TripAdvisor Stock Analysis, Valuation (NASDAQ:TRIP)

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$41.23 $3.14 (7.08%) TRIP stock closing price Sep 25, 2017 (Closing)
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TripAdvisor
Updated on : Sep 25, 2017
previous close
TRIP 41.3 (0%)
S&P 500 2496.7 (0%)
Closing Price On: Sep 25, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Commerce
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2017-Q2
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
17%
Operating Profit
Operating Margin:
9.7%
Sector Average:
5.6%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
267M
Debt/Equity Ratio:
 0.2
Compared to the industry
Cash Flow
Operating cash flow:
$221M
Net Income:
$27M
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Low Debt Burden
Cash Flow
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
TRIP PS :
3.8
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
10.2%
Return on Equity:
6.6%
Free Cash Flow Margin:
48.1%
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TripAdvisor Stock Analysis

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View TripAdvisor stock analysis video. This is our analyst opinion covering the buy and sell arguments for TRIP stock.

Tripadvisor Inc Stock Rating 3/5

Our TripAdvisor stock opinion is based on fundamentals of the company. This TripAdvisor stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy TRIP stock?

  • TripAdvisor's revenue growth came in at 8.4% in 2017 Q2.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 17%.
  • TripAdvisor had a healthy average operating margin of 9.7% over the last 4 quarters.
  • LTM Net margins were good at 6.3% for TripAdvisor.
  • With a debt/equity ratio of  0.2, TripAdvisor is comparatively less leveraged than its peers in the Retail-Wholesale sector.
  • The company has an operating cash flow which is 8.2 times the net income.
  • TripAdvisor has a healthy FCF (Free Cash Flow) margin of 48.1%.

Should you sell TRIP stock?

  • TRIP stock is trading at a PE ratio of 47.4, which is worse than the industry average multiple of 17.9.
  • The company is trading at a price to sales multiple of 3.8, which is higher in comparison to the Internet Commerce industry average of 0.7, making TRIP stock expensive.

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