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Trip.com Group Limited

TCOM
66
Travel Services · Consumer Cyclical
Price
$42.45
-1.30 (-2.97%)
Market Cap
$26.73B
Exchange
NASDAQ
Winston Score
66
Winston is curious
A decent business — some strong pillars, some weaker.

Share count rising — dilution

+10.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 634.1M (2021) → 698.4M (2025)

Trip.com Group Limited, through its subsidiaries, operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours and in-destination, corporate travel management, and other travel-related services in China and internationally. The company acts as an agent for hotel-related transactions and selling air tickets, as well as provides train, long-distance bus, and ferry tickets; travel insurance products, such as flight delay, air accident, and baggage lo

Winston Score History

Politician Trades

3 trades / 12mo

1 Congressional buy and 2 sells on TCOM in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+19.2% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+96.0% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$14.7B/ year

Rising (+12% vs prior year)

24.3% of revenue

6.1x the sector average (4%)

Investing heavily in future products and technology

Insider Activity

9.8%ownership

Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

$46.5B cash & investments

Quarterly Free Cash Flow

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

Trip.com Group Limited is putting 24% of revenue into R&D and that number is rising. That's 6.1x the sector average. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
79.0%
Premium pricing power — 79.0% gross margin
Operating Margin
16.5%
Healthy — 16.5% operating margin
ROCE
1.2%
Weak — 1.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+16.7%
Fast-growing sales (16.7% YoY)
EPS YoY
+93.8%
Earnings growing fast (93.8% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
43%
Weak — only 43% of profit becomes cash
FCF Margin
21.8%
Converts sales into free cash efficiently (21.8%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
0.18
Conservative — low debt load (0.18)
Interest Cover
18.57x
Comfortably covers interest (18.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
0.8x
Attractive valuation — P/E 0.8

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
-0.4
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.
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