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Trip.com Group Ltd ADR TCOM

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Stock XNAS Rating as of
$42.45 −1.30 (2.97%)
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As of Delayed Price Closed

Company Report

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Trip.com Sees Value-Added Service Business Curtailed, but Still Positioned for Margin Expansion

Kai Wang

Narrow-moat Trip.com competes in China’s crowded online travel agent, or OTA, industry by leveraging the largest selection of both domestic and international hotels in China on its platform and relying on user stickiness as a one-stop shop for travel ticketing, accommodations, and packaged tours. The platform is now also generating revenue from advertisement in which it hopes to take 3%-5% of the ad market, but nearly all its revenue streams are travel-related, and coronavirus lockdowns in China has cratered demand due to the inability to travel or unwillingness to quarantine.

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Price vs Fair Value

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TCOM is trading at a LOCK|?M>V#@ premium.
Price
$42.45
Fair Value
x%b
Uncertainty
LOCK|dl>
1-Star Price
LOCK|.?!
5-Star Price
LOCK|.gQ
Economic Moat
LOCK|$mt#B
Capital Allocation
LOCK|H>>fW<&

Bulls Say, Bears Say

Bulls

The number of Chinese passport holders is only about 10%-15% of the population, which should provide Trip.com with secular demand given the low saturation.

Bears

International expansion may fall flat given greater competition beyond China's borders and could pressure margins as it prioritizes growth.

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Trading Information

Previous Close Price
$43.75
Day Range
$42.13–43.54
52-Week Range
$38.04–78.99
Bid/Ask
$42.24 / $42.39
Shares Outstanding
629.71M
Market Cap
$26.73B
Volume/Avg
4M / 3M

Key Statistics

Price/Earnings (Normalized)
11.56
Price/Sales
3.23
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
2.25%

Company Profile

Trip.com is the largest online travel agent in China and is positioned to benefit from the country's rising demand for higher-margin outbound travel as passport penetration is only 12% in China. The company generated about 79% of sales from accommodation reservations and transportation ticketing in 2024. The rest of revenue comes from package tours and corporate travel. Before the pandemic in 2019, the company generated 25% of revenue from international travel, which is important to its margin expansion. Most of sales come from its domestic platform, but the company is expanding its overseas business. The competes in a crowded OTA industry in China, including Meituan, Alibaba-backed Fliggy, Tongcheng, and Qunar. The company was founded in 1999 and listed on the Nasdaq in December 2003.
Sector
Consumer Cyclical
Industry
Travel Services
Stock Style Box
Large Core
Total Number of Employees
43,574
Website
https://group.trip.com

Competitors

Valuation

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Metric
TCOM
BKNG
03690
Price/Earnings (Normalized)
 11.5619.5613.69
Price/Book Value
 1.12—3.04
Price/Sales
 3.235.301.29
Price/Cash Flow
 10.6016.35—
Price/Earnings
TCOM
BKNG
03690

Financial Strength

Metric
TCOM
BKNG
03690
Quick Ratio
 1.210.991.57
Current Ratio
 1.531.061.82
Interest Coverage
 53.866.71−13.24
Quick Ratio
TCOM
BKNG
03690

Profitability

Metric
TCOM
BKNG
03690
Return on Assets (Normalized)
 12.12%26.14%−5.59%
Return on Equity (Normalized)
 19.75%—−11.01%
Return on Invested Capital (Normalized)
 15.26%65.49%−7.96%
Return on Assets
TCOM
BKNG
03690

Travel Services Industry Comparables

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1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Booking Holdings Inc
BKNG
LOCK|MClQr@ZpLOCK|V%$141B
 Airbnb Inc Ordinary Shares - Class A
ABNB
LOCK|q!XW&?VLOCK|>#$87B
 Royal Caribbean Group
RCL
LOCK|&hNt&%XLOCK|^@!Jp$77B
 Viking Holdings Ltd
VIK
—LOCK|kW$43B
 Carnival Corporation Ltd
CCL
LOCK|$LJTxnpLOCK|jKHH$36B
 Expedia Group Inc
EXPE
LOCK|hdm??sMLOCK|nQ@&$32B
 Trip.com Group Ltd
TRPCF
—LOCK|%j%K$27B
 Norwegian Cruise Line Holdings Ltd
NCLH
LOCK|M&cF@KLOCK|XQj$$9B
 Tripadvisor Inc
TRIP
LOCK|^>&&Hd!LOCK|Tj$2B

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