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TravelCenters of America Inc (TA) Stock Fundamental Analysis

NASDAQ:TA - US89421B1098 - Common Stock

86 USD
-0.01 (-0.01%)
Last: 5/12/2023, 8:01:37 PM
85.99 USD
-0.01 (-0.01%)
After Hours: 5/12/2023, 8:01:37 PM
Fundamental Rating

4

Taking everything into account, TA scores 4 out of 10 in our fundamental rating. TA was compared to 123 industry peers in the Specialty Retail industry. Both the profitability and the financial health of TA get a neutral evaluation. Nothing too spectacular is happening here. TA is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year TA was profitable.
In the past year TA had a positive cash flow from operations.
In multiple years TA reported negative net income over the last 5 years.
TA had a positive operating cash flow in each of the past 5 years.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M -200M -300M

1.2 Ratios

TA's Return On Assets of 3.83% is in line compared to the rest of the industry. TA outperforms 54.35% of its industry peers.
TA's Return On Equity of 15.79% is fine compared to the rest 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.
The Average Return On Invested Capital over the past 3 years for TA is significantly below the industry average of 11.94%.
The 3 year average ROIC (3.96%) for TA is below the current ROIC(5.56%), indicating increased profibility in the last year.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 10 -10 -20

1.3 Margins

The Profit Margin of TA (1.27%) is comparable to the rest of the industry.
TA's Profit Margin has improved in the last couple of years.
TA has a Operating Margin (2.04%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TA has grown nicely.
TA has a worse Gross Margin (17.39%) than 84.78% of its industry peers.
In the last couple of years the Gross Margin of TA has declined.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 10 20

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TA is destroying value.
Compared to 1 year ago, TA has more shares outstanding
TA has a better debt/assets ratio than last year.
TA Yearly Shares OutstandingTA Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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.
Looking at the Altman-Z score, with a value of 3.65, TA is in the better half of the industry, outperforming 76.09% of the companies in the same industry.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 200M -200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 1.63 indicates that TA should not have too much problems paying its short term obligations.
TA has a better Current ratio (1.63) than 61.59% of its industry peers.
A Quick Ratio of 1.16 indicates that TA should not have too much problems paying its short term obligations.
TA's Quick ratio of 1.16 is fine compared to the rest of the industry. TA outperforms 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 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 164.56% over the past year.
TA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 59.48% yearly.
The Revenue has grown by 11.97% in the past year. This is quite good.
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

TA is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -35.15% yearly.
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 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 -10 -15

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 7.89, the valuation of TA can be described as very cheap.
73.91% of the companies in the same industry are more expensive than TA, based on the Price/Earnings ratio.
TA is valuated cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.76 indicates a rather expensive valuation of TA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TA is on the same level as its industry peers.
TA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.67.
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 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TA is valued a bit cheaper than the industry average as 71.01% of the companies are valued more expensively.
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

TA's earnings are expected to decrease with -35.15% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.13
EPS Next 2Y-35.15%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

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

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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 SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)05-01 2023-05-01/bmo
Earnings (Next)07-31 2023-07-31/bmo
Inst Owners0%
Inst Owner Change0%
Ins Owners17.36%
Ins Owner Change0%
Market Cap1.30B
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
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
ROICexcg growth 3Y60.5%
ROICexcg 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%