Latest news with #TripcomGroup
Yahoo
5 days ago
- Business
- Yahoo
Investors Will Want Trip.com Group's (NASDAQ:TCOM) Growth In ROCE To Persist
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. So when we looked at Group (NASDAQ:TCOM) and its trend of ROCE, we really liked what we saw. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for Group, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.084 = CN¥14b ÷ (CN¥248b - CN¥77b) (Based on the trailing twelve months to March 2025). So, Group has an ROCE of 8.4%. On its own, that's a low figure but it's around the 9.6% average generated by the Hospitality industry. View our latest analysis for Group In the above chart we have measured Group's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Group for free. Even though ROCE is still low in absolute terms, it's good to see it's heading in the right direction. The data shows that returns on capital have increased substantially over the last five years to 8.4%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 33%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers. A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what Group has. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. While Group looks impressive, no company is worth an infinite price. The intrinsic value infographic for TCOM helps visualize whether it is currently trading for a fair price. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
Should You Be Adding Trip.com Group (NASDAQ:TCOM) To Your Watchlist Today?
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Group (NASDAQ:TCOM). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Group has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future. Thus, it makes sense to focus on more recent growth rates, instead. To the delight of shareholders, Group's EPS soared from CN¥16.63 to CN¥26.06, over the last year. That's a fantastic gain of 57%. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. Not all of Group's revenue this year is revenue from operations, so keep in mind the revenue and margin numbers used in this article might not be the best representation of the underlying business. While we note Group achieved similar EBIT margins to last year, revenue grew by a solid 17% to CN¥55b. That's a real positive. The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image. Check out our latest analysis for Group While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for Group? We would not expect to see insiders owning a large percentage of a US$40b company like Group. But we do take comfort from the fact that they are investors in the company. Indeed, they have a considerable amount of wealth invested in it, currently valued at CN¥836m. This suggests that leadership will be very mindful of shareholders' interests when making decisions! For growth investors, Group's raw rate of earnings growth is a beacon in the night. This EPS growth rate is something the company should be proud of, and so it's no surprise that insiders are holding on to a considerable chunk of shares. On the balance of its merits, solid EPS growth and company insiders who are aligned with the shareholders would indicate a business that is worthy of further research. Of course, just because Group is growing does not mean it is undervalued. If you're wondering about the valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in the US with promising growth potential and insider confidence. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Trip.com Group Ltd (TCOM) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Net Revenue: RMB13.8 billion, a 16% increase year-over-year and a 9% increase from the previous quarter. Accommodation Reservation Revenue: RMB5.5 billion, a 23% increase year-over-year and a 7% increase quarter-over-quarter. Transportation Ticketing Revenue: RMB5.4 billion, an 8% increase year-over-year and a 13% increase quarter-over-quarter. Packaged Tour Revenue: RMB947 million, a 7% increase year-over-year and a 9% increase quarter-over-quarter. Corporate Travel Revenue: RMB573 million, a 12% increase year-over-year and an 18% decrease quarter-over-quarter. Adjusted EBITDA: RMB4.2 billion, compared with RMB4 billion in the same period last year. Diluted Earnings per ADS: RMB6.09 or USD0.84 for the first quarter of 2025. Non-GAAP Diluted Earnings per ADS: RMB5.96 or USD0.82 for the first quarter. Cash and Cash Equivalents: RMB92.9 billion or USD12.8 billion as of March 31, 2025. Share Repurchase: Approximately USD84 million of shares repurchased. Warning! GuruFocus has detected 4 Warning Signs with PPSI. Release Date: May 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Group Ltd (NASDAQ:TCOM) reported a 16% year-over-year increase in net revenue for Q1 2025, indicating strong business momentum. Inbound travel bookings surged by approximately 100% year-over-year, driven by favorable visa policies and increased global visibility. AI-driven tools like TripGenie have enhanced user engagement, with a 50% increase in average user session duration. The company has successfully expanded its international presence, with overall travel bookings on its international OTA platform growing by over 60% year-over-year. Group Ltd (NASDAQ:TCOM) has a strong cash position, with cash and cash equivalents totaling RMB92.9 billion or USD12.8 billion as of March 31, 2025. Corporate travel revenue decreased by 18% quarter-over-quarter, reflecting normal seasonality but indicating potential volatility in this segment. Adjusted product development expenses increased by 14% year-over-year, driven by higher personnel-related costs. The company faces challenges from geopolitical tensions and forex volatility, which could impact outbound travel trends. Hotel ADR decreased by high single digits in Q1 2025 compared to the previous year, indicating pricing pressure in the hotel segment. Despite strong performance, the marketing expenses ratio may fluctuate due to seasonality and varying market conditions, impacting overall cost efficiency. Q: Could you share your perspective on how vertical AI agents compare to general AI agents within the travel industry? Additionally, how do you envision the future development of these technologies? A: Vertical AI agents excel at providing real-time proprietary travel data and integrating products and services, while general agents offer broader information but rely on vertical OTAs for bookings. AI is crucial in strategy, with tools like TripGenie enhancing user engagement. We aim to be the most efficient and reliable one-stop travel service platform. - Jianzhang Liang, Executive Chairman of the Board Q: Could management provide some color about your performance during the Labor Day holiday and the quarter-to-date? A: We saw strong performance during the Labor Day holiday, with domestic hotel bookings increasing by over 20% and cross-border bookings growing by around 30%. Inbound bookings surged by approximately 150% year-over-year, indicating resilient leisure travel demand. - Xiaofan Wang, Chief Financial Officer Q: Can you share insights on the outbound travel trend and your expectations for the full year, considering the current uncertain environment? A: Cross-border flights from Mainland China recovered to 83-84% of 2019 levels, with expectations to exceed 90% by the end of 2025. Our outbound bookings outperform the industry, especially in long-haul destinations like Europe. Forex exchanges create a natural hedge for our inbound and outbound operations. - Xiaofan Wang, Chief Financial Officer Q: How are hotel prices trending recently, and what is the outlook for the full year? A: Hotel ADR decreased by high single digits in Q1 but stabilized in Q2, with prices dropping by low single digits during the Labor Day holiday. We expect increasing travel demand and normalizing supplier growth to stabilize hotel prices. - Xiaofan Wang, Chief Financial Officer Q: Can you share insights on consumer sentiment in the context of the dynamic macro environment and geopolitical tensions? A: Travel demand remains resilient across markets, with strong leisure travel demand and stable business travel trends. Corporate users expect their travel budgets to grow or remain unchanged by 2025, indicating stable demand. - Jie Sun, Chief Executive Officer Q: Could you help us understand the current domestic competitive landscape and the impact of competitors' aggressive membership programs? A: The domestic competition is rationalized, and our strong membership program provides competitive pricing and coverage. Our partners can offer customized services, with 80% of revenue from existing customers, extending our leadership. - Jie Sun, Chief Executive Officer Q: Could you provide insights into the first quarter performance, both operationally and financially? A: achieved strong growth with bookings increasing by over 60% year-over-year. APAC remains a priority, and we are expanding in new markets like the Middle East. Cost efficiency is improving, and marketing ROI aligns with requirements. - Xiaofan Wang, Chief Financial Officer Q: Could you elaborate on the latest developments in the inbound business and its current revenue contribution? A: Inbound travel is supported by favorable policies like visa-free access for over 40 countries. We offer comprehensive inventory and competitive pricing, leading to strong momentum and three-digit growth in Q1. - Jie Sun, Chief Executive Officer For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Skift
20-05-2025
- Business
- Skift
Trip.com Group Rides AI, Inbound Boom, and Older Travelers to Strong Quarter
inbound bookings soared 100% as China's visa-free policies lured more tourists. With AI and senior travelers fueling growth, the company's global comeback looks sharp and well-targeted. Inbound tourism to China has become Group's fastest-growing segment, thanks to favorable policy changes and increased international interest. Visa-free access for travelers from over 40 countries, along with China's new 240-hour visa-free transit policy, is making it easier for tourists to visit the country. 'In the first quarter, our inbound travel bookings surged by approximately 100% year-over-year with South Korea, Thailand, Malaysia and Indonesia emerging as some of the fastest-growing source markets,' said Group Co-Founder and Executive Chairman James Liang at an earnings call on Tuesday. Inbound hotel bookings from key visa-free countries surged more than 240%, driven in part by new initiatives such as free city tours for transit travelers and upgrades to multilingual offline service centers. The inbound segment also outperformed others on conversion rates and cross-selling metrics, according to Jane Sun, CEO and director of Group. AI as a Core Strategic Asset Artificial intelligence is also playing a key role in Group's growth strategy. From planni
Trade Arabia
18-05-2025
- Business
- Trade Arabia
ITB China 2025 unveils new Travel Innovation Hub
The Travel Innovation Hub, a new platform at ITB China 2025, will showcase the intelligent and sustainable integration of technology into the travel industry. The hub consists of three pillars: the Travel Innovation Showcase, the Travel Tech Forum, and the Travel Innovators Pitch. It features major tech players such as Group, Fliggy, Tongcheng Travel, Meituan, Petal Ads, Heytrip International, Mize, Guangdong Qiyouji, CONVERGENT, Expedia Group, Travco, and others. The initiative marks a significant step forward in the digital transformation of the global travel ecosystem, reflecting how emerging technologies such as artificial intelligence, big data, and cloud computing are transforming travel experiences. Emerging technologies such as immersive virtual tourism, location-based virtual reality (LBVR), AI-driven assistants, contactless services, and smart hospitality systems are redefining how travel is created, delivered, and consumed. Vincent Wen, Director of Huawei Consumer Cloud Service Business Growth Dept, stated that this year marks their second appearance at ITB China. Petal Ads, an intelligent marketing platform powered by the HarmonyOS ecosystem, is poised to deliver one-stop cultural tourism solutions for more industry partners. The Travel Innovation Hub is built around three core components designed to foster innovation, promote meaningful collaboration, and accelerate the future of travel. The Travel Innovation Showcase showcases AI-powered breakthroughs from leading online travel platforms, such as Group's personalised travel ecosystem driven by AI, Fliggy's multi-model AI itinerary assistant, Tongcheng Travel's unique business model integrating eSports with cultural tourism, and Expedia Group's customisable travel experiences powered by its robust APIs and service capabilities. The Travel Tech Forum explores the transformative potential of technology across tourism through expert-led dialogues, with panels discussing "A two-way Journey of digital travel and extended reality" and "What new sparks will be ignited when AI meets tourism services?" The ESG Tech section, co-organised with Petal Ads, presents a panel titled "Sustainable Travel: A New Paradigm for Tourism from a Global Perspective." The Travel Innovators Pitch is a high-energy platform where eight handpicked tech companies present their groundbreaking products and solutions to investors, tourism leaders, and media. The event also includes the Travel Tech Tour, a series of roadshows co-organised by ITB China and media partner 36Kr, aimed at bridging the gap between the technology and tourism industries. -TradeArabia News Service
