Tripadvisor, Inc.
Tripadvisor, Inc. Fundamental Analysis
Tripadvisor, Inc. (TRIP) shows weak financial fundamentals with a PE ratio of 58.91, profit margin of 0.99%, and ROE of 2.86%. The company generates $1.9B in annual revenue with moderate year-over-year growth of 3.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 15.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TRIP's fundamental strength across five key dimensions:
Efficiency Score
WeakTRIP struggles to generate sufficient returns from assets.
Valuation Score
ModerateTRIP shows balanced valuation metrics.
Growth Score
WeakTRIP faces weak or negative growth trends.
Financial Health Score
ModerateTRIP shows balanced financial health with some risks.
Profitability Score
ModerateTRIP maintains healthy but balanced margins.
Key Financial Metrics
Is TRIP Expensive or Cheap?
P/E Ratio
TRIP trades at 58.91 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TRIP's PEG of -0.93 indicates potential undervaluation.
Price to Book
The market values Tripadvisor, Inc. at 1.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.49 times EBITDA. This is generally considered low.
How Well Does TRIP Make Money?
Net Profit Margin
For every $100 in sales, Tripadvisor, Inc. keeps $0.99 as profit after all expenses.
Operating Margin
Core operations generate 3.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.86 in profit for every $100 of shareholder equity.
ROA
Tripadvisor, Inc. generates $0.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tripadvisor, Inc. produces operating cash flow of $262.97M, showing steady but balanced cash generation.
Free Cash Flow
Tripadvisor, Inc. produces free cash flow of $182.81M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.57 in free cash annually.
FCF Yield
TRIP converts 16.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
58.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How TRIP Stacks Against Its Sector Peers
| Metric | TRIP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 58.91 | 23.70 | Worse (Expensive) |
| ROE | 2.86% | 1185.00% | Weak |
| Net Margin | 0.99% | 2505.00% | Weak |
| Debt/Equity | 2.00 | 0.77 | Weak (High Leverage) |
| Current Ratio | 1.25 | 2.86 | Neutral |
| ROA | 0.68% | -8133.00% (disorted) | Weak |
TRIP outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tripadvisor, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
237.77%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
114.93%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
236.25%
Industry Style: Cyclical, Growth, Discretionary
High Growth