Fact based stock research
Travelzoo (NasdaqGS:TZOO)
US89421Q2057
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Travelzoo stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 33 (worse than 67% compared with investment alternatives), Travelzoo (Interactive Media & Services, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Travelzoo are a good value (attractively priced) with a consolidated Value Rank of 69 (better than 69% of alternatives), show above-average growth (Growth Rank of 61) but are riskily financed (Safety Rank of 34), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 33, is a hold recommendation based on Travelzoo's financial characteristics. As the company Travelzoo's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 69) and above-average growth (Obermatt Growth Rank of 61), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 34) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Interactive Media & Services |
| Index | NASDAQ |
| Size class | X-Small |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Travelzoo
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 21 |
|
65 |
|
40 |
|
69 |
|
| GROWTH | ||||||||
| GROWTH | 79 |
|
85 |
|
79 |
|
61 |
|
| SAFETY | ||||||||
| SAFETY | 31 |
|
11 |
|
34 |
|
34 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
31 |
|
86 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
43 |
|
86 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 33 (worse than 67% compared with investment alternatives), Travelzoo (Interactive Media & Services, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Travelzoo are a good value (attractively priced) with a consolidated Value Rank of 69 (better than 69% of alternatives), show above-average growth (Growth Rank of 61) but are riskily financed (Safety Rank of 34), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 33, is a hold recommendation based on Travelzoo's financial characteristics. As the company Travelzoo's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 69) and above-average growth (Obermatt Growth Rank of 61), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 34) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 21 |
|
65 |
|
40 |
|
69 |
|
| GROWTH | ||||||||
| GROWTH | 79 |
|
85 |
|
79 |
|
61 |
|
| SAFETY | ||||||||
| SAFETY | 31 |
|
11 |
|
34 |
|
34 |
|
| COMBINED | ||||||||
| COMBINED | 26 |
|
42 |
|
82 |
|
33 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 69 (better than 69% compared with alternatives), Travelzoo shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Travelzoo. Price-to-Sales (P/S) is 52, which means that the stock price compared with what market professionals expect for future sales is lower than for 52% of comparable companies, indicating a good value regarding Travelzoo's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 71% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 100. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 1% of all competitors have even lower dividend yields than Travelzoo (a Dividend Yield Rank of 1). 99% alternative investments in the same business provide a higher dividend yield. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 69, is a buy recommendation based on Travelzoo's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 56 |
|
91 |
|
75 |
|
52 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 55 |
|
93 |
|
86 |
|
71 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 2 |
|
6 |
|
1 |
|
100 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 21 |
|
65 |
|
40 |
|
69 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 61 (better than 61% compared with alternatives), Travelzoo shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Travelzoo. Sales Growth has a rank of 72 which means that currently professionals expect the company to grow more than 72% of its competitors. Stock Returns are also above average with a rank of 93. But Capital Growth has only a rank of 7, which means that currently professionals expect the company to grow its invested capital less than 93% of its competitors. Profit Growth is also low, with a rank of only 48, which means that, currently, professionals expect the company to grow its profits below average. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 61, is a buy recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 93% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 24 |
|
66 |
|
60 |
|
72 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 6 |
|
98 |
|
68 |
|
48 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
41 |
|
31 |
|
7 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 83 |
|
69 |
|
97 |
|
93 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 79 |
|
85 |
|
79 |
|
61 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 34 (better than 34% compared with alternatives), the company Travelzoo has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Travelzoo is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Travelzoo and the other two below average. Leverage is at a rank of 100 meaning the company has a below-average debt-to-equity ratio. It has less debt than 100% of its competitors.Refinancing is at a rank of 23, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 77% of its competitors. Liquidity is at a rank of 1, meaning that the company generates less profit to service its debt than 99% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 34 (worse than 66% compared with alternatives), Travelzoo has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Travelzoo are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Travelzoo and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 89 |
|
47 |
|
100 |
|
100 |
|
| REFINANCING | ||||||||
| REFINANCING | 2 |
|
3 |
|
21 |
|
23 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 21 |
|
5 |
|
20 |
|
1 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 31 |
|
11 |
|
34 |
|
34 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
94 |
|
97 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
5 |
|
100 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
10 |
|
39 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
31 |
|
86 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Travelzoo from November 14, 2024.
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