TRAVELZOO (TZOO) Stock Fundamental Analysis
NASDAQ:TZOO - Nasdaq - US89421Q2057 - Common Stock - Currency: USD
Overall TZOO gets a fundamental rating of 7 out of 10. We evaluated TZOO against 70 industry peers in the Interactive Media & Services industry. TZOO gets an excellent profitability rating and is at the same time showing great financial health properties. TZOO may be a bit undervalued, certainly considering the very reasonable score on growth 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.
In the past year TZOO had a positive cash flow from operations.
TZOO had positive earnings in 4 of the past 5 years.
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 25.40%. This is amongst the best in the industry. TZOO outperforms 98.57% of its industry peers.
With an excellent Return On Invested Capital value of 93.96%, TZOO belongs to the best 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 12.03%.
The last Return On Invested Capital (93.96%) for TZOO is above the 3 year average (50.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.4% | ||
| ROE | N/A | ||
| ROIC | 93.96% |
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
The Profit Margin of TZOO (14.69%) is better than 82.86% of its industry peers.
In the last couple of years the Profit Margin of TZOO has grown nicely.
Looking at the Operating Margin, with a value of 19.65%, TZOO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
TZOO's Operating Margin has improved in the last couple of years.
TZOO has a Gross Margin of 85.89%. 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 | 19.65% | ||
| PM (TTM) | 14.69% | ||
| GM | 85.89% |
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.
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 4.33. This indicates that TZOO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TZOO (4.33) is better than 74.29% of its industry peers.
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 | 4.33 |
ROIC/WACC10.42
WACC9.02%
2.3 Liquidity
A Current Ratio of 0.72 indicates that TZOO may have some problems paying its short term obligations.
The Current ratio of TZOO (0.72) is worse than 82.86% of its industry peers.
A Quick Ratio of 0.72 indicates that TZOO may have some problems paying its short term obligations.
TZOO has a worse Quick ratio (0.72) than 81.43% 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 | 0.72 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.89% over the past year.
TZOO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.81% yearly.
Looking at the last year, TZOO shows a small growth in Revenue. The Revenue has grown by 0.23% in the last year.
TZOO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.37% yearly.
EPS 1Y (TTM)9.89%
EPS 3Y84.06%
EPS 5Y24.81%
EPS Q2Q%-19.35%
Revenue 1Y (TTM)0.23%
Revenue growth 3Y10.2%
Revenue growth 5Y-4.37%
Sales Q2Q%5.25%
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 7.18% on average over the next years.
EPS Next Y13.93%
EPS Next 2Y31.17%
EPS Next 3Y31.07%
EPS Next 5Y28.91%
Revenue Next Year12.8%
Revenue Next 2Y18.13%
Revenue Next 3Y7.18%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 12.74 indicates a correct valuation of TZOO.
Compared to the rest of the industry, the Price/Earnings ratio of TZOO indicates a somewhat cheap valuation: TZOO is cheaper than 77.14% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TZOO to the average of the S&P500 Index (26.65), we can say TZOO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.99, the valuation of TZOO can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TZOO indicates a rather cheap valuation: TZOO is cheaper than 94.29% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.27. TZOO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 6.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TZOO is valued cheaply inside the industry as 87.14% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TZOO indicates a rather cheap valuation: TZOO is cheaper than 94.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.21 | ||
| EV/EBITDA | 7.2 |
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.
TZOO has an outstanding profitability rating, which 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)0.91
PEG (5Y)0.51
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 |
NASDAQ:TZOO (6/24/2025, 2:57:44 PM)
12.74
+0.47 (+3.83%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners38.12%
Inst Owner Change3.42%
Ins Owners0.3%
Ins Owner Change0%
Market Cap141.41M
Analysts84
Price Target26.78 (110.2%)
Short Float %2.34%
Short Ratio1.23
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)-8%
Min EPS beat(2)-15.03%
Max EPS beat(2)-0.97%
EPS beat(4)2
Avg EPS beat(4)3.51%
Min EPS beat(4)-15.03%
Max EPS beat(4)29.06%
EPS beat(8)5
Avg EPS beat(8)12.79%
EPS beat(12)7
Avg EPS beat(12)11.32%
EPS beat(16)9
Avg EPS beat(16)20.72%
Revenue beat(2)0
Avg Revenue beat(2)-4.72%
Min Revenue beat(2)-8.1%
Max Revenue beat(2)-1.33%
Revenue beat(4)0
Avg Revenue beat(4)-5.22%
Min Revenue beat(4)-8.1%
Max Revenue beat(4)-1.33%
Revenue beat(8)1
Avg Revenue beat(8)-3.32%
Revenue beat(12)2
Avg Revenue beat(12)-4.32%
Revenue beat(16)4
Avg Revenue beat(16)-5.03%
PT rev (1m)0.96%
PT rev (3m)5%
EPS NQ rev (1m)5.68%
EPS NQ rev (3m)-8.82%
EPS NY rev (1m)1.54%
EPS NY rev (3m)-5.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 6.99 | ||
| P/S | 1.66 | ||
| P/FCF | 7.21 | ||
| P/OCF | 7.16 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.2 |
EPS(TTM)1
EY7.85%
EPS(NY)1.82
Fwd EY14.32%
FCF(TTM)1.77
FCFY13.86%
OCF(TTM)1.78
OCFY13.98%
SpS7.66
BVpS-0.55
TBVpS-1.66
PEG (NY)0.91
PEG (5Y)0.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.4% | ||
| ROE | N/A | ||
| ROCE | 132.48% | ||
| ROIC | 93.96% | ||
| ROICexc | 1039.71% | ||
| ROICexgc | N/A | ||
| OM | 19.65% | ||
| PM (TTM) | 14.69% | ||
| GM | 85.89% | ||
| FCFM | 23.04% |
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-Score7
Asset Turnover1.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 27.17% | ||
| Cap/Sales | 0.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 114.16% | ||
| Profit Quality | 156.86% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 4.33 |
F-Score7
WACC9.02%
ROIC/WACC10.42
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 Y13.93%
EPS Next 2Y31.17%
EPS Next 3Y31.07%
EPS Next 5Y28.91%
Revenue 1Y (TTM)0.23%
Revenue growth 3Y10.2%
Revenue growth 5Y-4.37%
Sales Q2Q%5.25%
Revenue Next Year12.8%
Revenue Next 2Y18.13%
Revenue Next 3Y7.18%
Revenue Next 5YN/A
EBIT growth 1Y1.59%
EBIT growth 3YN/A
EBIT growth 5Y1.7%
EBIT Next Year9.26%
EBIT Next 3Y7.22%
EBIT Next 5YN/A
FCF growth 1Y220.25%
FCF growth 3YN/A
FCF growth 5Y14.2%
OCF growth 1Y224.92%
OCF growth 3YN/A
OCF growth 5Y13.42%