TRAVEL + LEISURE CO (TNL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNL - US8941641024 - Common Stock
69.16 USD
-0.93 (-1.33%)
69.16 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TNL. TNL was compared to 132 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 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.
- 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 (5.96%) than 72.73% 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 75.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TNL 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 has a Profit Margin of 10.36%. This is in the better half of the industry: TNL outperforms 77.27% of its industry peers.
- TNL's Profit Margin has declined in the last couple of years.
- The Operating Margin of TNL (19.84%) is better than 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.
- 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
- 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
- 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.
- TNL's Altman-Z score of 2.41 is fine compared to the rest of the industry. TNL outperforms 63.64% of its industry peers.
- 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 has a Debt to FCF ratio of 11.05. This is comparable 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
WACC7.01%
2.3 Liquidity
- A Current Ratio of 3.79 indicates that TNL has no problem at all paying its short term obligations.
- TNL's Current ratio of 3.79 is amongst the best of the industry. TNL outperforms 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.
- Looking at the Quick ratio, with a value of 2.76, TNL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
| 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.
- The Earnings Per Share has been growing slightly by 0.53% on average over the past years.
- The Revenue has been growing slightly by 3.58% in the past 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.
- 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.
- 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 11.01, the valuation of TNL can be described as reasonable.
- Based on the Price/Earnings ratio, TNL is valued cheaply inside the industry as 89.39% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.87. TNL is valued rather cheaply when compared to this.
- TNL is valuated reasonably with a Price/Forward Earnings ratio of 9.47.
- Based on the Price/Forward Earnings ratio, TNL is valued cheaply inside the industry as 89.39% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. TNL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 9.47 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as TNL.
- TNL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TNL is cheaper than 94.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.81 | ||
| EV/EBITDA | 10.84 |
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.
- A more expensive valuation may be justified as TNL's earnings are expected to grow with 13.11% in the coming years.
PEG (NY)1.02
PEG (5Y)20.89
EPS Next 2Y12.43%
EPS Next 3Y13.11%
5. Dividend
5.1 Amount
- TNL has a Yearly Dividend Yield of 3.11%. Purely for dividend investing, there may be better candidates out there.
- 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.
- 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 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
- TNL pays out 36.01% of its income as dividend. This is a 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 11.01 and the Price/Book (PB) ratio is -5.42.
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%.