TripAdvisor (TRIP) AI Stock Analysis

• Market Cap: $1.97B
• Dividend Yield: N/A
• Average Volume (3M): 2.42M
• Price to Earnings (P/E): 35.8
• Beta (1Y): 1.39
• Revenue Growth: 3.03%
• EPS Growth: 187.03%
• Country: US
• Employees: 2,770
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): 0.46
• Shares Outstanding: 116,133,590
• 10 Day Avg. Volume: 3,340,050
• 30 Day Avg. Volume: 2,419,459
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 0.98
• Enterprise Value/Ebitda: 7.54
• 1Y Price Target: $18.09
• Price Target Upside: 5.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 63 Neutral
• Price Target: $18.00 ▲(5.02% Upside)

TripAdvisor's strong financial performance and positive earnings call insights are offset by high leverage and valuation concerns. Technical indicators suggest potential bearish momentum, while strategic growth in Viator and TheFork provides optimism.

Positive Factors

Revenue Growth

The strong revenue growth in Viator and TheFork indicates successful strategic focus on high-growth segments, enhancing TripAdvisor's market position.

AI Integration

AI integration enhances user experience and operational efficiency, providing a competitive edge and supporting long-term growth through innovation.

Cash Flow Generation

Strong free cash flow growth indicates robust cash generation ability, providing financial flexibility and supporting future investments.

Negative Factors

High Leverage

High leverage can strain financial health, limiting flexibility and increasing risk, especially if revenue growth slows or costs rise.

Brand Tripadvisor Challenges

Decline in Brand Tripadvisor revenue reflects challenges in core operations, potentially impacting overall profitability and market position.

Media and Advertising Revenue Decline

Declining media and advertising revenue suggests challenges in monetizing traffic, which could impact long-term revenue streams.

TripAdvisor Business Overview & Revenue Model

Company Description

TripAdvisor, Inc. operates as an online travel company. It operates in two segments, Hotels, Media & Platform; and Experiences & Dining. The company operates TripAdvisor-branded websites, including tripadvisor.com in the United States; and localized versions of the website in 40 markets and 20 languages. It also manages and operates other travel media brands that provide users the comprehensive travel-planning and trip-taking resources in the travel industry, such as bokun.io, cruisecritic.com, flipkey.com, thefork.com, helloreco.com, holidaylettings.co.uk, holidaywatchdog.com, housetrip.com, jetsetter.com, niumba.com, seatguru.com, singleplatform.com, vacationhomerentals.com, and viator.com. In addition, the company provides information and services for consumers to research and book restaurants reservation in travel destinations; and vacation and short-term rental properties, including full home, condominiums, villas, beach properties, cabins, and cottages. As of December 31, 2020, it featured 1 billion reviews and opinions on 1 billion hotels and other accommodations, restaurants, experiences, airlines, and cruises. TripAdvisor, Inc. was founded in 2000 and is headquartered in Needham, Massachusetts.

How the Company Makes Money

TripAdvisor generates revenue through several key streams, primarily from advertising and transaction-based bookings. The company earns a substantial portion of its revenue through a cost-per-click (CPC) advertising model, where travel service providers pay for advertisements displayed on the TripAdvisor platform. Additionally, TripAdvisor earns revenue from its Instant Booking feature, which allows users to book hotels and accommodations directly through its site, earning commissions on each booking made. The company also has partnerships with various travel-related businesses, including airlines and hotel chains, enhancing its revenue through affiliate marketing and referral fees. Overall, TripAdvisor's diverse revenue model capitalizes on its vast user base and the increasing reliance on online platforms for travel planning.

TripAdvisor Financial Statement Overview

Summary

TripAdvisor demonstrates strong financial performance with significant revenue growth and improved profitability. The income statement shows a robust gross profit margin of 83.3% and a net profit margin improvement to 5.8%. However, high leverage with a debt-to-equity ratio of 1.97 poses potential risks, and cash flow management, while positive, shows room for improvement.

Income Statement

TripAdvisor shows strong income statement performance with a consistent revenue growth trajectory from $604M in 2020 to $1.838B in TTM. The gross profit margin is robust at 83.3% for TTM, indicating efficient cost management. Net profit margin has notably improved to 5.8% in TTM from negative in prior years, reflecting a turnaround in profitability. EBITDA margin of 10.4% in TTM suggests decent operating efficiency. However, EBIT margin at 6.1% points to room for operational improvements.

Balance Sheet

TripAdvisor's balance sheet reflects moderate stability with a debt-to-equity ratio of 1.97 in TTM, indicating a high leverage level though slightly reduced from prior years. The equity ratio stands at 23.3%, denoting a solid equity base. Return on equity improved to 16.6% in TTM, showcasing enhanced shareholder returns. However, the high debt levels could pose potential risks if not managed carefully.

Cash Flow

The cash flow statement shows a positive trajectory with free cash flow growth, reaching $81M in TTM. The operating cash flow to net income ratio of 1.0 in TTM highlights adequate cash generation relative to earnings. Free cash flow to net income ratio at 0.76 indicates healthy cash flow management. Despite these strengths, reduced free cash flow compared to previous years suggests areas for improvement in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.87B	1.83B	1.79B	1.49B	902.00M	604.00M
Gross Profit	1.79B	1.70B	1.64B	1.38B	828.00M	549.00M
EBITDA	232.00M	218.00M	256.00M	208.00M	-29.00M	-209.00M
Net Income	65.00M	5.00M	10.00M	20.00M	-148.00M	-289.00M
Balance Sheet
Total Assets	2.87B	2.56B	2.54B	2.57B	2.29B	1.97B
Cash, Cash Equivalents and Short-Term Investments	1.21B	1.06B	1.07B	1.02B	723.00M	418.00M
Total Debt	1.26B	903.00M	912.00M	929.00M	953.00M	634.00M
Total Liabilities	2.24B	1.62B	1.67B	1.71B	1.50B	1.08B
Stockholders Equity	627.00M	943.00M	871.00M	861.00M	789.00M	886.00M
Cash Flow
Free Cash Flow	222.00M	70.00M	172.00M	344.00M	54.00M	-249.00M
Operating Cash Flow	258.00M	144.00M	235.00M	400.00M	108.00M	-194.00M
Investing Cash Flow	-88.00M	-73.00M	-63.00M	-52.00M	-54.00M	-56.00M
Financing Cash Flow	-150.00M	-63.00M	-127.00M	-27.00M	263.00M	341.00M

TripAdvisor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.14
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRIP, the sentiment is Neutral. The current price of 17.14 is below the 20-day moving average (MA) of 17.85, below the 50-day MA of 17.55, and above the 200-day MA of 15.38, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 44.80 is Neutral, neither overbought nor oversold. The STOCH value of 10.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TRIP.

TripAdvisor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABNB	76 Outperform	76.87B	29.84	33.73%	―	10.23%	-44.56%
TCOM	73 Outperform	49.37B	20.94	11.97%	0.37%	17.73%	27.95%
EXPE	72 Outperform	27.57B	26.33	133.13%	0.54%	5.69%	47.33%
BKNG	67 Neutral	179.81B	38.78	-72.30%	0.68%	11.72%	0.51%
MMYT	66 Neutral	9.01B	107.40	7.91%	―	18.13%	-55.21%
TRIP	63 Neutral	$1.97B	35.81	8.76%	―	3.03%	187.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

TripAdvisor Corporate Events

TripAdvisor Elects Directors at Annual Meeting

On June 18, 2025, TripAdvisor, Inc. held its annual stockholders meeting where eight directors were elected to the board, including Matt Goldberg and M. Greg O’Hara, with significant support. Additionally, the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified, indicating continued confidence in their financial oversight.