TRIP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 70 industry peers in the Interactive Media & Services industry. While TRIP is still in line with the averages on profitability rating, there are concerns on its financial health. TRIP is valued quite cheap, while showing a decent growth score. This is a good combination!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
TRIP had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 2.78%, TRIP is in the better half of the industry, outperforming 67.14% of the companies in the same industry.
TRIP's Return On Equity of 11.17% is amongst the best of the industry. TRIP outperforms 82.86% of its industry peers.
TRIP has a Return On Invested Capital of 6.66%. This is in the better half of the industry: TRIP outperforms 77.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRIP is significantly below the industry average of 13.70%.
The last Return On Invested Capital (6.66%) for TRIP is above the 3 year average (5.01%), which is a sign of increasing profitability.

		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.
TRIP's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 7.56%, TRIP is doing good in the industry, outperforming 64.29% of the companies in the same industry.
In the last couple of years the Operating Margin of TRIP has declined.
TRIP has a better Gross Margin (94.02%) than 95.71% of its industry peers.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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
Compared to 5 years ago, TRIP has more shares outstanding
The debt/assets ratio for TRIP has been reduced compared to a year ago.

2.2 Solvency

TRIP has an Altman-Z score of 1.61. This is a bad value and indicates that TRIP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.61, TRIP is in line with its industry, outperforming 57.14% of the companies in the same industry.
TRIP has a debt to FCF ratio of 4.71. This is a neutral value as TRIP would need 4.71 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.71, TRIP is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
A Debt/Equity ratio of 1.21 is on the high side and indicates that TRIP has dependencies on debt financing.
TRIP's Debt to Equity ratio of 1.21 is on the low side compared to the rest of the industry. TRIP is outperformed by 77.14% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.21
Debt/FCF	4.71
Altman-Z	1.61

ROIC/WACC0.89

WACC7.51%

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.
The Current ratio of TRIP (1.33) is worse than 67.14% of its industry peers.
TRIP has a Quick 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.
The Quick ratio of TRIP (1.33) is worse than 67.14% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.33
Quick Ratio	1.33

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 11.51% over the past year.
Measured over the past years, TRIP shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.84% on average per year.
Looking at the last year, TRIP shows a small growth in Revenue. The Revenue has grown by 4.24% in the last year.
TRIP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.30% yearly.

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

TRIP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.00% yearly.
Based on estimates for the next years, TRIP will show a small growth in Revenue. The Revenue will grow by 5.38% on average per year.

EPS Next Y6.38%

EPS Next 2Y21.36%

EPS Next 3Y22.9%

EPS Next 5Y39%

Revenue Next Year3.71%

Revenue Next 2Y4.34%

Revenue Next 3Y4.9%

Revenue Next 5Y5.38%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 8.54 indicates a reasonable valuation of TRIP.
Based on the Price/Earnings ratio, TRIP is valued cheaply inside the industry as 84.29% of the companies are valued more expensively.
TRIP is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.86, which indicates a rather cheap 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 91.43% of the companies listed in the same industry.
TRIP is valuated 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	8.54
Fwd PE	6.86

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRIP indicates a rather cheap valuation: TRIP is cheaper than 82.86% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TRIP is valued cheaper than 92.86% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	5.97
EV/EBITDA	6.83

4.3 Compensation for Growth

TRIP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of TRIP may justify a higher PE ratio.
TRIP's earnings are expected to grow with 22.90% in the coming years. This may justify a more expensive valuation.