TRAVEL + LEISURE CO (TNL) Stock Fundamental Analysis
USA - NYSE:TNL - US8941641024 - Common Stock
61.65 USD
0 (0%)
61.4971 USD
-0.15 (-0.25%)
Overall TNL gets a fundamental rating of 6 out of 10. We evaluated TNL against 133 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of TNL get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on TNL. Finally TNL also has an excellent dividend rating. These ratings could make TNL a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
In the past year TNL was profitable.
TNL had a positive operating cash flow in the past year.
TNL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TNL had a positive operating cash flow.
1.2 Ratios
TNL has a better Return On Assets (5.83%) than 73.68% of its industry peers.
The Return On Invested Capital of TNL (10.78%) is better than 75.19% 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 15.68%.
The 3 year average ROIC (10.16%) for TNL is below the current ROIC(10.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.83% | ||
| ROE | N/A | ||
| ROIC | 10.78% |
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
Looking at the Profit Margin, with a value of 10.14%, TNL is in the better half of the industry, outperforming 76.69% of the companies in the same industry.
TNL's Profit Margin has declined in the last couple of years.
The Operating Margin of TNL (19.84%) is better than 78.95% of its industry peers.
TNL's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 49.31%, TNL perfoms like the industry average, outperforming 53.38% of the companies in the same 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) | 10.14% | ||
| GM | 49.31% |
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
The number of shares outstanding for TNL has been reduced compared to 5 years ago.
TNL has a better debt/assets ratio than last year.
2.2 Solvency
TNL has an Altman-Z score of 2.36. 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.
The Altman-Z score of TNL (2.36) is better than 61.65% of its industry peers.
The Debt to FCF ratio of TNL is 11.31, which is on the high side as it means it would take TNL, 11.31 years of fcf income to pay off all of its debts.
TNL has a Debt to FCF ratio (11.31) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.31 | ||
| Altman-Z | 2.36 |
ROIC/WACC1.37
WACC7.84%
2.3 Liquidity
TNL has a Current Ratio of 3.71. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
TNL has a better Current ratio (3.71) than 94.74% of its industry peers.
A Quick Ratio of 2.70 indicates that TNL has no problem at all paying its short term obligations.
TNL has a better Quick ratio (2.70) than 94.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.71 | ||
| Quick Ratio | 2.7 |
3. Growth
3.1 Past
TNL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.67%.
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 2.43% 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)0.67%
EPS 3Y16.56%
EPS 5Y0.53%
EPS Q2Q%8.55%
Revenue 1Y (TTM)2.43%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%3.35%
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 12.84% yearly.
TNL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.10% yearly.
EPS Next Y10.11%
EPS Next 2Y11.56%
EPS Next 3Y12.84%
EPS Next 5YN/A
Revenue Next Year3.47%
Revenue Next 2Y3.86%
Revenue Next 3Y4.1%
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.
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
With a Price/Earnings ratio of 10.19, the valuation of TNL can be described as very reasonable.
Based on the Price/Earnings ratio, TNL is valued cheaply inside the industry as 93.23% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.20, TNL is valued rather cheaply.
The Price/Forward Earnings ratio is 8.57, which indicates a very decent valuation of TNL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TNL indicates a rather cheap valuation: TNL is cheaper than 92.48% of the companies listed in the same industry.
TNL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 8.57 |
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 64.66% of the companies listed in the same industry.
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 | 8.1 | ||
| EV/EBITDA | 10.45 |
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's earnings are expected to grow with 12.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.01
PEG (5Y)19.33
EPS Next 2Y11.56%
EPS Next 3Y12.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.54%, TNL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.93, TNL pays a better dividend. On top of this TNL pays more dividend than 86.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, TNL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
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
37.03% of the earnings are spent on dividend by TNL. This is a low number and sustainable payout ratio.
The dividend of TNL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.03%
EPS Next 2Y11.56%
EPS Next 3Y12.84%
61.65
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners97.75%
Inst Owner Change4.54%
Ins Owners5.06%
Ins Owner Change7.32%
Market Cap4.00B
Analysts81.33
Price Target68.8 (11.6%)
Short Float %3.94%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Yearly Dividend2.05
Dividend Growth(5Y)2.47%
DP37.03%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.42%
Min EPS beat(2)-0.46%
Max EPS beat(2)-0.39%
EPS beat(4)2
Avg EPS beat(4)1.26%
Min EPS beat(4)-0.46%
Max EPS beat(4)4.48%
EPS beat(8)6
Avg EPS beat(8)8.8%
EPS beat(12)8
Avg EPS beat(12)7.15%
EPS beat(16)11
Avg EPS beat(16)7.69%
Revenue beat(2)0
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-0.85%
Max Revenue beat(2)-0.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.75%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)0.5%
Revenue beat(8)3
Avg Revenue beat(8)-0.7%
Revenue beat(12)4
Avg Revenue beat(12)-0.56%
Revenue beat(16)7
Avg Revenue beat(16)0.37%
PT rev (1m)1.18%
PT rev (3m)13.85%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)0.83%
EPS NY rev (1m)1.36%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 8.57 | ||
| P/S | 1.02 | ||
| P/FCF | 8.1 | ||
| P/OCF | 6.72 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.45 |
EPS(TTM)6.05
EY9.81%
EPS(NY)7.19
Fwd EY11.67%
FCF(TTM)7.61
FCFY12.34%
OCF(TTM)9.18
OCFY14.89%
SpS60.32
BVpS-13.12
TBVpS-31.3
PEG (NY)1.01
PEG (5Y)19.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.83% | ||
| ROE | N/A | ||
| ROCE | 13.97% | ||
| ROIC | 10.78% | ||
| ROICexc | 11.21% | ||
| ROICexgc | 14.38% | ||
| OM | 19.84% | ||
| PM (TTM) | 10.14% | ||
| GM | 49.31% | ||
| FCFM | 12.61% |
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-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.31 | ||
| Debt/EBITDA | 6.23 | ||
| Cap/Depr | 85% | ||
| Cap/Sales | 2.6% | ||
| Interest Coverage | 3.38 | ||
| Cash Conversion | 66.44% | ||
| Profit Quality | 124.43% | ||
| Current Ratio | 3.71 | ||
| Quick Ratio | 2.7 | ||
| Altman-Z | 2.36 |
F-Score7
WACC7.84%
ROIC/WACC1.37
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)0.67%
EPS 3Y16.56%
EPS 5Y0.53%
EPS Q2Q%8.55%
EPS Next Y10.11%
EPS Next 2Y11.56%
EPS Next 3Y12.84%
EPS Next 5YN/A
Revenue 1Y (TTM)2.43%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%3.35%
Revenue Next Year3.47%
Revenue Next 2Y3.86%
Revenue Next 3Y4.1%
Revenue Next 5YN/A
EBIT growth 1Y3.05%
EBIT growth 3Y6.88%
EBIT growth 5Y-1.84%
EBIT Next Year29.23%
EBIT Next 3Y12.69%
EBIT Next 5YN/A
FCF growth 1Y91.47%
FCF growth 3Y-10.57%
FCF growth 5Y-0.29%
OCF growth 1Y85.09%
OCF growth 3Y-6.52%
OCF growth 5Y0.53%