Travelzoo
$9.68
-0.82%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 23.1).
Valuation inputs: P/E 23.1, earnings yield +4.3%, momentum -0.8%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -62.5%, ROIC +35.0%).
Profitability stack: net margin +5.1%, ROE -62.5%, ROIC +35.0%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +105.4%, momentum -0.8%, net margin +5.1%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Travelzoo Market vs Earnings Trajectory
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Travelzoo Fair Value Envelope
Travelzoo Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Travelzoo Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
Travelzoo Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Balanced asset mix between current and non-current assets, typical of many stable businesses.
Travelzoo Street Expectations Map
Wall Street analysts project that TZOO stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 10.00, with estimates ranging from a low of 8.00 to a high of 12.00.
The consensus 1-year price target stands at 10.00, with estimates ranging from a low of 8.00 to a high of 12.00.
Analyst Consensus Analysis
Upside Potential
Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.
Analyst Agreement
Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.
Risk-Reward Profile
Balanced risk-reward. Upside and downside potential relatively symmetric. Suitable for moderate risk tolerance with conviction in thesis.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Travelzoo Insider Positioning
During the last 12 months, insiders have purchased $1.12M and sold $5.41M worth of TZOO shares, resulting in $4.30M of net selling activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
200.0K
1.08M
102.5K
727.15K
+350K
+$350K
6-9 Months
0
0.00
125.0K
1.18M
-1.2M
-$1.18M
9-12 Months
7.9K
39.13K
307.5K
3.51M
-3.5M
-$3.47M
Top Buyers
Bartel Holger
Director, Officer: Global Chief Executive Officer
$1.08M
Ciocca Christina Sindoni
Director, Officer: General Counsel
$39K
Top Sellers
Azzurro Capital Inc
10 Percent Owner
$5.41M
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $4.30M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Weak buy/sell ratio. Selling significantly exceeds buying—monitor for potential fundamental concerns.
Insider Participation
2 insider buyers vs. 1 sellers. More insiders buying than selling indicates positive sentiment.
No Dividend Yield Data
TZOO has not reported any dividend yield values in the available annual periods.
tzoo Dividend History
Learning Layer
Related Guides
Build conviction on TZOO by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.