Investors should take notice of NYSE:TNL—it offers a great deal for the fundamentals it presents.

TRAVEL + LEISURE CO (NYSE:TNL) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:TNL showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Assessing Valuation Metrics for NYSE:TNL

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:TNL was assigned a score of 9 for valuation:

• Based on the Price/Earnings ratio of 7.65, the valuation of TNL can be described as very cheap.
• Compared to the rest of the industry, the Price/Earnings ratio of TNL indicates a rather cheap valuation: TNL is cheaper than 96.40% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 25.93, TNL is valued rather cheaply.
• Based on the Price/Forward Earnings ratio of 6.07, the valuation of TNL can be described as very cheap.
• TNL's Price/Forward Earnings ratio is rather cheap when compared to the industry. TNL is cheaper than 100.00% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 19.01, TNL is valued rather cheaply.
• 63.31% of the companies in the same industry are more expensive than TNL, based on the Enterprise Value to EBITDA ratio.
• TNL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TNL is cheaper than 90.65% of the companies in the same industry.
• TNL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• TNL has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as TNL's earnings are expected to grow with 19.60% in the coming years.

How do we evaluate the Profitability for NYSE:TNL?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:TNL has achieved a 6:

• TNL's Return On Assets of 5.53% is fine compared to the rest of the industry. TNL outperforms 71.94% of its industry peers.
• TNL's Return On Invested Capital of 9.52% is fine compared to the rest of the industry. TNL outperforms 74.82% of its industry peers.
• The last Return On Invested Capital (9.52%) for TNL is above the 3 year average (6.09%), which is a sign of increasing profitability.
• The Profit Margin of TNL (9.96%) is better than 76.26% of its industry peers.
• TNL has a Operating Margin of 19.13%. This is amongst the best in the industry. TNL outperforms 81.30% of its industry peers.

Deciphering NYSE:TNL's Health Rating

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:TNL has earned a 6 out of 10:

• Looking at the Altman-Z score, with a value of 2.09, TNL is in the better half of the industry, outperforming 71.22% of the companies in the same industry.
• A Current Ratio of 3.57 indicates that TNL has no problem at all paying its short term obligations.
• TNL has a Current ratio of 3.57. This is amongst the best in the industry. TNL outperforms 96.40% of its industry peers.
• A Quick Ratio of 2.63 indicates that TNL has no problem at all paying its short term obligations.
• TNL has a Quick ratio of 2.63. This is amongst the best in the industry. TNL outperforms 89.93% of its industry peers.

How do we evaluate the Growth for NYSE:TNL?

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:TNL, the assigned 4 reflects its growth potential:

• The Earnings Per Share has grown by an nice 10.60% over the past year.
• TNL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.60% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of TNL contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.