Liberty TripAdvisor Holdings, Inc. – Value Analysis (NASDAQ:LTRPA) : August 4, 2017

Capitalcube gives Liberty TripAdvisor Holdings, Inc. a score of 50.

Our analysis is based on comparing Liberty TripAdvisor Holdings, Inc. with the following peers – Xiangtian (Usa) Air Power Co., Ltd., Caesars Acquisition Co. Class A, Monarch Casino & Resort, Inc. and Asia Pacific Boiler Corp. (XTNY-US, CACQ-US, MCRI-US and PADR-US).

Investment Outlook

Liberty TripAdvisor Holdings, Inc. has a fundamental score of 50 and has a relative valuation of UNDERVALUED.

Fundamental Score

Access our research and ratings on Liberty TripAdvisor Holdings, Inc.

Company Overview

  • Considering peers, relative underperformance over the last year and the last month suggest a lagging position.
  • It trades at a lower Price/Book multiple (0.15) than its peer median (1.95).
  • The market expects faster earnings growth from LTRPA-US than from its peers and also a turnaround in its current ROE.
  • LTRPA-US‘s relative asset efficiency and net profit margins are both around the median level.
  • Changes in annual earnings (relative to peers) are better than the change in its revenues (relative to peers), implying the company is focused more on earnings.
  • LTRPA-US‘s return on assets currently and over the past five years is around the peer median and suggest that it does not have any particular operational advantages versus peers.
  • Compared with the peers chosen, LTRPA-US has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations.
  • The company’s relatively low level of capital investment and below peer median returns on capital suggest that the company is in maintenance mode.
  • LTRPA-US‘s operating performance may not allow it to raise additional debt.

Access our research and ratings on Liberty TripAdvisor Holdings, Inc.

Leverage & Liquidity

LTRPA-US would seem to have a hard time raising additional debt.

  • With debt at a relatively low 12.50% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 2.91%), and relatively tight interest coverage level of 0.64x, LTRPA-US would have a hard time raising much additional debt. Thus, the company is classified as having Limited Flexibility when it comes to raising more debt.
  • Of the 4 chosen peers for the company, only 1 of the stocks have an outstanding debt balance (including MCRI-US). Companies with no debt include XTNY-US, CACQ-US and PADR-US.

LTRPA-US has maintained its Constrained profile from the recent year-end.

  • LTRPA-US‘s interest coverage is greater than (but within one standard deviation of) its five-year average interest coverage of -1.77x.
  • Compared to 2016, interest coverage has remained relatively stable for both the company (0.64x) and the peer median (999x).
  • LTRPA-US‘s debt-EV is its highest relative to the last five years and compares to a low of 9.09% in 2015.
  • Though its debt-EV increased to 12.50% from 11.31% (in 2016), its peer median remained relatively stable during this period at 2.91%.
  • Relative to peers, debt-EV rose 1.19 percentage points.

Access the detailed analysis for Liberty TripAdvisor Holdings, Inc.

Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
Xiangtian (Usa) Air Power Co., Ltd. 0 1.08 No interest exp 999
Caesars Acquisition Co. Class A 0 22.29 No interest exp 999
Monarch Casino & Resort, Inc. 5.82 1.2 43.98 126.12
Asia Pacific Boiler Corp. N/A 0 No interest exp 999
Liberty TripAdvisor Holdings Inc Class A 12.5 2.29 0.64 39.45
Peer Median 2.91 1.2 No interest exp 999
Best In Class 5.82 22.29 No interest exp 999

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Company Profile

Liberty TripAdvisor Holdings, Inc. engages in online advertising and commerce, through its subsidiaries, TripAdvisors and BuySeasons. It operates through the TripAdvisor and Corporate and Other segments. The TripAdvisors includes online travel community, aggregating reviews and opinions from its community of travelers about destinations, accommodations, restaurants, and activities throughout the world. The BuySeasons offers online retailer of costumes and party supplies. The company was founded on August 27, 2014 and is headquartered in Englewood, CO.

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