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Trip.com Group Ltd. Sponsored ADR (TCOM)
NASDAQ:TCOM
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Trip.com Group Ltd. Sponsored ADR
(NASDAQ:TCOM)
67Neutral
Positive Factors
Financial Performance
The company delivered another clean quarter with revenue beating expectations driven by strength across the board.
Investor Confidence
Management announced a capital return program, proposing a US$200 million dividend and up to US$400 million share repurchase, which can be attractive to investors.
Market Expansion
Trip.com is focusing on international market share gain, which could sustain its momentum and enhance growth opportunities.
Negative Factors
Margin Pressure
International expansion and investments for overseas users and talent acquisitions are expected to pressure 2025 margins.
Pricing Challenges
Softness in pricing was observed, with a mid-to-single digit year-over-year decline in domestic hotel prices and a high single to low teens percentage decline in domestic and outbound air ticketing prices.
Revenue Growth Challenges
There is a conservative expectation on air and hotel pricing, leading to a deceleration in revenue growth for the first quarter of 2025.
Trip.com Group Ltd. Sponsored ADR (TCOM) vs. S&P 500 (SPY)
Market Cap
$37.04B
Dividend Yield0.51%
Average Volume (3M)4.84M
Price to Earnings (P/E)16.5
Beta (1Y)0.69
Revenue Growth18.12%
EPS Growth69.44%
CountryUS
Employees36,249
SectorConsumer Cyclical
Sector Strength63
IndustryTravel Services
Share Statistics
EPS (TTM)3.47
Shares Outstanding681,307,500
10 Day Avg. Volume5,818,015
30 Day Avg. Volume4,835,177
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)N/A
Price to Sales (P/S)6.77
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$74.38Price Target Upside31.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
Trip.com Group Ltd. Sponsored ADR Business Overview & Revenue Model
Company DescriptionTrip.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.
How the Company Makes MoneyTrip.com Group Ltd. generates revenue primarily through commissions and service fees collected from various travel service providers for bookings made via its platform. The company's key revenue streams include hotel reservation services, where it earns commissions on each booking, and transportation ticketing, which includes air and train ticket sales with associated service fees. Additionally, Trip.com Group offers packaged tours and corporate travel management services, contributing further to its revenue. The company leverages technology and data analytics to enhance user experience and optimize its offerings. Significant partnerships with airlines, hotels, and local travel service providers also play a crucial role in expanding its service portfolio and enhancing its revenue generation capabilities.
Trip.com Group Ltd. Sponsored ADR Financial Statement Overview
Summary
Trip.com Group Ltd. demonstrates strong financial health with significant revenue and profit growth, efficient cost management, and a robust balance sheet. However, the recent decline in cash flow metrics highlights potential challenges in cash management or reinvestment strategies.Income Statement
Trip.com Group Ltd. shows strong financial performance with consistent revenue growth, seeing a notable increase in Total Revenue from 20,039 million in 2022 to 53,294 million in 2024. The Gross Profit Margin improved from 77.5% in 2023 to 81.2% in 2024, indicating efficient cost management. Net Profit Margin stood at a healthy 32% in 2024, demonstrating robust profitability. The EBIT Margin increased to 26.6% in 2024, reflecting improved operational efficiency.82
Very Positive
Balance Sheet
The balance sheet of Trip.com Group Ltd. is stable with a healthy Debt-to-Equity Ratio of 0.28 as of 2024, showing conservative leverage. The Return on Equity (ROE) is impressive at 11.97% in 2024, indicating efficient use of equity to generate profits. The company maintains a strong Equity Ratio of 58.8%, providing a solid financial foundation. There is a significant increase in Stockholders' Equity from 112,283 million in 2022 to 142,550 million in 2024, reflecting retained earnings and growth.75
Positive
Cash Flow
While the operating cash flow was notably strong at 22,004 million in 2023, it dropped to zero in 2024, suggesting potential cash management issues or significant reinvestment. The Free Cash Flow in 2023 was substantial at 21,398 million but also fell to zero in 2024. The lack of Free Cash Flow growth raises concerns about cash generation sustainability, offsetting previous strong cash flow performance.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 53.29B | 44.51B | 20.04B | 20.02B | 18.32B | Gross Profit |
| 43.30B | 36.39B | 15.53B | 15.43B | 14.29B | EBIT |
| 14.18B | 11.32B | 2.86B | -319.00M | -1.07B | EBITDA |
| 14.99B | 12.14B | 88.00M | 1.09B | 491.00M | Net Income Common Stockholders |
| 17.07B | 9.92B | 1.95B | -741.00M | -1.58B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 79.57B | 59.34B | 44.03B | 50.76B | 44.23B | Total Assets |
| 242.58B | 219.14B | 191.69B | 191.86B | 187.25B | Total Debt |
| 40.13B | 45.57B | 46.38B | 51.36B | 57.00B | Net Debt |
| -10.96B | 3.98B | 27.90B | 30.16B | 37.59B | Total Liabilities |
| 99.10B | 96.13B | 78.67B | 81.40B | 85.68B | Stockholders Equity |
| 142.55B | 122.18B | 112.28B | 109.68B | 100.35B |
| Cash Flow | Free Cash Flow | |||
| 0.00 | 21.40B | 2.14B | 1.90B | -4.36B | Operating Cash Flow |
| 0.00 | 22.00B | 2.64B | 2.48B | -3.82B | Investing Cash Flow |
| 0.00 | 5.92B | 1.14B | -4.15B | -3.82B | Financing Cash Flow |
| 0.00 | -2.55B | -6.72B | 3.92B | 6.03B |
Trip.com Group Ltd. Sponsored ADR Technical Analysis
Negative
56.75
Price Trends
62.52
Negative
65.36
Negative
58.73
Negative
Market Momentum
-2.33
Positive
41.61
Neutral
38.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCOM, the sentiment is Negative. The current price of 56.75 is below the 20-day moving average (MA) of 60.22, below the 50-day MA of 62.52, and below the 200-day MA of 58.73, indicating a bearish trend. The MACD of -2.33 indicates Positive momentum. The RSI at 41.61 is Neutral, neither overbought nor oversold. The STOCH value of 38.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TCOM.
Trip.com Group Ltd. Sponsored ADR Risk Analysis
Trip.com Group Ltd. Sponsored ADR disclosed 78 risk factors in its most recent earnings report. Trip.com Group Ltd. Sponsored ADR reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Trip.com Group Ltd. Sponsored ADR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $72.22B | 27.70 | 31.95% | ― | 11.95% | -44.02% | |
75 Outperform | $10.75B | 45.97 | 23.09% | ― | 28.51% | 367.34% | |
74 Outperform | $19.23B | 16.68 | 79.84% | 0.27% | 6.64% | 69.85% | |
72 Outperform | $149.53B | 26.39 | -146.32% | 0.79% | 11.11% | 47.03% | |
67 Neutral | $37.04B | 16.48 | 12.91% | 0.51% | 18.12% | 69.44% | |
61 Neutral | $1.64B | 709.70 | 0.55% | ― | 2.63% | -58.77% | |
59 Neutral | $11.53B | 10.43 | -0.22% | 4.02% | 1.19% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
TCOM
Trip.com Group Ltd. Sponsored ADR
56.47
8.02
16.55%
EXPE
Expedia
151.59
22.92
17.81%
MMYT
Makemytrip
102.69
39.11
61.51%
BKNG
Booking Holdings
4,612.44
1,173.40
34.12%
TRIP
TripAdvisor
11.86
-13.35
-52.96%
ABNB
Airbnb
114.64
-42.02
-26.82%
Trip.com Group Ltd. Sponsored ADR Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -11.84% | Next Earnings Date: May 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive sentiment with strong revenue growth, successful international expansion, and strategic capital return initiatives. However, there are concerns regarding quarter-over-quarter revenue decline and increased operational expenses.Highlights
Record GMV Achievement
Trip.com Group's core OTA businesses achieved a GMV of over RMB 1.2 trillion or USD 169 billion in 2024.
AI Innovation and User Engagement
Traffic for TripGenie surged by 200%, with browsing time increasing by nearly 100% and the total number of conversations rising by 200% in 2024.
International Business Growth
International business represented 14% of group revenue in Q4 2024. Air ticket and hotel bookings on the international platform grew by over 70% year-over-year.
Strong Financial Performance
Net revenue for Q4 2024 grew by 23% year-over-year, and total net revenue for 2024 saw a year-over-year growth of 20%.
Robust Inbound and Outbound Travel
Inbound travel bookings increased by over 100% year-over-year, and outbound hotel and air ticket bookings recovered to more than 120% compared to 2019.
Strategic Capital Return Initiatives
The Board authorized a share repurchase program of up to USD 400 million and a cash dividend totaling approximately USD 200 million for 2025.
Sustainability and Employee Initiatives
Commitment to rural revitalization and employee support initiatives, such as allowing call center staff to work from home during Chinese New Year.
Lowlights
Quarter-over-Quarter Revenue Decline
Net revenue decreased by 20% from the previous quarter. Accommodation reservation revenue decreased by 24% quarter-over-quarter, and transportation ticketing revenue decreased by 15% quarter-over-quarter.
Increased Expenses
Adjusted G&A expenses for Q4 2024 increased by 24% year-over-year, primarily due to personnel-related expenses.
Challenges in Major Destinations
Despite headwinds in certain major destinations, outbound bookings grew by only 20% to 30% during the Chinese New Year holiday.
Company Guidance
During the Trip.com Group's 2024 Q4 earnings call, the company reported a strong financial performance, with a net revenue of RMB 12.7 billion, reflecting a 23% year-over-year increase. For the full year, net revenue reached RMB 53.3 billion, marking a 20% rise compared to 2023. The company highlighted the robust growth across various segments, with accommodation reservation revenue increasing by 33% year-over-year in Q4, and transportation ticketing revenue up by 16%. Notably, the international business represented 14% of the group revenue in Q4. Trip.com's AI tools, such as TripGenie, saw significant traffic growth, with user interactions increasing by 200% in 2024. The company also announced a capital return program for 2025, including a USD 400 million share repurchase and a USD 200 million cash dividend, demonstrating their commitment to delivering value to shareholders.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.