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Trip.com Group Ltd. Sponsored ADR (TCOM)
:TCOM
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Trip.com Group Sponsored ADR
(NASDAQ:TCOM)
Select Model
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Rating:73Outperform
Price Target:
$84.00
▲(10.95% Upside)
Trip.com Group Ltd. receives a strong overall score due to its robust earnings call performance and solid financial health, despite challenges in cash flow management. The technical analysis supports a bullish outlook, although the stock is currently overbought. Valuation metrics are reasonable, supporting the company's growth strategy.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, positioning the company for sustained expansion.
Technological Integration
AI integration enhances user experience and operational efficiency, driving customer engagement and potentially increasing market share.
International Market Expansion
Strong international growth reflects successful global strategy and diversification, reducing reliance on any single market and boosting resilience.
Negative Factors
Cash Flow Concerns
A decline in cash flow raises concerns about liquidity and the ability to fund operations or reinvest, potentially impacting long-term growth.
Geopolitical Risks
Geopolitical tensions can affect travel demand and operations, posing risks to revenue stability and strategic initiatives in affected regions.
Corporate Travel Revenue Decline
A decline in corporate travel revenue may indicate shifting market dynamics or competitive pressures, impacting a key revenue segment.
Trip.com Group Sponsored ADR (TCOM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.24B
Dividend Yield0.37%
Average Volume (3M)3.42M
Price to Earnings (P/E)21.2
Beta (1Y)0.65
Revenue Growth17.73%
EPS Growth27.95%
CountryUS
Employees41,073
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)1.01
Shares Outstanding689,450,260
10 Day Avg. Volume3,006,321
30 Day Avg. Volume3,418,820
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.69
Enterprise Value/Revenue0.64
Enterprise Value/Gross Profit0.79
Enterprise Value/Ebitda2.00
Forecast
1Y Price Target
$82.82Price Target Upside9.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Trip.com Group 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 generates revenue primarily through a commission-based model on bookings made through its platform. The company earns a percentage of the total transaction value from hotel reservations and flight ticket sales. Additionally, it benefits from service fees charged for various travel-related services, such as car rentals and travel insurance. Key revenue streams include direct bookings from consumers, corporate travel management services, and partnerships with airlines, hotels, and other travel service providers. Significant partnerships with major airlines and hotel chains enhance its offerings and increase customer reach, contributing to its overall earnings.
Trip.com Group Sponsored ADR Earnings Call Summary
Earnings Call Date:Aug 27, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Dec 10, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in inbound travel and international bookings, significant net revenue and EBITDA growth, and strategic investments in technology and AI solutions. Despite facing some pricing pressures and macroeconomic uncertainties, the overall business performance remains robust with a focus on sustainability and strategic growth initiatives.Q2-2025 Updates
Positive Updates
Strong Inbound Travel Growth
Trip.com Group's inbound travel bookings increased by over 100% year-over-year in Q2 2025, driven mainly by demand from Korea and Southeast Asia.
Net Revenue and EBITDA Growth
Net revenue in Q2 increased by 16% year-over-year, and adjusted EBITDA was up 10% year-over-year.
Expansion of International Bookings
International bookings on the platform increased by over 60% year-over-year with strong contributions from the APAC region.
Rising Engagement in Silver Generation
The number of users in the Old Friends Club and their total GMV grew by over 100% since year-end 2024.
Significant Share Repurchase Program
The company completed share repurchases totaling approximately USD 400 million and announced a new USD 5 billion share repurchase program.
Negative Updates
Pricing Pressure on Domestic Hotels and Air Tickets
Both domestic hotel and air ticket prices faced pricing pressure despite healthy volume growth.
Macro Economic Uncertainties
Ongoing macroeconomic uncertainties were noted, although the market showed resilience in terms of volume growth.
Company Guidance
During the Trip.com Group's Q2 2025 earnings call, the company provided optimistic guidance for the upcoming quarters, highlighting strong momentum in various travel segments. In Q2, net revenue increased by 16% year-over-year, reaching RMB 14.8 billion, while adjusted EBITDA rose by 10%, reflecting robust demand across markets. Inbound travel bookings surged over 100% year-over-year, particularly from Korea and Southeast Asia. The company noted that mobile bookings now account for 70% of total bookings, and international bookings grew by over 60%. The outbound travel sector showed resilience, with cross-border flight capacity at 84% of pre-pandemic levels, and outbound hotel and air bookings exceeding 120% of 2019 volumes. Trip.com also emphasized its strategic focus on AI integration and innovations like the upgraded Trip.Planner for personalized travel experiences. Additionally, Trip.com announced a new USD 5 billion share repurchase program, underscoring its confidence in long-term growth and commitment to enhancing shareholder returns.Trip.com Group 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. Despite this, the company's solid profitability and stable leverage ratios position it well for future growth.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 55.22B | 53.29B | 44.51B | 20.04B | 20.02B | 18.32B |
| Gross Profit | 44.76B | 43.30B | 36.39B | 15.53B | 15.43B | 14.29B |
| EBITDA | 17.67B | 15.03B | 12.14B | 88.00M | 1.09B | 491.00M |
| Net Income | 17.03B | 17.07B | 9.92B | 1.95B | -741.00M | -1.58B |
Balance Sheet | ||||||
| Total Assets | 247.76B | 242.58B | 219.14B | 191.69B | 191.86B | 187.25B |
| Cash, Cash Equivalents and Short-Term Investments | 78.10B | 79.57B | 59.34B | 44.03B | 50.76B | 44.23B |
| Total Debt | 42.76B | 40.32B | 45.57B | 46.38B | 51.36B | 57.00B |
| Total Liabilities | 100.78B | 99.10B | 96.13B | 78.67B | 81.40B | 85.68B |
| Stockholders Equity | 145.99B | 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 Sponsored ADR Technical Analysis
Positive
75.71
Price Trends
67.54
Positive
64.56
Positive
64.54
Positive
Market Momentum
2.89
Positive
61.31
Neutral
54.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCOM, the sentiment is Positive. The current price of 75.71 is above the 20-day moving average (MA) of 74.75, above the 50-day MA of 67.54, and above the 200-day MA of 64.54, indicating a bullish trend. The MACD of 2.89 indicates Positive momentum. The RSI at 61.31 is Neutral, neither overbought nor oversold. The STOCH value of 54.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | 76.49B | 29.37 | 33.73% | ― | 10.23% | -44.56% | |
73 Outperform | $51.24B | 21.18 | 12.94% | 0.37% | 17.73% | 27.95% | |
72 Outperform | 26.95B | 26.65 | 133.13% | 0.56% | 5.69% | 47.33% | |
67 Neutral | 179.08B | 38.43 | -72.30% | 0.67% | 11.72% | 0.51% | |
66 Neutral | 9.25B | 108.60 | 7.91% | ― | 18.13% | -55.21% | |
63 Neutral | 1.97B | 35.81 | 10.37% | ― | 3.03% | 187.03% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
TCOM
Trip.com Group Sponsored ADR
75.71
16.55
27.97%
EXPE
Expedia
215.19
68.11
46.31%
MMYT
Makemytrip
95.73
2.78
2.99%
BKNG
Booking Holdings
5,575.73
1,393.61
33.32%
TRIP
TripAdvisor
17.04
2.55
17.60%
ABNB
Airbnb
121.75
-5.06
-3.99%
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.