Proceed with Caution – Analyzing Trip.com's Fundamentals Before Investing

By Scott Lee • Thursday, July 11 07:48 • Permanent Link

Trip.com sank -3.8% today, compared to the S&P 500's day change of 1.0%. Today's losers may turn out to be tomorrow's winners, so be sure to check the stock's fundamentals before making an investment decision:

Trip.com has moved 28.9% over the last year, and the S&P 500 logged a change of 24.9%
TCOM has an average analyst rating of buy and is -26.49% away from its mean target price of $66.64 per share
Its trailing earnings per share (EPS) is $2.22
Trip.com has a trailing 12 month Price to Earnings (P/E) ratio of 22.1 while the S&P 500 average is 27.65
Its forward earnings per share (EPS) is $3.44 and its forward P/E ratio is 14.2
The company has a Price to Book (P/B) ratio of 0.25 in contrast to the S&P 500's average ratio of 4.59
Trip.com is part of the Consumer Discretionary sector, which has an average P/E ratio of 22.06 and an average P/B of 3.18
TCOM has reported YOY quarterly earnings growth of 27.1% and gross profit margins of 0.8%
The company has a free cash flow of $13.72 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter
Trip.com Group Limited, through its subsidiaries, operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours and in-destination, corporate travel management, and other travel-related services in China and internationally. The company acts as an agent for hotel-related transactions and selling air tickets, as well as provides train, long-distance bus, and ferry tickets; travel insurance products, such as flight delay, air accident, and baggage loss coverage; and air-ticket delivery, online check-in and seat selection, express security screening, real-time flight status tracker, and airport VIP lounge services. It also provides independent leisure travelers bundled packaged-tour products comprising group, semi-group, and customized and packaged tours with various transportation arrangements, including air, cruise, bus, and car rental services. In addition, the company offers integrated transportation and accommodation services; destination transportation and ticket, activity, insurance, visa, and tour guide services; user support, supplier management, and customer relationship management services; and in-destination products and services. Further, It provides its corporate clients with business visit, incentive trip, meeting and conference, travel data collection and analysis, and industry benchmarking solutions; and Corporate Travel Management System, an online platform that integrates information management, online booking and authorization, online inquiry, and travel reporting systems. Additionally, the company offers online advertising and financial services, such as marketing planning and travel media services. It operates under the Ctrip, Qunar, Trip.com, and Skyscanner brands. The company was formerly known as Ctrip.com International, Ltd. and changed its name to Trip.com Group Limited in October 2019. Trip.com Group Limited was founded in 1999 and is based in Singapore.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.