TRAVEL + LEISURE CO (TNL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNL - US8941641024 - Common Stock
72.03 USD
+1.5 (+2.13%)
72.03 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TNL. TNL was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. TNL has only an average score on both its financial health and profitability. TNL is valued quite cheap, while showing a decent growth score. This is a good combination! Finally TNL also has an excellent dividend rating. With these ratings, TNL could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year TNL was profitable.
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
With a decent Return On Assets value of 5.96%, TNL is doing good in the industry, outperforming 72.18% 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 75.19% of the companies in the same industry.
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 10.39%.
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 77.44% of the companies in the same industry.
In the last couple of years the Profit Margin of TNL has declined.
Looking at the Operating Margin, with a value of 19.84%, TNL is in the better half of the industry, outperforming 79.70% 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.
TNL has a Gross Margin (49.51%) which is in line with 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 | 19.84% | ||
| 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.
TNL has less shares outstanding than it did 1 year ago.
TNL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TNL has an improved debt to assets ratio.
2.2 Solvency
TNL has an Altman-Z score of 2.42. This is not the best score and indicates that TNL is in the grey zone with still only limited risk for bankruptcy at the moment.
TNL's Altman-Z score of 2.42 is fine compared to the rest of the industry. TNL outperforms 66.92% of its industry peers.
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's Debt to FCF ratio of 11.05 is in line compared to the rest of the industry. TNL outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.05 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.51
WACC7.12%
2.3 Liquidity
A Current Ratio of 3.79 indicates that TNL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.79, TNL belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
A Quick Ratio of 2.76 indicates that TNL has no problem at all paying its short term obligations.
TNL has a Quick ratio of 2.76. This is amongst the best in the industry. TNL outperforms 91.73% 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 13.31% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.79% on average over the next years.
EPS Next Y10.77%
EPS Next 2Y12.34%
EPS Next 3Y13.31%
EPS Next 5YN/A
Revenue Next Year3.78%
Revenue Next 2Y4.04%
Revenue Next 3Y3.79%
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
With a Price/Earnings ratio of 11.47, the valuation of TNL can be described as very reasonable.
87.97% of the companies in the same industry are more expensive than TNL, based on the Price/Earnings ratio.
TNL is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.87, the valuation of TNL can be described as reasonable.
89.47% of the companies in the same industry are more expensive than TNL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, TNL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 9.87 |
4.2 Price Multiples
TNL's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, TNL is valued cheaply inside the industry as 93.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.18 | ||
| EV/EBITDA | 10.88 |
4.3 Compensation for Growth
TNL's 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.
TNL's earnings are expected to grow with 13.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.07
PEG (5Y)21.75
EPS Next 2Y12.34%
EPS Next 3Y13.31%
5. Dividend
5.1 Amount
TNL has a Yearly Dividend Yield of 3.18%.
TNL's Dividend Yield is rather good when compared to the industry average which is at 1.66. TNL pays more dividend than 87.97% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, TNL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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.
The dividend of TNL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.01%
EPS Next 2Y12.34%
EPS Next 3Y13.31%
72.03
+1.5 (+2.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners98.2%
Inst Owner Change-0.99%
Ins Owners4.77%
Ins Owner Change-17.33%
Market Cap4.63B
Revenue(TTM)3.97B
Net Income(TTM)411.00M
Analysts81.25
Price Target76.42 (6.09%)
Short Float %5.82%
Short Ratio5.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Yearly Dividend2.05
Dividend Growth(5Y)2.47%
DP36.01%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.08%
Min EPS beat(2)-0.39%
Max EPS beat(2)2.54%
EPS beat(4)2
Avg EPS beat(4)0.78%
Min EPS beat(4)-0.46%
Max EPS beat(4)2.54%
EPS beat(8)6
Avg EPS beat(8)8.57%
EPS beat(12)9
Avg EPS beat(12)7.55%
EPS beat(16)11
Avg EPS beat(16)6.97%
Revenue beat(2)0
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)-0.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-0.85%
Max Revenue beat(4)0.5%
Revenue beat(8)2
Avg Revenue beat(8)-0.78%
Revenue beat(12)4
Avg Revenue beat(12)-0.47%
Revenue beat(16)6
Avg Revenue beat(16)0.35%
PT rev (1m)0.74%
PT rev (3m)11.06%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-2.79%
EPS NY rev (1m)0.21%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 9.87 | ||
| P/S | 1.17 | ||
| P/FCF | 9.18 | ||
| P/OCF | 7.55 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.88 |
EPS(TTM)6.28
EY8.72%
EPS(NY)7.29
Fwd EY10.13%
FCF(TTM)7.85
FCFY10.9%
OCF(TTM)9.54
OCFY13.25%
SpS61.67
BVpS-12.76
TBVpS-31.03
PEG (NY)1.07
PEG (5Y)21.75
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.96% | ||
| ROE | N/A | ||
| ROCE | 13.91% | ||
| ROIC | 10.73% | ||
| ROICexc | 11.2% | ||
| ROICexgc | 14.31% | ||
| OM | 19.84% | ||
| PM (TTM) | 10.36% | ||
| GM | 49.51% | ||
| FCFM | 12.73% |
ROA(3y)5.75%
ROA(5y)3.72%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.16%
ROIC(5y)8.06%
ROICexc(3y)10.81%
ROICexc(5y)8.62%
ROICexgc(3y)13.95%
ROICexgc(5y)11.16%
ROCE(3y)13.17%
ROCE(5y)10.44%
ROICexgc growth 3Y3.54%
ROICexgc 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-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.05 | ||
| Debt/EBITDA | 6.14 | ||
| Cap/Depr | 90.08% | ||
| Cap/Sales | 2.75% | ||
| Interest Coverage | 3.38 | ||
| Cash Conversion | 67.62% | ||
| Profit Quality | 122.87% | ||
| Current Ratio | 3.79 | ||
| Quick Ratio | 2.76 | ||
| Altman-Z | 2.42 |
F-Score7
WACC7.12%
ROIC/WACC1.51
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)3.97%
EPS 3Y16.56%
EPS 5Y0.53%
EPS Q2Q%14.65%
EPS Next Y10.77%
EPS Next 2Y12.34%
EPS Next 3Y13.31%
EPS Next 5YN/A
Revenue 1Y (TTM)3.58%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%5.14%
Revenue Next Year3.78%
Revenue Next 2Y4.04%
Revenue Next 3Y3.79%
Revenue Next 5YN/A
EBIT growth 1Y4.93%
EBIT growth 3Y6.88%
EBIT growth 5Y-1.84%
EBIT Next Year30.5%
EBIT Next 3Y12.65%
EBIT Next 5YN/A
FCF growth 1Y63.43%
FCF growth 3Y-10.57%
FCF growth 5Y-0.29%
OCF growth 1Y64.61%
OCF growth 3Y-6.52%
OCF growth 5Y0.53%
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 11.47 and the Price/Book (PB) ratio is -5.64.
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%.