TravelCenters of America Inc (TA)
US89421B1098 - Common Stock
We assign a fundamental rating of 4 out of 10 to TA. TA was compared to 126 industry peers in the Specialty Retail industry. TA has an average financial health and profitability rating. TA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TA had positive earnings in the past year.
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.
In the past 5 years TA always reported a positive cash flow from operatings.
1.2 Ratios
TA has a Return On Assets (3.83%) which is comparable to the rest of the industry.
TA has a better Return On Equity (15.79%) than 64.49% of its industry peers.
TA's Return On Invested Capital of 5.56% is in line compared 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 13.85%.
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 Rank | Sector 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
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.
In the last couple of years the Profit Margin of TA has grown nicely.
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 Rank | Sector 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%
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
The number of shares outstanding for TA has been increased compared to 5 years ago.
Compared to 1 year ago, TA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.65 indicates that TA is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.65, TA is doing good in the industry, outperforming 76.09% of the companies in the same industry.
TA has a Debt/Equity ratio of 0.65. This is a neutral value indicating TA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, TA is in line with its industry, outperforming 42.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.65 |
ROIC/WACC0.62
WACC8.91%
2.3 Liquidity
A Current Ratio of 1.63 indicates that TA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.63, TA is in the better half of the industry, outperforming 61.59% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.16, TA is in the better half of the industry, outperforming 73.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.16 |
3. Growth
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 growth Q2Q-137.99%
Revenue 1Y (TTM)11.97%
Revenue growth 3Y21.03%
Revenue growth 5Y15.32%
Revenue growth 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
Based on estimates for the next years, TA will show a decrease in Revenue. The Revenue will decrease by -3.90% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.89, which indicates a rather cheap valuation of TA.
73.91% of the companies in the same industry are more expensive than TA, based on the Price/Earnings ratio.
TA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.25.
Based on the Price/Forward Earnings ratio of 18.76, the valuation of TA can be described as rather expensive.
TA's Price/Forward Earnings ratio is in line with the industry average.
TA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.89 | ||
| Fwd PE | 18.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TA indicates a somewhat cheap valuation: TA is cheaper than 71.01% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.44 |
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
5. Dividend
5.1 Amount
No dividends for TA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TravelCenters of America Inc
NASDAQ:TA (5/12/2023, 7:01:37 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.89 | ||
| Fwd PE | 18.76 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.83% | ||
| ROE | 15.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.04% | ||
| PM (TTM) | 1.27% | ||
| GM | 17.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover3.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)164.56%
EPS 3Y38.9%
EPS 5Y
EPS growth Q2Q
EPS Next Y-47.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.97%
Revenue growth 3Y21.03%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y