Don't overlook NYSE:TNL—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Dec 4, 2023

Uncover the potential of TRAVEL + LEISURE CO (NYSE:TNL) as our stock screener's choice for an undervalued stock. NYSE:TNL maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Valuation Assessment of NYSE:TNL

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:TNL has achieved a 9 out of 10:

Based on the Price/Earnings ratio of 7.47, the valuation of TNL can be described as very cheap.
Based on the Price/Earnings ratio, TNL is valued cheaply inside the industry as 95.62% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TNL to the average of the S&P500 Index (25.04), we can say TNL is valued rather cheaply.
The Price/Forward Earnings ratio is 6.29, which indicates a rather cheap valuation of TNL.
Based on the Price/Forward Earnings ratio, TNL is valued cheaper than 100.00% of the companies in the same industry.
TNL is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.08, which is the current average of the S&P500 Index.
TNL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TNL is cheaper than 64.96% 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 94.89% 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.

Looking at the Profitability

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 5.39%, TNL is doing good in the industry, outperforming 70.80% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.72%, TNL is in the better half of the industry, outperforming 74.45% of the companies in the same industry.
The 3 year average ROIC (6.09%) for TNL is below the current ROIC(9.72%), indicating increased profibility in the last year.
TNL has a Profit Margin of 9.67%. This is in the better half of the industry: TNL outperforms 77.37% of its industry peers.
The Operating Margin of TNL (19.42%) is better than 81.02% of its industry peers.

Health Assessment of NYSE:TNL

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:

TNL's Altman-Z score of 2.12 is fine compared to the rest of the industry. TNL outperforms 64.23% of its industry peers.
A Current Ratio of 3.60 indicates that TNL has no problem at all paying its short term obligations.
TNL has a better Current ratio (3.60) than 96.35% 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 93.43% of the companies in the same industry.

Growth Examination 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.
TNL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.52% yearly.
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.

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

Keep in mind

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.