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 135 industry peers in the Hotels, Restaurants & Leisure industry. TNL has an average financial health and profitability rating. 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
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
With a decent Return On Assets value of 6.10%, TNL is doing good in the industry, outperforming 74.81% of the companies in the same industry.
TNL has a Return On Invested Capital of 10.54%. This is in the better half of the industry: TNL outperforms 73.28% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TNL is significantly below the industry average of 16.08%.
The last Return On Invested Capital (10.54%) for TNL is above the 3 year average (10.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.1% | ||
| ROE | N/A | ||
| ROIC | 10.54% |
ROA(3y)5.75%
ROA(5y)3.72%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.16%
ROIC(5y)8.06%
1.3 Margins
TNL has a Profit Margin of 10.63%. This is in the better half of the industry: TNL outperforms 74.05% of its industry peers.
In the last couple of years the Profit Margin of TNL has declined.
Looking at the Operating Margin, with a value of 19.48%, TNL is in the better half of the industry, outperforming 76.34% 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 of 48.98%. This is comparable to the rest of the industry: TNL outperforms 52.67% of its industry peers.
TNL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.48% | ||
| PM (TTM) | 10.63% | ||
| GM | 48.98% |
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.
Compared to 1 year ago, TNL has less shares outstanding
TNL has less shares outstanding than it did 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 2.32 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 2.32, TNL is doing good in the industry, outperforming 65.65% of the companies in the same industry.
The Debt to FCF ratio of TNL is 16.49, which is on the high side as it means it would take TNL, 16.49 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.49, TNL is in line with its industry, outperforming 46.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.49 | ||
| Altman-Z | 2.32 |
ROIC/WACC1.3
WACC8.09%
2.3 Liquidity
A Current Ratio of 3.72 indicates that TNL has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.72, TNL belongs to the best of the industry, outperforming 96.95% of the companies in the same industry.
TNL has a Quick Ratio of 2.71. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TNL (2.71) is better than 93.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.72 | ||
| Quick Ratio | 2.71 |
3. Growth
3.1 Past
TNL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.70%.
Measured over the past 5 years, TNL shows a small growth in Earnings Per Share. The EPS has been growing by 0.53% on average per year.
The Revenue has been growing slightly by 3.07% in the past 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)0.7%
EPS 3Y16.56%
EPS 5Y0.53%
EPS Q2Q%-13.13%
Revenue 1Y (TTM)3.07%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%3.85%
3.2 Future
The Earnings Per Share is expected to grow by 15.35% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.67% on average over the next years.
EPS Next Y12.31%
EPS Next 2Y15.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.6%
Revenue Next 2Y4.67%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.59, which indicates a very decent valuation of TNL.
Based on the Price/Earnings ratio, TNL is valued cheaper than 93.89% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.75. TNL is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.54 indicates a reasonable valuation of TNL.
Based on the Price/Forward Earnings ratio, TNL is valued cheaply inside the industry as 94.66% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.44. TNL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 8.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TNL is valued a bit cheaper than the industry average as 65.65% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TNL is valued cheaper than 92.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.19 | ||
| EV/EBITDA | 10.62 |
4.3 Compensation for Growth
TNL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TNL's earnings are expected to grow with 15.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)18.19
EPS Next 2Y15.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.61%, TNL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.18, TNL pays a better dividend. On top of this TNL pays more dividend than 90.08% 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 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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
34.55% of the earnings are spent on dividend by TNL. This is a low number and sustainable payout ratio.
TNL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.55%
EPS Next 2Y15.35%
EPS Next 3YN/A
55.45
-0.37 (-0.66%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners88.29%
Inst Owner Change-3.11%
Ins Owners5.45%
Ins Owner Change-11.09%
Market Cap3.79B
Analysts80
Price Target60.26 (8.67%)
Short Float %2.08%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend2.05
Dividend Growth(5Y)2.47%
DP34.55%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.95%
Min EPS beat(2)1.42%
Max EPS beat(2)4.48%
EPS beat(4)4
Avg EPS beat(4)6.12%
Min EPS beat(4)1.42%
Max EPS beat(4)11.46%
EPS beat(8)7
Avg EPS beat(8)10.38%
EPS beat(12)9
Avg EPS beat(12)7.2%
EPS beat(16)13
Avg EPS beat(16)14.43%
Revenue beat(2)1
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-2.55%
Max Revenue beat(2)0.5%
Revenue beat(4)2
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)0.5%
Revenue beat(8)4
Avg Revenue beat(8)-0.34%
Revenue beat(12)5
Avg Revenue beat(12)-0.22%
Revenue beat(16)9
Avg Revenue beat(16)1.47%
PT rev (1m)0%
PT rev (3m)9.23%
EPS NQ rev (1m)2.96%
EPS NQ rev (3m)4.18%
EPS NY rev (1m)0%
EPS NY rev (3m)1.67%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 8.54 | ||
| P/S | 0.98 | ||
| P/FCF | 11.19 | ||
| P/OCF | 8.18 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.62 |
EPS(TTM)5.78
EY10.42%
EPS(NY)6.49
Fwd EY11.71%
FCF(TTM)4.96
FCFY8.94%
OCF(TTM)6.78
OCFY12.23%
SpS56.5
BVpS-12.88
TBVpS-30.05
PEG (NY)0.78
PEG (5Y)18.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.1% | ||
| ROE | N/A | ||
| ROCE | 13.66% | ||
| ROIC | 10.54% | ||
| ROICexc | 10.87% | ||
| ROICexgc | 13.93% | ||
| OM | 19.48% | ||
| PM (TTM) | 10.63% | ||
| GM | 48.98% | ||
| FCFM | 8.77% |
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-Score9
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.49 | ||
| Debt/EBITDA | 6.44 | ||
| Cap/Depr | 108.7% | ||
| Cap/Sales | 3.23% | ||
| Interest Coverage | 3.07 | ||
| Cash Conversion | 53.46% | ||
| Profit Quality | 82.48% | ||
| Current Ratio | 3.72 | ||
| Quick Ratio | 2.71 | ||
| Altman-Z | 2.32 |
F-Score9
WACC8.09%
ROIC/WACC1.3
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)0.7%
EPS 3Y16.56%
EPS 5Y0.53%
EPS Q2Q%-13.13%
EPS Next Y12.31%
EPS Next 2Y15.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.07%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%3.85%
Revenue Next Year4.6%
Revenue Next 2Y4.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.67%
EBIT growth 3Y6.88%
EBIT growth 5Y-1.84%
EBIT Next Year30.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y25.56%
FCF growth 3Y-10.57%
FCF growth 5Y-0.29%
OCF growth 1Y32.57%
OCF growth 3Y-6.52%
OCF growth 5Y0.53%