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

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.

Evaluating Valuation: 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:

• The Price/Earnings ratio is 7.98, which indicates a rather cheap valuation of TNL.
• TNL's Price/Earnings ratio is rather cheap when compared to the industry. TNL is cheaper than 94.89% of the companies in the same industry.
• TNL is valuated cheaply when we compare the Price/Earnings ratio to 25.95, which is the current average of the S&P500 Index.
• With a Price/Forward Earnings ratio of 7.55, the valuation of TNL can be described as very cheap.
• Based on the Price/Forward Earnings ratio, TNL is valued cheaper than 99.27% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of TNL to the average of the S&P500 Index (20.89), we can say TNL is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, TNL is valued a bit cheaper than 65.69% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, TNL is valued cheaply inside the industry as 94.89% of the companies are valued more expensively.
• 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 15.37% in the coming years.

How do we evaluate the 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:

• Looking at the Return On Assets, with a value of 5.39%, TNL is in the better half of 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 better Profit Margin (9.67%) than 75.91% of its industry peers.
• TNL has a better Operating Margin (19.42%) than 80.29% of its industry peers.

Looking at the Health

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 (2.14) than 66.42% of its industry peers.
• A Current Ratio of 3.60 indicates that TNL has no problem at all paying its short term obligations.
• With an excellent Current ratio value of 3.60, TNL belongs to the best of the industry, outperforming 96.35% of the companies in the same industry.
• TNL has a Quick Ratio of 2.66. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
• TNL has a Quick ratio of 2.66. This is amongst the best in the industry. TNL outperforms 93.43% of its industry peers.

Assessing Growth Metrics for NYSE:TNL

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:TNL has earned a 4 for growth:

• 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 15.37% 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.
• 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 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.