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

TRAVEL + LEISURE CO (NYSE:TNL) was identified as a decent value stock by our stock screener. NYSE:TNL scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Valuation Insights: NYSE:TNL

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:TNL has earned a 8 for valuation:

• The Price/Earnings ratio is 7.61, which indicates a rather cheap valuation of TNL.
• Based on the Price/Earnings ratio, TNL is valued cheaply inside the industry as 96.27% of the companies are valued more expensively.
• TNL is valuated cheaply when we compare the Price/Earnings ratio to 28.66, which is the current average of the S&P500 Index.
• A Price/Forward Earnings ratio of 7.05 indicates a rather cheap valuation of TNL.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of TNL indicates a rather cheap valuation: TNL is cheaper than 97.76% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, TNL is valued rather cheaply.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TNL indicates a somewhat cheap valuation: TNL is cheaper than 62.69% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, TNL is valued cheaply inside the industry as 82.84% of the companies are valued more expensively.
• TNL has a very decent profitability rating, which may justify a higher PE ratio.

Assessing 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:

• Looking at the Return On Assets, with a value of 5.68%, TNL is in the better half of the industry, outperforming 72.39% of the companies in the same industry.
• TNL has a better Return On Invested Capital (10.07%) than 70.15% of its industry peers.
• The last Return On Invested Capital (10.07%) for TNL is above the 3 year average (9.59%), which is a sign of increasing profitability.
• TNL has a better Profit Margin (10.54%) than 74.63% of its industry peers.
• TNL has a Operating Margin of 20.02%. This is in the better half of the industry: TNL outperforms 76.87% of its industry peers.

Health Examination for NYSE:TNL

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:TNL, the assigned 6 reflects its health status:

• TNL has a better Altman-Z score (2.17) than 64.93% of its industry peers.
• A Current Ratio of 3.91 indicates that TNL has no problem at all paying its short term obligations.
• With an excellent Current ratio value of 3.91, TNL belongs to the best of the industry, outperforming 97.76% of the companies in the same industry.
• TNL has a Quick Ratio of 2.95. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
• TNL has a Quick ratio of 2.95. This is amongst the best in the industry. TNL outperforms 95.52% of its industry peers.

Analyzing Growth Metrics

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 5 out of 10:

• TNL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.78%, which is quite impressive.
• The Earnings Per Share is expected to grow by 10.12% 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.

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

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.