TravelCenters of America Inc (TA) Fundamental Analysis & Valuation

NASDAQ:TA • US89421B1098

Current stock price

86 USD
-0.01 (-0.01%)
At close:
85.99 USD
-0.01 (-0.01%)
After Hours:

This TA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. TA Profitability Analysis

1.1 Basic Checks

  • TA had positive earnings in the past year.
  • In the past year TA had a positive cash flow from operations.
TA Yearly Net Income VS EBIT VS OCF VS FCFTA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M -200M -300M

1.2 Ratios

  • TA has a Return On Assets of 3.83%. This is comparable to the rest of the industry: TA outperforms 54.35% of its industry peers.
  • TA has a Return On Equity of 15.79%. This is in the better half of the industry: TA outperforms 64.49% of its industry peers.
  • TA has a Return On Invested Capital of 5.56%. This is comparable to the rest of the industry: TA outperforms 50.72% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for TA is significantly below the industry average of 13.58%.
  • The last Return On Invested Capital (5.56%) for TA is above the 3 year average (3.96%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.83%
ROE 15.79%
ROIC 5.56%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)3.96%
ROIC(5y)N/A
TA Yearly ROA, ROE, ROICTA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 10 -10 -20

1.3 Margins

  • Looking at the Profit Margin, with a value of 1.27%, TA is in line with its industry, outperforming 44.93% of the companies in the same industry.
  • TA's Profit Margin has improved in the last couple of years.
  • TA has a Operating Margin (2.04%) which is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of TA has grown nicely.
  • Looking at the Gross Margin, with a value of 17.39%, TA is doing worse than 84.78% of the companies in the same industry.
  • TA's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 2.04%
PM (TTM) 1.27%
GM 17.39%
OM growth 3Y29.75%
OM growth 5YN/A
PM growth 3Y40.98%
PM growth 5Y57.27%
GM growth 3Y-11.58%
GM growth 5Y-7.51%
TA Yearly Profit, Operating, Gross MarginsTA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 10 20

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4

2. TA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TA is destroying value.
  • Compared to 1 year ago, TA has more shares outstanding
  • The debt/assets ratio for TA has been reduced compared to a year ago.
TA Yearly Shares OutstandingTA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 5M 10M 15M
TA Yearly Total Debt VS Total AssetsTA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 3.65 indicates that TA is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of TA (3.65) is better than 76.09% of its industry peers.
  • A Debt/Equity ratio of 0.65 indicates that TA is somewhat dependend on debt financing.
  • TA's Debt to Equity ratio of 0.65 is in line compared to the rest of the industry. TA outperforms 42.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.65
Debt/FCF N/A
Altman-Z 3.65
ROIC/WACC0.62
WACC8.91%
TA Yearly LT Debt VS Equity VS FCFTA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 200M -200M 400M 600M 800M

2.3 Liquidity

  • TA has a Current Ratio of 1.63. This is a normal value and indicates that TA is financially healthy and should not expect problems in meeting its short term obligations.
  • With a decent Current ratio value of 1.63, TA is doing good in the industry, outperforming 61.59% of the companies in the same industry.
  • A Quick Ratio of 1.16 indicates that TA should not have too much problems paying its short term obligations.
  • TA has a better Quick ratio (1.16) than 73.19% of its industry peers.
Industry RankSector Rank
Current Ratio 1.63
Quick Ratio 1.16
TA Yearly Current Assets VS Current LiabilitesTA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. TA Growth Analysis

3.1 Past

  • TA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 164.56%, which is quite impressive.
  • TA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 59.48% yearly.
  • Looking at the last year, TA shows a quite strong growth in Revenue. The Revenue has grown by 11.97% in the last year.
  • The Revenue has been growing by 15.32% on average over the past years. This is quite good.
EPS 1Y (TTM)164.56%
EPS 3Y38.9%
EPS 5Y59.48%
EPS Q2Q%-137.99%
Revenue 1Y (TTM)11.97%
Revenue growth 3Y21.03%
Revenue growth 5Y15.32%
Sales Q2Q%-2.53%

3.2 Future

  • The Earnings Per Share is expected to decrease by -35.15% on average over the next years. This is quite bad
  • The Revenue is expected to decrease by -3.90% on average over the next years.
EPS Next Y-47.18%
EPS Next 2Y-35.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-4.22%
Revenue Next 2Y-3.9%
Revenue Next 3YN/A
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 decreasing.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
TA Yearly Revenue VS EstimatesTA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B
TA Yearly EPS VS EstimatesTA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 -10 -15

More info and screens

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4

4. TA Valuation Analysis

4.1 Price/Earnings Ratio

  • TA is valuated cheaply with a Price/Earnings ratio of 7.89.
  • 73.91% of the companies in the same industry are more expensive than TA, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of TA to the average of the S&P500 Index (25.71), we can say TA is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 18.76, the valuation of TA can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TA is on the same level as its industry peers.
  • TA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 7.89
Fwd PE 18.76
TA Price Earnings VS Forward Price EarningsTA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • TA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TA is cheaper than 71.01% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 4.44
TA Per share dataTA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 400 600

4.3 Compensation for Growth

  • A cheap valuation may be justified as TA's earnings are expected to decrease with -35.15% in the coming years.
PEG (NY)N/A
PEG (5Y)0.13
EPS Next 2Y-35.15%
EPS Next 3YN/A

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. TA Dividend Analysis

5.1 Amount

  • No dividends for TA!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

TA Fundamentals: All Metrics, Ratios and Statistics

TravelCenters of America Inc

NASDAQ:TA (5/12/2023, 8:01:37 PM)

After market: 85.99 -0.01 (-0.01%)

86

-0.01 (-0.01%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)05-01
Earnings (Next)07-31
Inst Owners0%
Inst Owner Change0%
Ins Owners17.36%
Ins Owner Change0%
Market Cap1.30B
Revenue(TTM)10.79B
Net Income(TTM)137.09M
Analysts80
Price Target87.72 (2%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)1
Avg EPS beat(2)159.19%
Min EPS beat(2)159.19%
Max EPS beat(2)159.19%
EPS beat(4)2
Avg EPS beat(4)114.78%
Min EPS beat(4)-7.75%
Max EPS beat(4)192.92%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-6.7%
Min Revenue beat(2)-10.65%
Max Revenue beat(2)-2.75%
Revenue beat(4)2
Avg Revenue beat(4)-3%
Min Revenue beat(4)-10.65%
Max Revenue beat(4)0.89%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)20.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)25.34%
EPS NY rev (3m)8.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-2.54%
Valuation
Industry RankSector Rank
PE 7.89
Fwd PE 18.76
P/S 0.12
P/FCF N/A
P/OCF 9.74
P/B 1.5
P/tB 1.59
EV/EBITDA 4.44
EPS(TTM)10.9
EY12.67%
EPS(NY)4.58
Fwd EY5.33%
FCF(TTM)-2.77
FCFYN/A
OCF(TTM)8.83
OCFY10.27%
SpS714.39
BVpS57.52
TBVpS54.12
PEG (NY)N/A
PEG (5Y)0.13
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 3.83%
ROE 15.79%
ROCE N/A
ROIC 5.56%
ROICexc 6.37%
ROICexgc 6.5%
OM 2.04%
PM (TTM) 1.27%
GM 17.39%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)3.96%
ROIC(5y)N/A
ROICexc(3y)3.9%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y60.5%
ROICexgc growth 5YN/A
ROICexc growth 3Y60.33%
ROICexc growth 5YN/A
OM growth 3Y29.75%
OM growth 5YN/A
PM growth 3Y40.98%
PM growth 5Y57.27%
GM growth 3Y-11.58%
GM growth 5Y-7.51%
F-Score5
Asset Turnover3.02
Health
Industry RankSector Rank
Debt/Equity 0.65
Debt/FCF N/A
Debt/EBITDA 1.7
Cap/Depr 155.68%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.63
Quick Ratio 1.16
Altman-Z 3.65
F-Score5
WACC8.91%
ROIC/WACC0.62
Cap/Depr(3y)107.07%
Cap/Depr(5y)177.54%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)164.56%
EPS 3Y38.9%
EPS 5Y59.48%
EPS Q2Q%-137.99%
EPS Next Y-47.18%
EPS Next 2Y-35.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.97%
Revenue growth 3Y21.03%
Revenue growth 5Y15.32%
Sales Q2Q%-2.53%
Revenue Next Year-4.22%
Revenue Next 2Y-3.9%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y39.66%
EBIT growth 3Y57.04%
EBIT growth 5YN/A
EBIT Next Year24.86%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-117.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-53.2%
OCF growth 3Y30.57%
OCF growth 5Y38.76%

TravelCenters of America Inc / TA Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for TravelCenters of America Inc?

ChartMill assigns a fundamental rating of 4 / 10 to TA.


What is the valuation status of TravelCenters of America Inc (TA) stock?

ChartMill assigns a valuation rating of 7 / 10 to TravelCenters of America Inc (TA). This can be considered as Undervalued.


Can you provide the profitability details for TravelCenters of America Inc?

TravelCenters of America Inc (TA) has a profitability rating of 1 / 10.


Can you provide the financial health for TA stock?

The financial health rating of TravelCenters of America Inc (TA) is 6 / 10.


What is the expected EPS growth for TravelCenters of America Inc (TA) stock?

The Earnings per Share (EPS) of TravelCenters of America Inc (TA) is expected to decline by -47.18% in the next year.