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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)77Outperform
Positive Factors
Financial Performance
Trip.com concluded 2024 with a significant 23% year-over-year increase in net revenues, highlighting robust growth.
Market Performance
Outbound air ticket and hotel bookings on TCOM’s platform recovered to more than 120% of the 2019 level, consistently outperforming the overall market by 30-40 percentage points.
Negative Factors
Margin Pressure
International expansion and investments for overseas users and talent acquisitions are expected to pressure 2025 margins.
Trip.com Group Ltd. Sponsored ADR (TCOM) vs. S&P 500 (SPY)
Market Cap
$36.54B
Dividend YieldN/A
Average Volume (3M)4.11M
Price to Earnings (P/E)16.7
Beta (1Y)0.90
Revenue Growth27.28%
EPS Growth49.14%
CountryUS
Employees36,249
SectorConsumer Cyclical
Sector Strength53
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)3.47
Shares Outstanding674,287,700
10 Day Avg. Volume7,244,913
30 Day Avg. Volume4,109,586
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)N/A
Price to Sales (P/S)6.01
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
$75.50Price Target Upside27.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
Trip.com Group Ltd. Sponsored ADR Business Overview & Revenue Model
Company DescriptionTrip.com Group Ltd. engages in the provision of travel-related services. It provides hotel accommodations, airline tickets, packaged tours, corporate travel management services, property management systems, and advertising services. The company was founded by Jian Zhang Liang, Min Fan, Nan Peng Shen, and Qi Ji in June 1999 and is headquartered in Shanghai, China.
How the Company Makes MoneyTrip.com Group Ltd. generates revenue primarily through commission fees and service charges from its travel booking services. The company earns commissions from hotel reservations, airline ticket bookings, and other travel services facilitated through its platforms. Additionally, it collects service fees for providing value-added services, such as trip insurance and travel-related financial services. Advertising revenue from travel service providers and other businesses seeking to promote their offerings on its platforms also contributes to the company's earnings. Strategic partnerships with airlines, hotels, and other travel service providers further enhance its revenue streams by enabling exclusive deals and offerings that attract more users to its platforms.
Trip.com Group Ltd. Sponsored ADR Financial Statement Overview
Summary
Trip.com exhibits strong financial performance with robust revenue and profit growth, prudent balance sheet management, and excellent cash flow generation. The income statement shows significant improvement in profitability, the balance sheet is stable with manageable debt levels, and cash flow generation is commendable.Income Statement
Trip.com has demonstrated robust financial recovery and growth. The gross profit margin stands at a healthy 81.7%, with a significant improvement in net profit margin to 22.3%. The revenue growth rate from 2022 to 2023 is an impressive 122.1%, indicating strong business momentum. EBIT and EBITDA margins have also shown substantial improvements, reflecting enhanced operational efficiency and profitability.85
Very Positive
Balance Sheet
The balance sheet reflects strong financial health with a manageable debt-to-equity ratio of 0.37 and a solid equity ratio of 55.8%. The return on equity is a high 8.1%, underscoring the company's effective use of shareholder funds. Although the company has a significant level of total assets, the increase in stockholders' equity indicates a stable financial position.78
Positive
Cash Flow
Cash flow analysis shows a commendable operating cash flow to net income ratio of 2.22, indicating strong cash generation relative to profits. The free cash flow growth rate is an astounding 900.5%, demonstrating a substantial increase in cash available after capital expenditures. The free cash flow to net income ratio of 2.16 further highlights the company's efficient cash management.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 48.74B | 44.51B | 20.04B | 20.02B | 18.32B | 35.67B | Gross Profit |
| 39.72B | 36.39B | 15.53B | 15.43B | 14.29B | 28.29B | EBIT |
| 12.98B | 11.32B | 2.86B | -319.00M | -1.07B | 9.31B | EBITDA |
| 14.41B | 12.14B | 88.00M | 1.09B | 491.00M | 6.13B | Net Income Common Stockholders |
| 14.06B | 9.92B | 1.95B | -741.00M | -1.58B | 7.01B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 59.34B | 59.34B | 44.03B | 50.76B | 44.23B | 42.98B | Total Assets |
| 219.14B | 219.14B | 191.69B | 191.86B | 187.25B | 200.17B | Total Debt |
| 45.57B | 45.57B | 46.38B | 51.36B | 57.00B | 50.80B | Net Debt |
| 3.98B | 3.98B | 27.90B | 30.16B | 37.59B | 30.88B | Total Liabilities |
| 96.13B | 96.13B | 78.67B | 81.40B | 85.68B | 94.47B | Stockholders Equity |
| 122.18B | 122.18B | 112.28B | 109.68B | 100.35B | 103.44B |
| Cash Flow | Free Cash Flow | ||||
| -29.53M | 21.40B | 2.14B | 1.90B | -4.36B | 6.50B | Operating Cash Flow |
| 397.55M | 22.00B | 2.64B | 2.48B | -3.82B | 7.33B | Investing Cash Flow |
| -605.29M | 5.92B | 1.14B | -4.15B | -3.82B | -2.41B | Financing Cash Flow |
| 2.37B | -2.55B | -6.72B | 3.92B | 6.03B | -9.26B |
Trip.com Group Ltd. Sponsored ADR Technical Analysis
Neutral
59.36
Price Trends
67.22
Negative
66.18
Negative
57.54
Positive
Market Momentum
-2.87
Positive
38.31
Neutral
18.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCOM, the sentiment is Neutral. The current price of 59.36 is below the 20-day moving average (MA) of 64.88, below the 50-day MA of 67.22, and above the 200-day MA of 57.54, indicating a neutral trend. The MACD of -2.87 indicates Positive momentum. The RSI at 38.31 is Neutral, neither overbought nor oversold. The STOCH value of 18.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $36.54B | 16.65 | 8.12% | ― | 27.28% | 49.14% | |
77 Outperform | $160.74B | 28.37 | -146.32% | 0.71% | 11.11% | 47.03% | |
72 Outperform | $24.32B | 20.86 | 79.25% | ― | 6.64% | 69.85% | |
72 Outperform | $87.56B | 34.10 | 31.48% | ― | 11.95% | -44.02% | |
62 Neutral | $1.94B | 835.76 | 0.53% | ― | 2.63% | -58.77% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
58 Neutral | $1.59B | ― | 20.22% | ― | 4.19% | 53.84% |
* Consumer Cyclical Sector Average
Performance Comparison
TCOM
Trip.com Group Ltd. Sponsored ADR
59.36
17.08
40.40%
EXPE
Expedia
188.70
54.67
40.79%
BKNG
Booking Holdings
4,898.40
1,498.30
44.07%
TRIP
TripAdvisor
13.79
-12.87
-48.27%
SABR
Sabre
4.04
1.88
87.04%
ABNB
Airbnb
141.42
-17.91
-11.24%
Trip.com Group Ltd. Sponsored ADR Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -8.20% | 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.