TRAVEL + LEISURE CO (TNL) Stock Fundamental Analysis
NYSE:TNL - New York Stock Exchange, Inc. - US8941641024 - Common Stock - Currency: USD
Taking everything into account, TNL scores 6 out of 10 in our fundamental rating. 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on TNL. Finally 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
The Return On Assets of TNL (6.18%) is better than 75.94% of its industry peers.
TNL has a better Return On Invested Capital (10.49%) than 74.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TNL is below the industry average of 13.81%.
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
The Profit Margin of TNL (10.76%) is better than 78.20% of its industry peers.
TNL's Profit Margin has declined in the last couple of years.
TNL has a better Operating Margin (19.55%) than 77.44% of its industry peers.
TNL's Operating Margin has been stable in the last couple of years.
TNL has a Gross Margin (49.29%) which 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 | 19.55% | ||
| 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
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.
The number of shares outstanding for TNL has been reduced compared to 5 years ago.
Compared to 1 year ago, TNL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.31 indicates that TNL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TNL (2.31) is better than 63.91% of its industry peers.
TNL has a debt to FCF ratio of 12.63. This is a negative value and a sign of low solvency as TNL would need 12.63 years to pay back of all of its debts.
TNL has a Debt to FCF ratio (12.63) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.63 | ||
| Altman-Z | 2.31 |
ROIC/WACC1.62
WACC6.49%
2.3 Liquidity
TNL has a Current Ratio of 3.88. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
TNL has a Current ratio of 3.88. This is amongst the best in the industry. TNL outperforms 95.49% of its industry peers.
TNL has a Quick Ratio of 2.85. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.85, TNL belongs to the best of the industry, outperforming 93.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 2.85 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.72% over the past year.
The Earnings Per Share has been growing slightly by 0.53% on average over the past years.
TNL shows a small growth in Revenue. In the last year, the Revenue has grown by 2.53%.
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)1.72%
EPS 3Y16.56%
EPS 5Y0.53%
EPS Q2Q%14.43%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%1.97%
3.2 Future
The Earnings Per Share is expected to grow by 14.22% on average over the next years. This is quite good.
TNL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.64% yearly.
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
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
TNL is valuated reasonably with a Price/Earnings ratio of 9.07.
TNL's Price/Earnings ratio is rather cheap when compared to the industry. TNL is cheaper than 96.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.21, TNL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.43, the valuation of TNL can be described as very cheap.
Based on the Price/Forward Earnings ratio, TNL is valued cheaper than 92.48% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, TNL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.07 | ||
| Fwd PE | 7.43 |
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 66.17% of the companies listed in the same industry.
TNL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TNL is cheaper than 96.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.96 | ||
| EV/EBITDA | 10.16 |
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 14.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)17.21
EPS Next 2Y11.83%
EPS Next 3Y14.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.35%, TNL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.71, TNL pays a better dividend. On top of this TNL pays more dividend than 91.73% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, TNL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
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.
TNL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.69%
EPS Next 2Y11.83%
EPS Next 3Y14.22%
53.72
+2.11 (+4.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners95.57%
Inst Owner Change3.14%
Ins Owners5.07%
Ins Owner Change44.34%
Market Cap3.57B
Analysts80
Price Target60.78 (13.14%)
Short Float %3.8%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
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)0.28%
PT rev (3m)-7.86%
EPS NQ rev (1m)-1.14%
EPS NQ rev (3m)-2.32%
EPS NY rev (1m)-2%
EPS NY rev (3m)-3.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.83%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.07 | ||
| Fwd PE | 7.43 | ||
| P/S | 0.92 | ||
| P/FCF | 7.96 | ||
| P/OCF | 6.63 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.16 |
EPS(TTM)5.92
EY11.02%
EPS(NY)7.23
Fwd EY13.46%
FCF(TTM)6.74
FCFY12.56%
OCF(TTM)8.1
OCFY15.08%
SpS58.46
BVpS-13.6
TBVpS-31.32
PEG (NY)1.05
PEG (5Y)17.21
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 | 2.31 |
F-Score8
WACC6.49%
ROIC/WACC1.62
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)1.72%
EPS 3Y16.56%
EPS 5Y0.53%
EPS Q2Q%14.43%
EPS Next Y8.64%
EPS Next 2Y11.83%
EPS Next 3Y14.22%
EPS Next 5YN/A
Revenue 1Y (TTM)2.53%
Revenue growth 3Y7.23%
Revenue growth 5Y-0.9%
Sales Q2Q%1.97%
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%