TRAVEL + LEISURE CO (TNL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNL - US8941641024 - Common Stock
69.83 USD
-2.11 (-2.93%)
69.83 USD
0 (0%)
TNL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. TNL has an average financial health and profitability rating. TNL may be a bit undervalued, certainly considering the very reasonable score on growth TNL also has an excellent dividend rating. This makes TNL very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
- TNL had positive earnings in the past year.
- TNL had a positive operating cash flow in the past year.
- TNL had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years TNL had a positive operating cash flow.
1.2 Ratios
- TNL's Return On Assets of 5.96% is fine compared to the rest of the industry. TNL outperforms 72.93% of its industry peers.
- TNL has a Return On Invested Capital of 10.73%. This is in the better half of the industry: TNL outperforms 75.19% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TNL is in line with the industry average of 10.34%.
- The 3 year average ROIC (10.16%) for TNL is below the current ROIC(10.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.96% | ||
| ROE | N/A | ||
| ROIC | 10.73% |
ROA(3y)5.75%
ROA(5y)3.72%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.16%
ROIC(5y)8.06%
1.3 Margins
- The Profit Margin of TNL (10.36%) is better than 77.44% of its industry peers.
- In the last couple of years the Profit Margin of TNL has declined.
- Looking at the Operating Margin, with a value of 19.84%, TNL is in the better half of the industry, outperforming 79.70% of the companies in the same industry.
- In the last couple of years the Operating Margin of TNL has remained more or less at the same level.
- TNL's Gross Margin of 49.51% is in line compared to the rest of the industry. TNL outperforms 56.39% of its industry peers.
- In the last couple of years the Gross Margin of TNL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.84% | ||
| PM (TTM) | 10.36% | ||
| GM | 49.51% |
OM growth 3Y-0.33%
OM growth 5Y-0.94%
PM growth 3Y2.67%
PM growth 5Y-3.24%
GM growth 3Y-0.05%
GM growth 5Y-1.2%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TNL is still creating some value.
- TNL has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for TNL has been reduced compared to 5 years ago.
- TNL has a better debt/assets ratio than last year.
2.2 Solvency
- TNL has an Altman-Z score of 2.42. This is not the best score and indicates that TNL is in the grey zone with still only limited risk for bankruptcy at the moment.
- TNL has a better Altman-Z score (2.42) than 63.91% of its industry peers.
- The Debt to FCF ratio of TNL is 11.05, which is on the high side as it means it would take TNL, 11.05 years of fcf income to pay off all of its debts.
- TNL's Debt to FCF ratio of 11.05 is in line compared to the rest of the industry. TNL outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.05 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.49
WACC7.2%
2.3 Liquidity
- A Current Ratio of 3.79 indicates that TNL has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.79, TNL belongs to the top of the industry, outperforming 93.98% of the companies in the same industry.
- TNL has a Quick Ratio of 2.76. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
- TNL has a Quick ratio of 2.76. This is amongst the best in the industry. TNL outperforms 91.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.79 | ||
| Quick Ratio | 2.76 |
3. Growth
3.1 Past
- TNL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.97%.
- Measured over the past 5 years, TNL shows a small growth in Earnings Per Share. The EPS has been growing by 0.53% on average per year.
- TNL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.58%.
- TNL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.90% yearly.
EPS 1Y (TTM)3.97%
EPS 3Y16.56%
EPS 5Y0.53%
EPS Q2Q%14.65%
Revenue 1Y (TTM)3.58%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%5.14%
3.2 Future
- TNL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.31% yearly.
- The Revenue is expected to grow by 3.79% on average over the next years.
EPS Next Y10.77%
EPS Next 2Y12.34%
EPS Next 3Y13.31%
EPS Next 5YN/A
Revenue Next Year3.75%
Revenue Next 2Y4.07%
Revenue Next 3Y3.79%
Revenue Next 5YN/A
3.3 Evolution
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.12 indicates a reasonable valuation of TNL.
- TNL's Price/Earnings ratio is rather cheap when compared to the industry. TNL is cheaper than 89.47% of the companies in the same industry.
- When comparing the Price/Earnings ratio of TNL to the average of the S&P500 Index (27.21), we can say TNL is valued rather cheaply.
- TNL is valuated reasonably with a Price/Forward Earnings ratio of 9.57.
- Based on the Price/Forward Earnings ratio, TNL is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, TNL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 9.57 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TNL is valued a bit cheaper than the industry average as 60.15% of the companies are valued more expensively.
- 94.74% of the companies in the same industry are more expensive than TNL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.9 | ||
| EV/EBITDA | 10.98 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of TNL may justify a higher PE ratio.
- TNL's earnings are expected to grow with 13.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)21.09
EPS Next 2Y12.34%
EPS Next 3Y13.31%
5. Dividend
5.1 Amount
- TNL has a Yearly Dividend Yield of 3.05%.
- Compared to an average industry Dividend Yield of 1.19, TNL pays a better dividend. On top of this TNL pays more dividend than 86.47% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, TNL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
5.2 History
- The dividend of TNL has a limited annual growth rate of 2.47%.
- TNL has been paying a dividend for at least 10 years, so it has a reliable track record.
- TNL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.47%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 36.01% of the earnings are spent on dividend by TNL. This is a low number and sustainable payout ratio.
- The dividend of TNL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.01%
EPS Next 2Y12.34%
EPS Next 3Y13.31%
TRAVEL + LEISURE CO / TNL FAQ
What is the ChartMill fundamental rating of TRAVEL + LEISURE CO (TNL) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TNL.
What is the valuation status for TNL stock?
ChartMill assigns a valuation rating of 8 / 10 to TRAVEL + LEISURE CO (TNL). This can be considered as Undervalued.
Can you provide the profitability details for TRAVEL + LEISURE CO?
TRAVEL + LEISURE CO (TNL) has a profitability rating of 6 / 10.
What is the valuation of TRAVEL + LEISURE CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TRAVEL + LEISURE CO (TNL) is 11.12 and the Price/Book (PB) ratio is -5.47.
Can you provide the dividend sustainability for TNL stock?
The dividend rating of TRAVEL + LEISURE CO (TNL) is 7 / 10 and the dividend payout ratio is 36.01%.