TRAVEL + LEISURE CO (TNL) Stock Fundamental Analysis
NYSE:TNL - New York Stock Exchange, Inc. - US8941641024 - Common Stock - Currency: USD
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. Finally TNL also has an excellent dividend rating. These ratings would make TNL suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year TNL was profitable.
TNL had a positive operating cash flow in the past year.
Of the past 5 years TNL 4 years were profitable.
Each year in the past 5 years TNL had a positive operating cash flow.
1.2 Ratios
TNL has a better Return On Assets (6.18%) than 75.76% of its industry peers.
With a decent Return On Invested Capital value of 10.49%, 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 below the industry average of 13.91%.
The 3 year average ROIC (10.16%) for TNL is below the current ROIC(10.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | N/A | ||
| ROIC | 10.49% |
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
TNL's Profit Margin of 10.76% is fine compared to the rest of the industry. TNL outperforms 77.27% of its industry peers.
TNL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.55%, TNL is in the better half of the industry, outperforming 77.27% 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.
Looking at the Gross Margin, with a value of 49.29%, TNL is in line with its industry, outperforming 56.06% of the companies in the same industry.
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 | 19.55% | ||
| PM (TTM) | 10.76% | ||
| GM | 49.29% |
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
Compared to 1 year ago, TNL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.34 indicates that TNL is not a great score, but indicates only limited risk for bankruptcy at the moment.
TNL has a Altman-Z score of 2.34. This is in the better half of the industry: TNL outperforms 62.12% of its industry peers.
TNL has a debt to FCF ratio of 12.63. This is a negative value and a sign of low solvency as TNL would need 12.63 years to pay back of all of its debts.
TNL has a Debt to FCF ratio (12.63) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.63 | ||
| Altman-Z | 2.34 |
ROIC/WACC1.31
WACC7.98%
2.3 Liquidity
TNL has a Current Ratio of 3.88. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
TNL's Current ratio of 3.88 is amongst the best of the industry. TNL outperforms 96.21% of its industry peers.
TNL has a Quick Ratio of 2.85. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.85, TNL belongs to the best of the industry, outperforming 94.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 2.85 |
3. Growth
3.1 Past
TNL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.72%.
TNL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.53% yearly.
Looking at the last year, TNL shows a small growth in Revenue. The Revenue has grown by 2.53% in the last year.
Measured over the past years, TNL shows a decrease in Revenue. The Revenue has been decreasing by -0.90% on average per year.
EPS 1Y (TTM)1.72%
EPS 3Y16.56%
EPS 5Y0.53%
EPS Q2Q%14.43%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%1.97%
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 14.22% yearly.
TNL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.64% yearly.
EPS Next Y8.64%
EPS Next 2Y11.83%
EPS Next 3Y14.22%
EPS Next 5YN/A
Revenue Next Year2.93%
Revenue Next 2Y3.51%
Revenue Next 3Y3.64%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.72, the valuation of TNL can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TNL indicates a rather cheap valuation: TNL is cheaper than 95.45% of the companies listed in the same industry.
TNL is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
TNL is valuated cheaply with a Price/Forward Earnings ratio of 7.96.
Based on the Price/Forward Earnings ratio, TNL is valued cheaply inside the industry as 92.42% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TNL to the average of the S&P500 Index (35.19), we can say TNL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 7.96 |
4.2 Price Multiples
TNL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TNL is cheaper than 65.91% of the companies in the same industry.
97.73% 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 | 8.53 | ||
| EV/EBITDA | 10.59 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as TNL's earnings are expected to grow with 14.22% in the coming years.
PEG (NY)1.13
PEG (5Y)18.43
EPS Next 2Y11.83%
EPS Next 3Y14.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.87%, TNL has a reasonable but not impressive dividend return.
TNL's Dividend Yield is rather good when compared to the industry average which is at 3.47. TNL pays more dividend than 90.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, TNL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
5.2 History
The dividend of TNL has a limited annual growth rate of 2.47%.
TNL has paid a dividend for at least 10 years, which is 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
34.69% 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.
DP34.69%
EPS Next 2Y11.83%
EPS Next 3Y14.22%
NYSE:TNL (7/14/2025, 3:51:37 PM)
57.53
+0.27 (+0.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners95.57%
Inst Owner Change0.01%
Ins Owners5.07%
Ins Owner Change54.36%
Market Cap3.82B
Analysts80
Price Target60.78 (5.65%)
Short Float %3.8%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
Yearly Dividend2.05
Dividend Growth(5Y)2.47%
DP34.69%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.48%
Min EPS beat(2)-0.46%
Max EPS beat(2)1.42%
EPS beat(4)3
Avg EPS beat(4)3.14%
Min EPS beat(4)-0.46%
Max EPS beat(4)7.13%
EPS beat(8)6
Avg EPS beat(8)8.74%
EPS beat(12)9
Avg EPS beat(12)7.62%
EPS beat(16)12
Avg EPS beat(16)8.83%
Revenue beat(2)1
Avg Revenue beat(2)-0.18%
Min Revenue beat(2)-0.85%
Max Revenue beat(2)0.5%
Revenue beat(4)1
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)0.5%
Revenue beat(8)3
Avg Revenue beat(8)-0.88%
Revenue beat(12)4
Avg Revenue beat(12)-0.6%
Revenue beat(16)8
Avg Revenue beat(16)0.96%
PT rev (1m)0.56%
PT rev (3m)-7.02%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)-2%
EPS NY rev (3m)-3.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 7.96 | ||
| P/S | 0.98 | ||
| P/FCF | 8.53 | ||
| P/OCF | 7.1 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.59 |
EPS(TTM)5.92
EY10.29%
EPS(NY)7.23
Fwd EY12.56%
FCF(TTM)6.74
FCFY11.72%
OCF(TTM)8.1
OCFY14.08%
SpS58.46
BVpS-13.6
TBVpS-31.32
PEG (NY)1.13
PEG (5Y)18.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | N/A | ||
| ROCE | 13.6% | ||
| ROIC | 10.49% | ||
| ROICexc | 10.86% | ||
| ROICexgc | 13.89% | ||
| OM | 19.55% | ||
| PM (TTM) | 10.76% | ||
| GM | 49.29% | ||
| FCFM | 11.54% |
ROA(3y)5.75%
ROA(5y)3.72%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.16%
ROIC(5y)8.06%
ROICexc(3y)10.81%
ROICexc(5y)8.62%
ROICexgc(3y)13.95%
ROICexgc(5y)11.16%
ROCE(3y)13.17%
ROCE(5y)10.44%
ROICexcg growth 3Y3.54%
ROICexcg growth 5Y0.01%
ROICexc growth 3Y4.33%
ROICexc growth 5Y-0.6%
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%
F-Score8
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.63 | ||
| Debt/EBITDA | 6.46 | ||
| Cap/Depr | 76.92% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 3.12 | ||
| Cash Conversion | 61.42% | ||
| Profit Quality | 107.18% | ||
| Current Ratio | 3.88 | ||
| Quick Ratio | 2.85 | ||
| Altman-Z | 2.34 |
F-Score8
WACC7.98%
ROIC/WACC1.31
Cap/Depr(3y)75.17%
Cap/Depr(5y)71.21%
Cap/Sales(3y)2.29%
Cap/Sales(5y)2.62%
Profit Quality(3y)86.45%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.72%
EPS 3Y16.56%
EPS 5Y0.53%
EPS Q2Q%14.43%
EPS Next Y8.64%
EPS Next 2Y11.83%
EPS Next 3Y14.22%
EPS Next 5YN/A
Revenue 1Y (TTM)2.53%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%1.97%
Revenue Next Year2.93%
Revenue Next 2Y3.51%
Revenue Next 3Y3.64%
Revenue Next 5YN/A
EBIT growth 1Y0.13%
EBIT growth 3Y6.88%
EBIT growth 5Y-1.84%
EBIT Next Year28.53%
EBIT Next 3Y12.16%
EBIT Next 5YN/A
FCF growth 1Y82.11%
FCF growth 3Y-10.57%
FCF growth 5Y-0.29%
OCF growth 1Y74.68%
OCF growth 3Y-6.52%
OCF growth 5Y0.53%