TRAVELZOO (TZOO) Stock Fundamental Analysis
NASDAQ:TZOO - Nasdaq - US89421Q2057 - Common Stock - Currency: USD
TZOO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 70 industry peers in the Interactive Media & Services industry. TZOO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TZOO scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes TZOO very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year TZOO was profitable.
In the past year TZOO had a positive cash flow from operations.
TZOO had positive earnings in 4 of the past 5 years.
In multiple years TZOO reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 25.40%, TZOO belongs to the top of the industry, outperforming 98.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 93.96%, TZOO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TZOO is significantly above the industry average of 12.03%.
The last Return On Invested Capital (93.96%) for TZOO is above the 3 year average (50.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.4% | ||
| ROE | N/A | ||
| ROIC | 93.96% |
ROA(3y)18.97%
ROA(5y)8.95%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)50.44%
ROIC(5y)N/A
1.3 Margins
TZOO's Profit Margin of 14.69% is amongst the best of the industry. TZOO outperforms 82.86% of its industry peers.
TZOO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.65%, TZOO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of TZOO has grown nicely.
TZOO has a Gross Margin of 85.89%. This is amongst the best in the industry. TZOO outperforms 87.14% of its industry peers.
In the last couple of years the Gross Margin of TZOO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.65% | ||
| PM (TTM) | 14.69% | ||
| GM | 85.89% |
OM growth 3YN/A
OM growth 5Y6.35%
PM growth 3Y124.15%
PM growth 5Y32.2%
GM growth 3Y2.27%
GM growth 5Y-0.36%
2. Health
2.1 Basic Checks
TZOO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for TZOO has been reduced compared to 1 year ago.
The number of shares outstanding for TZOO has been increased compared to 5 years ago.
There is no outstanding debt for TZOO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
TZOO has an Altman-Z score of 4.45. This indicates that TZOO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.45, TZOO is doing good in the industry, outperforming 75.71% of the companies in the same industry.
TZOO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.45 |
ROIC/WACC10.09
WACC9.31%
2.3 Liquidity
TZOO has a Current Ratio of 0.72. This is a bad value and indicates that TZOO is not financially healthy enough and could expect problems in meeting its short term obligations.
TZOO has a Current ratio of 0.72. This is amonst the worse of the industry: TZOO underperforms 82.86% of its industry peers.
TZOO has a Quick Ratio of 0.72. This is a bad value and indicates that TZOO is not financially healthy enough and could expect problems in meeting its short term obligations.
TZOO's Quick ratio of 0.72 is on the low side compared to the rest of the industry. TZOO is outperformed by 81.43% of its industry peers.
The current and quick ratio evaluation for TZOO is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
TZOO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.89%, which is quite good.
TZOO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.81% yearly.
The Revenue has been growing slightly by 0.23% in the past year.
Measured over the past years, TZOO shows a decrease in Revenue. The Revenue has been decreasing by -4.37% on average per year.
EPS 1Y (TTM)9.89%
EPS 3Y84.06%
EPS 5Y24.81%
EPS Q2Q%-19.35%
Revenue 1Y (TTM)0.23%
Revenue growth 3Y10.2%
Revenue growth 5Y-4.37%
Sales Q2Q%5.25%
3.2 Future
The Earnings Per Share is expected to grow by 28.91% on average over the next years. This is a very strong growth
Based on estimates for the next years, TZOO will show a small growth in Revenue. The Revenue will grow by 7.18% on average per year.
EPS Next Y13.93%
EPS Next 2Y31.17%
EPS Next 3Y31.07%
EPS Next 5Y28.91%
Revenue Next Year12.8%
Revenue Next 2Y18.13%
Revenue Next 3Y7.18%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.31, which indicates a correct valuation of TZOO.
Based on the Price/Earnings ratio, TZOO is valued a bit cheaper than 78.57% of the companies in the same industry.
TZOO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 7.30, the valuation of TZOO can be described as very cheap.
94.29% of the companies in the same industry are more expensive than TZOO, based on the Price/Forward Earnings ratio.
TZOO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.31 | ||
| Fwd PE | 7.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TZOO indicates a rather cheap valuation: TZOO is cheaper than 81.43% of the companies listed in the same industry.
92.86% of the companies in the same industry are more expensive than TZOO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.54 | ||
| EV/EBITDA | 7.87 |
4.3 Compensation for Growth
TZOO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of TZOO may justify a higher PE ratio.
A more expensive valuation may be justified as TZOO's earnings are expected to grow with 31.07% in the coming years.
PEG (NY)0.96
PEG (5Y)0.54
EPS Next 2Y31.17%
EPS Next 3Y31.07%
5. Dividend
5.1 Amount
No dividends for TZOO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.31
+0.09 (+0.68%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners38.12%
Inst Owner Change-56.3%
Ins Owners0.3%
Ins Owner Change0.05%
Market Cap147.74M
Analysts84
Price Target26.78 (101.2%)
Short Float %3.76%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8%
Min EPS beat(2)-15.03%
Max EPS beat(2)-0.97%
EPS beat(4)2
Avg EPS beat(4)3.51%
Min EPS beat(4)-15.03%
Max EPS beat(4)29.06%
EPS beat(8)5
Avg EPS beat(8)12.79%
EPS beat(12)7
Avg EPS beat(12)11.32%
EPS beat(16)9
Avg EPS beat(16)20.72%
Revenue beat(2)0
Avg Revenue beat(2)-4.72%
Min Revenue beat(2)-8.1%
Max Revenue beat(2)-1.33%
Revenue beat(4)0
Avg Revenue beat(4)-5.22%
Min Revenue beat(4)-8.1%
Max Revenue beat(4)-1.33%
Revenue beat(8)1
Avg Revenue beat(8)-3.32%
Revenue beat(12)2
Avg Revenue beat(12)-4.32%
Revenue beat(16)4
Avg Revenue beat(16)-5.03%
PT rev (1m)0.96%
PT rev (3m)3.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.82%
EPS NY rev (1m)1.54%
EPS NY rev (3m)-1.66%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.31 | ||
| Fwd PE | 7.3 | ||
| P/S | 1.74 | ||
| P/FCF | 7.54 | ||
| P/OCF | 7.48 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.87 |
EPS(TTM)1
EY7.51%
EPS(NY)1.82
Fwd EY13.7%
FCF(TTM)1.77
FCFY13.27%
OCF(TTM)1.78
OCFY13.38%
SpS7.66
BVpS-0.55
TBVpS-1.66
PEG (NY)0.96
PEG (5Y)0.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.4% | ||
| ROE | N/A | ||
| ROCE | 132.48% | ||
| ROIC | 93.96% | ||
| ROICexc | 1039.71% | ||
| ROICexgc | N/A | ||
| OM | 19.65% | ||
| PM (TTM) | 14.69% | ||
| GM | 85.89% | ||
| FCFM | 23.04% |
ROA(3y)18.97%
ROA(5y)8.95%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)50.44%
ROIC(5y)N/A
ROICexc(3y)606.91%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)71.12%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5Y-5.61%
OM growth 3YN/A
OM growth 5Y6.35%
PM growth 3Y124.15%
PM growth 5Y32.2%
GM growth 3Y2.27%
GM growth 5Y-0.36%
F-Score7
Asset Turnover1.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 27.17% | ||
| Cap/Sales | 0.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 114.16% | ||
| Profit Quality | 156.86% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 4.45 |
F-Score7
WACC9.31%
ROIC/WACC10.09
Cap/Depr(3y)33.98%
Cap/Depr(5y)22.88%
Cap/Sales(3y)0.88%
Cap/Sales(5y)0.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.89%
EPS 3Y84.06%
EPS 5Y24.81%
EPS Q2Q%-19.35%
EPS Next Y13.93%
EPS Next 2Y31.17%
EPS Next 3Y31.07%
EPS Next 5Y28.91%
Revenue 1Y (TTM)0.23%
Revenue growth 3Y10.2%
Revenue growth 5Y-4.37%
Sales Q2Q%5.25%
Revenue Next Year12.8%
Revenue Next 2Y18.13%
Revenue Next 3Y7.18%
Revenue Next 5YN/A
EBIT growth 1Y1.59%
EBIT growth 3YN/A
EBIT growth 5Y1.7%
EBIT Next Year9.26%
EBIT Next 3Y7.22%
EBIT Next 5YN/A
FCF growth 1Y220.25%
FCF growth 3YN/A
FCF growth 5Y14.2%
OCF growth 1Y224.92%
OCF growth 3YN/A
OCF growth 5Y13.42%