Travelzoo (TZOO) AI Stock Analysis

• Market Cap: $114.86M
• Dividend Yield: N/A
• Average Volume (3M): 111.20K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.88
• Revenue Growth: 3.47%
• EPS Growth: -0.61%
• Country: US
• Employees: 227
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.12
• Shares Outstanding: 10,980,939
• 10 Day Avg. Volume: 114,069
• 30 Day Avg. Volume: 111,201
• PEG Ratio: 0.61
• Price to Book (P/B): -543.83
• Price to Sales (P/S): 2.99
• P/FCF Ratio: 12.01
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 2.03
• Enterprise Value/Ebitda: 8.72
• 1Y Price Target: $19.88
• Price Target Upside: 90.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 58 Neutral
• Price Target: $10.50 ▲(0.38% Upside)

Travelzoo's overall stock score reflects strong profitability and cash flow generation, tempered by significant balance sheet risks and bearish technical indicators. While the company demonstrates growth potential through successful member acquisition strategies, current financial impacts and market sentiment present challenges.

Positive Factors

Revenue Growth

The 13% revenue growth indicates strong demand and effective market strategies, supporting long-term business expansion and stability.

Member Acquisition Strategy

Successful member acquisition with immediate payback enhances revenue streams and strengthens the company's competitive position in the market.

Cash Flow Generation

Strong cash flow generation supports operational flexibility and potential for reinvestment in growth initiatives, aiding long-term financial health.

Negative Factors

Decreased Operating Profit

Decreased operating profit highlights challenges in balancing growth investments with profitability, potentially impacting financial performance.

Balance Sheet Concerns

Negative equity and high leverage pose risks to financial stability, limiting the company's ability to withstand economic downturns.

Higher Marketing Costs

Increased marketing costs impacting EPS suggest pressure on profitability, necessitating careful cost management to sustain long-term growth.

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 generates revenue primarily through advertising and publishing fees from travel and entertainment companies that want to promote their offers to Travelzoo's large subscriber base. The company partners with various service providers, including hotels, airlines, and travel agencies, to feature their deals on its platform. Travelzoo earns commissions for every sale generated through its website, a revenue model known as affiliate marketing. Additionally, the company may also earn revenue through sponsored content and advertising placements. The quality and exclusivity of the deals offered, coupled with its large user base and partnerships with reputable companies in the travel industry, contribute significantly to its earnings.

Travelzoo Financial Statement Overview

Summary

Travelzoo demonstrates strong profitability and cash flow generation, with a high gross profit margin of 85.9% and net profit margin of 14.5%. However, the balance sheet is concerning with negative stockholders' equity and high leverage, suggesting potential financial instability.

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: Neutral
• Last Price: 10.46
• 50DMA: Positive
• 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 Neutral. The current price of 10.46 is above the 20-day moving average (MA) of 9.80, above the 50-day MA of 10.29, and below the 200-day MA of 14.50, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.03 is Neutral, neither overbought nor oversold. The STOCH value of 79.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TZOO.

Travelzoo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLX	71 Outperform	875.26M	15.02	10.51%	6.15%	-1.92%	49.63%
QNST	66 Neutral	936.95M	208.04	1.93%	―	78.27%	―
TZOO	58 Neutral	$114.86M	11.67	494.69%	―	3.47%	-0.61%
TSQ	55 Neutral	114.46M	3.40	39.88%	11.42%	-0.11%	―
MCHX	45 Neutral	85.27M	-18.04	-15.16%	―	-2.64%	6.48%
CDLX	39 Underperform	140.55M	-0.73	-312.30%	―	-12.84%	5.09%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

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.

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.