TripAdvisor (TRIP) AI Stock Analysis

• Market Cap: $2.09B
• Dividend Yield: N/A
• Average Volume (3M): 4.05M
• Price to Earnings (P/E): 37.8
• Beta (1Y): 1.36
• Revenue Growth: 3.03%
• EPS Growth: 187.03%
• Country: US
• Employees: 2,770
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Travel Services
• EPS (TTM): 0.46
• Shares Outstanding: 116,133,590
• 10 Day Avg. Volume: 3,776,588
• 30 Day Avg. Volume: 4,053,059
• PEG Ratio: -9.29
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 1.12
• P/FCF Ratio: 29.33
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 1.14
• Enterprise Value/Ebitda: 9.16
• 1Y Price Target: $18.02
• Price Target Upside: 0.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

• Rating: 74 Outperform
• Price Target: $20.00 ▲(11.23% Upside)

TripAdvisor's overall stock score reflects strong financial performance and positive earnings call insights, particularly in the Viator and TheFork segments. While technical analysis supports a bullish trend, the high P/E ratio suggests potential overvaluation. The strategic focus on experiences and AI integration is a positive long-term growth driver, despite challenges in Brand Tripadvisor and media revenues.

Positive Factors

Financial Performance

Tripadvisor showed undervaluation with 7% revenue growth, 10% EBITDA growth, and 17% EPS growth, generating 12% of its market cap in free cash flow in the first half of the year.

Stock Valuation

Analyst maintains a Buy rating for Tripadvisor with a price target of $20, based on expected revenue growth and EBITDA margin improvements.

Strategic Investment

Activist Starboard Value's purchase of a 9% stake in Tripadvisor has boosted the stock and could help unlock more value for Viator.

Negative Factors

Competitive Pressure

Tripadvisor's core hotel price comparison business is facing challenges from competitors like Google and online travel agencies.

Market Competition

Intensifying competition from companies like Airbnb and Booking.com could pressure Viator's take-rates, margins, and market share.

Traffic Challenges

There are headwinds in free traffic channels negatively impacting Brand Trip, leading to a modest step-down in the second-half revenue and EBITDA estimates.

TripAdvisor Business Overview & Revenue Model

Company Description

TripAdvisor, Inc. is a leading travel and restaurant website that provides user-generated content, reviews, and booking services. The company operates in the travel and hospitality sector, offering a platform where users can plan trips, read reviews, compare prices, and make reservations for hotels, flights, restaurants, and attractions. TripAdvisor's core products include its website and mobile applications that serve millions of travelers worldwide, facilitating travel planning and decision-making through a vast array of user-generated content and travel-related information.

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	1.84B	1.83B	1.79B	1.49B	902.00M	604.00M
Gross Profit	1.53B	1.70B	1.64B	1.38B	828.00M	549.00M
EBITDA	191.00M	218.00M	256.00M	208.00M	-29.00M	-209.00M
Net Income	53.00M	5.00M	10.00M	20.00M	-148.00M	-289.00M
Balance Sheet
Total Assets	2.76B	2.56B	2.54B	2.57B	2.29B	1.97B
Cash, Cash Equivalents and Short-Term Investments	1.15B	1.06B	1.07B	1.02B	723.00M	418.00M
Total Debt	1.27B	903.00M	912.00M	929.00M	953.00M	634.00M
Total Liabilities	2.11B	1.62B	1.67B	1.71B	1.50B	1.08B
Stockholders Equity	643.00M	943.00M	871.00M	861.00M	789.00M	886.00M
Cash Flow
Free Cash Flow	81.00M	70.00M	172.00M	344.00M	54.00M	-249.00M
Operating Cash Flow	107.00M	144.00M	235.00M	400.00M	108.00M	-194.00M
Investing Cash Flow	-76.00M	-73.00M	-63.00M	-52.00M	-54.00M	-56.00M
Financing Cash Flow	-54.00M	-63.00M	-127.00M	-27.00M	263.00M	341.00M

TripAdvisor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRIP, the sentiment is Positive. The current price of 17.98 is above the 20-day moving average (MA) of 17.39, above the 50-day MA of 15.80, and above the 200-day MA of 14.93, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 59.71 is Neutral, neither overbought nor oversold. The STOCH value of 59.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRIP.

TripAdvisor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPE	78 Outperform	$23.83B	23.57	129.04%	0.39%	5.69%	47.33%
TRIP	74 Outperform	$2.09B	37.79	8.76%	―	3.03%	187.03%
TCOM	67 Neutral	$39.56B	17.39	12.49%	0.47%	16.23%	56.05%
MMYT	65 Neutral	$9.00B	107.25	22.38%	―	18.13%	-55.21%
BKNG	64 Neutral	$175.20B	37.60	-146.32%	0.67%	11.72%	0.51%
Sector *	61 Neutral	$17.22B	11.58	-7.48%	3.16%	1.46%	-15.87%

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.

The most recent analyst rating on (TRIP) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on TripAdvisor stock, see the TRIP Stock Forecast page.