Trip.com Group Ltd. Sponsored ADR (TCOM)
NASDAQ:TCOM
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Trip.com Group Sponsored ADR
(NASDAQ:TCOM)
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Rating:71Outperform
Price Target:
$60.00
▲(8.72% Upside)
Action:Reiterated
Date:05/01/26
The score is driven primarily by strong financial performance (high margins, improving operating profitability, and a strengthening balance sheet) and a constructive earnings call outlook supported by strong liquidity and growth in international and inbound travel. The main constraints are weaker latest-year cash flow transparency and longer-term technical trend pressure (below 100/200-day averages), with valuation appearing fair rather than clearly undervalued.
Positive Factors
High gross and operating margins
Sustained gross margins near 77%–82% and ~25% EBIT margin reflect a scalable, high‑margin platform with strong unit economics. That structural profitability supports reinvestment, funding of product/market expansion, and resilience through travel cycles, improving long‑term return potential.
Negative Factors
Regulatory investigation risk
An SAMR investigation introduces persistent regulatory uncertainty that can lead to fines, mandated changes to commercial practices, or restrictions on distribution. Such outcomes can structurally alter fees, supplier relationships, or business models and raise compliance costs over multiple years.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross and operating margins
Sustained gross margins near 77%–82% and ~25% EBIT margin reflect a scalable, high‑margin platform with strong unit economics. That structural profitability supports reinvestment, funding of product/market expansion, and resilience through travel cycles, improving long‑term return potential.
Read all positive factors
Trip.com Group Sponsored ADR (TCOM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.33B
Dividend Yield0.39%
Average Volume (3M)2.58M
Price to Earnings (P/E)19.5
Beta (1Y)0.93
Revenue Growth17.27%
EPS Growth94.65%
CountryUS
Employees41,073
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)50.61
Shares Outstanding689,450,260
10 Day Avg. Volume2,599,487
30 Day Avg. Volume2,584,106
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)1.93
Price to Sales (P/S)5.45
P/FCF Ratio24.35
Enterprise Value/Market Cap6.27
Enterprise Value/Revenue3.26
Enterprise Value/Gross Profit4.04
Enterprise Value/Ebitda5.93
Forecast
1Y Price Target
$76.88Price Target Upside39.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)27.64
Revenue Forecast (FY)$70.73B
Trip.com Group Sponsored ADR Business Overview & Revenue Model
Company Description
Trip.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 C...
How the Company Makes Money
Trip.com Group primarily makes money by facilitating travel bookings and charging for those transactions and related services. Its major revenue streams typically include: (1) Accommodation reservation services: revenue earned from helping users b...
Trip.com Group Sponsored ADR Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 25, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive performance narrative: strong top-line growth (gross bookings RMB 1.1 trillion; revenue +17% YoY), healthy international expansion (international OTA bookings +60% YoY), sizable inbound travel momentum (≈20 million inbound travelers, near 100% YoY growth), solid cash position (RMB 105.8 billion) and continued profitability (adjusted EBITDA +11% YoY). Management also emphasized strategic investments in AI, inbound tourism and sustainability. Main risks highlighted were a regulatory investigation by SAMR and rising operating and marketing spend associated with international expansion, which could pressure margins near-term. Overall, the operational and financial strengths outweigh the challenges noted on the call.Positive Updates
Strong Full-Year Gross Bookings and Revenue Growth
Core OTA gross bookings of approximately RMB 1.1 trillion for FY2025; Group net revenue of RMB 62.4 billion, up 17% year-over-year.
Negative Updates
Regulatory Investigation
In January 2026 the State Administration for Market Regulation initiated an investigation; management is cooperating. This introduces regulatory uncertainty and potential business or compliance impacts in 2026 and beyond.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Gross Bookings and Revenue Growth
Core OTA gross bookings of approximately RMB 1.1 trillion for FY2025; Group net revenue of RMB 62.4 billion, up 17% year-over-year.
Read all positive updates
Company Guidance
Management’s guidance centered on three priorities—inbound tourism, social responsibility, and AI—with concrete scale and financial context: they aim to double inbound travelers from roughly 20 million in 2025 to about 40 million in 2026, continue to grow their international OTA (gross bookings +~60% YoY in 2025 and quarter‑to‑date) and raise international contribution (about 40% of revenue/bookings in 2025, up from ~35% in 2024) while improving APAC profitability; they will keep disciplined investment and shareholder returns (completed 2025 repurchases, RMB105.8 billion/ USD15.1 billion liquidity at 12/31/25), scale a USD100 million Tourism Innovation Fund and ongoing AI development, and leverage prior investments (FY25 gross bookings RMB1.1 trillion, net revenue RMB62.4 billion, adjusted EBITDA RMB18.9 billion, plus targeted spends such as >RMB1 billion for inbound and ~RMB2.9 billion for service enhancements) alongside operational levers (e.g., 63,000 hotels newly serving inbound, 150,000 hotels on platform, 241 attractions multilingual, >3,400 tax‑refund merchants, private tours +20% and RMB11 billion incremental transaction value, 110,000 tour guides/drivers supported) to drive the stated growth trajectory.Trip.com Group Sponsored ADR Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
80
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 60.71B | 53.29B | 44.51B | 20.04B | 20.02B |
| Gross Profit | 48.92B | 43.30B | 36.39B | 15.53B | 15.43B |
| EBITDA | 16.17B | 15.03B | 12.14B | 960.00M | -393.00M |
| Net Income | 32.39B | 17.07B | 9.92B | 1.40B | -550.00M |
Balance Sheet | |||||
| Total Assets | 267.56B | 242.58B | 219.14B | 191.69B | 191.86B |
| Cash, Cash Equivalents and Short-Term Investments | 78.51B | 79.57B | 59.34B | 42.55B | 49.38B |
| Total Debt | 31.37B | 40.32B | 45.57B | 46.66B | 51.72B |
| Total Liabilities | 94.85B | 99.10B | 96.13B | 78.67B | 81.40B |
| Stockholders Equity | 171.06B | 142.55B | 122.18B | 112.28B | 109.68B |
Cash Flow | |||||
| Free Cash Flow | 13.58B | 19.03B | 21.40B | 2.14B | 1.90B |
| Operating Cash Flow | 14.38B | 19.63B | 22.00B | 2.64B | 2.48B |
| Investing Cash Flow | -4.18B | -6.05B | 5.92B | 1.14B | -4.15B |
| Financing Cash Flow | -14.66B | -6.71B | -2.55B | -6.72B | 3.92B |
Trip.com Group Sponsored ADR Technical Analysis
Negative
55.19
Price Trends
52.00
Negative
56.97
Negative
63.79
Negative
Market Momentum
-0.80
Positive
33.17
Neutral
6.10
Positive
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 55.19 is above the 20-day moving average (MA) of 52.36, above the 50-day MA of 52.00, and below the 200-day MA of 63.79, indicating a bearish trend. The MACD of -0.80 indicates Positive momentum. The RSI at 33.17 is Neutral, neither overbought nor oversold. The STOCH value of 6.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TCOM.
Trip.com Group Sponsored ADR Risk Analysis
Trip.com Group Sponsored ADR disclosed 78 risk factors in its most recent earnings report. Trip.com Group 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 1 New Risks
1.
We have limited business insurance coverage. Q4, 2023
Trip.com Group Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $80.94B | 117.99 | 31.24% | ― | 13.18% | 2.35% | |
71 Outperform | $32.33B | 19.53 | 20.98% | 0.39% | 17.27% | 94.65% | |
67 Neutral | $26.34B | 113.42 | 154.33% | 0.56% | 10.01% | 33.63% | |
62 Neutral | $120.16B | 30.71 | -95.80% | 0.71% | 14.95% | 17.45% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $4.26B | 276.78 | 31.18% | ― | 6.71% | -41.74% | |
52 Neutral | $1.11B | -9.49 | 2.86% | ― | 2.03% | -64.68% |
* Consumer Cyclical Sector Average
TCOM
Trip.com Group Sponsored ADR
48.95
-14.43
-22.77%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.