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TA

TravelCenters of AmericaNasdaqGS:TA Stock Report

Market Cap

US$795.7m

7D

3.0%

1Y

111.2%

Updated

19 Oct, 2021

Data

Company Financials +
TA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance1/6
Financial Health2/6
Dividends0/6

TA Overview

TravelCenters of America Inc. operates travel centers and standalone restaurants in the United States and Canada.

TravelCenters of America Competitors

Murphy USA

NYSE:MUSA

US$4.4b

Dollar General

NYSE:DG

US$49.9b

Alimentation Couche-Tard

TSX:ATD.B

CA$51.7b

Dollar Tree

NasdaqGS:DLTR

US$22.6b

Price History & Performance

Summary of all time highs, changes and price drops for TravelCenters of America
Historical stock prices
Current Share PriceUS$54.57
52 Week HighUS$22.00
52 Week LowUS$57.28
Beta2.08
1 Month Change21.05%
3 Month Change77.87%
1 Year Change111.18%
3 Year Change137.78%
5 Year Change66.63%
Change since IPO-69.03%

Recent News & Updates

Oct 08
Investors Will Want TravelCenters of America's (NASDAQ:TA) Growth In ROCE To Persist

Investors Will Want TravelCenters of America's (NASDAQ:TA) Growth In ROCE To Persist

To find a multi-bagger stock, what are the underlying trends we should look for in a business? In a perfect world, we'd...

Aug 12
New Forecasts: Here's What Analysts Think The Future Holds For TravelCenters of America Inc. (NASDAQ:TA)

New Forecasts: Here's What Analysts Think The Future Holds For TravelCenters of America Inc. (NASDAQ:TA)

Shareholders in TravelCenters of America Inc. ( NASDAQ:TA ) may be thrilled to learn that the analysts have just...

Aug 04
TravelCenters of America (NASDAQ:TA) Takes On Some Risk With Its Use Of Debt

TravelCenters of America (NASDAQ:TA) Takes On Some Risk With Its Use Of Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

TAUS Specialty RetailUS Market
7D3.0%2.8%4.0%
1Y111.2%39.6%30.5%

Return vs Industry: TA exceeded the US Specialty Retail industry which returned 39.6% over the past year.

Return vs Market: TA exceeded the US Market which returned 30% over the past year.

Price Volatility

Is TA's price volatile compared to industry and market?
TA volatility
TA Beta2.08
Industry Beta1.56
Market Beta1

Stable Share Price: TA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: TA's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197216,374Jon Pertchikhttps://www.ta-petro.com

TravelCenters of America Inc. operates travel centers and standalone restaurants in the United States and Canada. Its travel centers offer a range of products and services, including diesel fuel and gasoline, diesel exhaust fluid, and truck repair and maintenance, and roadside services, as well as operates full service and quick service restaurants, and various customer amenities. The company’s travel stores also offer packaged food and snack items, beverages, non-prescription drug and beauty supplies, batteries, automobile accessories, music and video products, fresh brewed coffee, hot dogs, prepared sandwiches, and other prepared foods, as well as laundry supplies, clothing, truck accessories, and various electronics; and parking space under the Reserve-It brand name.

TravelCenters of America Fundamentals Summary

How do TravelCenters of America's earnings and revenue compare to its market cap?
TA fundamental statistics
Market CapUS$795.66m
Earnings (TTM)US$25.17m
Revenue (TTM)US$5.92b

31.6x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TA income statement (TTM)
RevenueUS$5.92b
Cost of RevenueUS$5.36b
Gross ProfitUS$556.90m
ExpensesUS$531.72m
EarningsUS$25.17m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 01, 2021

Earnings per share (EPS)1.73
Gross Margin9.41%
Net Profit Margin0.43%
Debt/Equity Ratio78.9%

How did TA perform over the long term?

See historical performance and comparison

Valuation

Is TravelCenters of America undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TA ($54.57) is trading below our estimate of fair value ($278.48)

Significantly Below Fair Value: TA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TA is poor value based on its PE Ratio (31.6x) compared to the US Specialty Retail industry average (9.9x).

PE vs Market: TA is poor value based on its PE Ratio (31.6x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: TA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TA is good value based on its PB Ratio (1.2x) compared to the US Specialty Retail industry average (2.9x).


Future Growth

How is TravelCenters of America forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TA's earnings are forecast to decline over the next 3 years (-8.4% per year).

Earnings vs Market: TA's earnings are forecast to decline over the next 3 years (-8.4% per year).

High Growth Earnings: TA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TA's revenue (8.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: TA's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TA's Return on Equity is forecast to be low in 3 years time (9.3%).


Past Performance

How has TravelCenters of America performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TA has a large one-off loss of $27.1M impacting its June 30 2021 financial results.

Growing Profit Margin: TA's current net profit margins (0.4%) are lower than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: TA's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: TA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TA had negative earnings growth (-8.5%) over the past year, making it difficult to compare to the Specialty Retail industry average (158.2%).


Return on Equity

High ROE: TA's Return on Equity (3.7%) is considered low.


Financial Health

How is TravelCenters of America's financial position?


Financial Position Analysis

Short Term Liabilities: TA's short term assets ($914.2M) exceed its short term liabilities ($540.2M).

Long Term Liabilities: TA's short term assets ($914.2M) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: TA's debt to equity ratio (78.9%) is considered high.

Reducing Debt: TA's debt to equity ratio has increased from 58.2% to 78.9% over the past 5 years.

Debt Coverage: TA's debt is well covered by operating cash flow (42.5%).

Interest Coverage: TA's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Dividend

What is TravelCenters of America current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

  • Explore strong dividend paying companies in the Retail industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Jon Pertchik (54 yo)

2.75yrs

Tenure

US$3,774,175

Compensation

Mr. Jonathan M. Pertchik, also known as Jon, is the Chief Executive Officer of TravelCenters of America Inc. since 2019 and has been its Director since December 2019 and serves as its Managing Director. He...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD3.77M) is above average for companies of similar size in the US market ($USD2.28M).

Compensation vs Earnings: Jon's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: TA's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: TA's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TravelCenters of America Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: TravelCenters of America Inc.
  • Ticker: TA
  • Exchange: NasdaqGS
  • Founded: 1972
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: US$795.657m
  • Shares outstanding: 14.58m
  • Website: https://www.ta-petro.com

Number of Employees


Location

  • TravelCenters of America Inc.
  • 24601 Center Ridge Road
  • Suite 200
  • Westlake
  • Ohio
  • 44145-5639
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 23:34
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.