TRAVEL + LEISURE CO (TNL) Stock Fundamental Analysis
NYSE:TNL - New York Stock Exchange, Inc. - US8941641024 - Common Stock - Currency: USD
Taking everything into account, TNL scores 6 out of 10 in our fundamental rating. TNL was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. TNL has only an average score on both its financial health and profitability. TNL may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make TNL a good candidate for value 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.
Of the past 5 years TNL 4 years were profitable.
TNL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TNL has a better Return On Assets (6.29%) than 76.34% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.49%, TNL is in the better half of the industry, outperforming 73.28% 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 10.55%.
The 3 year average ROIC (9.59%) for TNL is below the current ROIC(10.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | N/A | ||
| ROIC | 10.49% |
ROA(3y)5.28%
ROA(5y)3.86%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.59%
ROIC(5y)8.03%
1.3 Margins
The Profit Margin of TNL (10.99%) is better than 74.81% of its industry peers.
In the last couple of years the Profit Margin of TNL has declined.
TNL has a Operating Margin of 19.58%. This is in the better half of the industry: TNL outperforms 77.10% of its industry peers.
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 48.75% is in line compared to the rest of the industry. TNL outperforms 51.91% 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 | 19.58% | ||
| PM (TTM) | 10.99% | ||
| GM | 48.75% |
OM growth 3Y79.9%
OM growth 5Y0.68%
PM growth 3YN/A
PM growth 5Y-9.18%
GM growth 3Y4.2%
GM growth 5Y-1.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TNL is creating some value.
Compared to 1 year ago, TNL has less shares outstanding
The number of shares outstanding for TNL has been reduced compared to 5 years ago.
Compared to 1 year ago, TNL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.31 indicates that TNL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TNL (2.31) is better than 62.60% of its industry peers.
TNL has a debt to FCF ratio of 14.52. This is a negative value and a sign of low solvency as TNL would need 14.52 years to pay back of all of its debts.
TNL has a Debt to FCF ratio of 14.52. This is comparable to the rest of the industry: TNL outperforms 49.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.52 | ||
| Altman-Z | 2.31 |
ROIC/WACC1.51
WACC6.96%
2.3 Liquidity
A Current Ratio of 3.80 indicates that TNL has no problem at all paying its short term obligations.
TNL has a Current ratio of 3.80. This is amongst the best in the industry. TNL outperforms 97.71% of its industry peers.
TNL has a Quick Ratio of 2.79. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.79, TNL belongs to the best of the industry, outperforming 94.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.8 | ||
| Quick Ratio | 2.79 |
3. Growth
3.1 Past
TNL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.37%, which is quite good.
The Earnings Per Share has been growing slightly by 1.53% on average over the past years.
Looking at the last year, TNL shows a small growth in Revenue. The Revenue has grown by 3.15% in the last year.
TNL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.94% yearly.
EPS 1Y (TTM)19.37%
EPS 3YN/A
EPS 5Y1.53%
EPS Q2Q%1.95%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y20.19%
Revenue growth 5Y-0.94%
Sales Q2Q%0.71%
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 8.24% yearly.
The Revenue is expected to grow by 3.94% on average over the next years.
EPS Next Y0.73%
EPS Next 2Y5.52%
EPS Next 3Y8.24%
EPS Next 5YN/A
Revenue Next Year2.5%
Revenue Next 2Y3.53%
Revenue Next 3Y3.94%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 9.00, the valuation of TNL can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TNL indicates a rather cheap valuation: TNL is cheaper than 96.18% of the companies listed in the same industry.
TNL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.51.
The Price/Forward Earnings ratio is 8.51, which indicates a very decent valuation of TNL.
Based on the Price/Forward Earnings ratio, TNL is valued cheaply inside the industry as 96.18% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 93.88, TNL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 8.51 |
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 67.94% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TNL is valued cheaply inside the industry as 94.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.68 | ||
| EV/EBITDA | 10.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TNL may justify a higher PE ratio.
PEG (NY)12.4
PEG (5Y)5.88
EPS Next 2Y5.52%
EPS Next 3Y8.24%
5. Dividend
5.1 Amount
TNL has a Yearly Dividend Yield of 3.73%.
TNL's Dividend Yield is rather good when compared to the industry average which is at 2.89. TNL pays more dividend than 89.31% of the companies in the same industry.
TNL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
5.2 History
The dividend of TNL decreases each year by -1.82%.
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)-1.82%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
33.25% of the earnings are spent on dividend by TNL. This is a low number and sustainable payout ratio.
DP33.25%
EPS Next 2Y5.52%
EPS Next 3Y8.24%
TRAVEL + LEISURE CO
NYSE:TNL (1/31/2025, 5:25:03 PM)
After market: 54.36 0 (0%)54.36
-0.84 (-1.52%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners91.45%
Inst Owner Change0.11%
Ins Owners6.14%
Ins Owner Change-8.53%
Market Cap3.72B
Analysts76.25
Price Target57.89 (6.49%)
Short Float %1.69%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
Yearly Dividend1.82
Dividend Growth(5Y)-1.82%
DP33.25%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.81%
Min EPS beat(2)4.48%
Max EPS beat(2)7.13%
EPS beat(4)4
Avg EPS beat(4)16.36%
Min EPS beat(4)4.48%
Max EPS beat(4)42.37%
EPS beat(8)7
Avg EPS beat(8)10.93%
EPS beat(12)9
Avg EPS beat(12)9.03%
EPS beat(16)12
Avg EPS beat(16)11.3%
Revenue beat(2)0
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-2.55%
Max Revenue beat(2)-1.28%
Revenue beat(4)1
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)0.09%
Revenue beat(8)3
Avg Revenue beat(8)-0.64%
Revenue beat(12)5
Avg Revenue beat(12)0.51%
Revenue beat(16)8
Avg Revenue beat(16)1.37%
PT rev (1m)3.65%
PT rev (3m)9.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)0%
EPS NY rev (3m)1.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 8.51 | ||
| P/S | 0.97 | ||
| P/FCF | 9.68 | ||
| P/OCF | 7.18 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.59 |
EPS(TTM)6.04
EY11.11%
EPS(NY)6.39
Fwd EY11.76%
FCF(TTM)5.61
FCFY10.33%
OCF(TTM)7.57
OCFY13.93%
SpS55.99
BVpS-12.6
TBVpS-29.94
PEG (NY)12.4
PEG (5Y)5.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | N/A | ||
| ROCE | 13.64% | ||
| ROIC | 10.49% | ||
| ROICexc | 10.87% | ||
| ROICexgc | 14.01% | ||
| OM | 19.58% | ||
| PM (TTM) | 10.99% | ||
| GM | 48.75% | ||
| FCFM | 10.03% |
ROA(3y)5.28%
ROA(5y)3.86%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.59%
ROIC(5y)8.03%
ROICexc(3y)10.34%
ROICexc(5y)8.66%
ROICexgc(3y)13.44%
ROICexgc(5y)11.12%
ROCE(3y)12.46%
ROCE(5y)10.44%
ROICexcg growth 3Y115.67%
ROICexcg growth 5Y0.81%
ROICexc growth 3Y114.87%
ROICexc growth 5Y0.09%
OM growth 3Y79.9%
OM growth 5Y0.68%
PM growth 3YN/A
PM growth 5Y-9.18%
GM growth 3Y4.2%
GM growth 5Y-1.11%
F-Score9
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.52 | ||
| Debt/EBITDA | 6.45 | ||
| Cap/Depr | 116.52% | ||
| Cap/Sales | 3.5% | ||
| Interest Coverage | 2.98 | ||
| Cash Conversion | 59.88% | ||
| Profit Quality | 91.21% | ||
| Current Ratio | 3.8 | ||
| Quick Ratio | 2.79 | ||
| Altman-Z | 2.31 |
F-Score9
WACC6.96%
ROIC/WACC1.51
Cap/Depr(3y)64.2%
Cap/Depr(5y)67.33%
Cap/Sales(3y)2.22%
Cap/Sales(5y)2.5%
Profit Quality(3y)110.25%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.37%
EPS 3YN/A
EPS 5Y1.53%
EPS Q2Q%1.95%
EPS Next Y0.73%
EPS Next 2Y5.52%
EPS Next 3Y8.24%
EPS Next 5YN/A
Revenue 1Y (TTM)3.15%
Revenue growth 3Y20.19%
Revenue growth 5Y-0.94%
Sales Q2Q%0.71%
Revenue Next Year2.5%
Revenue Next 2Y3.53%
Revenue Next 3Y3.94%
Revenue Next 5YN/A
EBIT growth 1Y4.02%
EBIT growth 3Y116.22%
EBIT growth 5Y-0.27%
EBIT Next Year19.54%
EBIT Next 3Y10.48%
EBIT Next 5YN/A
FCF growth 1Y11.3%
FCF growth 3Y-3.98%
FCF growth 5Y-4.67%
OCF growth 1Y29.5%
OCF growth 3Y-2.19%
OCF growth 5Y-4.56%