Travelzoo (TZOO) AI Stock Analysis

• Market Cap: $123.60M
• Dividend Yield: N/A
• Average Volume (3M): 138.04K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.87
• Revenue Growth: 3.47%
• EPS Growth: -0.61%
• Country: US
• Employees: 227
• Sector: Communication Services
• Sector Strength: 76
• Industry: Advertising Agencies
• EPS (TTM): 0.12
• Shares Outstanding: 11,095,078
• 10 Day Avg. Volume: 163,554
• 30 Day Avg. Volume: 138,045
• PEG Ratio: -2.45
• Price to Book (P/B): -23.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.86
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 1.03
• Enterprise Value/Ebitda: 2.82
• 1Y Price Target: $22.67
• Price Target Upside: 109.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• Price Target: $13.00 ▲(20.37%Upside)

Travelzoo's overall stock score reflects its solid profitability and cash flow capabilities, offset by significant balance sheet risks and bearish technical indicators. Positive earnings call highlights and recent corporate events suggest future growth potential, yet financial stability remains a concern.

Positive Factors

Advertising Revenue

The high intent member base can be attractive to advertisers, contributing to revenue growth.

Revenue Growth

Revenue growth is driven by subscriber additions, with expectations for continued double-digit growth.

Stock Buyback

Travelzoo has been active in repurchasing shares, buying back $18.9 million in stock in 2024.

Negative Factors

Gross Margins

Lower gross margins are due to inventory taken from travel suppliers, indicating greater price sensitivity among consumers.

Marketing Costs

Higher marketing costs associated with subscriber acquisition are pressuring EBITDA.

Profitability Pressure

Elevated sales and marketing investment to add subscribers is expected to weigh on profitability.

Travelzoo Business Overview & Revenue Model

Company Description

Travelzoo (TZOO) is a global internet media company that specializes in publishing travel, entertainment, and local deals. It operates in sectors including online media, advertising, and travel services. The company's core products and services include publishing exclusive travel deals, discounts, and offers from over 5,000 travel, entertainment, and local companies to its subscribers across North America, Europe, and the Asia Pacific.

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 margins and positive revenue growth, but significant balance sheet concerns due to negative equity and high leverage pose financial stability risks.

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

Travelzoo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TZOO, the sentiment is Negative. The current price of 10.8 is below the 20-day moving average (MA) of 12.98, below the 50-day MA of 13.08, and below the 200-day MA of 15.89, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 31.87 is Neutral, neither overbought nor oversold. The STOCH value of 13.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TZOO.

Travelzoo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLX	72 Outperform	$754.31M	13.53	9.10%	7.05%	-2.69%	61.73%
QNST	65 Neutral	$940.28M	―	-0.29%	―	88.81%	99.16%
Sector *	61 Neutral	€3.48B	-0.68	3.90%	4.95%	5.55%	-158.49%
TZOO	61 Neutral	$123.60M	12.45	494.69%	―	3.47%	-0.61%
MCHX	61 Neutral	$89.12M	―	-16.55%	―	-2.67%	21.65%
CDLX	60 Neutral	$142.02M	―	-135.48%	―	-12.77%	19.71%
TSQ	58 Neutral	$118.55M	―	74.55%	10.86%	-0.16%	57.03%

Travelzoo Corporate Events

Travelzoo Reports 13% Revenue Increase in Q2 2025

Travelzoo reported a 13% year-over-year increase in revenue for Q2 2025, reaching $23.9 million, with a consolidated operating profit of $2.1 million. Despite a reduction in earnings per share due to marketing investments, the company saw growth in its North American and European segments and a significant revenue increase in Jack’s Flight Club. Travelzoo continues to expand its membership base and expects future profitability to rise as recurring membership fees are recognized.

The most recent analyst rating on (TZOO) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Travelzoo stock, see the TZOO Stock Forecast page.

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.