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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

Overall TA gets a fundamental rating of 4 out of 10. We evaluated TA against 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 not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

TA had positive earnings in the past year.
TA had a positive operating cash flow in the past year.
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.
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.
With a decent Return On Equity value of 15.79%, TA is doing good in the industry, outperforming 64.49% of the companies in the same industry.
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 12.05%.
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.
Looking at the Operating Margin, with a value of 2.04%, TA is in line with its industry, outperforming 42.75% of the companies in the same industry.
TA's Operating Margin has improved in the last couple of years.
The Gross Margin of TA (17.39%) is worse 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

TA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TA has more shares outstanding
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

TA has an Altman-Z score of 3.65. This indicates that TA is financially healthy and has little risk of bankruptcy at the moment.
TA has a Altman-Z score of 3.65. This is in the better half of the industry: TA outperforms 76.09% of its industry peers.
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 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.
With a decent Quick ratio value of 1.16, TA is doing good in the industry, outperforming 73.19% of the companies in the same industry.
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.
The Earnings Per Share has been growing by 59.48% on average over the past years. This is a very strong growth
TA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.97%.
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

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.
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.
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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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 7.89, the valuation of TA can be described as very cheap.
Based on the Price/Earnings ratio, TA is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
TA is valuated cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.76, the valuation of TA can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as TA.
The average S&P500 Price/Forward Earnings ratio is at 36.42. TA is valued slightly cheaper when compared to this.
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

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

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

TA does not give a dividend.
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%