TRAVELZOO (TZOO) Stock Fundamental Analysis
NASDAQ:TZOO - Nasdaq - US89421Q2057 - Common Stock - Currency: USD
Taking everything into account, TZOO scores 7 out of 10 in our fundamental rating. TZOO was compared to 70 industry peers in the Interactive Media & Services industry. TZOO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on TZOO. With these ratings, TZOO could be worth investigating further for value and quality 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
With an excellent Return On Assets value of 24.79%, TZOO belongs to the best of the industry, outperforming 98.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 71.99%, TZOO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
TZOO had an Average Return On Invested Capital over the past 3 years of 50.44%. This is significantly above the industry average of 11.50%.
The 3 year average ROIC (50.44%) for TZOO is below the current ROIC(71.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.79% | ||
| ROE | N/A | ||
| ROIC | 71.99% |
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
Looking at the Profit Margin, with a value of 16.17%, TZOO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
TZOO's Profit Margin has improved in the last couple of years.
TZOO's Operating Margin of 22.05% is amongst the best of the industry. TZOO outperforms 91.43% of its industry peers.
TZOO's Operating Margin has improved in the last couple of years.
TZOO has a Gross Margin of 87.52%. This is amongst the best in the industry. TZOO outperforms 87.14% of its industry peers.
TZOO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.05% | ||
| PM (TTM) | 16.17% | ||
| GM | 87.52% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TZOO is creating value.
The number of shares outstanding for TZOO has been reduced compared to 1 year ago.
Compared to 5 years ago, TZOO has more shares outstanding
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.
2.2 Solvency
An Altman-Z score of 4.65 indicates that TZOO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.65, TZOO is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
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 | 4.65 |
ROIC/WACC8.03
WACC8.97%
2.3 Liquidity
TZOO has a Current Ratio of 0.87. 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 (0.87) is worse than 74.29% of its industry peers.
A Quick Ratio of 0.87 indicates that TZOO may have some problems paying its short term obligations.
The Quick ratio of TZOO (0.87) is worse than 74.29% of its industry peers.
TZOO does not score too well on the current and quick ratio evaluation. However, as it has 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 | 0.87 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
TZOO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.89%, which is quite good.
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.
The Revenue has decreased by -0.68% in the past year.
The Revenue has been decreasing by -4.37% on average over the past years.
EPS 1Y (TTM)9.89%
EPS 3Y84.06%
EPS 5Y24.81%
EPS Q2Q%-19.35%
Revenue 1Y (TTM)-0.68%
Revenue growth 3Y10.2%
Revenue growth 5Y-4.37%
Sales Q2Q%5.25%
3.2 Future
Based on estimates for the next years, TZOO will show a very strong growth in Earnings Per Share. The EPS will grow by 28.91% on average per year.
TZOO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.60% yearly.
EPS Next Y15.86%
EPS Next 2Y34.32%
EPS Next 3Y31.9%
EPS Next 5Y28.91%
Revenue Next Year12.27%
Revenue Next 2Y18.83%
Revenue Next 3Y6.6%
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
With a Price/Earnings ratio of 14.18, TZOO is valued correctly.
Based on the Price/Earnings ratio, TZOO is valued a bit cheaper than 80.00% of the companies in the same industry.
TZOO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.22.
The Price/Forward Earnings ratio is 7.41, which indicates a rather cheap valuation of TZOO.
Based on the Price/Forward Earnings ratio, TZOO is valued cheaper than 92.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TZOO to the average of the S&P500 Index (20.86), we can say TZOO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.18 | ||
| Fwd PE | 7.41 |
4.2 Price Multiples
TZOO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TZOO is cheaper than 84.29% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TZOO indicates a rather cheap valuation: TZOO is cheaper than 87.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.62 | ||
| EV/EBITDA | 7.34 |
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.
A more expensive valuation may be justified as TZOO's earnings are expected to grow with 31.90% in the coming years.
PEG (NY)0.89
PEG (5Y)0.57
EPS Next 2Y34.32%
EPS Next 3Y31.9%
5. Dividend
5.1 Amount
No dividends for TZOO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:TZOO (5/2/2025, 8:26:48 PM)
14.18
+0.04 (+0.28%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners36.22%
Inst Owner Change0.22%
Ins Owners0.32%
Ins Owner Change0.03%
Market Cap159.53M
Analysts84
Price Target25.76 (81.66%)
Short Float %2.05%
Short Ratio0.89
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)1
Avg EPS beat(2)7.02%
Min EPS beat(2)-15.03%
Max EPS beat(2)29.06%
EPS beat(4)3
Avg EPS beat(4)4.36%
Min EPS beat(4)-15.03%
Max EPS beat(4)29.06%
EPS beat(8)6
Avg EPS beat(8)17.67%
EPS beat(12)8
Avg EPS beat(12)30.07%
EPS beat(16)10
Avg EPS beat(16)21.78%
Revenue beat(2)0
Avg Revenue beat(2)-7.48%
Min Revenue beat(2)-8.1%
Max Revenue beat(2)-6.85%
Revenue beat(4)0
Avg Revenue beat(4)-7.14%
Min Revenue beat(4)-9.04%
Max Revenue beat(4)-4.58%
Revenue beat(8)2
Avg Revenue beat(8)-2.66%
Revenue beat(12)3
Avg Revenue beat(12)-3.5%
Revenue beat(16)4
Avg Revenue beat(16)-4.98%
PT rev (1m)0%
PT rev (3m)1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.18 | ||
| Fwd PE | 7.41 | ||
| P/S | 1.9 | ||
| P/FCF | 7.62 | ||
| P/OCF | 7.56 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.34 |
EPS(TTM)1
EY7.05%
EPS(NY)1.91
Fwd EY13.49%
FCF(TTM)1.86
FCFY13.12%
OCF(TTM)1.88
OCFY13.23%
SpS7.46
BVpS-0.04
TBVpS-1.15
PEG (NY)0.89
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.79% | ||
| ROE | N/A | ||
| ROCE | 101.49% | ||
| ROIC | 71.99% | ||
| ROICexc | 1129.1% | ||
| ROICexgc | N/A | ||
| OM | 22.05% | ||
| PM (TTM) | 16.17% | ||
| GM | 87.52% | ||
| FCFM | 24.94% |
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-Score8
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 19.51% | ||
| Cap/Sales | 0.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.74% | ||
| Profit Quality | 154.25% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 4.65 |
F-Score8
WACC8.97%
ROIC/WACC8.03
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)9.89%
EPS 3Y84.06%
EPS 5Y24.81%
EPS Q2Q%-19.35%
EPS Next Y15.86%
EPS Next 2Y34.32%
EPS Next 3Y31.9%
EPS Next 5Y28.91%
Revenue 1Y (TTM)-0.68%
Revenue growth 3Y10.2%
Revenue growth 5Y-4.37%
Sales Q2Q%5.25%
Revenue Next Year12.27%
Revenue Next 2Y18.83%
Revenue Next 3Y6.6%
Revenue Next 5YN/A
EBIT growth 1Y18.81%
EBIT growth 3YN/A
EBIT growth 5Y1.7%
EBIT Next Year20.55%
EBIT Next 3Y11.2%
EBIT Next 5YN/A
FCF growth 1Y100.8%
FCF growth 3YN/A
FCF growth 5Y14.2%
OCF growth 1Y97.66%
OCF growth 3YN/A
OCF growth 5Y13.42%