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TravelCenters of America Inc (TA) Stock Fundamental Analysis

NASDAQ:TA - Nasdaq - US89421B1098 - Common Stock - Currency: USD

86  -0.01 (-0.01%)

After market: 85.99 -0.01 (-0.01%)

Fundamental Rating

4

TA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. TA has an average financial health and profitability rating. TA is valied quite expensively at the moment, while 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.
The reported net income has been mixed in the past 5 years: TA reported negative net income in multiple years.
In the past 5 years TA always reported a positive cash flow from operatings.
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

The Return On Assets of TA (3.83%) is comparable to the rest of the industry.
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 (5.56%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for TA is significantly below the industry average of 13.03%.
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

TA has a Profit Margin (1.27%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TA has grown nicely.
With a Operating Margin value of 2.04%, TA perfoms like the industry average, outperforming 42.75% of the companies in the same industry.
In the last couple of years the Operating Margin of TA has grown nicely.
TA's Gross Margin of 17.39% is on the low side compared to the rest of the industry. TA is outperformed by 84.78% of its industry peers.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 10 20

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4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TA is destroying value.
TA has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, TA has an improved debt to assets ratio.
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.
TA's Altman-Z score of 3.65 is fine compared to the rest of the industry. TA outperforms 76.09% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that TA is somewhat dependend on debt financing.
TA has a Debt to Equity ratio of 0.65. This is comparable 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

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.
TA has a Current ratio of 1.63. This is in the better half of the industry: TA outperforms 61.59% of its industry peers.
TA has a Quick Ratio of 1.16. This is a normal value and indicates that TA is financially healthy and should not expect problems in meeting 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.
Measured over the past years, TA shows a very strong growth in Earnings Per Share. The EPS has been growing by 59.48% on average per year.
The Revenue has grown by 11.97% in the past year. This is quite good.
TA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.32% yearly.
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

Based on estimates for the next years, TA will show a very negative growth in Earnings Per Share. The EPS will decrease by -35.15% on average per year.
TA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.90% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

The Price/Earnings ratio is 7.89, which indicates a rather cheap valuation of TA.
Compared to the rest of the industry, the Price/Earnings ratio of TA indicates a somewhat cheap valuation: TA is cheaper than 73.91% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TA to the average of the S&P500 Index (26.32), we can say TA is valued rather cheaply.
With a Price/Forward Earnings ratio of 18.76, TA is valued on the expensive side.
TA's Price/Forward Earnings is on the same level as the industry average.
TA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
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

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

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

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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%