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

Our stock screener has singled out TRAVEL + LEISURE CO (NYSE:TNL) as a stellar value proposition. NYSE:TNL not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Understanding NYSE:TNL's Valuation Score

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:

• TNL is valuated cheaply with a Price/Earnings ratio of 6.87.
• 96.35% of the companies in the same industry are more expensive than TNL, based on the Price/Earnings ratio.
• When comparing the Price/Earnings ratio of TNL to the average of the S&P500 Index (23.45), we can say TNL is valued rather cheaply.
• The Price/Forward Earnings ratio is 5.79, which indicates a rather cheap valuation of TNL.
• TNL's Price/Forward Earnings ratio is rather cheap when compared to the industry. TNL is cheaper than 99.27% of the companies in the same industry.
• TNL is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.84, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, TNL is valued a bit cheaper than 66.42% of the companies in the same industry.
• TNL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TNL is cheaper than 94.16% 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.
• TNL's earnings are expected to grow with 19.52% in the coming years. This may justify a more expensive valuation.

How do we evaluate the Profitability for NYSE:TNL?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:TNL, the assigned 6 is noteworthy for profitability:

• TNL's Return On Assets of 5.39% is fine compared to the rest of the industry. TNL outperforms 70.07% of its industry peers.
• TNL has a better Return On Invested Capital (9.72%) than 75.18% of its industry peers.
• The 3 year average ROIC (6.09%) for TNL is below the current ROIC(9.72%), indicating increased profibility in the last year.
• The Profit Margin of TNL (9.67%) is better than 76.64% of its industry peers.
• TNL has a Operating Margin of 19.42%. This is amongst the best in the industry. TNL outperforms 81.75% of its industry peers.

A Closer Look at Health for NYSE:TNL

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:TNL has achieved a 6 out of 10:

• TNL has a Altman-Z score of 2.10. This is in the better half of the industry: TNL outperforms 68.61% of its industry peers.
• TNL has a Current Ratio of 3.60. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of TNL (3.60) is better than 97.08% of its industry peers.
• A Quick Ratio of 2.66 indicates that TNL has no problem at all paying its short term obligations.
• With an excellent Quick ratio value of 2.66, TNL belongs to the best of the industry, outperforming 91.97% of the companies in the same industry.

How do we evaluate the Growth for NYSE:TNL?

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:TNL has achieved a 4 out of 10:

• TNL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.22%, which is quite good.
• The Earnings Per Share is expected to grow by 19.52% on average over the next years. This is quite good.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of TNL for a complete fundamental analysis.

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.