TRAVEL + LEISURE CO (TNL)
US8941641024 - Common Stock
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. 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. These ratings would make TNL suitable for value 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.
In the past 5 years TNL always reported a positive cash flow from operatings.
1.2 Ratios
TNL has a better Return On Assets (5.68%) than 70.68% of its industry peers.
The Return On Invested Capital of TNL (10.07%) is better than 70.68% of its industry peers.
TNL had an Average Return On Invested Capital over the past 3 years of 9.59%. This is in line with the industry average of 10.08%.
The last Return On Invested Capital (10.07%) for TNL is above the 3 year average (9.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.68% | ||
| ROE | N/A | ||
| ROIC | 10.07% |
ROA(3y)5.28%
ROA(5y)3.86%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.59%
ROIC(5y)8.03%
1.3 Margins
TNL has a Profit Margin of 10.54%. This is in the better half of the industry: TNL outperforms 73.68% of its industry peers.
TNL's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 20.02%, TNL is doing good in the industry, outperforming 78.95% of the companies in the same industry.
In the last couple of years the Operating Margin of TNL has remained more or less at the same level.
TNL has a Gross Margin (48.30%) which is comparable to the rest of the 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 | 20.02% | ||
| PM (TTM) | 10.54% | ||
| GM | 48.3% |
OM growth 3Y79.9%
OM growth 5Y0.68%
PM growth 3YN/A
PM growth 5Y-9.18%
GM growth 3Y4.2%
GM growth 5Y-1.11%
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
Compared to 5 years ago, TNL has less shares outstanding
TNL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.17 indicates that TNL is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.17, TNL is doing good in the industry, outperforming 63.91% of the companies in the same industry.
The Debt to FCF ratio of TNL is 21.86, which is on the high side as it means it would take TNL, 21.86 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TNL (21.86) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 21.86 | ||
| Altman-Z | 2.17 |
ROIC/WACC1.38
WACC7.29%
2.3 Liquidity
A Current Ratio of 3.91 indicates that TNL has no problem at all paying its short term obligations.
The Current ratio of TNL (3.91) is better than 97.74% of its industry peers.
TNL has a Quick Ratio of 2.95. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
TNL's Quick ratio of 2.95 is amongst the best of the industry. TNL outperforms 95.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.91 | ||
| Quick Ratio | 2.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.78% over the past year.
Measured over the past 5 years, TNL shows a small growth in Earnings Per Share. The EPS has been growing by 1.53% on average per year.
TNL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.12%.
Measured over the past years, TNL shows a decrease in Revenue. The Revenue has been decreasing by -0.94% on average per year.
EPS 1Y (TTM)22.78%
EPS 3YN/A
EPS 5Y1.53%
EPS growth Q2Q8.99%
Revenue 1Y (TTM)4.12%
Revenue growth 3Y20.19%
Revenue growth 5Y-0.94%
Revenue growth Q2Q4.21%
3.2 Future
The Earnings Per Share is expected to grow by 15.03% 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 5.41% on average per year.
EPS Next Y-5.1%
EPS Next 2Y3.45%
EPS Next 3Y15.03%
EPS Next 5YN/A
Revenue Next Year4.14%
Revenue Next 2Y4.26%
Revenue Next 3Y5.41%
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 7.81, the valuation of TNL can be described as very cheap.
Based on the Price/Earnings ratio, TNL is valued cheaper than 94.74% 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 28.43.
TNL is valuated cheaply with a Price/Forward Earnings ratio of 7.40.
Based on the Price/Forward Earnings ratio, TNL is valued cheaply inside the industry as 96.24% of the companies are valued more expensively.
TNL is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.81 | ||
| Fwd PE | 7.4 |
4.2 Price Multiples
TNL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TNL is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.95 | ||
| EV/EBITDA | 9.99 |
4.3 Compensation for Growth
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 15.03% in the coming years.
PEG (NY)N/A
PEG (5Y)5.1
EPS Next 2Y3.45%
EPS Next 3Y15.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.39%, TNL is a good candidate for dividend investing.
TNL's Dividend Yield is rather good when compared to the industry average which is at 2.62. TNL pays more dividend than 93.98% 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 | 4.39% |
5.2 History
The dividend of TNL decreases each year by -1.82%.
TNL has paid a dividend for at least 10 years, which is a reliable track record.
TNL has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-1.82%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TNL pays out 34.34% of its income as dividend. This is a sustainable payout ratio.
DP34.34%
EPS Next 2Y3.45%
EPS Next 3Y15.03%
TRAVEL + LEISURE CO
NYSE:TNL (5/10/2024, 7:23:19 PM)
After market: 45.46 0 (0%)45.46
-0.06 (-0.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.81 | ||
| Fwd PE | 7.4 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)5.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.68% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.02% | ||
| PM (TTM) | 10.54% | ||
| GM | 48.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.91 | ||
| Quick Ratio | 2.95 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)22.78%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-5.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.12%
Revenue growth 3Y20.19%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y