TRAVEL + LEISURE CO (TNL) Stock Fundamental Analysis
NYSE:TNL - New York Stock Exchange, Inc. - US8941641024 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to TNL. 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on TNL. 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
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
TNL's Return On Assets of 5.83% is fine compared to the rest of the industry. TNL outperforms 74.05% of its industry peers.
With a decent Return On Invested Capital value of 10.78%, TNL is doing good in the industry, outperforming 74.81% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TNL is significantly below the industry average of 15.73%.
The last Return On Invested Capital (10.78%) for TNL is above the 3 year average (10.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.83% | ||
| ROE | N/A | ||
| ROIC | 10.78% |
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 10.14% is fine compared to the rest of the industry. TNL outperforms 75.57% of its industry peers.
TNL's Profit Margin has declined in the last couple of years.
TNL has a better Operating Margin (19.84%) than 78.63% of its industry peers.
In the last couple of years the Operating Margin of TNL has remained more or less at the same level.
With a Gross Margin value of 49.31%, TNL perfoms like the industry average, outperforming 56.49% of the companies in the same industry.
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 | 19.84% | ||
| PM (TTM) | 10.14% | ||
| GM | 49.31% |
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.
TNL has less shares outstanding than it did 1 year ago.
TNL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TNL has an improved debt to assets ratio.
2.2 Solvency
TNL has an Altman-Z score of 2.35. 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's Altman-Z score of 2.35 is in line compared to the rest of the industry. TNL outperforms 59.54% of its industry peers.
TNL has a debt to FCF ratio of 11.31. This is a negative value and a sign of low solvency as TNL would need 11.31 years to pay back of all of its debts.
With a Debt to FCF ratio value of 11.31, TNL perfoms like the industry average, outperforming 55.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.31 | ||
| Altman-Z | 2.35 |
ROIC/WACC1.38
WACC7.79%
2.3 Liquidity
A Current Ratio of 3.71 indicates that TNL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.71, TNL belongs to the top of the industry, outperforming 95.42% of the companies in the same industry.
A Quick Ratio of 2.70 indicates that TNL has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.70, TNL belongs to the top of the industry, outperforming 94.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.71 | ||
| Quick Ratio | 2.7 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.67% over the past year.
The Earnings Per Share has been growing slightly by 0.53% on average over the past years.
The Revenue has been growing slightly by 2.43% in the past year.
The Revenue has been decreasing by -0.90% on average over the past years.
EPS 1Y (TTM)0.67%
EPS 3Y16.56%
EPS 5Y0.53%
EPS Q2Q%8.55%
Revenue 1Y (TTM)2.43%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%3.35%
3.2 Future
The Earnings Per Share is expected to grow by 14.22% on average over the next years. This is quite good.
Based on estimates for the next years, TNL will show a small growth in Revenue. The Revenue will grow by 3.84% on average per year.
EPS Next Y8.64%
EPS Next 2Y11.83%
EPS Next 3Y14.22%
EPS Next 5YN/A
Revenue Next Year3.5%
Revenue Next 2Y3.69%
Revenue Next 3Y3.84%
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
Based on the Price/Earnings ratio of 9.80, the valuation of TNL can be described as reasonable.
TNL's Price/Earnings ratio is rather cheap when compared to the industry. TNL is cheaper than 93.89% of the companies in the same industry.
TNL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.03.
Based on the Price/Forward Earnings ratio of 8.21, the valuation of TNL can be described as reasonable.
Based on the Price/Forward Earnings ratio, TNL is valued cheaply inside the industry as 91.60% of the companies are valued more expensively.
TNL is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 8.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TNL is valued a bit cheaper than the industry average as 66.41% of the companies are valued more expensively.
TNL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TNL is cheaper than 96.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.8 | ||
| EV/EBITDA | 10.29 |
4.3 Compensation for Growth
TNL's 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)1.14
PEG (5Y)18.6
EPS Next 2Y11.83%
EPS Next 3Y14.22%
5. Dividend
5.1 Amount
TNL has a Yearly Dividend Yield of 3.78%.
Compared to an average industry Dividend Yield of 3.80, TNL pays a better dividend. On top of this TNL pays more dividend than 88.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, TNL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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 37.03% 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.
DP37.03%
EPS Next 2Y11.83%
EPS Next 3Y14.22%
59.32
-0.09 (-0.15%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners95.57%
Inst Owner Change0.26%
Ins Owners5.07%
Ins Owner Change62.93%
Market Cap3.85B
Analysts80
Price Target62.05 (4.6%)
Short Float %3.32%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend2.05
Dividend Growth(5Y)2.47%
DP37.03%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.42%
Min EPS beat(2)-0.46%
Max EPS beat(2)-0.39%
EPS beat(4)2
Avg EPS beat(4)1.26%
Min EPS beat(4)-0.46%
Max EPS beat(4)4.48%
EPS beat(8)6
Avg EPS beat(8)8.8%
EPS beat(12)8
Avg EPS beat(12)7.15%
EPS beat(16)11
Avg EPS beat(16)7.69%
Revenue beat(2)0
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-0.85%
Max Revenue beat(2)-0.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.75%
Min Revenue beat(4)-2.55%
Max Revenue beat(4)0.5%
Revenue beat(8)3
Avg Revenue beat(8)-0.7%
Revenue beat(12)4
Avg Revenue beat(12)-0.56%
Revenue beat(16)7
Avg Revenue beat(16)0.37%
PT rev (1m)2.1%
PT rev (3m)-0.55%
EPS NQ rev (1m)1.37%
EPS NQ rev (3m)-3.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.95%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.8 | ||
| Fwd PE | 8.21 | ||
| P/S | 0.98 | ||
| P/FCF | 7.8 | ||
| P/OCF | 6.46 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.29 |
EPS(TTM)6.05
EY10.2%
EPS(NY)7.23
Fwd EY12.19%
FCF(TTM)7.61
FCFY12.83%
OCF(TTM)9.18
OCFY15.48%
SpS60.32
BVpS-13.12
TBVpS-31.3
PEG (NY)1.14
PEG (5Y)18.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.83% | ||
| ROE | N/A | ||
| ROCE | 13.97% | ||
| ROIC | 10.78% | ||
| ROICexc | 11.21% | ||
| ROICexgc | 14.38% | ||
| OM | 19.84% | ||
| PM (TTM) | 10.14% | ||
| GM | 49.31% | ||
| FCFM | 12.61% |
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-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.31 | ||
| Debt/EBITDA | 6.23 | ||
| Cap/Depr | 85% | ||
| Cap/Sales | 2.6% | ||
| Interest Coverage | 3.38 | ||
| Cash Conversion | 66.44% | ||
| Profit Quality | 124.43% | ||
| Current Ratio | 3.71 | ||
| Quick Ratio | 2.7 | ||
| Altman-Z | 2.35 |
F-Score7
WACC7.79%
ROIC/WACC1.38
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)2.43%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%3.35%
Revenue Next Year3.5%
Revenue Next 2Y3.69%
Revenue Next 3Y3.84%
Revenue Next 5YN/A
EBIT growth 1Y3.05%
EBIT growth 3Y6.88%
EBIT growth 5Y-1.84%
EBIT Next Year28.53%
EBIT Next 3Y12.16%
EBIT Next 5YN/A
FCF growth 1Y91.47%
FCF growth 3Y-10.57%
FCF growth 5Y-0.29%
OCF growth 1Y85.09%
OCF growth 3Y-6.52%
OCF growth 5Y0.53%