TRAVEL + LEISURE CO (TNL) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TNL • US8941641024
71.22 USD
+1.68 (+2.42%)
Last: Feb 2, 2026, 12:23 PM
Taking everything into account, TNL scores 6 out of 10 in our fundamental rating. TNL was compared to 132 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 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.
- TNL had a positive operating cash flow in the past year.
- TNL had positive earnings in 4 of the past 5 years.
- 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 5.96%, TNL is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 10.73%, TNL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for TNL is in line with the industry average of 10.38%.
- 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
- Looking at the Profit Margin, with a value of 10.36%, TNL is in the better half of the industry, outperforming 76.52% of the companies in the same industry.
- In the last couple of years the Profit Margin of TNL has declined.
- 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.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TNL is still 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
- 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 has a Altman-Z score of 2.41. This is in the better half of the industry: TNL outperforms 65.15% 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 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/WACC1.5
WACC7.13%
2.3 Liquidity
- A Current Ratio of 3.79 indicates that TNL has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 3.79, TNL belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
- TNL has a Quick Ratio of 2.76. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
- TNL has a Quick ratio of 2.76. This is amongst the best in the industry. TNL outperforms 91.67% 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.
- 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.
- Looking at the last year, TNL shows a small growth in Revenue. The Revenue has grown by 3.58% in the last year.
- TNL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.90% yearly.
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
- Based on estimates for the next years, TNL will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.11% on average per year.
- Based on estimates for the next years, TNL will show a small growth in Revenue. The Revenue will grow by 3.80% on average per year.
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.
- 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 11.34, the valuation of TNL can be described as very reasonable.
- 88.64% of the companies in the same industry are more expensive than TNL, based on the Price/Earnings ratio.
- TNL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
- With a Price/Forward Earnings ratio of 9.75, the valuation of TNL can be described as very reasonable.
- TNL's Price/Forward Earnings ratio is rather cheap when compared to the industry. TNL is cheaper than 88.64% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. TNL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.34 | ||
| Fwd PE | 9.75 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TNL is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, TNL is valued cheaply inside the industry as 94.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.07 | ||
| EV/EBITDA | 10.81 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- TNL has a very decent profitability rating, which may justify a higher PE ratio.
- TNL's earnings are expected to grow with 13.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)21.51
EPS Next 2Y12.43%
EPS Next 3Y13.11%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.19%, TNL has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.25, TNL pays a better dividend. On top of this TNL pays more dividend than 87.12% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, TNL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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.
- TNL's earnings are growing more than its dividend. This makes the dividend growth 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 11.34 and the Price/Book (PB) ratio is -5.58.
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%.