Best Dividend Stocks. Analyze the stocks with the best dividend, while also showing decent profitability and health.


TRAVEL + LEISURE CO

New York Stock Exchange, Inc. / Consumer Discretionary / Hotels, Restaurants & Leisure

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to TNL. TNL was compared to 135 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!.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

In the past year TNL was profitable.
In the past year TNL had a positive cash flow from operations.
TNL had positive earnings in 4 of the past 5 years.
In the past 5 years TNL always reported a positive cash flow from operatings.
TNL Yearly Net Income VS EBIT VS OCF VS FCFTNL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M 800M

1.2 Ratios

Looking at the Return On Assets, with a value of 6.18%, TNL is in the better half of the industry, outperforming 75.56% of the companies in the same industry.
TNL has a better Return On Invested Capital (10.49%) than 75.56% of its industry peers.
TNL had an Average Return On Invested Capital over the past 3 years of 10.16%. This is below the industry average of 14.25%.
The 3 year average ROIC (10.16%) for TNL is below the current ROIC(10.49%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.18%
ROE N/A
ROIC 10.49%
ROA(3y)5.75%
ROA(5y)3.72%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.16%
ROIC(5y)8.06%
TNL Yearly ROA, ROE, ROICTNL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 100 -100

1.3 Margins

Looking at the Profit Margin, with a value of 10.76%, TNL is in the better half of the industry, outperforming 77.04% of the companies in the same industry.
TNL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.55%, TNL is in the better half of the industry, outperforming 77.04% 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's Gross Margin of 49.29% is in line compared to the rest of the industry. TNL outperforms 57.04% of its industry peers.
In the last couple of years the Gross Margin of TNL has remained more or less at the same level.
Industry RankSector Rank
OM 19.55%
PM (TTM) 10.76%
GM 49.29%
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%
TNL Yearly Profit, Operating, Gross MarginsTNL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

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6

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.
TNL Yearly Shares OutstandingTNL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
TNL Yearly Total Debt VS Total AssetsTNL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

TNL has an Altman-Z score of 2.30. 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.
TNL has a better Altman-Z score (2.30) than 65.19% of its industry peers.
The Debt to FCF ratio of TNL is 12.63, which is on the high side as it means it would take TNL, 12.63 years of fcf income to pay off all of its debts.
TNL has a Debt to FCF ratio of 12.63. This is comparable to the rest of the industry: TNL outperforms 54.07% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 12.63
Altman-Z 2.3
ROIC/WACC1.38
WACC7.6%
TNL Yearly LT Debt VS Equity VS FCFTNL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B

2.3 Liquidity

A Current Ratio of 3.88 indicates that TNL has no problem at all paying its short term obligations.
TNL's Current ratio of 3.88 is amongst the best of the industry. TNL outperforms 97.78% of its industry peers.
A Quick Ratio of 2.85 indicates that TNL has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.85, TNL belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.88
Quick Ratio 2.85
TNL Yearly Current Assets VS Current LiabilitesTNL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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4

3. Growth

3.1 Past

TNL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.72%.
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 2.53% in the past year.
The Revenue has been decreasing by -0.90% on average over the past years.
EPS 1Y (TTM)1.72%
EPS 3Y16.56%
EPS 5Y0.53%
EPS Q2Q%14.43%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%1.97%

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 15.82% yearly.
TNL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.64% yearly.
EPS Next Y11.93%
EPS Next 2Y13.73%
EPS Next 3Y15.82%
EPS Next 5YN/A
Revenue Next Year3.34%
Revenue Next 2Y3.54%
Revenue Next 3Y3.64%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
TNL Yearly Revenue VS EstimatesTNL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B 4B 5B
TNL Yearly EPS VS EstimatesTNL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 4 6 8

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8

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.51, the valuation of TNL can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TNL indicates a rather cheap valuation: TNL is cheaper than 97.04% of the companies listed in the same industry.
TNL is valuated cheaply when we compare the Price/Earnings ratio to 24.83, which is the current average of the S&P500 Index.
TNL is valuated cheaply with a Price/Forward Earnings ratio of 6.73.
TNL's Price/Forward Earnings ratio is rather cheap when compared to the industry. TNL is cheaper than 95.56% of the companies in the same industry.
TNL is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.94, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.51
Fwd PE 6.73
TNL Price Earnings VS Forward Price EarningsTNL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 65.93% of the companies listed in the same industry.
97.04% of the companies in the same industry are more expensive than TNL, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.46
EV/EBITDA 10.06
TNL Per share dataTNL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40

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.
A more expensive valuation may be justified as TNL's earnings are expected to grow with 15.82% in the coming years.
PEG (NY)0.71
PEG (5Y)16.13
EPS Next 2Y13.73%
EPS Next 3Y15.82%

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8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.67%, TNL is a good candidate for dividend investing.
TNL's Dividend Yield is rather good when compared to the industry average which is at 3.59. TNL pays more dividend than 91.85% of the companies in the same industry.
TNL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
Industry RankSector Rank
Dividend Yield 4.67%

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
TNL Yearly Dividends per shareTNL Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

34.69% 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.
DP34.69%
EPS Next 2Y13.73%
EPS Next 3Y15.82%
TNL Yearly Income VS Free CF VS DividendTNL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M 800M
TNL Dividend Payout.TNL Dividend Payout, showing the Payout Ratio.TNL Dividend Payout.PayoutRetained Earnings

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