trivago (TRVG) AI Stock Analysis

• Market Cap: $274.47M
• Dividend Yield: N/A
• Average Volume (3M): 51.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: 0.77%
• EPS Growth: 87.59%
• Country: US
• Employees: 668
• Sector: Communication Services
• Sector Strength: 76
• Industry: Internet Content & Information
• EPS (TTM): -0.02
• Shares Outstanding: 22,881,096
• 10 Day Avg. Volume: 45,301
• 30 Day Avg. Volume: 51,689
• PEG Ratio: -2.92
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.00
• Price Target Upside: 31.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 57 Neutral
• Price Target: $4.00 ▲(4.99%Upside)

The overall score for trivago is driven by its financial stability and strong revenue growth as highlighted in the earnings call. However, profitability challenges and negative cash flow trends weigh down the score. While technical indicators suggest mixed sentiment, the company's strategic marketing and growth initiatives provide a positive outlook.

Positive Factors

Financial Performance

The company delivered solid results with total revenue growth turning and EBITDA beating expectations by a wide margin.

Guidance and Estimates

With improving fundamentals, the analyst raises the FY26E EBITDA estimate from €30m to €37m, maintaining Outperform and increasing the price target from $2.50 to $3.50.

Revenue Growth

Trivago's brand marketing initiatives resulted in double digit revenue growth from branded channel traffic across Developed Europe and Rest of World.

Negative Factors

Margin Pressure

Brand investments are likely to weigh on margins.

Performance Marketing Headwinds

Performance marketing headwinds, particularly in Search, partially offset positive results.

Profitability Challenges

There are questions around the relevance of the metasearch model and lack of visibility on TRVG's path to profitability.

trivago Business Overview & Revenue Model

Company Description

trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides access to its platform through 53 localized websites and apps in 31 languages. As of December 31, 2021, its hotel search platform offered access to approximately 5.0 million hotels and other types of accommodation worldwide. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. is a subsidiary of Expedia Lodging Partner Services Sarl.

How the Company Makes Money

Trivago primarily generates revenue through a business model known as cost-per-click (CPC). The company earns money when users click on hotel offers displayed in its search results, redirecting them to partner booking sites, such as online travel agencies and direct hotel websites, where the actual booking transaction takes place. These partners pay Trivago a fee for each user referral, constituting the core of its revenue stream. Additionally, Trivago may generate some revenue from display advertising, although this represents a smaller portion of its overall earnings. Significant partnerships with major global hotel chains and online travel agencies further bolster its financial performance by ensuring a broad range of offers and competitive pricing for its users.

trivago Financial Statement Overview

Summary

trivago's financial overview presents a mixed picture. The company maintains a strong equity position with low leverage, but it struggles with profitability, evidenced by negative net income and EBIT margins. Cash flow generation is positive but declining, indicating potential challenges in sustaining operational liquidity. Improving profitability and reversing negative cash flow trends are critical for future growth.

Income Statement

trivago's TTM revenue shows modest growth compared to the previous annual report, but profitability remains a concern with negative EBIT and net income margins. The gross profit margin is strong, indicating effective cost management relative to revenue. However, the negative net profit and EBIT margins highlight ongoing challenges in achieving operational profitability.

Balance Sheet

trivago maintains a healthy balance sheet with a strong equity ratio, indicating a solid financial foundation. The debt-to-equity ratio is low, suggesting manageable leverage levels. However, the declining stockholders' equity over recent periods and the decrease in total assets warrant attention. Overall, the balance sheet reflects stability with potential risks if equity continues to decline.

Cash Flow

Cash flow performance is mixed, with a decline in free cash flow compared to previous periods. The operating cash flow remains positive but has decreased from the prior year, and the free cash flow growth rate is negative. The company demonstrates an ability to generate operating cash flow, though the declining trend in free cash flow could impact future flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	460.85M	485.03M	535.00M	361.46M	248.92M
Gross Profit	449.58M	473.06M	522.31M	349.96M	238.79M
EBITDA	-24.48M	-147.30M	-120.26M	10.05M	-252.65M
Net Income	-23.70M	-164.48M	-126.82M	10.70M	-244.64M
Balance Sheet
Total Assets	300.72M	325.07M	691.59M	834.52M	830.90M
Cash, Cash Equivalents and Short-Term Investments	133.75M	127.07M	293.58M	256.38M	227.80M
Total Debt	38.43M	40.73M	45.27M	47.54M	93.17M
Total Liabilities	103.11M	110.05M	129.86M	140.74M	166.38M
Stockholders Equity	197.60M	215.02M	561.74M	693.78M	664.52M
Cash Flow
Free Cash Flow	17.45M	24.29M	62.29M	28.75M	2.37M
Operating Cash Flow	20.25M	27.80M	66.27M	32.54M	7.87M
Investing Cash Flow	12.22M	16.29M	-54.91M	10.02M	-16.19M
Financing Cash Flow	-774.00K	-190.44M	-19.62M	1.05M	-180.00K

trivago Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRVG, the sentiment is Positive. The current price of 3.81 is above the 20-day moving average (MA) of 3.70, below the 50-day MA of 3.97, and above the 200-day MA of 3.30, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 50.99 is Neutral, neither overbought nor oversold. The STOCH value of 85.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRVG.

trivago Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVER	75 Outperform	$935.19M	24.98	32.17%	―	113.43%	―
YELP	73 Outperform	$2.24B	16.69	19.74%	―	5.93%	29.17%
OPRA	73 Outperform	$1.53B	23.92	9.18%	4.53%	26.71%	-23.67%
Sector *	62 Neutral	$42.18B	-1.56	-12.06%	2.81%	2.10%	-71.01%
TRVG	57 Neutral	$274.47M	―	-11.66%	―	0.77%	87.59%
SEAT	56 Neutral	$363.54M	25.25	-1.00%	―	0.82%	-102.72%
NXDR	54 Neutral	$719.27M	―	-18.77%	―	12.01%	35.71%