TripAdvisor Inc. Common Stock (TRIP)

FairStock Score: 26/100 — RISKY

Key Financials

Strengths

• Generates $177 million in annual free cash flow (14.1% yield on market cap)

Concerns

• Trades significantly above Graham Number ($6) with negative 71% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Weak Piotroski F-Score of 1/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 0.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

TripAdvisor Inc. Common Stock is a micro-cap consumer cyclical company valued at $1.3 billion. Revenue stands at $1.9 billion, though the company is currently unprofitable. From a quality standpoint, TripAdvisor shows weak Piotroski F-Score of 1/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 0.8 warrants caution. On valuation, the stock is trading at a premium 35.0x earnings, with trades above its Graham Number with a negative 71% margin. Growth dynamics show revenue growing at 0.0% and profit growth of -3900.0%. Our composite FairStock Score of 26/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $177 million in annual free cash flow (14.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 35x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer