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. TNL has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on TNL. 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.
Each year in the past 5 years TNL had a positive operating cash flow.
1.2 Ratios
TNL's Return On Assets of 6.18% is fine compared to the rest of the industry. TNL outperforms 75.57% of its industry peers.
With a decent Return On Invested Capital value of 10.49%, TNL is doing good in the industry, outperforming 74.81% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TNL is significantly below the industry average of 15.87%.
The last Return On Invested Capital (10.49%) for TNL is above the 3 year average (10.16%), which is a sign of increasing profitability.
| 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
TNL has a Profit Margin of 10.76%. This is in the better half of the industry: TNL outperforms 77.10% of its industry peers.
TNL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 19.55%, TNL is in the better half of the industry, outperforming 77.10% 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's Gross Margin of 49.29% is in line compared to the rest of the industry. TNL outperforms 56.49% 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.
The number of shares outstanding for TNL has been reduced compared to 1 year ago.
The number of shares outstanding for TNL has been reduced compared to 5 years ago.
TNL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.36 indicates that TNL is not a great score, but indicates only limited risk for bankruptcy at the moment.
TNL's Altman-Z score of 2.36 is fine compared to the rest of the industry. TNL outperforms 60.31% 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.
Looking at the Debt to FCF ratio, with a value of 12.63, TNL is in line with its industry, outperforming 52.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.63 | ||
| Altman-Z | 2.36 |
ROIC/WACC1.32
WACC7.92%
2.3 Liquidity
A Current Ratio of 3.88 indicates that TNL has no problem at all paying its short term obligations.
TNL's Current ratio of 3.88 is amongst the best of the industry. TNL outperforms 96.18% of its industry peers.
A Quick Ratio of 2.85 indicates that TNL has no problem at all paying its short term obligations.
TNL's Quick ratio of 2.85 is amongst the best of the industry. TNL outperforms 94.66% 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 0.67%.
TNL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.53% yearly.
Looking at the last year, TNL shows a small growth in Revenue. The Revenue has grown by 3.04% in the last year.
Measured over the past years, TNL shows a decrease in Revenue. The Revenue has been decreasing by -0.90% on average per year.
EPS 1Y (TTM)0.67%
EPS 3Y16.56%
EPS 5Y0.53%
EPS Q2Q%8.55%
Revenue 1Y (TTM)3.04%
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 14.22% on average per year.
Based on estimates for the next years, TNL will show a small growth in Revenue. The Revenue will grow by 3.64% on average per year.
EPS Next Y8.64%
EPS Next 2Y11.83%
EPS Next 3Y14.22%
EPS Next 5YN/A
Revenue Next Year2.93%
Revenue Next 2Y3.51%
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
A Price/Earnings ratio of 10.23 indicates a reasonable valuation of TNL.
Compared to the rest of the industry, the Price/Earnings ratio of TNL indicates a rather cheap valuation: TNL is cheaper than 95.42% of the companies listed in the same industry.
TNL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.69.
Based on the Price/Forward Earnings ratio of 8.56, the valuation of TNL can be described as reasonable.
92.37% of the companies in the same industry are more expensive than TNL, based on the Price/Forward Earnings ratio.
TNL is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.23 | ||
| Fwd PE | 8.56 |
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 64.89% 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 95.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.17 | ||
| EV/EBITDA | 10.94 |
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)1.18
PEG (5Y)19.4
EPS Next 2Y11.83%
EPS Next 3Y14.22%
5. Dividend
5.1 Amount
TNL has a Yearly Dividend Yield of 3.87%.
TNL's Dividend Yield is rather good when compared to the industry average which is at 3.64. TNL pays more dividend than 89.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, TNL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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 34.69% of its income as dividend. This is a sustainable payout ratio.
The dividend of TNL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.69%
EPS Next 2Y11.83%
EPS Next 3Y14.22%
61.87
+4.02 (+6.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners95.57%
Inst Owner Change0.25%
Ins Owners5.07%
Ins Owner Change54.36%
Market Cap4.11B
Analysts80
Price Target62.05 (0.29%)
Short Float %3.29%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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)2.67%
PT rev (3m)-5.07%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.23 | ||
| Fwd PE | 8.56 | ||
| P/S | 1.06 | ||
| P/FCF | 9.17 | ||
| P/OCF | 7.64 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.94 |
EPS(TTM)6.05
EY9.78%
EPS(NY)7.23
Fwd EY11.68%
FCF(TTM)6.74
FCFY10.9%
OCF(TTM)8.1
OCFY13.09%
SpS58.46
BVpS-13.6
TBVpS-31.32
PEG (NY)1.18
PEG (5Y)19.4
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 | 2.36 |
F-Score8
WACC7.92%
ROIC/WACC1.32
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)3.04%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%3.35%
Revenue Next Year2.93%
Revenue Next 2Y3.51%
Revenue Next 3Y3.64%
Revenue Next 5YN/A
EBIT growth 1Y0.13%
EBIT growth 3Y6.88%
EBIT growth 5Y-1.84%
EBIT Next Year28.53%
EBIT Next 3Y12.16%
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%