TRAVELZOO (TZOO) Stock Fundamental Analysis
NASDAQ:TZOO - Nasdaq - US89421Q2057 - Common Stock - Currency: USD
Taking everything into account, TZOO scores 6 out of 10 in our fundamental rating. TZOO was compared to 71 industry peers in the Interactive Media & Services industry. TZOO scores excellent on profitability, but there are some minor concerns on its financial health. TZOO scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make TZOO suitable for value 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.
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 has a Return On Assets of 27.84%. This is amongst the best in the industry. TZOO outperforms 98.48% of its industry peers.
TZOO's Return On Invested Capital of 76.98% is amongst the best of the industry. TZOO outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.84% | ||
| ROE | N/A | ||
| ROIC | 76.98% |
ROA(3y)11.01%
ROA(5y)5.53%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 16.67%, TZOO belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
TZOO's Profit Margin has improved in the last couple of years.
TZOO's Operating Margin of 21.48% is amongst the best of the industry. TZOO outperforms 90.91% of its industry peers.
In the last couple of years the Operating Margin of TZOO has grown nicely.
The Gross Margin of TZOO (87.67%) is better than 86.36% 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 | 21.48% | ||
| PM (TTM) | 16.67% | ||
| GM | 87.67% |
OM growth 3YN/A
OM growth 5Y20.13%
PM growth 3YN/A
PM growth 5Y28.23%
GM growth 3Y2.76%
GM growth 5Y-0.45%
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.
Compared to 1 year ago, TZOO has less shares outstanding
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
An Altman-Z score of 5.57 indicates that TZOO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.57, TZOO is in the better half of the industry, outperforming 77.27% 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 | 5.57 |
ROIC/WACC8.5
WACC9.06%
2.3 Liquidity
A Current Ratio of 0.80 indicates that TZOO may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.80, TZOO is doing worse than 81.82% of the companies in the same industry.
A Quick Ratio of 0.80 indicates that TZOO may have some problems paying its short term obligations.
With a Quick ratio value of 0.80, TZOO is not doing good in the industry: 80.30% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
TZOO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.79%, which is quite impressive.
The Earnings Per Share has been growing by 16.91% on average over the past years. This is quite good.
TZOO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.97%.
Measured over the past years, TZOO shows a decrease in Revenue. The Revenue has been decreasing by -5.37% on average per year.
EPS 1Y (TTM)40.79%
EPS 3YN/A
EPS 5Y16.91%
EPS Q2Q%62.5%
Revenue 1Y (TTM)2.97%
Revenue growth 3Y16.37%
Revenue growth 5Y-5.37%
Sales Q2Q%-2.43%
3.2 Future
The Earnings Per Share is expected to grow by 36.46% on average over the next years. This is a very strong growth
Based on estimates for the next years, TZOO will show a quite strong growth in Revenue. The Revenue will grow by 15.54% on average per year.
EPS Next Y34.57%
EPS Next 2Y23.94%
EPS Next 3Y39.84%
EPS Next 5Y36.46%
Revenue Next Year0.58%
Revenue Next 2Y7.3%
Revenue Next 3Y15.54%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 15.90 indicates a correct valuation of TZOO.
Based on the Price/Earnings ratio, TZOO is valued a bit cheaper than the industry average as 75.76% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.63. TZOO is valued slightly cheaper when compared to this.
TZOO is valuated correctly with a Price/Forward Earnings ratio of 13.34.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TZOO indicates a somewhat cheap valuation: TZOO is cheaper than 74.24% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, TZOO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.9 | ||
| Fwd PE | 13.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TZOO is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TZOO is valued a bit cheaper than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.86 | ||
| EV/EBITDA | 10.72 |
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 decent profitability rating of TZOO may justify a higher PE ratio.
TZOO's earnings are expected to grow with 39.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.46
PEG (5Y)0.94
EPS Next 2Y23.94%
EPS Next 3Y39.84%
5. Dividend
5.1 Amount
TZOO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.01
-1.53 (-8.25%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners36.22%
Inst Owner Change22.79%
Ins Owners0.32%
Ins Owner Change-1.77%
Market Cap200.72M
Analysts84
Price Target27.54 (61.9%)
Short Float %3.57%
Short Ratio1.82
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)2
Avg EPS beat(2)15.02%
Min EPS beat(2)0.97%
Max EPS beat(2)29.06%
EPS beat(4)4
Avg EPS beat(4)11.89%
Min EPS beat(4)0.97%
Max EPS beat(4)29.06%
EPS beat(8)7
Avg EPS beat(8)32.4%
EPS beat(12)8
Avg EPS beat(12)7.85%
EPS beat(16)11
Avg EPS beat(16)155.36%
Revenue beat(2)0
Avg Revenue beat(2)-5.71%
Min Revenue beat(2)-6.85%
Max Revenue beat(2)-4.58%
Revenue beat(4)0
Avg Revenue beat(4)-6%
Min Revenue beat(4)-9.04%
Max Revenue beat(4)-3.53%
Revenue beat(8)2
Avg Revenue beat(8)-1.68%
Revenue beat(12)3
Avg Revenue beat(12)-5.03%
Revenue beat(16)4
Avg Revenue beat(16)-5.5%
PT rev (1m)0%
PT rev (3m)20.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.93%
EPS NY rev (1m)0%
EPS NY rev (3m)4.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.9 | ||
| Fwd PE | 13.34 | ||
| P/S | 2.38 | ||
| P/FCF | 13.86 | ||
| P/OCF | 13.71 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.72 |
EPS(TTM)1.07
EY6.29%
EPS(NY)1.27
Fwd EY7.5%
FCF(TTM)1.23
FCFY7.21%
OCF(TTM)1.24
OCFY7.29%
SpS7.15
BVpS-0.19
TBVpS-1.25
PEG (NY)0.46
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.84% | ||
| ROE | N/A | ||
| ROCE | 112.24% | ||
| ROIC | 76.98% | ||
| ROICexc | 263.38% | ||
| ROICexgc | N/A | ||
| OM | 21.48% | ||
| PM (TTM) | 16.67% | ||
| GM | 87.67% | ||
| FCFM | 17.16% |
ROA(3y)11.01%
ROA(5y)5.53%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5Y20.13%
PM growth 3YN/A
PM growth 5Y28.23%
GM growth 3Y2.76%
GM growth 5Y-0.45%
F-Score9
Asset Turnover1.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 13.55% | ||
| Cap/Sales | 0.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.72% | ||
| Profit Quality | 102.93% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 5.57 |
F-Score9
WACC9.06%
ROIC/WACC8.5
Cap/Depr(3y)28.02%
Cap/Depr(5y)26.1%
Cap/Sales(3y)0.83%
Cap/Sales(5y)0.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)40.79%
EPS 3YN/A
EPS 5Y16.91%
EPS Q2Q%62.5%
EPS Next Y34.57%
EPS Next 2Y23.94%
EPS Next 3Y39.84%
EPS Next 5Y36.46%
Revenue 1Y (TTM)2.97%
Revenue growth 3Y16.37%
Revenue growth 5Y-5.37%
Sales Q2Q%-2.43%
Revenue Next Year0.58%
Revenue Next 2Y7.3%
Revenue Next 3Y15.54%
Revenue Next 5YN/A
EBIT growth 1Y23.56%
EBIT growth 3YN/A
EBIT growth 5Y13.69%
EBIT Next Year35.65%
EBIT Next 3Y17.62%
EBIT Next 5YN/A
FCF growth 1Y136.64%
FCF growth 3Y-39.38%
FCF growth 5Y17.92%
OCF growth 1Y138.32%
OCF growth 3Y-39%
OCF growth 5Y14.95%