NasdaqGS:TCOM

Stock Analysis Report

Executive Summary

Trip.com Group Limited operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours, and corporate travel management in China.


Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Trip.com Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TCOM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

TCOM

-2.2%

US Online Retail

-1.1%

US Market


1 Year Return

0.8%

TCOM

22.6%

US Online Retail

17.8%

US Market

Return vs Industry: TCOM underperformed the US Online Retail industry which returned 22.6% over the past year.

Return vs Market: TCOM underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

TCOMIndustryMarket
7 Day-1.1%-2.2%-1.1%
30 Day3.6%6.6%1.5%
90 Day0.8%13.8%6.6%
1 Year0.8%0.8%22.6%22.6%20.2%17.8%
3 Year-31.9%-31.9%104.6%104.3%47.5%38.1%
5 Year45.7%45.7%210.8%197.2%71.2%52.4%

Price Volatility Vs. Market

How volatile is Trip.com Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Trip.com Group undervalued compared to its fair value and its price relative to the market?

33.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TCOM ($33.06) is trading above our estimate of fair value ($32.43)

Significantly Below Fair Value: TCOM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TCOM is poor value based on its PE Ratio (33.9x) compared to the Online Retail industry average (32.6x).

PE vs Market: TCOM is poor value based on its PE Ratio (33.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: TCOM is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: TCOM is good value based on its PB Ratio (1.3x) compared to the US Online Retail industry average (3x).


Next Steps

Future Growth

How is Trip.com Group forecast to perform in the next 1 to 3 years based on estimates from 34 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCOM's forecast earnings growth (13% per year) is above the savings rate (1.7%).

Earnings vs Market: TCOM's earnings (13% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: TCOM's earnings are forecast to grow, but not significantly.

Revenue vs Market: TCOM's revenue (11.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: TCOM's revenue (11.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TCOM's Return on Equity is forecast to be low in 3 years time (7.1%).


Next Steps

Past Performance

How has Trip.com Group performed over the past 5 years?

36.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCOM has high quality earnings.

Growing Profit Margin: TCOM's current net profit margins (10.9%) are higher than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: TCOM's earnings have grown significantly by 36.9% per year over the past 5 years.

Accelerating Growth: TCOM's earnings growth over the past year (43.7%) exceeds its 5-year average (36.9% per year).

Earnings vs Industry: TCOM earnings growth over the past year (43.7%) exceeded the Online Retail industry 15%.


Return on Equity

High ROE: TCOM's Return on Equity (3.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Trip.com Group's financial position?


Financial Position Analysis

Short Term Liabilities: TCOM's short term assets (CN¥75.6B) exceed its short term liabilities (CN¥74.1B).

Long Term Liabilities: TCOM's short term assets (CN¥75.6B) exceed its long term liabilities (CN¥25.1B).


Debt to Equity History and Analysis

Debt Level: TCOM's debt to equity ratio (54.9%) is considered high.

Reducing Debt: TCOM's debt to equity ratio has reduced from 104% to 54.9% over the past 5 years.

Debt Coverage: TCOM's debt is not well covered by operating cash flow (15.2%).

Interest Coverage: TCOM earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: TCOM has a low level of unsold assets or inventory.

Debt Coverage by Assets: TCOM's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is Trip.com Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: TCOM is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TCOM'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?

5.0yrs

Average management tenure


CEO

Jane Jie Sun (50yo)

3.3yrs

Tenure

0

Ms. Jane Jie Sun serves as Director at MakeMyTrip Limited since August 30, 2019. Ms. Sun has been the Chief Executive Officer of Ctrip.com International Ltd. since November 2016 and has been its Director s ...


Leadership Team

NamePositionTenureCompensationOwnership
Jianzhang Liang
Co-Founder & Executive Chairman16.5yrsno data1.06% CN¥207.1m
Jane Jie Sun
CEO & Director3.3yrsno data0.21% CN¥40.5m
Min Fan
Co-Founder6.9yrsno data1.36% CN¥263.9m
Nanpeng Shen
Co-Founder & Independent Director20.7yrsno datano data
Qi Ji
Co-Founder & Independent Director20.7yrsno datano data
Xiaofan Wang
CFO & Executive VP6.3yrsno datano data
Maohua Sun
COO & Executive VP3.3yrsno datano data
Xiong Xing
Executive Vice President3.8yrsno datano data
Yaming Ye
Vice President of Technology7.1yrsno datano data
Michelle Qi
Senior IR Director0yrsno datano data

5.0yrs

Average Tenure

50yo

Average Age

Experienced Management: TCOM's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jianzhang Liang
Co-Founder & Executive Chairman16.5yrsno data1.06% CN¥207.1m
Jane Jie Sun
CEO & Director3.3yrsno data0.21% CN¥40.5m
Min Fan
Co-Founder6.9yrsno data1.36% CN¥263.9m
Nanpeng Shen
Co-Founder & Independent Director20.7yrsno datano data
Qi Ji
Co-Founder & Independent Director20.7yrsno datano data
Yanhong Li
Director4.3yrsno datano data
Jipei Li
Independent Vice Chairman16.5yrsno datano data
Jianping Gan
Independent Director18.1yrsno datano data
Gillian Tans
Board Observer1.7yrsno datano data
Dou Shen
Director0.3yrsno datano data

11.7yrs

Average Tenure

50yo

Average Age

Experienced Board: TCOM's board of directors are seasoned and experienced ( 11.7 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

Trip.com Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Trip.com Group Limited
  • Ticker: TCOM
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$19.453b
  • Shares outstanding: 588.42m
  • Website: https://www.trip.com

Number of Employees


Location

  • Trip.com Group Limited
  • No. 99 Fu Quan Road
  • Shanghai
  • 200335
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCOMNasdaqGS (Nasdaq Global Select)YesADR EACH REPR 0.125 ORD SHSUSUSDDec 2003
CLVDB (Deutsche Boerse AG)YesADR EACH REPR 0.125 ORD SHSDEEURDec 2003
CTRP NBMV (Bolsa Mexicana de Valores)YesADR EACH REPR 0.125 ORD SHSMXMXNDec 2003
TCOMWBAG (Wiener Boerse AG)YesADR EACH REPR 0.125 ORD SHSATEURDec 2003
0I50LSE (London Stock Exchange)YesADR EACH REPR 0.125 ORD SHSGBUSDDec 2003

Biography

Trip.com Group Limited operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours, and corporate travel management in China. The company acts as an agent for hotel-related transactions and selling air tickets; and provides other related services, including sale of aviation and train insurance, air-ticket delivery services, online check-in, and other value-added services, such as online seat selection, express security check, and real-time flight status. It also provides independent leisure travelers bundled packaged-tour products comprising group tours, semi-group tours, and customized and packaged tours with various transportation arrangements, such as flights, cruises, buses, and car rental services. In addition, the company offers integrated transportation and accommodation services; various value-added services, such as transportation at destinations and tickets, activities, insurance, visa services, and tour guides; and supplier management and customer relationship management services. Further, it provides its corporate clients with travel data collection and analysis, industry benchmark, cost saving analysis, and travel management solutions; and Corporate Travel Management System, an online platform that integrates information maintenance, online booking and authorization, online enquiry, and travel report system. Additionally, the company offers online advertising services. It operates primarily under the Ctrip, Qunar, Trip.com, and Skyscanner brand names. The company has strategic partnership agreements with Meliá Hotels International, S.A. to provide access to membership offers and benefits on 400 Meliá hotels on Ctrip’s Website and mobile app; and TripAdvisor, Inc. The company was formerly known as Ctrip.com International, Ltd. and changed its name to Trip.com Group Limited in November 2019. Trip.com Group Limited was founded in 1999 and is headquartered in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 23:53
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.