TripAdvisor (TRIP) AI Stock Analysis

• Market Cap: $1.72B
• Dividend Yield: N/A
• Average Volume (3M): 2.25M
• Price to Earnings (P/E): 31.1
• Beta (1Y): 1.42
• Revenue Growth: 3.03%
• EPS Growth: 187.03%
• Country: US
• Employees: 2,770
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): N/A
• Shares Outstanding: 116,133,590
• 10 Day Avg. Volume: 2,046,973
• 30 Day Avg. Volume: 2,246,765
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 0.98
• Enterprise Value/Ebitda: 7.54
• 1Y Price Target: $17.85
• Price Target Upside: 20.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $17.00 ▲(14.79% Upside)

TripAdvisor's overall stock score reflects solid financial performance and positive earnings call highlights, particularly in Viator and TheFork segments. However, high leverage, modest revenue growth, and valuation concerns weigh on the score. Technical indicators suggest a lack of strong momentum, adding to the cautious outlook.

Positive Factors

Revenue Growth in Viator and TheFork

Strong growth in Viator and TheFork segments indicates robust demand and successful strategy execution, enhancing revenue stability.

AI Integration Success

AI integration enhances operational efficiency and user experience, positioning TripAdvisor for sustained competitive advantage.

Cash Flow Improvements

Strong cash flow growth enhances financial flexibility, supporting strategic investments and debt management.

Negative Factors

High Leverage

High leverage can strain financial resources, limiting flexibility and increasing risk during economic downturns.

Brand Tripadvisor Revenue Decline

Declining revenue in core brand segments indicates challenges in maintaining market position and adapting to changing consumer preferences.

Media and Advertising Revenue Decline

Declining media and advertising revenue suggests challenges in monetizing traffic, impacting overall revenue diversification.

TripAdvisor Business Overview & Revenue Model

Company Description

TripAdvisor, Inc. operates as an online travel company. It operates in two segments, Hotels, Media & Platform; and Experiences & Dining. The company operates TripAdvisor-branded websites, including tripadvisor.com in the United States; and localized versions of the website in 40 markets and 20 languages. It also manages and operates other travel media brands that provide users the comprehensive travel-planning and trip-taking resources in the travel industry, such as bokun.io, cruisecritic.com, flipkey.com, thefork.com, helloreco.com, holidaylettings.co.uk, holidaywatchdog.com, housetrip.com, jetsetter.com, niumba.com, seatguru.com, singleplatform.com, vacationhomerentals.com, and viator.com. In addition, the company provides information and services for consumers to research and book restaurants reservation in travel destinations; and vacation and short-term rental properties, including full home, condominiums, villas, beach properties, cabins, and cottages. As of December 31, 2020, it featured 1 billion reviews and opinions on 1 billion hotels and other accommodations, restaurants, experiences, airlines, and cruises. TripAdvisor, Inc. was founded in 2000 and is headquartered in Needham, Massachusetts.

How the Company Makes Money

TripAdvisor generates revenue through several key streams, primarily from advertising and transaction-based bookings. The company earns a substantial portion of its revenue through a cost-per-click (CPC) advertising model, where travel service providers pay for advertisements displayed on the TripAdvisor platform. Additionally, TripAdvisor earns revenue from its Instant Booking feature, which allows users to book hotels and accommodations directly through its site, earning commissions on each booking made. The company also has partnerships with various travel-related businesses, including airlines and hotel chains, enhancing its revenue through affiliate marketing and referral fees. Overall, TripAdvisor's diverse revenue model capitalizes on its vast user base and the increasing reliance on online platforms for travel planning.

TripAdvisor Financial Statement Overview

Summary

TripAdvisor demonstrates strong financial performance with significant revenue growth and improved profitability. The income statement shows a robust gross profit margin of 83.3% and a net profit margin improvement to 5.8%. However, high leverage with a debt-to-equity ratio of 1.97 poses potential risks, and cash flow management, while positive, shows room for improvement.

Income Statement

TripAdvisor shows strong income statement performance with a consistent revenue growth trajectory from $604M in 2020 to $1.838B in TTM. The gross profit margin is robust at 83.3% for TTM, indicating efficient cost management. Net profit margin has notably improved to 5.8% in TTM from negative in prior years, reflecting a turnaround in profitability. EBITDA margin of 10.4% in TTM suggests decent operating efficiency. However, EBIT margin at 6.1% points to room for operational improvements.

Balance Sheet

TripAdvisor's balance sheet reflects moderate stability with a debt-to-equity ratio of 1.97 in TTM, indicating a high leverage level though slightly reduced from prior years. The equity ratio stands at 23.3%, denoting a solid equity base. Return on equity improved to 16.6% in TTM, showcasing enhanced shareholder returns. However, the high debt levels could pose potential risks if not managed carefully.

Cash Flow

The cash flow statement shows a positive trajectory with free cash flow growth, reaching $81M in TTM. The operating cash flow to net income ratio of 1.0 in TTM highlights adequate cash generation relative to earnings. Free cash flow to net income ratio at 0.76 indicates healthy cash flow management. Despite these strengths, reduced free cash flow compared to previous years suggests areas for improvement in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.87B	1.83B	1.79B	1.49B	902.00M	604.00M
Gross Profit	1.79B	1.70B	1.64B	1.38B	828.00M	549.00M
EBITDA	232.00M	218.00M	256.00M	208.00M	-29.00M	-209.00M
Net Income	65.00M	5.00M	10.00M	20.00M	-148.00M	-289.00M
Balance Sheet
Total Assets	2.87B	2.56B	2.54B	2.57B	2.29B	1.97B
Cash, Cash Equivalents and Short-Term Investments	1.21B	1.06B	1.07B	1.02B	723.00M	418.00M
Total Debt	1.26B	903.00M	912.00M	929.00M	953.00M	634.00M
Total Liabilities	2.24B	1.62B	1.67B	1.71B	1.50B	1.08B
Stockholders Equity	627.00M	943.00M	871.00M	861.00M	789.00M	886.00M
Cash Flow
Free Cash Flow	222.00M	70.00M	172.00M	344.00M	54.00M	-249.00M
Operating Cash Flow	258.00M	144.00M	235.00M	400.00M	108.00M	-194.00M
Investing Cash Flow	-88.00M	-73.00M	-63.00M	-52.00M	-54.00M	-56.00M
Financing Cash Flow	-150.00M	-63.00M	-127.00M	-27.00M	263.00M	341.00M

TripAdvisor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRIP, the sentiment is Negative. The current price of 14.81 is below the 20-day moving average (MA) of 15.86, below the 50-day MA of 16.76, and below the 200-day MA of 15.58, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 36.27 is Neutral, neither overbought nor oversold. The STOCH value of 8.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRIP.

TripAdvisor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABNB	79 Outperform	$76.03B	29.52	33.26%	―	10.23%	-44.56%
TCOM	73 Outperform	$46.51B	19.37	12.94%	0.40%	17.73%	27.95%
EXPE	72 Outperform	$26.24B	25.96	129.04%	0.57%	5.69%	47.33%
MMYT	65 Neutral	$10.21B	118.54	16.66%	―	14.55%	-68.46%
BKNG	63 Neutral	$160.90B	32.44	―	0.74%	12.96%	3.66%
TRIP	62 Neutral	$1.72B	31.13	8.76%	―	3.03%	187.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

TripAdvisor Corporate Events

Tripadvisor’s Earnings Call: Strategic Gains Amid Challenges

Tripadvisor’s Latest Earnings Call: Strategic Progress Amidst Challenges

Tripadvisor Sees Revenue Growth in Q2 2025

Tripadvisor, Inc., a leading online travel company, provides a platform for travelers to plan and book their trips, offering services in the travel and experiences sector with a focus on hotels, experiences, and dining.