Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese online travel company Ctrip.com International
With that in mind, let's take a closer look at Ctrip's business and see what CAPS investors are saying about the stock right now.
Ctrip facts
| Headquarters (Founded) | Shanghai, China (1999) |
| Market Cap | $5.64 billion |
| Industry | Consumer services |
| Trailing-12-Month Revenue | $438.8 million |
| Management |
Co-Founder/CEO Alfred Min Fan CFO Jane Jie Sun |
| Return on Equity (Average, Past 3 Years) | 25.1% |
| Cash/Debt | $507.5 million / $0 |
| Competitors |
Expedia |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 4,351 members who have rated Ctrip believe the stock will outperform the S&P 500 going forward. These bulls include Fareed69 and All-Star TMF1000, who is ranked in the top 0.5% of our community.
Just last month , Fareed69 touched on the huge demographic trend working in the stock's favor: "Happy to have held [Ctrip] for almost five years, and the next five years are going to be great as well. Chinese middle class will continue to grow."
Over the next five years, in fact, Ctrip is expected to grow its bottom line at a brisk rate of 28% annually. That's faster than U.S. counterparts like Expedia (12%), priceline.com
CAPS All-Star TMF1000 expands on the opportunity:
Back in 2006, they had P/E ratio between 56 and above 80. They looked very expensive in 2006. The highest price reached during the first quarter of 2006 was $14.16. So the price of the stock from its highest point in q1:2006 has increased 163% while the P/E has declined by 44%. I believe this trend will continue. ...
During the deepest part of the recession, Ctrip's split adjusted price fell to $8.20 with a P/E of 16.92. Fear drove the price down, but earnings continued to grow. If we can trust the reporting, earnings never really slipped during the recession. ...
I decided to buy some of Ctrip. I have studied them since 2006 and I believe the value is about as good as I am going to get, barring inventing a time machine and going back to 2008 lows. ...
I also want to have a full position once the Disney resort is built in 2015. I believe that will provide a big boost to travel to China, not that it needs too much boosting. I think Ctrip will continue to grow through 2015 and beyond.
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