TRAVEL + LEISURE CO (TNL) Stock Fundamental Analysis
NYSE:TNL - New York Stock Exchange, Inc. - US8941641024 - Common Stock - Currency: USD
Taking everything into account, TNL scores 6 out of 10 in our fundamental rating. TNL was compared to 131 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 is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
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.
1.2 Ratios
TNL has a better Return On Assets (6.18%) than 75.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.49%, TNL is in the better half of the industry, outperforming 74.81% of the companies in the same industry.
TNL had an Average Return On Invested Capital over the past 3 years of 10.16%. This is significantly below the industry average of 15.87%.
The last Return On Invested Capital (10.49%) for TNL is above the 3 year average (10.16%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
TNL's Profit Margin of 10.76% is fine compared to the rest of the industry. TNL outperforms 77.10% of its industry peers.
TNL's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 19.55%, TNL is doing good in the industry, outperforming 77.10% of the companies in the same industry.
TNL's Operating Margin has been stable in the last couple of years.
TNL has a Gross Margin (49.29%) which is in line with its industry peers.
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 | 19.55% | ||
| 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%
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.
TNL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TNL has less shares outstanding
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.
TNL has a better Altman-Z score (2.36) than 60.31% of its industry peers.
TNL has a debt to FCF ratio of 12.63. This is a negative value and a sign of low solvency as TNL would need 12.63 years to pay back of all of its debts.
With a Debt to FCF ratio value of 12.63, TNL perfoms like the industry average, outperforming 52.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.63 | ||
| Altman-Z | 2.36 |
ROIC/WACC1.32
WACC7.96%
2.3 Liquidity
TNL has a Current Ratio of 3.88. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.88, TNL belongs to the top of the industry, outperforming 96.18% of the companies in the same industry.
A Quick Ratio of 2.85 indicates that TNL has no problem at all paying its short term obligations.
TNL has a Quick ratio of 2.85. This is amongst the best in the industry. TNL outperforms 94.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 2.85 |
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 3.04% in the past year.
TNL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.90% yearly.
EPS 1Y (TTM)0.67%
EPS 3Y16.56%
EPS 5Y0.53%
EPS Q2Q%8.55%
Revenue 1Y (TTM)3.04%
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 14.22% 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 Y8.64%
EPS Next 2Y11.83%
EPS Next 3Y14.22%
EPS Next 5YN/A
Revenue Next Year2.93%
Revenue Next 2Y3.51%
Revenue Next 3Y3.64%
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
With a Price/Earnings ratio of 10.20, the valuation of TNL can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TNL indicates a rather cheap valuation: TNL is cheaper than 95.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.35, TNL is valued rather cheaply.
TNL is valuated reasonably with a Price/Forward Earnings ratio of 8.54.
92.37% of the companies in the same industry are more expensive than TNL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.54, TNL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.2 | ||
| Fwd PE | 8.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TNL is valued a bit cheaper than 64.89% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TNL is valued cheaply inside the industry as 95.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.15 | ||
| EV/EBITDA | 10.94 |
4.3 Compensation for Growth
The 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 14.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)19.34
EPS Next 2Y11.83%
EPS Next 3Y14.22%
5. Dividend
5.1 Amount
TNL has a Yearly Dividend Yield of 3.87%.
TNL's Dividend Yield is rather good when compared to the industry average which is at 3.63. TNL pays more dividend than 89.31% of the companies in the same industry.
TNL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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
TNL pays out 34.69% of its income as dividend. This is a sustainable payout ratio.
The dividend of TNL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.69%
EPS Next 2Y11.83%
EPS Next 3Y14.22%
61.7
-0.17 (-0.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners95.57%
Inst Owner Change0.25%
Ins Owners5.07%
Ins Owner Change54.36%
Market Cap4.10B
Analysts80
Price Target62.05 (0.57%)
Short Float %3.29%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
Yearly Dividend2.05
Dividend Growth(5Y)2.47%
DP34.69%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.48%
Min EPS beat(2)-0.46%
Max EPS beat(2)1.42%
EPS beat(4)3
Avg EPS beat(4)3.14%
Min EPS beat(4)-0.46%
Max EPS beat(4)7.13%
EPS beat(8)6
Avg EPS beat(8)8.74%
EPS beat(12)9
Avg EPS beat(12)7.62%
EPS beat(16)12
Avg EPS beat(16)8.83%
Revenue beat(2)1
Avg Revenue beat(2)-0.18%
Min Revenue beat(2)-0.85%
Max Revenue beat(2)0.5%
Revenue beat(4)1
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)0.5%
Revenue beat(8)3
Avg Revenue beat(8)-0.88%
Revenue beat(12)4
Avg Revenue beat(12)-0.6%
Revenue beat(16)8
Avg Revenue beat(16)0.96%
PT rev (1m)2.67%
PT rev (3m)-5.07%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.2 | ||
| Fwd PE | 8.54 | ||
| P/S | 1.06 | ||
| P/FCF | 9.15 | ||
| P/OCF | 7.62 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.94 |
EPS(TTM)6.05
EY9.81%
EPS(NY)7.23
Fwd EY11.72%
FCF(TTM)6.74
FCFY10.93%
OCF(TTM)8.1
OCFY13.13%
SpS58.46
BVpS-13.6
TBVpS-31.32
PEG (NY)1.18
PEG (5Y)19.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | N/A | ||
| ROCE | 13.6% | ||
| ROIC | 10.49% | ||
| ROICexc | 10.86% | ||
| ROICexgc | 13.89% | ||
| OM | 19.55% | ||
| PM (TTM) | 10.76% | ||
| GM | 49.29% | ||
| FCFM | 11.54% |
ROA(3y)5.75%
ROA(5y)3.72%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.16%
ROIC(5y)8.06%
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-Score8
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.63 | ||
| Debt/EBITDA | 6.46 | ||
| Cap/Depr | 76.92% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 3.12 | ||
| Cash Conversion | 61.42% | ||
| Profit Quality | 107.18% | ||
| Current Ratio | 3.88 | ||
| Quick Ratio | 2.85 | ||
| Altman-Z | 2.36 |
F-Score8
WACC7.96%
ROIC/WACC1.32
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 Y8.64%
EPS Next 2Y11.83%
EPS Next 3Y14.22%
EPS Next 5YN/A
Revenue 1Y (TTM)3.04%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%3.35%
Revenue Next Year2.93%
Revenue Next 2Y3.51%
Revenue Next 3Y3.64%
Revenue Next 5YN/A
EBIT growth 1Y0.13%
EBIT growth 3Y6.88%
EBIT growth 5Y-1.84%
EBIT Next Year28.53%
EBIT Next 3Y12.16%
EBIT Next 5YN/A
FCF growth 1Y82.11%
FCF growth 3Y-10.57%
FCF growth 5Y-0.29%
OCF growth 1Y74.68%
OCF growth 3Y-6.52%
OCF growth 5Y0.53%