TRAVEL + LEISURE CO (TNL) Stock Fundamental Analysis
NYSE:TNL - US8941641024 - Common Stock
62.68 USD
+0.51 (+0.82%)
62.68 USD
0 (0%)
Overall TNL gets a fundamental rating of 6 out of 10. We evaluated TNL against 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! TNL also has an excellent dividend rating. This makes TNL very considerable 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.
TNL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years TNL had a positive operating cash flow.
1.2 Ratios
TNL has a better Return On Assets (5.83%) than 74.81% of its industry peers.
With a decent Return On Invested Capital value of 10.78%, TNL is doing good in the industry, outperforming 75.57% 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 3 year average ROIC (10.16%) for TNL is below the current ROIC(10.78%), indicating increased profibility in the last year.
| 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
The Profit Margin of TNL (10.14%) is better than 77.10% of its industry peers.
In the last couple of years the Profit Margin of TNL has declined.
TNL's Operating Margin of 19.84% is fine compared to the rest of the industry. TNL outperforms 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.
The Gross Margin of TNL (49.31%) 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) | 10.14% | ||
| 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
TNL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TNL has been reduced compared to 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 2.36. 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.
Looking at the Altman-Z score, with a value of 2.36, TNL is in the better half of the industry, outperforming 61.83% of the companies in the same industry.
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.
TNL has a Debt to FCF ratio of 11.31. This is comparable to the rest of the industry: TNL outperforms 58.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.31 | ||
| Altman-Z | 2.36 |
ROIC/WACC1.36
WACC7.91%
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.
TNL has a Quick Ratio of 2.70. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
TNL has a Quick ratio of 2.70. This is amongst the best in the industry. TNL outperforms 95.42% of its industry peers.
| 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.
TNL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.53% yearly.
TNL shows a small growth in Revenue. In the last year, the Revenue has grown by 2.43%.
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
Based on estimates for the next years, TNL will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.84% on average per year.
The Revenue is expected to grow by 4.10% on average over the next years.
EPS Next Y10.11%
EPS Next 2Y11.56%
EPS Next 3Y12.84%
EPS Next 5YN/A
Revenue Next Year3.47%
Revenue Next 2Y3.85%
Revenue Next 3Y4.1%
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
With a Price/Earnings ratio of 10.36, the valuation of TNL can be described as very reasonable.
Based on the Price/Earnings ratio, TNL is valued cheaply inside the industry as 93.89% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.17. TNL is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.71, the valuation of TNL can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TNL is valued cheaper than 93.89% of the companies in the same industry.
TNL is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 8.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TNL is valued a bit cheaper than the industry average as 65.65% of the companies are valued more expensively.
95.42% 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 | 8.24 | ||
| EV/EBITDA | 10.49 |
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 12.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.02
PEG (5Y)19.65
EPS Next 2Y11.56%
EPS Next 3Y12.84%
5. Dividend
5.1 Amount
TNL has a Yearly Dividend Yield of 3.78%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.19, TNL pays a better dividend. On top of this TNL pays more dividend than 86.26% 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 2.34.
| 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 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
37.03% 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.
DP37.03%
EPS Next 2Y11.56%
EPS Next 3Y12.84%
62.68
+0.51 (+0.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners97.75%
Inst Owner Change4.54%
Ins Owners5.06%
Ins Owner Change64.76%
Market Cap4.07B
Analysts81.33
Price Target68.8 (9.76%)
Short Float %3.13%
Short Ratio2.65
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)10.88%
PT rev (3m)13.53%
EPS NQ rev (1m)1.2%
EPS NQ rev (3m)-3.94%
EPS NY rev (1m)1.36%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 8.71 | ||
| P/S | 1.04 | ||
| P/FCF | 8.24 | ||
| P/OCF | 6.83 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.49 |
EPS(TTM)6.05
EY9.65%
EPS(NY)7.19
Fwd EY11.48%
FCF(TTM)7.61
FCFY12.14%
OCF(TTM)9.18
OCFY14.65%
SpS60.32
BVpS-13.12
TBVpS-31.3
PEG (NY)1.02
PEG (5Y)19.65
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 | 2.36 |
F-Score7
WACC7.91%
ROIC/WACC1.36
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 Y10.11%
EPS Next 2Y11.56%
EPS Next 3Y12.84%
EPS Next 5YN/A
Revenue 1Y (TTM)2.43%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%3.35%
Revenue Next Year3.47%
Revenue Next 2Y3.85%
Revenue Next 3Y4.1%
Revenue Next 5YN/A
EBIT growth 1Y3.05%
EBIT growth 3Y6.88%
EBIT growth 5Y-1.84%
EBIT Next Year29.23%
EBIT Next 3Y12.69%
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%