Now trading at a price of $66.99, Trip.com has moved -2.9% so far today.
Trip.com returned gains of 87.1% last year, with its stock price reaching a high of $77.18 and a low of $35.9. Over the same period, the stock outperformed the S&P 500 index by 62.9%. More recently, the company's 50-day average price was $67.31. 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. Based in Singapore, Singapore, the Large-Cap Consumer Discretionary company has 36,249 full time employees. Trip.com has not offered a dividend during the last year.
Wider Gross Margins Than the Industry Average of 45.16%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $4,524 | $5,122 | $2,807 | $3,142 | $2,907 | $6,269 |
| Gross Margins | 79% | 79% | 78% | 77% | 78% | 82% |
| Net Margins | 4% | 20% | -18% | -3% | 7% | 22% |
| Net Income (M) | $162 | $1,006 | -$497 | -$86 | $206 | $1,397 |
| Net Interest Expense (M) | $219 | $241 | $263 | $246 | $219 | $291 |
| Depreciation & Amort. (M) | $79 | $94 | $121 | $113 | $92 | $88 |
| Diluted Shares (M) | 567 | 642 | 601 | 634 | 657 | 671 |
| Earnings Per Share | $0.29 | $1.57 | -$0.83 | -$0.14 | $0.31 | $2.08 |
| EPS Growth | n/a | 441.38% | -152.87% | 83.13% | 321.43% | 570.97% |
| Free Cash Flow (M) | $938 | $937 | -$669 | $299 | $308 | $3,013 |
| CAPEX (M) | $98 | $118 | $81 | $89 | $72 | $85 |
| Total Debt (M) | $8,750 | $7,189 | $8,641 | $6,263 | $17,837 | $22,742 |
| Net Debt / EBITDA | 12.27 | 5.3 | -60.49 | -29.19 | 143.66 | 10.03 |
| Current Ratio | 1.15 | 0.98 | 0.99 | 1.0 | 1.0 | 1.23 |
Trip.com has exceptional EPS growth, generally positive cash flows, and wider gross margins than its peer group. However, the firm has a highly leveraged balance sheet. Finally, we note that Trip.com has growing revenues and decreasing reinvestment in the business and just enough current assets to cover current liabilities, as shown by its current ratio of 1.23.
an Exceptionally Low P/B Ratio but Its Shares Are Expensive:
Trip.com has a trailing twelve month P/E ratio of 23.8, compared to an average of 22.6 for the Consumer Discretionary sector. Based on its EPS guidance of $3.64, the company has a forward P/E ratio of 18.5. According to the 43.5% compound average growth rate of Trip.com's historical and projected earnings per share, the company's PEG ratio is 0.55. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 19.9%. On this basis, the company's PEG ratio is 1.19. This implies that the shares are fairly valued. Additionally, the market is possibly undervaluing Trip.com in terms of its equity because its P/B ratio is 0.35 whereas the sector average is 3.19. The company's shares are currently trading 93.4% below their Graham number.
Trip.com Has an Analyst Consensus of Some Upside Potential:
The 30 analysts following Trip.com have set target prices ranging from $51.45486 to $100.86802 per share, for an average of $77.51 with a buy rating. The company is trading -13.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Trip.com has an average amount of shares sold short because 2.2% of the company's shares are sold short. Institutions own 43.4% of the company's shares, and the insider ownership rate stands at 0.0%, suggesting a small amount of insider investors. The largest shareholder is Capital World Investors, whose 8% stake in the company is worth $3,476,150,580.
