TravelCenters of America (NasdaqGS:TA) - Share price, News & Analysis

TA fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	3/6
Financial Health	4/6
Dividends	0/6

TA Stock Overview

TravelCenters of America Inc. operates travel centers, truck service facilities, and restaurants in the United States and Canada.

Rewards

PE ratio (6.4x) is below the US market (15.3x)

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of 21.8% per year for the next 3 years

TravelCenters of America Competitors

Murphy USA

NYSE:MUSA

US$5.8b

Alimentation Couche-Tard

TSX:ATD

CA$57.4b

Dollar General

NYSE:DG

US$42.9b

Dollar Tree

NasdaqGS:DLTR

US$28.8b

Price History & Performance

Summary of all time highs, changes and price drops for TravelCenters of America
Historical stock prices
Current Share Price	US$33.82
52 Week High	US$64.58
52 Week Low	US$26.87
Beta	2
1 Month Change	-16.51%
3 Month Change	-16.31%
1 Year Change	25.40%
3 Year Change	90.00%
5 Year Change	71.24%
Change since IPO	-80.81%

Recent News & Updates

May 07

Forecast: Analysts Think TravelCenters of America Inc.'s (NASDAQ:TA) Business Prospects Have Improved Drastically

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

May 03

TravelCenters of America Q1 2022 Results: Still An Excellent Opportunity

TravelCenters of America has seen tremendous growth recently, driven by a mix of higher volume sales and higher pricing for fuel. Other aspects of the company improved as well, and the business is trading at incredibly cheap levels right now. The overall picture for the firm is favorable and investors would be wise to consider acquiring TA stock.

Shareholder Returns

	TA	US Specialty Retail	US Market
7D	-7.8%	-8.9%	-2.7%
1Y	25.4%	-28.3%	-12.9%

Return vs Industry: TA exceeded the US Specialty Retail industry which returned -28.3% over the past year.

Return vs Market: TA exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is TA's price volatile compared to industry and market?
TA volatility
TA Average Weekly Movement	8.4%
Specialty Retail Industry Average Movement	8.6%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: TA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: TA's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1972	16,540	Jon Pertchik	https://www.ta-petro.com

TravelCenters of America Inc. operates travel centers, truck service facilities, and restaurants in the United States and Canada. The company’s travel centers offer various products and services, including diesel fuel and gasoline, as well as nonfuel products and services, such as a range of truck repair and maintenance services, diesel exhaust fluids, full service restaurants, quick service restaurants, and various customer amenities. Its full and quick service restaurants are operated under the Iron Skillet, Country Pride, IHOP, Black Bear Diner, Fuddruckers, Bob Evans, Popeye's Chicken & Biscuits, Subway, Burger King, Taco Bell, Pizza Hut, Dunkin' and Starbuck's Coffee brands.

TravelCenters of America Fundamentals Summary

How do TravelCenters of America's earnings and revenue compare to its market cap?
TA fundamental statistics
Market Cap	US$501.78m
Earnings (TTM)	US$78.65m
Revenue (TTM)	US$8.10b

6.4x

P/E Ratio

0.1x

P/S Ratio

Is TA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TA income statement (TTM)
Revenue	US$8.10b
Cost of Revenue	US$7.45b
Gross Profit	US$658.50m
Other Expenses	US$579.85m
Earnings	US$78.65m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	5.30
Gross Margin	8.12%
Net Profit Margin	0.97%
Debt/Equity Ratio	72.8%

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?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

6.38x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: TA ($33.82) is trading above our estimate of fair value ($1.2)

Significantly Below Fair Value: TA is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: TA is poor value based on its PE Ratio (6.4x) compared to the US Specialty Retail industry average (6.3x).

PE vs Market: TA is good value based on its PE Ratio (6.4x) compared to the US market (15.3x).

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 (0.7x) compared to the US Specialty Retail industry average (1.7x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-21.8%

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 (-21.8% per year).

Earnings vs Market: TA's earnings are forecast to decline over the next 3 years (-21.8% per year).

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

Revenue vs Market: TA's revenue (3.3% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: TA's revenue (3.3% 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 (10.4%).

Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

32.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TA has high quality earnings.

Growing Profit Margin: TA became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: TA has become profitable over the past 5 years, growing earnings by 32.4% per year.

Accelerating Growth: TA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (82.6%).

Return on Equity

High ROE: TA's Return on Equity (11.1%) is considered low.

Financial Health

How is TravelCenters of America's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TA's short term assets ($1.0B) exceed its short term liabilities ($651.5M).

Long Term Liabilities: TA's short term assets ($1.0B) do not cover its long term liabilities ($2.3B).

Debt to Equity History and Analysis

Debt Level: TA has more cash than its total debt.

Reducing Debt: TA's debt to equity ratio has increased from 60.8% to 72.8% over the past 5 years.

Debt Coverage: TA's debt is well covered by operating cash flow (30.9%).

Interest Coverage: TA's interest payments on its debt are well covered by EBIT (3.2x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TA has not reported any payouts.

Discover strong dividend paying companies

Management

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

3.0yrs

Average management tenure

CEO

Jon Pertchik (54 yo)

3.33yrs

Tenure

US$7,367,240

Compensation

Mr. Jonathan M. Pertchik, also known as Jon, serves as Executive Vice President of RMR Group LLC at The RMR Group Inc. since December 2019. He is the Chief Executive Officer of TravelCenters of America Inc...

CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD7.37M) is above average for companies of similar size in the US market ($USD2.59M).

Compensation vs Earnings: Jon's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: TA's management team is considered experienced (3 years average tenure).

Board Members

Experienced Board: TA's board of directors are considered experienced (4.4 years average tenure).

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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31