Overall TZOO gets a fundamental rating of 6 out of 10. We evaluated TZOO against 70 industry peers in the Interactive Media & Services industry. TZOO has an excellent profitability rating, 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. With these ratings, TZOO could be worth investigating further for value investing!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
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's Return On Assets of 17.19% is amongst the best of the industry. TZOO outperforms 87.14% of its industry peers.
TZOO's Return On Invested Capital of 77.02% is amongst the best of the industry. TZOO outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TZOO is significantly above the industry average of 13.70%.
The last Return On Invested Capital (77.02%) for TZOO is above the 3 year average (50.44%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	17.19%
ROE	N/A
ROIC	77.02%

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 better Profit Margin (8.83%) than 78.57% of its industry peers.
In the last couple of years the Profit Margin of TZOO has grown nicely.
TZOO's Operating Margin of 12.46% is fine compared to the rest of the industry. TZOO outperforms 75.71% of its industry peers.
In the last couple of years the Operating Margin of TZOO has grown nicely.
With a decent Gross Margin value of 81.52%, TZOO is doing good in the industry, outperforming 80.00% of the companies in the same industry.
TZOO's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	12.46%
PM (TTM)	8.83%
GM	81.52%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for TZOO has been reduced compared to 1 year ago.
TZOO has more shares outstanding than it did 5 years ago.
TZOO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

An Altman-Z score of 3.36 indicates that TZOO is not in any danger for bankruptcy at the moment.
TZOO has a Altman-Z score of 3.36. This is in the better half of the industry: TZOO outperforms 70.00% 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	3.36

ROIC/WACC8.69

WACC8.86%

2.3 Liquidity

TZOO has a Current Ratio of 0.68. This is a bad value and indicates that TZOO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.68, TZOO is not doing good in the industry: 81.43% of the companies in the same industry are doing better.
A Quick Ratio of 0.68 indicates that TZOO may have some problems paying its short term obligations.
TZOO has a Quick ratio of 0.68. This is amonst the worse of the industry: TZOO underperforms 80.00% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.68
Quick Ratio	0.68

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

TZOO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.25%.
TZOO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.81% yearly.
Looking at the last year, TZOO shows a small growth in Revenue. The Revenue has grown by 6.58% in the last year.
TZOO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.37% yearly.

EPS 1Y (TTM)-39.25%

EPS 3Y84.06%

EPS 5Y24.81%

EPS Q2Q%-96.15%

Revenue 1Y (TTM)6.58%

Revenue growth 3Y10.2%

Revenue growth 5Y-4.37%

Sales Q2Q%10.45%

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.
The Revenue is expected to grow by 7.01% on average over the next years.

EPS Next Y-49.96%

EPS Next 2Y5.92%

EPS Next 3Y14.01%

EPS Next 5Y27.49%

Revenue Next Year7.59%

Revenue Next 2Y12.21%

Revenue Next 3Y7.31%

Revenue Next 5Y7.01%

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 stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

TZOO is valuated reasonably with a Price/Earnings ratio of 9.29.
Based on the Price/Earnings ratio, TZOO is valued cheaper than 81.43% of the companies in the same industry.
TZOO is valuated cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 5.08, the valuation of TZOO can be described as very cheap.
Based on the Price/Forward Earnings ratio, TZOO is valued cheaper than 97.14% of the companies in the same industry.
TZOO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.96.

		Industry Rank	Sector Rank
PE	9.29
Fwd PE	5.08

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TZOO is valued cheaper than 88.57% of the companies in the same industry.
97.14% 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	5.52
EV/EBITDA	4.68

4.3 Compensation for Growth

TZOO has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TZOO's earnings are expected to grow with 14.01% in the coming years.