TRAVELZOO (TZOO) Stock Fundamental Analysis
NASDAQ:TZOO - Nasdaq - US89421Q2057 - Common Stock - Currency: USD
Overall TZOO gets a fundamental rating of 6 out of 10. We evaluated TZOO against 70 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making TZOO a very profitable company, without any liquidiy or solvency issues. TZOO scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make TZOO suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year TZOO was profitable.
TZOO had a positive operating cash flow in the past year.
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
TZOO has a Return On Assets of 23.47%. This is amongst the best in the industry. TZOO outperforms 97.14% of its industry peers.
The Return On Invested Capital of TZOO (90.51%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TZOO is significantly above the industry average of 11.87%.
The last Return On Invested Capital (90.51%) for TZOO is above the 3 year average (50.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.47% | ||
| ROE | N/A | ||
| ROIC | 90.51% |
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 has a better Profit Margin (12.49%) than 81.43% of its industry peers.
In the last couple of years the Profit Margin of TZOO has grown nicely.
With an excellent Operating Margin value of 16.81%, TZOO belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
In the last couple of years the Operating Margin of TZOO has grown nicely.
With a decent Gross Margin value of 83.33%, TZOO is doing good in the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Gross Margin of TZOO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.81% | ||
| PM (TTM) | 12.49% | ||
| GM | 83.33% |
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
TZOO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 4.21. This indicates that TZOO is financially healthy and has little risk of bankruptcy at the moment.
TZOO has a Altman-Z score of 4.21. This is in the better half of the industry: TZOO outperforms 72.86% of its industry peers.
TZOO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.21 |
ROIC/WACC9.43
WACC9.6%
2.3 Liquidity
TZOO has a Current Ratio of 0.69. This is a bad value and indicates that TZOO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.69, TZOO is not doing good in the industry: 87.14% of the companies in the same industry are doing better.
A Quick Ratio of 0.69 indicates that TZOO may have some problems paying its short term obligations.
TZOO has a Quick ratio of 0.69. This is amonst the worse of the industry: TZOO underperforms 84.29% of its industry peers.
The current and quick ratio evaluation for TZOO is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
TZOO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.22%.
Measured over the past years, TZOO shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.81% on average per year.
TZOO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.47%.
TZOO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.37% yearly.
EPS 1Y (TTM)-7.22%
EPS 3Y84.06%
EPS 5Y24.81%
EPS Q2Q%-43.48%
Revenue 1Y (TTM)3.47%
Revenue growth 3Y10.2%
Revenue growth 5Y-4.37%
Sales Q2Q%13.08%
3.2 Future
The Earnings Per Share is expected to grow by 28.91% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.66% on average over the next years.
EPS Next Y13.93%
EPS Next 2Y31.17%
EPS Next 3Y31.07%
EPS Next 5Y28.91%
Revenue Next Year10.22%
Revenue Next 2Y12.79%
Revenue Next 3Y7.66%
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 stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TZOO is valuated reasonably with a Price/Earnings ratio of 11.31.
TZOO's Price/Earnings ratio is rather cheap when compared to the industry. TZOO is cheaper than 82.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of TZOO to the average of the S&P500 Index (27.93), we can say TZOO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.58, the valuation of TZOO can be described as very cheap.
95.71% of the companies in the same industry are more expensive than TZOO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TZOO to the average of the S&P500 Index (37.78), we can say TZOO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 5.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TZOO is valued cheaply inside the industry as 88.57% of the companies are valued more expensively.
92.86% of the companies in the same industry are more expensive than TZOO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.41 | ||
| EV/EBITDA | 7.16 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of TZOO may justify a higher PE ratio.
TZOO's earnings are expected to grow with 31.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.81
PEG (5Y)0.46
EPS Next 2Y31.17%
EPS Next 3Y31.07%
5. Dividend
5.1 Amount
No dividends for TZOO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.18
-0.63 (-5.83%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners38.12%
Inst Owner Change0.26%
Ins Owners0.3%
Ins Owner Change0.05%
Market Cap113.00M
Analysts84
Price Target26.78 (163.06%)
Short Float %4.65%
Short Ratio2.36
Dividend
| Industry Rank | Sector 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)0
Avg EPS beat(2)-23.08%
Min EPS beat(2)-45.18%
Max EPS beat(2)-0.97%
EPS beat(4)1
Avg EPS beat(4)-8.03%
Min EPS beat(4)-45.18%
Max EPS beat(4)29.06%
EPS beat(8)5
Avg EPS beat(8)8.87%
EPS beat(12)7
Avg EPS beat(12)12.49%
EPS beat(16)8
Avg EPS beat(16)1.68%
Revenue beat(2)1
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)0.43%
Revenue beat(4)1
Avg Revenue beat(4)-3.96%
Min Revenue beat(4)-8.1%
Max Revenue beat(4)0.43%
Revenue beat(8)2
Avg Revenue beat(8)-2.98%
Revenue beat(12)3
Avg Revenue beat(12)-3.12%
Revenue beat(16)4
Avg Revenue beat(16)-5.89%
PT rev (1m)0%
PT rev (3m)3.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 5.58 | ||
| P/S | 1.29 | ||
| P/FCF | 6.41 | ||
| P/OCF | 6.36 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.16 |
EPS(TTM)0.9
EY8.84%
EPS(NY)1.82
Fwd EY17.92%
FCF(TTM)1.59
FCFY15.6%
OCF(TTM)1.6
OCFY15.71%
SpS7.91
BVpS-0.64
TBVpS-1.75
PEG (NY)0.81
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.47% | ||
| ROE | N/A | ||
| ROCE | 127.6% | ||
| ROIC | 90.51% | ||
| ROICexc | 929.74% | ||
| ROICexgc | N/A | ||
| OM | 16.81% | ||
| PM (TTM) | 12.49% | ||
| GM | 83.33% | ||
| FCFM | 20.07% |
ROA(3y)18.97%
ROA(5y)8.95%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)50.44%
ROIC(5y)N/A
ROICexc(3y)606.91%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)71.12%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5Y-5.61%
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%
F-Score6
Asset Turnover1.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 24.11% | ||
| Cap/Sales | 0.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 116.11% | ||
| Profit Quality | 160.68% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 4.21 |
F-Score6
WACC9.6%
ROIC/WACC9.43
Cap/Depr(3y)33.98%
Cap/Depr(5y)22.88%
Cap/Sales(3y)0.88%
Cap/Sales(5y)0.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.22%
EPS 3Y84.06%
EPS 5Y24.81%
EPS Q2Q%-43.48%
EPS Next Y13.93%
EPS Next 2Y31.17%
EPS Next 3Y31.07%
EPS Next 5Y28.91%
Revenue 1Y (TTM)3.47%
Revenue growth 3Y10.2%
Revenue growth 5Y-4.37%
Sales Q2Q%13.08%
Revenue Next Year10.22%
Revenue Next 2Y12.79%
Revenue Next 3Y7.66%
Revenue Next 5YN/A
EBIT growth 1Y-14.14%
EBIT growth 3YN/A
EBIT growth 5Y1.7%
EBIT Next Year9.26%
EBIT Next 3Y7.22%
EBIT Next 5YN/A
FCF growth 1Y1995.38%
FCF growth 3YN/A
FCF growth 5Y14.2%
OCF growth 1Y3798.96%
OCF growth 3YN/A
OCF growth 5Y13.42%