NasdaqGS:TRVG

Stock Analysis Report

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Executive Summary

trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform. More Details

Rewards

Trading at 14.3% below our estimate of its fair value

Earnings are forecast to grow 94.75% per year

Risk Analysis

No risks detected for TRVG from our risk checks.


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

How has trivago's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TRVG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: TRVG's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

47.3%

TRVG

0.8%

US Interactive Media and Services

1.8%

US Market


1 Year Return

-12.6%

TRVG

37.6%

US Interactive Media and Services

20.4%

US Market

Return vs Industry: TRVG underperformed the US Interactive Media and Services industry which returned 37.6% over the past year.

Return vs Market: TRVG underperformed the US Market which returned 20.4% over the past year.


Shareholder returns

TRVGIndustryMarket
7 Day47.3%0.8%1.8%
30 Day43.3%3.6%6.0%
90 Day15.6%2.6%6.8%
1 Year-12.6%-12.6%37.6%37.6%23.2%20.4%
3 Year-69.9%-69.9%52.4%52.2%47.4%37.6%
5 Yearn/a119.8%119.3%91.9%70.8%

Long-Term Price Volatility Vs. Market

How volatile is trivago's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is trivago undervalued compared to its fair value and its price relative to the market?

14.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TRVG ($2.15) is trading below our estimate of fair value ($2.51)

Significantly Below Fair Value: TRVG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TRVG is unprofitable, so we can't compare its PE Ratio to the US Interactive Media and Services industry average.

PE vs Market: TRVG is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TRVG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TRVG is good value based on its PB Ratio (1x) compared to the US Interactive Media and Services industry average (3x).


Next Steps

Future Growth

How is trivago forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

94.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRVG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: TRVG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TRVG's is expected to become profitable in the next 3 years.

Revenue vs Market: TRVG's revenue (26.2% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: TRVG's revenue (26.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRVG's Return on Equity is forecast to be low in 3 years time (1.6%).


Next Steps

Past Performance

How has trivago performed over the past 5 years?

-41.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRVG is currently unprofitable.

Growing Profit Margin: TRVG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TRVG is unprofitable, and losses have increased over the past 5 years at a rate of 41.1% per year.

Accelerating Growth: Unable to compare TRVG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TRVG is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (5%).


Return on Equity

High ROE: TRVG has a negative Return on Equity (-34.89%), as it is currently unprofitable.


Next Steps

Financial Health

How is trivago's financial position?


Financial Position Analysis

Short Term Liabilities: TRVG's short term assets (€266.5M) exceed its short term liabilities (€36.1M).

Long Term Liabilities: TRVG's short term assets (€266.5M) exceed its long term liabilities (€134.2M).


Debt to Equity History and Analysis

Debt Level: TRVG is debt free.

Reducing Debt: TRVG has no debt compared to 5 years ago when its debt to equity ratio was 3.3%.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable TRVG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TRVG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 22.2% per year.


Next Steps

Dividend

What is trivago current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TRVG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TRVG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TRVG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TRVG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TRVG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Axel Hefer (43 yo)

0.92

Tenure

€444,000

Compensation

Mr. Axel Peter Hefer is Chief Executive Officer of trivago N.V. since December 31, 2019 and its Member of Management Board since 2016. He serves as Managing Director for Finance, Legal, International, Mark...


CEO Compensation Analysis

Compensation vs Market: Axel's total compensation ($USD527.57K) is below average for companies of similar size in the US market ($USD2.58M).

Compensation vs Earnings: Axel's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Axel Hefer
CEO, MD of Finance0.92yr€444.00k0.61%
€ 4.6m
Rolf Theo Schrömgens
Founder & Member of Supervisory Board0.92yr€40.00k16.44%
€ 125.0m
Matthias Tillmann
MD & CFO0.92yrno datano data
James Carter
MD, Chief Product & Technology Officer and Head of Hotel Search1.33yrsno datano data
Elie Matta
Head of Corporate Development2.08yrsno datano data

1.1yrs

Average Tenure

43yo

Average Age

Experienced Management: TRVG's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Rolf Theo Schrömgens
Founder & Member of Supervisory Board0.92yr€40.00k16.44%
€ 125.0m
Hiren Mankodi
Independent Member of Supervisory Board2.83yrs€45.00k0.0094%
€ 71.5k
Robert Dzielak
Member of the Supervisory Board3.17yrsno datano data
Peter Kern
Chairman of Supervisory Board0.92yr€45.00k0.045%
€ 345.2k
Frederic Mazzella
Independent Member of Supervisory Board4.83yrs€45.00k0.046%
€ 350.7k
L. Östberg
Independent Member of Supervisory Board4.83yrs€45.00k0.050%
€ 377.0k
Ariane Gorin
Member of Supervisory Board0.92yrno datano data

2.8yrs

Average Tenure

45yo

Average Age

Experienced Board: TRVG's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

trivago N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: trivago N.V.
  • Ticker: TRVG
  • Exchange: NasdaqGS
  • Founded: 2005
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$760.392m
  • Shares outstanding: 353.67m
  • Website: https://www.trivago.de

Number of Employees


Location

  • trivago N.V.
  • Kesselstrasse 5 - 7
  • Dusseldorf
  • North Rhine-Westphalia
  • 40221
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRVGNasdaqGS (Nasdaq Global Select)YesSPON ADS SHS AUSUSDDec 2016
TVAGBST (Boerse-Stuttgart)YesSPON ADS SHS ADEEURDec 2016
TRVGWBAG (Wiener Boerse AG)YesSPON ADS SHS AATEURDec 2016

Biography

trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform. It offers online meta-search for hotels and accommodation through online travel agencies, hotel chains, and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 00:27
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.