5.87 USD
-0.15 (-2.49%)
TZOO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 70 industry peers in the Interactive Media & Services industry. TZOO scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on TZOO. This makes TZOO very considerable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year TZOO was profitable.
- In the past year TZOO had a positive cash flow from operations.
- Of the past 5 years TZOO 4 years were profitable.
- The reported operating cash flow has been mixed in the past 5 years: TZOO reported negative operating cash flow in multiple years.
1.2 Ratios
- The Return On Assets of TZOO (17.19%) is better than 87.14% of its industry peers.
- With an excellent Return On Invested Capital value of 77.02%, TZOO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for TZOO is significantly above the industry average of 13.70%.
- The 3 year average ROIC (50.44%) for TZOO is below the current ROIC(77.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.19% | ||
| ROE | N/A | ||
| ROIC | 77.02% |
ROA(3y)18.97%
ROA(5y)8.95%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)50.44%
ROIC(5y)N/A
1.3 Margins
- TZOO's Profit Margin of 8.83% is fine compared to the rest of the industry. TZOO outperforms 78.57% of its industry peers.
- In the last couple of years the Profit Margin of TZOO has grown nicely.
- With a decent Operating Margin value of 12.46%, TZOO is doing good in the industry, outperforming 75.71% of the companies in the same industry.
- In the last couple of years the Operating Margin of TZOO has grown nicely.
- TZOO's Gross Margin of 81.52% is fine compared to the rest of the industry. TZOO outperforms 80.00% of its industry peers.
- TZOO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.46% | ||
| PM (TTM) | 8.83% | ||
| GM | 81.52% |
OM growth 3YN/A
OM growth 5Y6.35%
PM growth 3Y124.15%
PM growth 5Y32.2%
GM growth 3Y2.27%
GM growth 5Y-0.36%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TZOO is creating value.
- Compared to 1 year ago, TZOO has less shares outstanding
- The number of shares outstanding for TZOO has been increased compared to 5 years ago.
- TZOO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- TZOO has an Altman-Z score of 3.37. This indicates that TZOO is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 3.37, TZOO is doing good in the industry, outperforming 70.00% of the companies in the same industry.
- There is no outstanding debt for TZOO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.37 |
ROIC/WACC8.67
WACC8.88%
2.3 Liquidity
- TZOO has a Current Ratio of 0.68. This is a bad value and indicates that TZOO is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of TZOO (0.68) is worse than 81.43% of its industry peers.
- TZOO has a Quick Ratio of 0.68. This is a bad value and indicates that TZOO is not financially healthy enough and could expect problems in meeting its short term obligations.
- TZOO has a worse Quick ratio (0.68) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- TZOO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.25%.
- The Earnings Per Share has been growing by 24.81% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 6.58% in the past year.
- The Revenue has been decreasing by -4.37% on average over the past years.
EPS 1Y (TTM)-39.25%
EPS 3Y84.06%
EPS 5Y24.81%
EPS Q2Q%-96.15%
Revenue 1Y (TTM)6.58%
Revenue growth 3Y10.2%
Revenue growth 5Y-4.37%
Sales Q2Q%10.45%
3.2 Future
- TZOO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.49% yearly.
- The Revenue is expected to grow by 7.01% on average over the next years.
EPS Next Y-49.96%
EPS Next 2Y5.92%
EPS Next 3Y14.01%
EPS Next 5Y27.49%
Revenue Next Year7.59%
Revenue Next 2Y12.21%
Revenue Next 3Y7.31%
Revenue Next 5Y7.01%
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 stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 9.03, the valuation of TZOO can be described as very reasonable.
- Based on the Price/Earnings ratio, TZOO is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- TZOO is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 4.94, the valuation of TZOO can be described as very cheap.
- TZOO's Price/Forward Earnings ratio is rather cheap when compared to the industry. TZOO is cheaper than 97.14% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of TZOO to the average of the S&P500 Index (24.26), we can say TZOO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.03 | ||
| Fwd PE | 4.94 |
4.2 Price Multiples
- TZOO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TZOO is cheaper than 88.57% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TZOO is valued cheaper than 97.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.37 | ||
| EV/EBITDA | 4.79 |
4.3 Compensation for Growth
- The decent profitability rating of TZOO may justify a higher PE ratio.
- A more expensive valuation may be justified as TZOO's earnings are expected to grow with 14.01% in the coming years.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y5.92%
EPS Next 3Y14.01%
5. Dividend
5.1 Amount
- TZOO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TRAVELZOO / TZOO FAQ
What is the fundamental rating for TZOO stock?
ChartMill assigns a fundamental rating of 6 / 10 to TZOO.
Can you provide the valuation status for TRAVELZOO?
ChartMill assigns a valuation rating of 8 / 10 to TRAVELZOO (TZOO). This can be considered as Undervalued.
Can you provide the profitability details for TRAVELZOO?
TRAVELZOO (TZOO) has a profitability rating of 7 / 10.
How financially healthy is TRAVELZOO?
The financial health rating of TRAVELZOO (TZOO) is 6 / 10.