Is TRAVELZOO (TZOO) Halal?

NASDAQ Communication Services United States $62M
✓ HALAL
Confidence: 95/100
TRAVELZOO (TZOO) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 11.0% against the AAOIFI threshold of 30%, TRAVELZOO comfortably passes the key financial ratio tests. The company operates in the Communication Services sector (Internet Content & Information), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 11.0%
/ 30%
23.1%
/ 30%
17.4%
/ 30%
0.7%
/ 5%
✓ HALAL
DJIM 11.0%
/ 33%
23.1%
/ 33%
17.4%
/ 33%
0.7%
/ 5%
✓ HALAL
MSCI 14.8%
/ 33%
31.2%
/ 33%
23.4%
/ 33%
0.7%
/ 5%
✓ HALAL
S&P 11.0%
/ 33%
23.1%
/ 33%
17.4%
/ 33%
0.7%
/ 5%
✓ HALAL
FTSE 14.8%
/ 33%
31.2%
/ 33%
23.4%
/ 50%
0.7%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
13.9
Forward: 6.1
EPS
$0.41
P/B Ratio
-8.3
EV/EBITDA
8.9
EV: $63M
Revenue
$92M
Growth: 8.7%
Beta
0.8
Low volatility
Current Ratio
0.7

Profitability

Gross Margin 80.3%
Operating Margin 2.5%
Net Margin 5.1%
Return on Equity (ROE) 515.6%
Return on Assets (ROA) 8.6%

Cash Flow & Balance Sheet

Operating Cash Flow$6M
Free Cash Flow$6M
Total Debt$6M
Current Ratio0.7
Total Assets$45M

Price & Trading

Last Close$6.19
50-Day MA$5.98
200-Day MA$8.65
Avg Volume184K
Beta0.8
52-Week Range
$4.72
$16.56

About TRAVELZOO (TZOO)

CEO
Mr. Holger Bartel Ph.D.
Employees
249
Sector
Communication Services
Industry
Internet Content & Information
Country
United States
Exchange
NASDAQ
Market Cap
$62M
Currency
USD

Travelzoo, together with its subsidiaries, operates as an Internet media company that provides travel, entertainment, and local experiences worldwide. It operates in four segments: Travelzoo North America, Travelzoo Europe, Jack's Flight Club, and New Initiatives. The company offers Travelzoo website, Travelzoo Top 20 email newsletters, Standalone email newsletters, Travelzoo Network, Travelzoo mobile applications, Jack's Flight Club website, Jack's Flight Club mobile applications, and Jack's Flight Club newsletters. The company's Travelzoo website and newsletters include local deals and getaways listings that allow members to purchase vouchers for offers from local businesses, such as spas, hotels, and restaurants; Jack's Flight Club, a subscription service that provides members with information about exceptional airfares; and Travelzoo Network, a network of third-party websites that list travel deals published by the company. 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 was incorporated in 1998 and is headquartered in New York, New York.

Purification Calculator

As a halal stock with 0.70% impermissible income, you need to purify your dividends.

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Related Halal Stocks in Communication Services

Frequently Asked Questions

Is TRAVELZOO (TZOO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), TRAVELZOO is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is TRAVELZOO's debt ratio?

TRAVELZOO's debt ratio is 11.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 14.8%.

Does TRAVELZOO require dividend purification?

Yes, TRAVELZOO has an impermissible income ratio of 0.70%, which means 0.70% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are TRAVELZOO's key financial metrics?

TRAVELZOO has a market capitalization of $62M, trailing P/E ratio of 13.9, and revenue of $92M. The company maintains a gross margin of 80.3% and a net margin of 5.1%. Return on equity stands at 515.6%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.