13.42 USD
+0.41 (+3.15%)
13.4 USD
-0.02 (-0.15%)
We assign a fundamental rating of 5 out of 10 to TRIP. TRIP was compared to 70 industry peers in the Interactive Media & Services industry. TRIP has a medium profitability rating, but doesn't score so well on its financial health evaluation. TRIP may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- In the past year TRIP was profitable.
- 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.
- TRIP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of TRIP (2.78%) is better than 67.14% of its industry peers.
- With an excellent Return On Equity value of 11.17%, TRIP belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
- With a decent Return On Invested Capital value of 6.66%, TRIP is doing good in the industry, outperforming 77.14% of the companies in the same industry.
- TRIP had an Average Return On Invested Capital over the past 3 years of 5.01%. This is significantly below the industry average of 13.70%.
- The 3 year average ROIC (5.01%) for TRIP is below the current ROIC(6.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 11.17% | ||
| ROIC | 6.66% |
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
- Looking at the Profit Margin, with a value of 4.18%, TRIP is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
- In the last couple of years the Profit Margin of TRIP has declined.
- TRIP has a Operating Margin of 7.56%. This is in the better half of the industry: TRIP outperforms 64.29% of its industry peers.
- In the last couple of years the Operating Margin of TRIP has declined.
- Looking at the Gross Margin, with a value of 94.02%, TRIP belongs to the top of the industry, outperforming 95.71% 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 | 7.56% | ||
| PM (TTM) | 4.18% | ||
| GM | 94.02% |
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
- TRIP 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, TRIP has more shares outstanding
- Compared to 5 years ago, TRIP has more shares outstanding
- TRIP has a better debt/assets ratio than last year.
2.2 Solvency
- TRIP has an Altman-Z score of 1.59. This is a bad value and indicates that TRIP is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of TRIP (1.59) is comparable to the rest of the industry.
- The Debt to FCF ratio of TRIP is 4.71, which is a neutral value as it means it would take TRIP, 4.71 years of fcf income to pay off all of its debts.
- TRIP's Debt to FCF ratio of 4.71 is fine compared to the rest of the industry. TRIP outperforms 62.86% of its industry peers.
- TRIP has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
- TRIP has a worse Debt to Equity ratio (1.21) than 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 4.71 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.88
WACC7.54%
2.3 Liquidity
- TRIP has a Current Ratio of 1.33. This is a normal value and indicates that TRIP is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.33, TRIP is doing worse than 67.14% of the companies in the same industry.
- A Quick Ratio of 1.33 indicates that TRIP should not have too much problems paying its short term obligations.
- TRIP's Quick ratio of 1.33 is on the low side compared to the rest of the industry. TRIP is outperformed by 67.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
- TRIP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.51%, which is quite good.
- TRIP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.84% yearly.
- TRIP shows a small growth in Revenue. In the last year, the Revenue has grown by 4.24%.
- The Revenue has been growing slightly by 3.30% on average over the past years.
EPS 1Y (TTM)11.51%
EPS 3YN/A
EPS 5Y-5.84%
EPS Q2Q%30%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y26.71%
Revenue growth 5Y3.3%
Sales Q2Q%3.95%
3.2 Future
- Based on estimates for the next years, TRIP will show a very strong growth in Earnings Per Share. The EPS will grow by 39.00% on average per year.
- The Revenue is expected to grow by 5.38% on average over the next years.
EPS Next Y6.38%
EPS Next 2Y22.53%
EPS Next 3Y23.77%
EPS Next 5Y39%
Revenue Next Year3.71%
Revenue Next 2Y4.34%
Revenue Next 3Y4.9%
Revenue Next 5Y5.38%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 8.66, the valuation of TRIP can be described as very reasonable.
- Based on the Price/Earnings ratio, TRIP is valued cheaper than 84.29% of the companies in the same industry.
- TRIP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- A Price/Forward Earnings ratio of 6.82 indicates a rather cheap valuation of TRIP.
- TRIP's Price/Forward Earnings ratio is rather cheap when compared to the industry. TRIP is cheaper than 91.43% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. TRIP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.66 | ||
| Fwd PE | 6.82 |
4.2 Price Multiples
- 82.86% of the companies in the same industry are more expensive than TRIP, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRIP indicates a rather cheap valuation: TRIP is cheaper than 94.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.06 | ||
| EV/EBITDA | 6.53 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- TRIP has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as TRIP's earnings are expected to grow with 23.77% in the coming years.
PEG (NY)1.36
PEG (5Y)N/A
EPS Next 2Y22.53%
EPS Next 3Y23.77%
5. Dividend
5.1 Amount
- No dividends for TRIP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TRIPADVISOR INC / TRIP FAQ
What is the ChartMill fundamental rating of TRIPADVISOR INC (TRIP) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TRIP.
Can you provide the valuation status for TRIPADVISOR INC?
ChartMill assigns a valuation rating of 9 / 10 to TRIPADVISOR INC (TRIP). This can be considered as Undervalued.
What is the profitability of TRIP stock?
TRIPADVISOR INC (TRIP) has a profitability rating of 6 / 10.
What is the expected EPS growth for TRIPADVISOR INC (TRIP) stock?
The Earnings per Share (EPS) of TRIPADVISOR INC (TRIP) is expected to grow by 6.38% in the next year.
How sustainable is the dividend of TRIPADVISOR INC (TRIP) stock?
The dividend rating of TRIPADVISOR INC (TRIP) is 0 / 10 and the dividend payout ratio is 0%.