TRAVEL + LEISURE CO (TNL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNL - US8941641024 - Common Stock
75.25 USD
+2.03 (+2.77%)
75.2462 USD
0 (-0.01%)
We assign a fundamental rating of 6 out of 10 to TNL. TNL was compared to 133 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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
TNL had positive earnings in the past year.
TNL had a positive operating cash flow in the past year.
Of the past 5 years TNL 4 years were profitable.
TNL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.96%, TNL is in the better half of the industry, outperforming 72.18% of the companies in the same industry.
TNL has a better Return On Invested Capital (10.73%) than 75.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TNL is in line with the industry average of 10.39%.
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
With a decent Profit Margin value of 10.36%, TNL is doing good in the industry, outperforming 77.44% 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 (19.84%) than 79.70% 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.
TNL's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TNL is 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.
2.2 Solvency
TNL has an Altman-Z score of 2.44. 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.
Looking at the Altman-Z score, with a value of 2.44, TNL is in the better half of the industry, outperforming 64.66% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 11.05, TNL is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.05 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.46
WACC7.36%
2.3 Liquidity
TNL has a Current Ratio of 3.79. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TNL (3.79) is better than 93.98% of its industry peers.
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 91.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.79 | ||
| Quick Ratio | 2.76 |
3. Growth
3.1 Past
TNL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.97%.
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.
TNL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.58%.
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
TNL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.31% yearly.
TNL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.79% yearly.
EPS Next Y10.77%
EPS Next 2Y12.34%
EPS Next 3Y13.31%
EPS Next 5YN/A
Revenue Next Year3.78%
Revenue Next 2Y4.04%
Revenue Next 3Y3.79%
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.
4. Valuation
4.1 Price/Earnings Ratio
TNL is valuated reasonably with a Price/Earnings ratio of 11.98.
86.47% 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 27.17.
Based on the Price/Forward Earnings ratio of 10.32, the valuation of TNL can be described as reasonable.
Based on the Price/Forward Earnings ratio, TNL is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TNL to the average of the S&P500 Index (23.79), we can say TNL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 10.32 |
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 60.15% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TNL indicates a rather cheap valuation: TNL is cheaper than 93.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.59 | ||
| EV/EBITDA | 11.21 |
4.3 Compensation for Growth
TNL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of TNL may justify a higher PE ratio.
A more expensive valuation may be justified as TNL's earnings are expected to grow with 13.31% in the coming years.
PEG (NY)1.11
PEG (5Y)22.73
EPS Next 2Y12.34%
EPS Next 3Y13.31%
5. Dividend
5.1 Amount
TNL has a Yearly Dividend Yield of 3.18%.
TNL's Dividend Yield is rather good when compared to the industry average which is at 1.94. TNL pays more dividend than 87.97% of the companies in the same industry.
TNL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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 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 2Y12.34%
EPS Next 3Y13.31%
75.25
+2.03 (+2.77%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners98.2%
Inst Owner Change0%
Ins Owners4.77%
Ins Owner Change-16.39%
Market Cap4.84B
Revenue(TTM)3.97B
Net Income(TTM)411.00M
Analysts81.25
Price Target76.42 (1.55%)
Short Float %5.82%
Short Ratio5.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Yearly Dividend2.05
Dividend Growth(5Y)2.47%
DP36.01%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.08%
Min EPS beat(2)-0.39%
Max EPS beat(2)2.54%
EPS beat(4)2
Avg EPS beat(4)0.78%
Min EPS beat(4)-0.46%
Max EPS beat(4)2.54%
EPS beat(8)6
Avg EPS beat(8)8.57%
EPS beat(12)9
Avg EPS beat(12)7.55%
EPS beat(16)11
Avg EPS beat(16)6.97%
Revenue beat(2)0
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)-0.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-0.85%
Max Revenue beat(4)0.5%
Revenue beat(8)2
Avg Revenue beat(8)-0.78%
Revenue beat(12)4
Avg Revenue beat(12)-0.47%
Revenue beat(16)6
Avg Revenue beat(16)0.35%
PT rev (1m)0.74%
PT rev (3m)11.06%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-2.79%
EPS NY rev (1m)0%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.98 | ||
| Fwd PE | 10.32 | ||
| P/S | 1.22 | ||
| P/FCF | 9.59 | ||
| P/OCF | 7.88 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.21 |
EPS(TTM)6.28
EY8.35%
EPS(NY)7.29
Fwd EY9.69%
FCF(TTM)7.85
FCFY10.43%
OCF(TTM)9.54
OCFY12.68%
SpS61.67
BVpS-12.76
TBVpS-31.03
PEG (NY)1.11
PEG (5Y)22.73
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.96% | ||
| ROE | N/A | ||
| ROCE | 13.91% | ||
| ROIC | 10.73% | ||
| ROICexc | 11.2% | ||
| ROICexgc | 14.31% | ||
| OM | 19.84% | ||
| PM (TTM) | 10.36% | ||
| GM | 49.51% | ||
| FCFM | 12.73% |
ROA(3y)5.75%
ROA(5y)3.72%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.16%
ROIC(5y)8.06%
ROICexc(3y)10.81%
ROICexc(5y)8.62%
ROICexgc(3y)13.95%
ROICexgc(5y)11.16%
ROCE(3y)13.17%
ROCE(5y)10.44%
ROICexgc growth 3Y3.54%
ROICexgc 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-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.05 | ||
| Debt/EBITDA | 6.14 | ||
| Cap/Depr | 90.08% | ||
| Cap/Sales | 2.75% | ||
| Interest Coverage | 3.38 | ||
| Cash Conversion | 67.62% | ||
| Profit Quality | 122.87% | ||
| Current Ratio | 3.79 | ||
| Quick Ratio | 2.76 | ||
| Altman-Z | 2.44 |
F-Score7
WACC7.36%
ROIC/WACC1.46
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)3.97%
EPS 3Y16.56%
EPS 5Y0.53%
EPS Q2Q%14.65%
EPS Next Y10.77%
EPS Next 2Y12.34%
EPS Next 3Y13.31%
EPS Next 5YN/A
Revenue 1Y (TTM)3.58%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%5.14%
Revenue Next Year3.78%
Revenue Next 2Y4.04%
Revenue Next 3Y3.79%
Revenue Next 5YN/A
EBIT growth 1Y4.93%
EBIT growth 3Y6.88%
EBIT growth 5Y-1.84%
EBIT Next Year30.5%
EBIT Next 3Y12.65%
EBIT Next 5YN/A
FCF growth 1Y63.43%
FCF growth 3Y-10.57%
FCF growth 5Y-0.29%
OCF growth 1Y64.61%
OCF growth 3Y-6.52%
OCF growth 5Y0.53%
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 11.98 and the Price/Book (PB) ratio is -5.9.
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%.