TRAVELZOO (TZOO) Stock Fundamental Analysis
NASDAQ:TZOO - Nasdaq - US89421Q2057 - Common Stock - Currency: USD
Overall TZOO gets a fundamental rating of 7 out of 10. We evaluated TZOO against 70 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 and quality investing.
1. Profitability
1.1 Basic Checks
TZOO had positive earnings in the past year.
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 25.40% is amongst the best of the industry. TZOO outperforms 98.57% of its industry peers.
TZOO's Return On Invested Capital of 93.96% 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 12.03%.
The 3 year average ROIC (50.44%) for TZOO is below the current ROIC(93.96%), indicating increased profibility in the last year.
| 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
The Profit Margin of TZOO (14.69%) is better than 82.86% of its industry peers.
TZOO's Profit Margin has improved in the last couple of years.
The Operating Margin of TZOO (19.65%) is better than 85.71% of its industry peers.
In the last couple of years the Operating Margin of TZOO has grown nicely.
The Gross Margin of TZOO (85.89%) is better than 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.
Compared to 1 year ago, TZOO has less shares outstanding
TZOO has more shares outstanding than it did 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 4.51. This indicates that TZOO is financially healthy and has little risk of bankruptcy at the moment.
TZOO has a better Altman-Z score (4.51) than 75.71% of its industry peers.
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 | 4.51 |
ROIC/WACC10.06
WACC9.34%
2.3 Liquidity
A Current Ratio of 0.72 indicates that TZOO may have some problems paying its short term obligations.
With a Current ratio value of 0.72, TZOO is not doing good in the industry: 82.86% of the companies in the same industry are doing better.
A Quick Ratio of 0.72 indicates that TZOO may have some problems paying its short term obligations.
With a Quick ratio value of 0.72, TZOO is not doing good in the industry: 81.43% 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 | 0.72 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.89% over the past year.
The Earnings Per Share has been growing by 24.81% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 0.23% in the past year.
TZOO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.37% yearly.
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
Based on estimates for the next years, TZOO will show a very strong growth in Earnings Per Share. The EPS will grow by 28.91% on average per year.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TZOO is valuated correctly with a Price/Earnings ratio of 13.80.
Compared to the rest of the industry, the Price/Earnings ratio of TZOO indicates a somewhat cheap valuation: TZOO is cheaper than 78.57% of the companies listed in the same industry.
TZOO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.29.
TZOO is valuated cheaply with a Price/Forward Earnings ratio of 7.57.
Based on the Price/Forward Earnings ratio, TZOO is valued cheaper than 92.86% of the companies in the same industry.
TZOO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.8 | ||
| Fwd PE | 7.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TZOO is valued a bit cheaper than 80.00% of the companies in the same industry.
TZOO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TZOO is cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.82 | ||
| EV/EBITDA | 8.19 |
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)0.99
PEG (5Y)0.56
EPS Next 2Y31.17%
EPS Next 3Y31.07%
5. Dividend
5.1 Amount
TZOO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.8
+0.49 (+3.68%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners38.12%
Inst Owner Change0%
Ins Owners0.3%
Ins Owner Change0.05%
Market Cap153.18M
Analysts84
Price Target26.78 (94.06%)
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 | 13.8 | ||
| Fwd PE | 7.57 | ||
| P/S | 1.8 | ||
| P/FCF | 7.82 | ||
| P/OCF | 7.75 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.19 |
EPS(TTM)1
EY7.25%
EPS(NY)1.82
Fwd EY13.22%
FCF(TTM)1.77
FCFY12.8%
OCF(TTM)1.78
OCFY12.9%
SpS7.66
BVpS-0.55
TBVpS-1.66
PEG (NY)0.99
PEG (5Y)0.56
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 | 4.51 |
F-Score7
WACC9.34%
ROIC/WACC10.06
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%