ||
| Debt/EBITDA | 4.41 | ||
| Cap/Depr | 87.06% | ||
| Cap/Sales | 4.03% | ||
| Interest Coverage | 1.95 | ||
| Cash Conversion | 72.73% | ||
| Profit Quality | 1400% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z | 1.96 |
F-Score7
WACC8.97%
ROIC/WACC0.51
Cap/Depr(3y)72.4%
Cap/Depr(5y)61.97%
Cap/Sales(3y)3.77%
Cap/Sales(5y)5.28%
Profit Quality(3y)1613.33%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.55%
EPS 3YN/A
EPS 5Y-5.84%
EPS Q2Q%-21.05%
EPS Next Y9.42%
EPS Next 2Y13%
EPS Next 3Y17.22%
EPS Next 5Y27.72%
Revenue 1Y (TTM)2.63%
Revenue growth 3Y26.71%
Revenue growth 5Y3.3%
Sales Q2Q%5.38%
Revenue Next Year5.37%
Revenue Next 2Y6.28%
Revenue Next 3Y6.74%
Revenue Next 5Y6.53%
EBIT growth 1Y-26.62%
EBIT growth 3YN/A
EBIT growth 5Y-9.11%
EBIT Next Year235.58%
EBIT Next 3Y61.42%
EBIT Next 5Y38.9%
FCF growth 1Y-59.3%
FCF growth 3Y9.04%
FCF growth 5Y-27.14%
OCF growth 1Y-38.72%
OCF growth 3Y10.06%
OCF growth 5Y-19.43%