TRAVEL + LEISURE CO (TNL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNL - US8941641024 - Common Stock
69.58 USD
+0.42 (+0.61%)
69.58 USD
0 (0%)
Overall TNL gets a fundamental rating of 6 out of 10. We evaluated TNL 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
- 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.
- In the past 5 years TNL always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 5.96%, TNL is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- TNL has a Return On Invested Capital of 10.73%. This is in the better half of the industry: TNL outperforms 75.00% of its industry peers.
- TNL had an Average Return On Invested Capital over the past 3 years of 10.16%. This is in line with the industry average of 10.37%.
- 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
- TNL's Profit Margin of 10.36% 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.
- TNL has a Operating Margin of 19.84%. This is in the better half of the industry: TNL outperforms 79.55% of its industry peers.
- TNL's Operating Margin has been stable in the last couple of years.
- The Gross Margin of TNL (49.51%) is comparable to the rest of the 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 | 19.84% | ||
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TNL is creating some value.
- The number of shares outstanding for TNL has been reduced compared to 1 year ago.
- The number of shares outstanding for TNL has been reduced compared to 5 years ago.
- The debt/assets ratio for TNL has been reduced compared to a year ago.
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.
- 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 has a Debt to FCF ratio (11.05) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.05 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.53
WACC7%
2.3 Liquidity
- A Current Ratio of 3.79 indicates that TNL has no problem at all paying its short term obligations.
- The Current ratio of TNL (3.79) is better than 93.94% of its industry peers.
- A Quick Ratio of 2.76 indicates that TNL has no problem at all paying 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.
- Looking at the last year, TNL shows a small growth in Revenue. The Revenue has grown by 3.58% in the last year.
- The Revenue has been decreasing by -0.90% on average over the past years.
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
- The Earnings Per Share is expected to grow by 13.11% on average over the next years. This is quite good.
- TNL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.80% yearly.
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
- 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
- The Price/Earnings ratio is 11.08, which indicates a very decent valuation of TNL.
- 89.39% of the companies in the same industry are more expensive than TNL, based on the Price/Earnings ratio.
- TNL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- With a Price/Forward Earnings ratio of 9.52, the valuation of TNL can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, TNL is valued cheaper than 89.39% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, TNL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 9.52 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TNL is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, TNL is valued cheaper than 94.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.86 | ||
| EV/EBITDA | 10.78 |
4.3 Compensation for Growth
- TNL's 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)21.01
EPS Next 2Y12.43%
EPS Next 3Y13.11%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.11%, TNL has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.21, TNL pays a better dividend. On top of this TNL pays more dividend than 87.12% of the companies listed in the same industry.
- TNL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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
- TNL pays out 36.01% of its income as dividend. This is a sustainable payout ratio.
- TNL's earnings are growing more than its dividend. This makes the dividend growth 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 11.08 and the Price/Book (PB) ratio is -5.45.
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%.