Travelzoo (TZOO) AI Stock Analysis

• Market Cap: $147.68M
• Dividend Yield: N/A
• Average Volume (3M): 117.58K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.81
• Revenue Growth: 0.23%
• EPS Growth: 17.13%
• Country: US
• Employees: 227
• Sector: Communication Services
• Sector Strength: 84
• Industry: Advertising Agencies
• EPS (TTM): 0.25
• Shares Outstanding: 11,095,078
• 10 Day Avg. Volume: 182,080
• 30 Day Avg. Volume: 117,579
• PEG Ratio: 0.01
• Price to Book (P/B): 12.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.24
• Enterprise Value/Market Cap: 0.32
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 0.65
• Enterprise Value/Ebitda: 0.64
• 1Y Price Target: $23.33
• Price Target Upside: 75.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 62 Neutral
• Price Target: $14.00 ▲(5.18%Upside)

Travelzoo's overall stock score reflects its strong profitability and reasonable valuation. However, significant risks arise from its financial stability, with a highly leveraged balance sheet and negative equity. Technical indicators suggest a neutral short-term momentum. The positive revenue outlook from the earnings call provides optimism, but challenges like decreased operating profits and slower growth in Europe temper the overall assessment.

Positive Factors

Advertiser Attraction

The high intent member base can be attractive to advertisers, with 30 million members globally.

Market Confidence

Travelzoo has been active in repurchasing shares, buying back $18.9 million in stock in 2024, indicating confidence in its business model.

Revenue Growth

Revenue trends are improving as subscriber levels grow, with both European and North American segments generating revenue growth.

Negative Factors

Market Challenges

The evolving market for travel advertising presents challenges such as greater price sensitivity and geopolitical concerns from advertisers.

Profit Margin Pressure

Higher upfront costs for subscriber growth are expected to pressure margins and profits in the initial period.

Revenue Shortfalls

Fourth quarter revenues of $20.8 million were below estimates and below the year-ago level, with management having expected growth in the period.

Travelzoo Business Overview & Revenue Model

Company Description

Travelzoo, an Internet media company, provides travel, entertainment, and local deals from travel and entertainment companies, and local businesses in the Asia Pacific, Europe, and North America. Its publications and products include Travelzoo Website; Travelzoo iPhone and Android apps; Travelzoo Top 20 email newsletter; and Newsflash email alert service. The company also operates the Travelzoo Network, a network of third-party Websites that list travel deals published by the company; and Local Deals and Getaway listings, which allow its members to purchase vouchers for deals from local businesses, such as spas, hotels, and restaurants. It serves airlines, hotels, cruise lines, vacations packagers, tour operators, destinations, car rental companies, travel agents, theater and performing arts groups, restaurants, spas, and activity companies. Travelzoo Inc. was founded in 1998 and is headquartered in New York, New York.

How the Company Makes Money

Travelzoo makes money primarily through advertising fees paid by travel companies, entertainment companies, and local businesses to feature their deals on Travelzoo's platform. The company charges fees to clients for listing their deals, which are then showcased to Travelzoo's extensive audience of subscribers. Additionally, Travelzoo generates revenue through its travel package sales and associated booking fees. Key revenue streams include listing fees, advertising revenues, and commissions on travel bookings. The company also benefits from strategic partnerships with travel and entertainment providers, enhancing its offerings and revenue potential.

Travelzoo Financial Statement Overview

Summary

Travelzoo shows strong profitability with high net profit margins and solid cash flow generation. However, the balance sheet poses concerns due to negative stockholders' equity and high leverage, signaling potential financial distress.

Income Statement

Travelzoo shows a strong performance in its income statement with improving margins and consistent revenue growth. The TTM gross profit margin is high at 85.9%, indicating effective cost management. The TTM net profit margin improved to 14.5%, demonstrating enhanced profitability. Revenue growth is positive, showing a 1.4% increase over the previous year. However, a slight decline in EBIT and EBITDA margins suggests room for operational efficiency improvements.

Balance Sheet

The balance sheet reveals some concerns with a negative stockholders' equity of -$6.2 million in the TTM period, indicating potential financial distress and high leverage. The debt-to-equity ratio is not applicable due to negative equity, which is a red flag for financial stability. While the equity ratio is negative, indicating liabilities exceed assets, the company does maintain a decent cash position of $11.5 million.

Cash Flow

Cash flow analysis shows strength in operating cash flow, with a TTM figure of $19.8 million, and a robust free cash flow of $19.6 million, illustrating strong cash generation capability. The free cash flow to net income ratio is healthy, indicating efficient conversion of income to cash. However, the volatility in cash flow from previous years and high financing outflows raise concerns about future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.06M	83.90M	84.48M	70.60M	62.71M	53.60M
Gross Profit	73.06M	73.43M	73.54M	60.60M	51.66M	43.04M
EBITDA	17.03M	19.41M	17.46M	9.95M	507.00K	-8.95M
Net Income	12.36M	13.56M	12.37M	6.63M	911.00K	-13.42M
Balance Sheet
Total Assets	49.33M	54.72M	55.38M	67.27M	99.73M	102.40M
Cash, Cash Equivalents and Short-Term Investments	11.47M	17.06M	15.71M	18.69M	43.81M	63.06M
Total Debt	7.94M	8.12M	9.25M	11.30M	12.29M	18.02M
Total Liabilities	50.70M	50.37M	46.50M	58.42M	99.36M	95.90M
Stockholders Equity	-6.05M	-462.00K	4.19M	4.26M	-4.23M	1.89M
Cash Flow
Free Cash Flow	19.60M	20.92M	10.42M	-24.63M	-8.11M	46.77M
Operating Cash Flow	19.76M	21.10M	10.68M	-23.12M	-8.08M	47.02M
Investing Cash Flow	-163.00K	-177.00K	-39.00K	-1.31M	104.00K	2.07M
Financing Cash Flow	-24.02M	-18.97M	-14.15M	1.28M	-11.16M	-6.98M

Travelzoo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TZOO, the sentiment is Positive. The current price of 13.31 is above the 20-day moving average (MA) of 12.96, below the 50-day MA of 13.40, and below the 200-day MA of 15.90, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 52.78 is Neutral, neither overbought nor oversold. The STOCH value of 73.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TZOO.

Travelzoo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLX	71 Outperform	$767.29M	13.76	9.10%	7.00%	-2.69%	61.73%
QNST	65 Neutral	$941.98M	―	-0.29%	―	88.81%	99.16%
TZOO	62 Neutral	$147.68M	13.31	494.69%	―	0.23%	17.13%
MCHX	61 Neutral	$93.51M	―	-16.55%	―	-2.67%	21.65%
Sector *	58 Neutral	C$3.32B	6.33	-0.75%	6.13%	-2.19%	-11.60%
TSQ	54 Neutral	$135.23M	―	74.55%	9.67%	-0.16%	57.03%
CDLX	42 Neutral	$97.65M	―	-135.48%	―	-12.77%	19.71%

Travelzoo Corporate Events

Travelzoo Stockholders Elect Directors at Annual Meeting

At the 2025 Annual Meeting of Stockholders held on June 4, 2025, Travelzoo‘s stockholders elected six directors to the Board, including Holger Bartel and Christina Sindoni Ciocca. Additionally, the stockholders approved the company’s executive compensation on an advisory basis, reflecting continued support for Travelzoo’s leadership and strategic direction.

The most recent analyst rating on (TZOO) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Travelzoo stock, see the TZOO Stock Forecast page.

Travelzoo Reports Q1 2025 Financial Results Growth

Travelzoo reported its financial results for the first quarter of 2025, showing a 5% increase in revenue to $23.1 million compared to the previous year. The company achieved a consolidated operating profit of $3.7 million and a non-GAAP operating profit of $4.4 million. Travelzoo’s North American segment saw a 6% revenue increase, while its European segment had a 1% increase. Jack’s Flight Club, in which Travelzoo holds a 60% stake, reported a 20% rise in revenue from unaffiliated customers. The company repurchased 590,839 shares during the quarter and expects revenue growth to double in the second quarter of 2025.