TRAVEL + LEISURE CO (TNL) Stock Fundamental Analysis
NYSE:TNL - New York Stock Exchange, Inc. - US8941641024 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to TNL. TNL was compared to 136 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. TNL may be a bit undervalued, certainly considering the very reasonable score on growth 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 Return On Assets of 6.10%. This is in the better half of the industry: TNL outperforms 73.53% of its industry peers.
TNL's Return On Invested Capital of 10.54% is fine compared to the rest of the industry. TNL outperforms 75.74% of its industry peers.
TNL had an Average Return On Invested Capital over the past 3 years of 10.16%. This is significantly below the industry average of 15.70%.
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's Profit Margin of 10.63% is fine compared to the rest of the industry. TNL outperforms 75.74% 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 77.21% 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.
The Gross Margin of TNL (48.98%) 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 | 19.48% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TNL is still creating some value.
The number of shares outstanding for TNL has been reduced compared to 1 year ago.
Compared to 5 years ago, TNL has less shares outstanding
The debt/assets ratio for TNL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.24 indicates that TNL is not a great score, but indicates only limited risk for bankruptcy at the moment.
TNL's Altman-Z score of 2.24 is fine compared to the rest of the industry. TNL outperforms 65.44% of its industry peers.
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.
TNL has a Debt to FCF ratio (16.49) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.49 | ||
| Altman-Z | 2.24 |
ROIC/WACC1.41
WACC7.49%
2.3 Liquidity
A Current Ratio of 3.72 indicates that TNL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.72, TNL belongs to the top of the industry, outperforming 96.32% 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.
TNL has a Quick ratio of 2.71. This is amongst the best in the industry. TNL outperforms 93.38% 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%.
The Earnings Per Share has been growing slightly by 0.53% on average over the past years.
Looking at the last year, TNL shows a small growth in Revenue. The Revenue has grown by 3.07% in the last 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
TNL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.57% yearly.
Based on estimates for the next years, TNL will show a small growth in Revenue. The Revenue will grow by 3.68% on average per year.
EPS Next Y12.72%
EPS Next 2Y13.58%
EPS Next 3Y16.57%
EPS Next 5YN/A
Revenue Next Year4.42%
Revenue Next 2Y4.38%
Revenue Next 3Y3.68%
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
A Price/Earnings ratio of 7.17 indicates a rather cheap valuation of TNL.
Based on the Price/Earnings ratio, TNL is valued cheaper than 96.32% of the companies in the same industry.
When comparing the Price/Earnings ratio of TNL to the average of the S&P500 Index (28.29), we can say TNL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.36, the valuation of TNL can be described as very cheap.
TNL's Price/Forward Earnings ratio is rather cheap when compared to the industry. TNL is cheaper than 94.85% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.08. TNL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.17 | ||
| Fwd PE | 6.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TNL is valued a bit cheaper than 64.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TNL is valued cheaper than 91.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.15 | ||
| EV/EBITDA | 9.43 |
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 16.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)13.59
EPS Next 2Y13.58%
EPS Next 3Y16.57%
5. Dividend
5.1 Amount
TNL has a Yearly Dividend Yield of 5.44%, which is a nice return.
The stock price of TNL dropped by -20.70% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
TNL's Dividend Yield is rather good when compared to the industry average which is at 3.96. TNL pays more dividend than 91.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.57, TNL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.44% |
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
34.55% 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.
DP34.55%
EPS Next 2Y13.58%
EPS Next 3Y16.57%
41.42
+0.41 (+1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners88.29%
Inst Owner Change0.01%
Ins Owners5.45%
Ins Owner Change47.06%
Market Cap2.76B
Analysts80
Price Target65.36 (57.8%)
Short Float %2.51%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.44% |
Yearly Dividend2.05
Dividend Growth(5Y)2.47%
DP34.55%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)0.52%
PT rev (3m)12.92%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)5.03%
EPS NY rev (1m)0.36%
EPS NY rev (3m)1.93%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.17 | ||
| Fwd PE | 6.36 | ||
| P/S | 0.71 | ||
| P/FCF | 8.15 | ||
| P/OCF | 5.95 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.43 |
EPS(TTM)5.78
EY13.95%
EPS(NY)6.52
Fwd EY15.73%
FCF(TTM)5.08
FCFY12.27%
OCF(TTM)6.96
OCFY16.8%
SpS57.95
BVpS-13.21
TBVpS-30.82
PEG (NY)0.56
PEG (5Y)13.59
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 | 2.24 |
F-Score9
WACC7.49%
ROIC/WACC1.41
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 Y12.72%
EPS Next 2Y13.58%
EPS Next 3Y16.57%
EPS Next 5YN/A
Revenue 1Y (TTM)3.07%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%3.85%
Revenue Next Year4.42%
Revenue Next 2Y4.38%
Revenue Next 3Y3.68%
Revenue Next 5YN/A
EBIT growth 1Y0.67%
EBIT growth 3Y6.88%
EBIT growth 5Y-1.84%
EBIT Next Year30.57%
EBIT Next 3Y12.93%
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%