NasdaqGS:TA

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TravelCenters of America

Executive Summary

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


Snowflake Analysis

Fair value with poor track record.


Similar Companies

Share Price & News

How has TravelCenters of America's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.0%

TA

-1.6%

US Specialty Retail

2.3%

US Market


1 Year Return

-32.1%

TA

-9.3%

US Specialty Retail

6.7%

US Market

Return vs Industry: TA underperformed the US Specialty Retail industry which returned -9.3% over the past year.

Return vs Market: TA underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

TAIndustryMarket
7 Day-8.0%-1.6%2.3%
30 Day-23.3%-0.6%6.0%
90 Day35.4%17.8%18.9%
1 Year-32.1%-32.1%-8.2%-9.3%9.0%6.7%
3 Year-37.1%-37.1%30.4%24.1%36.6%27.7%
5 Year-84.7%-84.7%15.4%5.7%64.2%46.1%

Price Volatility Vs. Market

How volatile is TravelCenters of America's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

3.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate TA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: TA is good value based on its PE Ratio (3.6x) compared to the US Specialty Retail industry average (16.9x).

PE vs Market: TA is good value based on its PE Ratio (3.6x) compared to the US market (16.2x).


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 (0.2x) compared to the US Specialty Retail industry average (1.3x).


Next Steps

Future Growth

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

-19.0%

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 (-19% per year).

Earnings vs Market: TA's earnings are forecast to decline over the next 3 years (-19% per year).

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

Revenue vs Market: TA's revenue is expected to decline over the next 3 years (-6.3% per year).

High Growth Revenue: TA's revenue is forecast to decline over the next 3 years (-6.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-30.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TA has a large one-off loss of $13.1M impacting its March 31 2020 financial results.

Growing Profit Margin: TA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TA's earnings have declined by -30.8% per year over the past 5 years.

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 (-12.9%).


Return on Equity

High ROE: TA's Return on Equity (5%) is considered low.


Next Steps

Financial Health

How is TravelCenters of America's financial position?


Financial Position Analysis

Short Term Liabilities: TA's short term assets ($394.7M) exceed its short term liabilities ($374.6M).

Long Term Liabilities: TA's short term assets ($394.7M) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: TA's debt to equity ratio (60.9%) is considered high.

Reducing Debt: TA's debt to equity ratio has increased from 43% to 60.9% over the past 5 years.

Debt Coverage: TA's debt is not well covered by operating cash flow (16.4%).

Interest Coverage: TA's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

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

Management

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

1.5yrs

Average management tenure


CEO

Jonathan Pertchik (53yo)

1.5yrs

Tenure

US$909,985

Compensation

Mr. Jonathan M. Pertchik has been Chief Executive Officer of InTown Suites, Inc. since July 2014. Mr. Pertchik serves as Chief Executive Officer of ST Residential, LLC. During his time at ST Residential he ...


CEO Compensation Analysis

Compensation vs Market: Jonathan's total compensation ($USD909.99K) is below average for companies of similar size in the US market ($USD1.35M).

Compensation vs Earnings: Insufficient data to compare Jonathan's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Adam Portnoy
MD & Chairman of the Board1.17yrsUS$33.90k0.23% $418.0k
Jonathan Pertchik
CEO, MD & Director1.5yrsUS$909.99k0.44% $782.5k
Barry Richards
President2.5yrsUS$1.12m0.43% $779.6k
Mark Young
Executive VP & General Counsel12.92yrsUS$1.04m0.38% $675.6k
Peter Crage
Executive VP0.33yrno data0.11% $201.2k
Sandy Rapp
Senior VP & Chief Information Officer0.17yrno datano data
Timothy Bonang
Vice President of Investor Relationsno datano datano data
John McGary
Executive Vice President of Sales & Marketing0.75yrno data0.20% $358.7k
Dennis King
Senior Vice President of Corporate Development0.17yrno datano data
Karen Kaminski
Senior Vice President of Human Resources2.5yrsno datano data
John Ponczoch
Senior Vice President of Food Marketing & Operations10.5yrsno datano data
Peter Ward
Senior Vice President of Construction12.83yrsno datano data

1.5yrs

Average Tenure

57yo

Average Age

Experienced Management: TA's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Adam Portnoy
MD & Chairman of the Board1.17yrsUS$33.90k0.23% $418.0k
Jonathan Pertchik
CEO, MD & Director1.5yrsUS$909.99k0.44% $782.5k
Joseph Morea
Independent Director5.33yrsUS$152.65k0.11% $203.7k
Barbara Gilmore
Lead Independent Director1.17yrsUS$150.15k0.19% $346.5k
Elena Poptodorova
Independent Director0.42yrno data0.035% $63.3k
Rajan Penkar
Independent Director0.42yrno data0.042% $74.5k
Lisa Harris Jones
Independent Director6.67yrsUS$147.65k0.11% $197.5k

1.2yrs

Average Tenure

64yo

Average Age

Experienced Board: TA's board of directors are not considered experienced ( 1.2 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: TA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 78.6%.


Top Shareholders

Company Information

TravelCenters of America Inc.'s company bio, 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$179.239m
  • Shares outstanding: 14.43m
  • Website: https://www.ta-petro.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 2007
T8A1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 2007
T8A1BST (Boerse-Stuttgart)YesCommon StockDEEURJan 2007

Biography

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, as well as nonfuel products and services, such as truck repair and maintenance services, full service restaurants, quick service restaurants, and various customer amenities. As of June 2, 2020, it operated 265 locations in 44 states and Canada primarily under the TA, Petro Stopping Centers, and TA Express brands; and 650 full-service and quick-service restaurants and 10 proprietary brands, including Quaker Steak and Lube, Iron Skillet, and Country Pride. The company serves trucking fleets and their drivers, independent truck drivers, highway and local motorists, and casual diners. TravelCenters of America Inc. was founded in 1972 and is based in Westlake, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 07:25
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.