NYSE:TNL is probably undervalued for the fundamentals it is displaying.

Last update: Feb 12, 2024

Consider TRAVEL + LEISURE CO (NYSE:TNL) as a top value stock, identified by our stock screening tool. NYSE:TNL shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Assessment of 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 8 out of 10:

TNL is valuated reasonably with a Price/Earnings ratio of 8.10.
Based on the Price/Earnings ratio, TNL is valued cheaply inside the industry as 95.59% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.94, TNL is valued rather cheaply.
The Price/Forward Earnings ratio is 7.92, which indicates a rather cheap valuation of TNL.
Based on the Price/Forward Earnings ratio, TNL is valued cheaply inside the industry as 98.53% of the companies are valued more expensively.
TNL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.56.
Based on the Price/Free Cash Flow ratio, TNL is valued cheaper than 94.12% 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.
A more expensive valuation may be justified as TNL's earnings are expected to grow with 14.23% in the coming years.

Profitability Assessment of NYSE:TNL

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:TNL, the assigned 5 is a significant indicator of profitability:

With a decent Return On Assets value of 5.39%, TNL is doing good in the industry, outperforming 73.53% 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 74.26% 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 77.21% of its industry peers.
TNL's Operating Margin of 19.42% is fine compared to the rest of the industry. TNL outperforms 79.41% of its industry peers.

Health Analysis for NYSE:TNL

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, 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 2.14 is fine compared to the rest of the industry. TNL outperforms 66.18% 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 95.59% of the companies in the same industry.
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 93.38% of the companies in the same industry.

Growth Assessment of NYSE:TNL

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 14.22% 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 14.23% yearly.
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.

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.