In a market where value is scarce, NYSE:TNL offers a refreshing opportunity with its solid fundamentals.

Last update: Oct 23, 2023

Take a closer look at TRAVEL + LEISURE CO (NYSE:TNL), a remarkable value stock uncovered by our stock screener. NYSE:TNL excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Valuation Analysis 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:

TNL is valuated cheaply with a Price/Earnings ratio of 7.01.
Based on the Price/Earnings ratio, TNL is valued cheaply inside the industry as 97.12% of the companies are valued more expensively.
TNL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.03.
TNL is valuated cheaply with a Price/Forward Earnings ratio of 5.60.
Based on the Price/Forward Earnings ratio, TNL is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TNL to the average of the S&P500 Index (18.58), we can say TNL is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, TNL is valued a bit cheaper than the industry average as 66.91% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TNL indicates a rather cheap valuation: TNL is cheaper than 89.93% of the companies listed 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.
The decent profitability rating of TNL may justify a higher PE ratio.
A more expensive valuation may be justified as TNL's earnings are expected to grow with 19.52% in the coming years.

Assessing Profitability for NYSE:TNL

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:TNL scores a 6 out of 10:

With a decent Return On Assets value of 5.53%, TNL is doing good in the industry, outperforming 71.94% of the companies in the same industry.
TNL has a Return On Invested Capital of 9.52%. This is in the better half of the industry: TNL outperforms 75.54% of its industry peers.
The 3 year average ROIC (6.09%) for TNL is below the current ROIC(9.52%), indicating increased profibility in the last year.
With a decent Profit Margin value of 9.96%, TNL is doing good in the industry, outperforming 76.98% of the companies in the same industry.
TNL has a better Operating Margin (19.13%) than 82.01% 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:

TNL has a better Altman-Z score (2.07) than 69.78% of its industry peers.
TNL has a Current Ratio of 3.57. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
TNL's Current ratio of 3.57 is amongst the best of 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 better Quick ratio (2.63) than 89.93% of its industry peers.

Growth Assessment of NYSE:TNL

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:TNL scores a 4 out of 10:

TNL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.60%, which is quite good.
Based on estimates for the next years, TNL will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.52% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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

For an up to date full fundamental analysis you can check the fundamental report of TNL

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.