TRAVELZOO (TZOO) Stock Fundamental Analysis
USA - NASDAQ:TZOO - US89421Q2057 - Common Stock
9.73 USD
+0.12 (+1.25%)
9.73 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TZOO. TZOO was compared to 69 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making TZOO a very profitable company, without any liquidiy or solvency issues. TZOO may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make TZOO a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year TZOO was profitable.
TZOO had a positive operating cash flow in the past year.
Of the past 5 years TZOO 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: TZOO reported negative operating cash flow in multiple years.
1.2 Ratios
TZOO's Return On Assets of 23.47% is amongst the best of the industry. TZOO outperforms 97.10% of its industry peers.
TZOO's Return On Invested Capital of 90.51% is amongst the best of the industry. TZOO outperforms 100.00% of its industry peers.
TZOO had an Average Return On Invested Capital over the past 3 years of 50.44%. This is significantly above the industry average of 12.98%.
The last Return On Invested Capital (90.51%) for TZOO is above the 3 year average (50.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.47% | ||
| ROE | N/A | ||
| ROIC | 90.51% |
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 has a Profit Margin of 12.49%. This is in the better half of the industry: TZOO outperforms 78.26% of its industry peers.
TZOO's Profit Margin has improved in the last couple of years.
TZOO's Operating Margin of 16.81% is amongst the best of the industry. TZOO outperforms 82.61% of its industry peers.
TZOO's Operating Margin has improved in the last couple of years.
The Gross Margin of TZOO (83.33%) is better than 81.16% of its industry peers.
TZOO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.81% | ||
| PM (TTM) | 12.49% | ||
| GM | 83.33% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TZOO is creating value.
TZOO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TZOO has more shares outstanding
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 4.05. This indicates that TZOO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.05, TZOO is in the better half of the industry, outperforming 76.81% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.05 |
ROIC/WACC9.71
WACC9.32%
2.3 Liquidity
TZOO has a Current Ratio of 0.69. This is a bad value and indicates that TZOO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of TZOO (0.69) is worse than 85.51% of its industry peers.
A Quick Ratio of 0.69 indicates that TZOO may have some problems paying its short term obligations.
With a Quick ratio value of 0.69, TZOO is not doing good in the industry: 84.06% of the companies in the same industry are doing better.
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 | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
TZOO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.22%.
Measured over the past years, TZOO shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.81% on average per year.
The Revenue has been growing slightly by 3.47% 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)-7.22%
EPS 3Y84.06%
EPS 5Y24.81%
EPS Q2Q%-43.48%
Revenue 1Y (TTM)3.47%
Revenue growth 3Y10.2%
Revenue growth 5Y-4.37%
Sales Q2Q%13.08%
3.2 Future
TZOO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.49% yearly.
Based on estimates for the next years, TZOO will show a small growth in Revenue. The Revenue will grow by 7.66% on average per year.
EPS Next Y-10.75%
EPS Next 2Y28.93%
EPS Next 3Y18.4%
EPS Next 5Y27.49%
Revenue Next Year10.39%
Revenue Next 2Y13.32%
Revenue Next 3Y7.66%
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
With a Price/Earnings ratio of 10.81, the valuation of TZOO can be described as very reasonable.
TZOO's Price/Earnings ratio is rather cheap when compared to the industry. TZOO is cheaper than 84.06% 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 27.27.
Based on the Price/Forward Earnings ratio of 5.52, the valuation of TZOO can be described as very cheap.
TZOO's Price/Forward Earnings ratio is rather cheap when compared to the industry. TZOO is cheaper than 95.65% of the companies in the same industry.
TZOO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 5.52 |
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 89.86% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TZOO is valued cheaply inside the industry as 95.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.06 | ||
| EV/EBITDA | 6.22 |
4.3 Compensation for Growth
The excellent profitability rating of TZOO may justify a higher PE ratio.
TZOO's earnings are expected to grow with 18.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y28.93%
EPS Next 3Y18.4%
5. Dividend
5.1 Amount
TZOO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.73
+0.12 (+1.25%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners38.73%
Inst Owner Change8.41%
Ins Owners0.53%
Ins Owner Change0.05%
Market Cap106.84M
Analysts84
Price Target25.76 (164.75%)
Short Float %6.89%
Short Ratio3.19
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)-23.08%
Min EPS beat(2)-45.18%
Max EPS beat(2)-0.97%
EPS beat(4)1
Avg EPS beat(4)-8.03%
Min EPS beat(4)-45.18%
Max EPS beat(4)29.06%
EPS beat(8)5
Avg EPS beat(8)8.87%
EPS beat(12)7
Avg EPS beat(12)12.49%
EPS beat(16)8
Avg EPS beat(16)1.68%
Revenue beat(2)1
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)0.43%
Revenue beat(4)1
Avg Revenue beat(4)-3.96%
Min Revenue beat(4)-8.1%
Max Revenue beat(4)0.43%
Revenue beat(8)2
Avg Revenue beat(8)-2.98%
Revenue beat(12)3
Avg Revenue beat(12)-3.12%
Revenue beat(16)4
Avg Revenue beat(16)-5.89%
PT rev (1m)1%
PT rev (3m)-2.88%
EPS NQ rev (1m)-26.92%
EPS NQ rev (3m)-41.98%
EPS NY rev (1m)-21.66%
EPS NY rev (3m)-20.45%
Revenue NQ rev (1m)1.95%
Revenue NQ rev (3m)-4.84%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 5.52 | ||
| P/S | 1.22 | ||
| P/FCF | 6.06 | ||
| P/OCF | 6.02 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.22 |
EPS(TTM)0.9
EY9.25%
EPS(NY)1.76
Fwd EY18.11%
FCF(TTM)1.61
FCFY16.5%
OCF(TTM)1.62
OCFY16.62%
SpS8
BVpS-0.64
TBVpS-1.77
PEG (NY)N/A
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.47% | ||
| ROE | N/A | ||
| ROCE | 127.6% | ||
| ROIC | 90.51% | ||
| ROICexc | 929.74% | ||
| ROICexgc | N/A | ||
| OM | 16.81% | ||
| PM (TTM) | 12.49% | ||
| GM | 83.33% | ||
| FCFM | 20.07% |
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-Score6
Asset Turnover1.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 24.11% | ||
| Cap/Sales | 0.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 116.11% | ||
| Profit Quality | 160.68% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 4.05 |
F-Score6
WACC9.32%
ROIC/WACC9.71
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)-7.22%
EPS 3Y84.06%
EPS 5Y24.81%
EPS Q2Q%-43.48%
EPS Next Y-10.75%
EPS Next 2Y28.93%
EPS Next 3Y18.4%
EPS Next 5Y27.49%
Revenue 1Y (TTM)3.47%
Revenue growth 3Y10.2%
Revenue growth 5Y-4.37%
Sales Q2Q%13.08%
Revenue Next Year10.39%
Revenue Next 2Y13.32%
Revenue Next 3Y7.66%
Revenue Next 5YN/A
EBIT growth 1Y-14.14%
EBIT growth 3YN/A
EBIT growth 5Y1.7%
EBIT Next Year-8.15%
EBIT Next 3Y2.11%
EBIT Next 5YN/A
FCF growth 1Y1995.38%
FCF growth 3YN/A
FCF growth 5Y14.2%
OCF growth 1Y3798.96%
OCF growth 3YN/A
OCF growth 5Y13.42%