TRAVELZOO (TZOO)
US89421Q2057 - Common Stock
We assign a fundamental rating of 6 out of 10 to TZOO. TZOO was compared to 68 industry peers in the Interactive Media & Services industry. TZOO scores excellent on profitability, but there are some minor concerns on its financial health. TZOO may be a bit undervalued, certainly considering the very reasonable score on growth 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
With an excellent Return On Assets value of 23.63%, TZOO belongs to the best of the industry, outperforming 98.51% of the companies in the same industry.
TZOO has a Return On Equity of 315.03%. This is amongst the best in the industry. TZOO outperforms 98.51% of its industry peers.
With an excellent Return On Invested Capital value of 53.16%, TZOO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.63% | ||
| ROE | 315.03% | ||
| ROIC | 53.16% |
ROA(3y)11.01%
ROA(5y)5.53%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 15.24%, TZOO belongs to the best of the industry, outperforming 80.60% of the companies in the same industry.
TZOO's Profit Margin has improved in the last couple of years.
TZOO has a better Operating Margin (19.38%) than 89.55% of its industry peers.
TZOO's Operating Margin has improved in the last couple of years.
The Gross Margin of TZOO (87.17%) is better than 85.07% of its industry peers.
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 | 19.38% | ||
| PM (TTM) | 15.24% | ||
| GM | 87.17% |
OM growth 3YN/A
OM growth 5Y20.13%
PM growth 3YN/A
PM growth 5Y28.23%
GM growth 3Y2.76%
GM growth 5Y-0.45%
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.
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
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
An Altman-Z score of 4.39 indicates that TZOO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.39, TZOO is in the better half of the industry, outperforming 76.12% 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 | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.39 |
ROIC/WACC5.82
WACC9.13%
2.3 Liquidity
A Current Ratio of 0.94 indicates that TZOO may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.94, TZOO is doing worse than 86.57% of the companies in the same industry.
A Quick Ratio of 0.94 indicates that TZOO may have some problems paying its short term obligations.
The Quick ratio of TZOO (0.94) is worse than 86.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
TZOO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 59.65%, which is quite impressive.
The Earnings Per Share has been growing by 16.91% on average over the past years. This is quite good.
TZOO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.07%.
Measured over the past years, TZOO shows a decrease in Revenue. The Revenue has been decreasing by -5.37% on average per year.
EPS 1Y (TTM)59.65%
EPS 3YN/A
EPS 5Y16.91%
EPS growth Q2Q34.78%
Revenue 1Y (TTM)15.07%
Revenue growth 3Y16.37%
Revenue growth 5Y-5.37%
Revenue growth Q2Q1.78%
3.2 Future
The Earnings Per Share is expected to grow by 20.11% on average over the next years. This is a very strong growth
Based on estimates for the next years, TZOO will show a quite strong growth in Revenue. The Revenue will grow by 8.73% on average per year.
EPS Next Y26.89%
EPS Next 2Y24.44%
EPS Next 3Y20.11%
EPS Next 5YN/A
Revenue Next Year8.78%
Revenue Next 2Y8.95%
Revenue Next 3Y8.73%
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
Based on the Price/Earnings ratio of 9.69, the valuation of TZOO can be described as reasonable.
Based on the Price/Earnings ratio, TZOO is valued cheaper than 89.55% of the companies in the same industry.
When comparing the Price/Earnings ratio of TZOO to the average of the S&P500 Index (28.11), we can say TZOO is valued rather cheaply.
TZOO is valuated cheaply with a Price/Forward Earnings ratio of 6.86.
Based on the Price/Forward Earnings ratio, TZOO is valued cheaper than 94.03% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.39. TZOO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 6.86 |
4.2 Price Multiples
TZOO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TZOO is cheaper than 92.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TZOO is valued cheaper than 95.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.99 | ||
| EV/EBITDA | 5.49 |
4.3 Compensation for Growth
TZOO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of TZOO may justify a higher PE ratio.
TZOO's earnings are expected to grow with 20.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)0.57
EPS Next 2Y24.44%
EPS Next 3Y20.11%
5. Dividend
5.1 Amount
TZOO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TRAVELZOO
NASDAQ:TZOO (5/7/2024, 7:28:08 PM)
8.82
+0.01 (+0.11%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap116.42M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 6.86 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.36
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.63% | ||
| ROE | 315.03% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.38% | ||
| PM (TTM) | 15.24% | ||
| GM | 87.17% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)59.65%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y26.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.07%
Revenue growth 3Y16.37%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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