TRAVEL + LEISURE CO (TNL) Stock Fundamental Analysis
NYSE:TNL - New York Stock Exchange, Inc. - US8941641024 - Common Stock - Currency: USD
TNL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. TNL has only an average score on both its financial health and profitability. TNL may be a bit undervalued, certainly considering the very reasonable score on growth 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.
In the past 5 years TNL always reported a positive cash flow from operatings.
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 76.30% of the companies in the same industry.
TNL has a better Return On Invested Capital (10.49%) than 75.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TNL is below the industry average of 14.12%.
The 3 year average ROIC (10.16%) for TNL is below the current ROIC(10.49%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 10.76%, TNL is doing good in the industry, outperforming 76.30% of the companies in the same industry.
In the last couple of years the Profit Margin of TNL has declined.
TNL has a better Operating Margin (19.55%) than 77.78% of its industry peers.
TNL's Operating Margin has been stable in the last couple of years.
TNL has a Gross Margin of 49.29%. This is comparable to the rest of the industry: TNL outperforms 55.56% of its industry peers.
TNL's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TNL is still creating some value.
Compared to 1 year ago, TNL has less shares outstanding
The number of shares outstanding for TNL has been reduced compared to 5 years ago.
Compared to 1 year ago, TNL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.30 indicates that TNL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TNL (2.30) is better 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 52.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.63 | ||
| Altman-Z | 2.3 |
ROIC/WACC1.37
WACC7.67%
2.3 Liquidity
A Current Ratio of 3.88 indicates that TNL has no problem at all paying its short term obligations.
TNL has a better Current ratio (3.88) than 97.04% of its industry peers.
TNL has a Quick Ratio of 2.85. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
TNL has a Quick ratio of 2.85. This is amongst the best in the industry. TNL outperforms 93.33% 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 1.72%.
The Earnings Per Share has been growing slightly by 0.53% on average over the past years.
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
The Earnings Per Share is expected to grow by 14.80% on average over the next years. This is quite good.
TNL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.64% yearly.
EPS Next Y10.86%
EPS Next 2Y13.32%
EPS Next 3Y14.8%
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.
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
Based on the Price/Earnings ratio of 8.13, the valuation of TNL can be described as reasonable.
Based on the Price/Earnings ratio, TNL is valued cheaply inside the industry as 95.56% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.03, TNL is valued rather cheaply.
A Price/Forward Earnings ratio of 6.49 indicates a rather cheap valuation of TNL.
Based on the Price/Forward Earnings ratio, TNL is valued cheaply inside the industry as 95.56% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, TNL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 6.49 |
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 66.67% 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.14 | ||
| EV/EBITDA | 10.01 |
4.3 Compensation for Growth
The 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 14.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)15.43
EPS Next 2Y13.32%
EPS Next 3Y14.8%
5. Dividend
5.1 Amount
TNL has a Yearly Dividend Yield of 4.42%, which is a nice return.
Compared to an average industry Dividend Yield of 3.56, TNL pays a better dividend. On top of this TNL pays more dividend than 91.11% of the companies listed 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 | 4.42% |
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
34.69% of the earnings are spent on dividend by TNL. This is a low number and sustainable payout ratio.
TNL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.69%
EPS Next 2Y13.32%
EPS Next 3Y14.8%
48.15
-1.51 (-3.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners88.29%
Inst Owner Change3.07%
Ins Owners5.45%
Ins Owner Change41.31%
Market Cap3.20B
Analysts80
Price Target60.61 (25.88%)
Short Float %3.86%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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)-7.28%
PT rev (3m)0.58%
EPS NQ rev (1m)-1.61%
EPS NQ rev (3m)-3.18%
EPS NY rev (1m)-0.96%
EPS NY rev (3m)-1.3%
Revenue NQ rev (1m)-1.64%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)-1.03%
Revenue NY rev (3m)-1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 6.49 | ||
| P/S | 0.82 | ||
| P/FCF | 7.14 | ||
| P/OCF | 5.94 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.01 |
EPS(TTM)5.92
EY12.29%
EPS(NY)7.42
Fwd EY15.42%
FCF(TTM)6.74
FCFY14.01%
OCF(TTM)8.1
OCFY16.82%
SpS58.46
BVpS-13.6
TBVpS-31.32
PEG (NY)0.75
PEG (5Y)15.43
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 | 2.3 |
F-Score8
WACC7.67%
ROIC/WACC1.37
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)1.72%
EPS 3Y16.56%
EPS 5Y0.53%
EPS Q2Q%14.43%
EPS Next Y10.86%
EPS Next 2Y13.32%
EPS Next 3Y14.8%
EPS Next 5YN/A
Revenue 1Y (TTM)2.53%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%1.97%
Revenue Next Year3.34%
Revenue Next 2Y3.54%
Revenue Next 3Y3.64%
Revenue Next 5YN/A
EBIT growth 1Y0.13%
EBIT growth 3Y6.88%
EBIT growth 5Y-1.84%
EBIT Next Year30.57%
EBIT Next 3Y12.93%
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%