Trip.com Group Ltd. (9961) AI Stock Analysis

• Market Cap: HK$371.82B
• Dividend Yield: 0.41%
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 1.19
• Revenue Growth: 17.30%
• EPS Growth: 27.51%
• Country: HK
• Employees: 41,073
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): 7.86
• Shares Outstanding: 689,450,260
• 10 Day Avg. Volume: 2,046,221
• 30 Day Avg. Volume: 1,902,875
• PEG Ratio: 0.27
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 6.22
• P/FCF Ratio: 17.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$650.03
• Price Target Upside: 14.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22

• Rating: 73 Outperform
• Price Target: HK$619.00 ▲(8.98% Upside)

Trip.com Group Ltd. demonstrates strong financial performance and a positive outlook from its latest earnings call, driven by growth in inbound travel and international expansion. However, technical indicators suggest potential short-term weakness, and cash flow challenges could impact future flexibility. The stock is reasonably valued, but the low dividend yield may not attract income-focused investors.

Positive Factors

International Expansion

Successful international expansion, particularly in the APAC region, demonstrates Trip.com's ability to capture global market share and diversify its revenue base, enhancing long-term growth prospects.

AI and Technology Integration

Innovative AI integration enhances user experience and operational efficiency, positioning Trip.com as a leader in tech-driven travel solutions, which can drive sustained competitive advantage.

Revenue Growth

Consistent revenue growth reflects strong demand and effective business strategies, indicating robust market position and potential for continued financial performance improvement.

Negative Factors

Cash Flow Challenges

Zero operating cash flow highlights potential liquidity issues, which could limit financial flexibility and impact the company's ability to invest in growth opportunities.

Pricing Pressure

Pricing pressure in domestic travel could erode margins, affecting profitability and competitiveness in a key market segment over the medium term.

Competitive Landscape

Increased competition from new entrants may pressure market share and pricing power, requiring strategic adjustments to maintain leadership and profitability.

Trip.com Group Ltd. Business Overview & Revenue Model

Company Description

Trip.com Group Ltd. is a leading online travel services provider headquartered in Shanghai, China. The company operates a comprehensive platform that offers a wide range of travel-related services, including hotel bookings, flight reservations, car rentals, vacation packages, and travel-related services. Trip.com Group serves both leisure and business travelers through its various subsidiaries, including Trip.com, Skyscanner, and Ctrip, catering to a global audience while focusing on the Asia-Pacific region.

How the Company Makes Money

Trip.com Group generates revenue primarily through a commission-based model, earning fees for each booking made through its platform. The key revenue streams include commissions from hotel and flight bookings, advertising fees from travel-related businesses, and service fees for various travel products. Additionally, the company has significant partnerships with airlines, hotels, and other travel service providers, which enhance its offerings and drive customer traffic to its platform. The company also benefits from ancillary services, such as travel insurance and car rentals, which further diversify its revenue sources.

Trip.com Group Ltd. Financial Statement Overview

Summary

Trip.com Group Ltd. has shown significant improvement in profitability and revenue growth, reflecting strong operational performance in the travel services industry. The balance sheet is robust, with a solid equity base and manageable debt levels. However, recent cash flow challenges could pose risks if not addressed, impacting future financial flexibility.

Income Statement

Trip.com Group Ltd. has demonstrated robust growth in its income statement. The gross profit margin is high, indicating efficient cost management. Net profit margin and EBIT margin have improved significantly from previous years, showcasing enhanced profitability. The revenue growth rate is impressive, reflecting strong business momentum.

Balance Sheet

The balance sheet shows a healthy equity ratio, indicating strong capitalization. The debt-to-equity ratio is manageable, suggesting a balanced leverage position. However, there has been a noticeable increase in stockholders' equity, which strengthens the financial stability of the company.

Cash Flow

Cash flow analysis reveals challenges, with operating cash flow at zero in the most recent period, indicating potential cash management issues. Historical free cash flow has grown, but the recent absence of free cash flow highlights potential concerns in liquidity and cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.29B	53.29B	44.51B	20.04B	20.02B	18.32B
Gross Profit	46.33B	43.30B	36.39B	15.53B	15.43B	14.29B
EBITDA	19.50B	14.99B	12.14B	960.00M	-393.00M	-209.00M
Net Income	18.05B	17.07B	9.92B	1.40B	-550.00M	-3.25B
Balance Sheet
Total Assets	252.44B	242.58B	219.14B	191.69B	191.86B	187.25B
Cash, Cash Equivalents and Short-Term Investments	80.02B	76.91B	59.34B	42.55B	49.38B	42.92B
Total Debt	39.68B	40.32B	45.57B	46.66B	51.72B	57.41B
Total Liabilities	102.96B	99.10B	96.13B	78.67B	81.40B	85.68B
Stockholders Equity	148.44B	142.55B	122.18B	112.28B	109.68B	100.35B
Cash Flow
Free Cash Flow	0.00	19.03B	21.40B	2.14B	1.90B	-4.36B
Operating Cash Flow	0.00	19.63B	22.00B	2.64B	2.48B	-3.82B
Investing Cash Flow	0.00	-6.05B	5.92B	1.14B	-4.15B	-3.82B
Financing Cash Flow	0.00	-6.71B	-2.55B	-6.72B	3.92B	6.03B

Trip.com Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 568.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9961, the sentiment is Positive. The current price of 568 is above the 20-day moving average (MA) of 560.98, above the 50-day MA of 560.99, and above the 200-day MA of 507.00, indicating a bullish trend. The MACD of -2.04 indicates Negative momentum. The RSI at 53.46 is Neutral, neither overbought nor oversold. The STOCH value of 85.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9961.

Trip.com Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9961	―	HK$371.82B	20.02	12.88%	0.41%	17.30%	27.51%
1701	―	HK$140.00M	5.17	16.79%	―	80.68%	131.62%
0780	―	HK$51.39B	18.37	12.26%	0.84%	25.29%	47.32%
0265	―	€692.62M	21.09	12.44%	―	2.10%	1.68%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8069	―	HK$28.58M	―	-1.51%	―	-8.32%	84.82%
1901	―	HK$324.48M	―	-29.79%	―	68.29%	41.90%

Trip.com Group Ltd. Corporate Events

Trip.com Group Ltd. Schedules Q2 and H1 2025 Financial Results Announcement

Trip.com Group Ltd. has announced that its audit committee will meet on August 27, 2025, to approve the company’s financial results for the second quarter and first half of 2025. These results will be published on August 28, 2025, before the Hong Kong Stock Exchange trading hours. The company will also host a conference call to discuss the results, reflecting its commitment to transparency and stakeholder engagement.

The most recent analyst rating on (HK:9961) stock is a Buy with a HK$581.00 price target. To see the full list of analyst forecasts on Trip.com Group Ltd. stock, see the HK:9961 Stock Forecast page.