TRAVEL + LEISURE CO (TNL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNL - US8941641024 - Common Stock
69.8 USD
-0.03 (-0.04%)
TNL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. TNL has only an average score on both its financial health and profitability. TNL scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
- In the past year TNL had a positive cash flow from operations.
- TNL had positive earnings in 4 of the past 5 years.
- In the past 5 years TNL always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.96%, TNL is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
- With a decent Return On Invested Capital value of 10.73%, TNL is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for TNL is in line with the industry average of 10.36%.
- The last Return On Invested Capital (10.73%) for TNL is above the 3 year average (10.16%), which is a sign of increasing profitability.
| 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
- With a decent Profit Margin value of 10.36%, TNL is doing good in the industry, outperforming 77.27% of the companies in the same industry.
- In the last couple of years the Profit Margin of TNL has declined.
- TNL has a better Operating Margin (19.84%) than 79.55% of its industry peers.
- TNL's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 49.51%, TNL is in line with its industry, outperforming 56.82% of the companies in the same industry.
- TNL's Gross Margin has been stable in the last couple of years.
| 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
- TNL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for TNL has been reduced compared to 1 year ago.
- Compared to 5 years ago, TNL has less shares outstanding
- TNL has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.41 indicates that TNL is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.41, TNL is doing good in the industry, outperforming 63.64% of the companies in the same industry.
- TNL has a debt to FCF ratio of 11.05. This is a negative value and a sign of low solvency as TNL would need 11.05 years to pay back of 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 56.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.05 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.53
WACC7.03%
2.3 Liquidity
- A Current Ratio of 3.79 indicates that TNL has no problem at all paying its short term obligations.
- TNL has a Current ratio of 3.79. This is amongst the best in the industry. TNL outperforms 93.94% of its industry peers.
- 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's Quick ratio of 2.76 is amongst the best of the industry. TNL outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.79 | ||
| Quick Ratio | 2.76 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.97% over the past year.
- TNL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.53% yearly.
- The Revenue has been growing slightly by 3.58% in the past year.
- 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 13.11% yearly.
- The Revenue is expected to grow by 3.80% on average over the next years.
EPS Next Y10.77%
EPS Next 2Y12.43%
EPS Next 3Y13.11%
EPS Next 5YN/A
Revenue Next Year3.75%
Revenue Next 2Y4.04%
Revenue Next 3Y3.8%
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 11.11 indicates a reasonable valuation of TNL.
- Compared to the rest of the industry, the Price/Earnings ratio of TNL indicates a rather cheap valuation: TNL is cheaper than 89.39% of the companies listed in the same industry.
- TNL is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 9.55, the valuation of TNL can be described as very reasonable.
- TNL's Price/Forward Earnings ratio is rather cheap when compared to the industry. TNL is cheaper than 90.15% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. TNL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 9.55 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TNL indicates a somewhat cheap valuation: TNL is cheaper than 60.61% of the companies listed in the same industry.
- 94.70% 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 | 8.89 | ||
| EV/EBITDA | 10.83 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- TNL has a very decent profitability rating, which may justify a higher PE ratio.
- TNL's earnings are expected to grow with 13.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)21.08
EPS Next 2Y12.43%
EPS Next 3Y13.11%
5. Dividend
5.1 Amount
- TNL has a Yearly Dividend Yield of 3.11%.
- TNL's Dividend Yield is rather good when compared to the industry average which is at 1.21. TNL pays more dividend than 87.12% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, TNL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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 2Y12.43%
EPS Next 3Y13.11%
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 11.11 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%.