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

Last update: Jul 10, 2024

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.

Understanding NYSE:TNL's Valuation

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 7 out of 10:

With a Price/Earnings ratio of 7.44, the valuation of TNL can be described as very cheap.
Based on the Price/Earnings ratio, TNL is valued cheaply inside the industry as 95.52% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TNL to the average of the S&P500 Index (28.45), we can say TNL is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.89, the valuation of TNL can be described as very cheap.
95.52% of the companies in the same industry are more expensive than TNL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.17, TNL is valued rather cheaply.
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.
The decent profitability rating of TNL may justify a higher PE ratio.

Evaluating Profitability: 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:

With a decent Return On Assets value of 5.68%, TNL is doing good in the industry, outperforming 72.39% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.07%, TNL is in the better half of the industry, outperforming 70.15% of the companies in the same industry.
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.
The Profit Margin of TNL (10.54%) is better 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.

Deciphering NYSE:TNL's Health Rating

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:

Looking at the Altman-Z score, with a value of 2.16, TNL is in the better half of the industry, outperforming 64.93% of the companies in the same industry.
A Current Ratio of 3.91 indicates that TNL has no problem at all paying its short term obligations.
The Current ratio of TNL (3.91) is better than 97.76% of its industry peers.
A Quick Ratio of 2.95 indicates that TNL has no problem at all paying its short term obligations.
TNL's Quick ratio of 2.95 is amongst the best of the industry. TNL outperforms 95.52% of its industry peers.

Growth Examination for 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 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.
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.

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

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.