TRAVELZOO (TZOO) Stock Fundamental Analysis
NASDAQ:TZOO - Nasdaq - US89421Q2057 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to TZOO. TZOO was compared to 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 is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, TZOO could be worth investigating further for value and quality 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.
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.
TZOO's Return On Invested Capital of 93.96% is amongst the best of the industry. TZOO outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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 has a Profit Margin of 14.69%. This is amongst the best in the industry. TZOO outperforms 82.86% of its industry peers.
In the last couple of years the Profit Margin of TZOO has grown nicely.
TZOO has a Operating Margin of 19.65%. This is amongst the best in the industry. TZOO outperforms 85.71% of its industry peers.
TZOO's Operating Margin has improved in the last couple of years.
TZOO has a better Gross Margin (85.89%) 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
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
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
An Altman-Z score of 4.43 indicates that TZOO is not in any danger for bankruptcy at the moment.
TZOO has a better Altman-Z score (4.43) than 74.29% of its industry peers.
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 | 4.43 |
ROIC/WACC10.03
WACC9.37%
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.
The Current ratio of TZOO (0.72) is worse than 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.
The Quick ratio of TZOO (0.72) is worse than 81.43% of its industry peers.
TZOO does not score too well on the current and quick ratio evaluation. However, as it has 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.
The Earnings Per Share has been growing by 24.81% on average over the past years. This is a very strong growth
TZOO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.23%.
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
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.
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
Based on the Price/Earnings ratio of 12.89, the valuation of TZOO can be described as correct.
TZOO's Price/Earnings ratio is a bit cheaper when compared to the industry. TZOO is cheaper than 78.57% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. TZOO is valued rather cheaply when compared to this.
TZOO is valuated cheaply with a Price/Forward Earnings ratio of 7.07.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TZOO indicates a rather cheap valuation: TZOO is cheaper than 94.29% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. TZOO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.89 | ||
| Fwd PE | 7.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TZOO is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
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 | 7.3 | ||
| EV/EBITDA | 7.73 |
4.3 Compensation for Growth
The 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)0.93
PEG (5Y)0.52
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 |
12.89
-0.2 (-1.53%)
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 Cap143.08M
Analysts84
Price Target26.78 (107.76%)
Short Float %5.01%
Short Ratio2.87
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 | 12.89 | ||
| Fwd PE | 7.07 | ||
| P/S | 1.68 | ||
| P/FCF | 7.3 | ||
| P/OCF | 7.24 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.73 |
EPS(TTM)1
EY7.76%
EPS(NY)1.82
Fwd EY14.15%
FCF(TTM)1.77
FCFY13.7%
OCF(TTM)1.78
OCFY13.81%
SpS7.66
BVpS-0.55
TBVpS-1.66
PEG (NY)0.93
PEG (5Y)0.52
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 | 4.43 |
F-Score7
WACC9.37%
ROIC/WACC10.03
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%