Don't overlook NYSE:TNL—it's a hidden gem with strong fundamentals and an attractive price tag.

Uncover the hidden value in TRAVEL + LEISURE CO (NYSE:TNL) as our stock screening tool recommends it as an undervalued choice. NYSE:TNL maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Looking at the Valuation

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:TNL has earned a 9 for valuation:

• A Price/Earnings ratio of 7.63 indicates a rather cheap valuation of TNL.
• Compared to the rest of the industry, the Price/Earnings ratio of TNL indicates a rather cheap valuation: TNL is cheaper than 95.59% of the companies listed in the same industry.
• TNL is valuated cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
• TNL is valuated cheaply with a Price/Forward Earnings ratio of 7.22.
• Based on the Price/Forward Earnings ratio, TNL is valued cheaply inside the industry as 98.53% of the companies are valued more expensively.
• When comparing the Price/Forward Earnings ratio of TNL to the average of the S&P500 Index (20.77), we can say TNL is valued rather cheaply.
• 62.50% of the companies in the same industry are more expensive than TNL, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of TNL indicates a rather cheap valuation: TNL is cheaper than 94.85% of the companies listed in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 15.37% in the coming years. This may justify a more expensive valuation.

How do we evaluate the Profitability for NYSE:TNL?

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:TNL scores a 6 out of 10:

• The Return On Assets of TNL (5.39%) is better than 72.79% of its industry peers.
• TNL's Return On Invested Capital of 9.72% is fine compared to the rest of the industry. TNL outperforms 74.26% of its industry peers.
• The 3 year average ROIC (6.09%) for TNL is below the current ROIC(9.72%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 9.67%, TNL is in the better half of the industry, outperforming 77.21% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 19.42%, TNL belongs to the top of the industry, outperforming 80.15% of the companies in the same industry.

Understanding NYSE:TNL's Health Score

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:TNL has earned a 6 out of 10:

• Looking at the Altman-Z score, with a value of 2.13, TNL is in the better half of the industry, outperforming 66.91% of the companies in the same industry.
• A Current Ratio of 3.60 indicates that TNL has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 3.60, TNL belongs to the top of the industry, outperforming 96.32% of the companies in the same industry.
• TNL has a Quick Ratio of 2.66. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Quick ratio, with a value of 2.66, TNL belongs to the top of the industry, outperforming 93.38% of the companies in the same industry.

Understanding NYSE:TNL's Growth Score

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:TNL scores a 4 out of 10:

• The Earnings Per Share has grown by an nice 14.22% over the past year.
• The Earnings Per Share is expected to grow by 15.37% on average over the next years. This is quite good.
• 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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of TNL contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.