Travelzoo (NASDAQ:TZOO) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of TZOO, it is a company with great financial health as well as a a great track record of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Travelzoo here.
Flawless balance sheet with outstanding track record
Over the past year, TZOO has grown its earnings by 96%, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 25% return to shareholders, which is an notable feat for the company. TZOO is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that TZOO manages its cash and cost levels well, which is a key determinant of the company’s health. Looking at TZOO’s capital structure, the company has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
For Travelzoo, there are three fundamental factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for TZOO’s future growth? Take a look at our free research report of analyst consensus for TZOO’s outlook.
- Valuation: What is TZOO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TZOO is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TZOO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.