Despite its impressive fundamentals, NYSE:TNL remains undervalued.

Our stock screener has spotted TRAVEL + LEISURE CO (NYSE:TNL) as an undervalued stock with solid fundamentals. NYSE:TNL shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Evaluating Valuation: NYSE:TNL

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:TNL scores a 9 out of 10:

• A Price/Earnings ratio of 7.44 indicates a rather cheap valuation of TNL.
• Based on the Price/Earnings ratio, TNL is valued cheaply inside the industry as 95.71% of the companies are valued more expensively.
• TNL is valuated cheaply when we compare the Price/Earnings ratio to 25.59, which is the current average of the S&P500 Index.
• With a Price/Forward Earnings ratio of 5.90, 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.
• TNL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 18.75.
• Based on the Enterprise Value to EBITDA ratio, TNL is valued a bit cheaper than 62.86% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of TNL indicates a rather cheap valuation: TNL is cheaper than 90.71% of the companies listed in the same industry.
• The 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.

Assessing Profitability for NYSE:TNL

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

• The Return On Assets of TNL (5.53%) is better than 72.14% of its industry peers.
• With a decent Return On Invested Capital value of 9.52%, TNL is doing good in the industry, outperforming 75.00% of the companies in the same industry.
• The 3 year average ROIC (6.09%) for TNL is below the current ROIC(9.52%), indicating increased profibility in the last year.
• TNL's Profit Margin of 9.96% is fine compared to the rest of the industry. TNL outperforms 76.43% of its industry peers.
• The Operating Margin of TNL (19.13%) is better than 81.43% of its industry peers.

Evaluating Health: NYSE:TNL

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:TNL was assigned a score of 6 for health:

• Looking at the Altman-Z score, with a value of 2.09, TNL is in the better half of the industry, outperforming 73.57% 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.
• With an excellent Current ratio value of 3.57, TNL belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
• TNL has a Quick Ratio of 2.63. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
• TNL has a better Quick ratio (2.63) than 90.00% of its industry peers.

ChartMill's Evaluation of Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:TNL has received a 4 out of 10:

• 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.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.