Trip.com Group Limited (NASDAQ:TCOM) Not Flying Under The Radar
Trip.com Group Limited (NASDAQ:TCOM) Not Flying Under The Radar
When close to half the companies in the Hospitality industry in the United States have price-to-sales ratios (or "P/S") below 1.4x, you may consider Trip.com Group Limited (NASDAQ:TCOM) as a stock to avoid entirely with its 5.3x P/S ratio. However, the P/S might be quite high for a reason and it requires further investigation to determine if it's justified.
How Has Trip.com Group Performed Recently?
Trip.com Group certainly has been doing a good job lately as it's been growing revenue more than most other companies. It seems that many are expecting the strong revenue performance to persist, which has raised the P/S. If not, then existing shareholders might be a little nervous about the viability of the share price.
Keen to find out how analysts think Trip.com Group's future stacks up against the industry? In that case, our free report is a great place to start.How Is Trip.com Group's Revenue Growth Trending?
In order to justify its P/S ratio, Trip.com Group would need to produce outstanding growth that's well in excess of the industry.
If we review the last year of revenue growth, the company posted a terrific increase of 122%. The strong recent performance means it was also able to grow revenue by 143% in total over the last three years. So we can start by confirming that the company has done a great job of growing revenue over that time.
Shifting to the future, estimates from the analysts covering the company suggest revenue should grow by 16% per annum over the next three years. That's shaping up to be materially higher than the 11% per annum growth forecast for the broader industry.
With this information, we can see why Trip.com Group is trading at such a high P/S compared to the industry. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future.
The Bottom Line On Trip.com Group's P/S
Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.
As we suspected, our examination of Trip.com Group's analyst forecasts revealed that its superior revenue outlook is contributing to its high P/S. At this stage investors feel the potential for a deterioration in revenues is quite remote, justifying the elevated P/S ratio. Unless these conditions change, they will continue to provide strong support to the share price.
A lot of potential risks can sit within a company's balance sheet. Take a look at our free balance sheet analysis for Trip.com Group with six simple checks on some of these key factors.
If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This 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.
當美國酒店業將近一半的公司的市銷率(或 “市銷率”)低於1.4倍時,您可以將Trip.com集團有限公司(納斯達克股票代碼:TCOM)視爲完全避開的股票,其市銷率爲5.3倍。但是,市銷率可能很高是有原因的,需要進一步調查以確定其是否合理。
Trip.com集團最近的表現如何?
Trip.com集團最近確實做得很好,因爲它的收入增長幅度超過了大多數其他公司。看來許多人預計強勁的收入表現將持續下去,這提高了市銷率。否則,現有股東可能會對股價的可行性感到有些擔憂。
想了解分析師如何看待Trip.com集團的未來與該行業的對立嗎?在這種情況下,我們的免費報告是一個很好的起點。Trip.com集團的收入增長趨勢如何?
爲了證明其市銷率是合理的,Trip.com集團需要實現遠遠超過該行業的出色增長。
如果我們回顧一下去年的收入增長,該公司公佈了122%的驚人增長。最近的強勁表現意味着它在過去三年中總收入增長了143%。因此,我們可以首先確認該公司在這段時間內在增加收入方面做得很好。
展望未來,報道該公司的分析師的估計表明,未來三年收入將每年增長16%。這將大大高於整個行業11%的年增長預期。
有了這些信息,我們可以明白爲何Trip.com集團的市銷率與行業相比如此之高。顯然,股東們並不熱衷於轉移可能着眼於更繁榮未來的東西。
Trip.com集團市銷率的底線
通常,我們傾向於限制使用市銷率來確定市場對公司整體健康狀況的看法。
正如我們所懷疑的那樣,我們對Trip.com集團分析師預測的審查顯示,其優異的收入前景是其高市銷率的原因。在現階段,投資者認爲收入惡化的可能性微乎其微,這證明市銷率上升是合理的。除非這些條件發生變化,否則它們將繼續爲股價提供強有力的支撐。
公司的資產負債表中可能存在許多潛在風險。看看我們對Trip.com集團的免費資產負債表分析,對其中一些關鍵因素進行了六次簡單檢查。
如果過去盈利增長穩健的公司處於困境,那麼你可能希望看到這些盈利增長強勁、市盈率低的其他公司的免費集合。
對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。
譯文內容由第三人軟體翻譯。
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