In a market where value is scarce, NYSE:TNL offers a refreshing opportunity with its solid fundamentals.

Last update: Aug 15, 2024

TRAVEL + LEISURE CO (NYSE:TNL) has caught the attention of our stock screener as a great value stock. NYSE:TNL excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

How We Gauge Valuation for NYSE:TNL

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:TNL boasts a 7 out of 10:

Based on the Price/Earnings ratio of 7.00, the valuation of TNL can be described as very cheap.
Based on the Price/Earnings ratio, TNL is valued cheaply inside the industry as 96.30% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.02, TNL is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.60, the valuation of TNL can be described as very cheap.
Based on the Price/Forward Earnings ratio, TNL is valued cheaper than 97.04% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TNL to the average of the S&P500 Index (20.56), we can say TNL is valued rather cheaply.
Based on the Price/Free Cash Flow ratio, TNL is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
TNL has a very decent profitability rating, which may justify a higher PE ratio.

Evaluating Profitability: NYSE:TNL

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:TNL has achieved a 6:

TNL has a better Return On Assets (6.48%) than 77.04% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.57%, TNL is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
The last Return On Invested Capital (10.57%) for TNL is above the 3 year average (9.59%), which is a sign of increasing profitability.
With a decent Profit Margin value of 11.35%, TNL is doing good in the industry, outperforming 76.30% of the companies in the same industry.
The Operating Margin of TNL (19.72%) is better than 78.52% of its industry peers.

A Closer Look at Health for 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:

Looking at the Altman-Z score, with a value of 2.23, TNL is in the better half of the industry, outperforming 67.41% of the companies in the same industry.
TNL has a Current Ratio of 3.75. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.75, TNL belongs to the best of the industry, outperforming 97.78% of the companies in the same industry.
A Quick Ratio of 2.75 indicates that TNL has no problem at all paying its short term obligations.
The Quick ratio of TNL (2.75) is better than 94.07% of its industry peers.

Growth Analysis for NYSE:TNL

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:TNL was assigned a score of 5 for growth:

TNL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.21%, which is quite impressive.
Based on estimates for the next years, TNL will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.22% on average per year.
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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of TNL

Disclaimer

This article should in no way be interpreted as advice. 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.