TNL Stock Overview
Travel + Leisure Co., together with its subsidiaries, provides hospitality services and products in the United States and internationally.
Travel + Leisure Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$34.12|
|52 Week High||US$63.19|
|52 Week Low||US$34.08|
|1 Month Change||-17.80%|
|3 Month Change||-16.04%|
|1 Year Change||-40.33%|
|3 Year Change||-23.50%|
|5 Year Change||-68.13%|
|Change since IPO||4.98%|
Recent News & Updates
Is Now An Opportune Moment To Examine Travel + Leisure Co. (NYSE:TNL)?
Travel + Leisure Co. ( NYSE:TNL ), is not the largest company out there, but it saw a decent share price growth in the...
Travel + Leisure: Finally Signs Of Progress With Millennials
Travel + Leisure is finally showing signs of success with younger consumers. The risk of default is more prominent in times of recession, but the company does a great job at screening and maintaining a healthy owner mix. The company recently had a record-breaking quarter and looks finely poised going into the historically strong winter quarters. Travel + Leisure (TNL) has been quietly rebuilding its vacation ownership business following the COVID pandemic. The company spun out of the global hotelier giant Wyndham, leaving many to question the company's future, some even going as far as to suggest that the spin-out would signal the end of the timeshare industry as we knew it. Things have turned out quite differently for the company. Under the leadership of industry veteran Michael Brown, the company has managed to withstand major structural changes and a global health crisis that disproportionately affected the hospitality industry. As if that were not enough, the company is now facing the prospect of a major global slowdown as central banks try to address rampant inflation. Despite this, the company looks to be firing on all cylinders and is stepping into a crucial next few quarters that will provide investors with insight into the company's resilience as we look to start the next business cycle. TNL data by YCharts Today we will take a look at Travel + Leisure and discuss what investors can expect from the company going forward (I have covered the company in the past, for a more detailed company profile, check out this article). Company Outlook Following the spinout, I must confess that I had my fair share of reservations as to whether the company could maintain its strong sales volume without making concessions in the per-unit price, which would, of course, impact gross margins. So far, this concern has proven to be unfounded, as the company is posting gross profit margins north of 60%. Seeking Alpha This is an amazing number. Remember, this is not a software-as-a-service type business. Instead, the company is selling vacation ownership interests in its existing portfolio to customers it likely had to pay marketing costs to acquire. These marketing costs manifest mainly in the form of the gifts the company offers to entice people into attending sales presentations. Timeshares are notoriously tough sales, and it often takes multiple visits to finally convince a customer to purchase. This is why investors tend to pay keen attention to gross margin and marketing costs figures, as it provides major insight into the overall appeal of the product. Right now, Travel + Leisure is clearly knocking it out of the park. In the recent earnings call, the company reported an impressive Adjusted EBITDA of $230 million, which was good for an EPS of $1.27 cents. They also managed to produce a record volume per guest of $3489. Volume per guest is in effect the amount of money the company makes per tour it undertakes. The interesting thing about this is that for the second quarter, more than 65% of new owner sales were to Gen-Xers and millennials. The importance of this cannot be overstated when you consider the background of the timeshare industry. Airbnb (ABNB) and other alternative vacation options were being touted as timeshare killers. The general expectation was that as these services became more popular, the timeshare industry would eventually die out. The company managing to create profitable relationships with younger owners is so crucial. It is also worth mentioning that new owner sales typically carry a lower VPG than existing owner sales, and that new owners tend to come back and purchase additional ownership down the line. The company also mentioned that nearly 80% of its owner base is traveling debt free. This means their vacation ownership is fully paid for, and their only commitments are the annual maintenance fees. It would be fair to say that the company it's currently in a good place with its owner mix and is showing signs that it is developing further in the right direction. But with the economic slowdown on the horizon, there are some concerns about the business model's vulnerability to defaults. Debt Concerns Timeshares are, first and foremost, a luxury purchase. Vacations are often seen as optional endeavors, even though they probably should take higher priority. Timeshare companies help their customers go on vacation by having them commit to the purchase of an ownership interest in a property or portfolio, allowing them to lock in the price of their vacations for the most part, apart from occasional adjustments to annual maintenance fees. Because timeshares tend to be pricey big-ticket purchases, customers tend to finance the purchase at least partly with debt. This practice is normally fine, and the company does a great job at screening its clients to make sure that they can handle the financial commitments that come along with the purchase. But if there were to be a widespread economic slowdown as a result of the Federal Reserve tightening to address inflation, for example, the fallout would not only dent consumer confidence which would be a headwind for new purchases, but it could also result in greater than normal delinquencies in financed vacation ownership products which can become quite problematic for these types of companies. The good thing is that these companies are becoming better at working with customers through difficult times to keep their owners happy and to prevent widespread damage to the company. Valuation And Forward-Looking Commentary Despite these concerns, Travel + Leisure still attracts some of the premier investors in the world. Institutions own a whopping 93% of shares outstanding, which is always a great sign whenever there are concerns about a recession. Seeking Alpha The company is also in the middle of a solid recovery from the COVID-19 pandemic, and despite the seasonal nature of revenue in the hospitality industry, revenue trends have been more or less stable, which is a good sign. Seeking Alpha The management team has had a solid track record of delivering to earnings expectations, and we can see that for the last five quarters, they have performed exceptionally well with four beats and one small miss. It is also worth mentioning that the winter period tends to be one of the stronger quarters for timeshare companies. Seeking Alpha The company is also trading at the low end of its historical ranges for most of the important multiples, which usually implies value.
Is Travel + Leisure Co. (NYSE:TNL) Trading At A 44% Discount?
How far off is Travel + Leisure Co. ( NYSE:TNL ) from its intrinsic value? Using the most recent financial data, we'll...
|TNL||US Hospitality||US Market|
Return vs Industry: TNL underperformed the US Hospitality industry which returned -34.1% over the past year.
Return vs Market: TNL underperformed the US Market which returned -23.2% over the past year.
|TNL Average Weekly Movement||5.5%|
|Hospitality Industry Average Movement||7.3%|
|Market Average Movement||6.8%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: TNL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: TNL's weekly volatility (6%) has been stable over the past year.
About the Company
Travel + Leisure Co., together with its subsidiaries, provides hospitality services and products in the United States and internationally. The company operates in two segments, Vacation Ownership; and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers; provides consumer financing in connection with the sale of VOIs; and provides property management services at resorts.
Travel + Leisure Fundamentals Summary
|TNL fundamental statistics|
Is TNL overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TNL income statement (TTM)|
|Cost of Revenue||US$1.64b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
Oct 27, 2022
|Earnings per share (EPS)||4.32|
|Net Profit Margin||10.52%|
How did TNL perform over the long term?See historical performance and comparison
4.7%Current Dividend Yield
Is TNL undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for TNL?
Other financial metrics that can be useful for relative valuation.
|What is TNL's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does TNL's PE Ratio compare to its peers?
|TNL PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
VAC Marriott Vacations Worldwide
WH Wyndham Hotels & Resorts
HGV Hilton Grand Vacations
CHH Choice Hotels International
TNL Travel + Leisure
Price-To-Earnings vs Peers: TNL is good value based on its Price-To-Earnings Ratio (7.9x) compared to the peer average (16x).
Price to Earnings Ratio vs Industry
How does TNL's PE Ratio compare vs other companies in the US Hospitality Industry?
Price-To-Earnings vs Industry: TNL is good value based on its Price-To-Earnings Ratio (7.9x) compared to the US Hospitality industry average (16.9x)
Price to Earnings Ratio vs Fair Ratio
What is TNL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||7.9x|
|Fair PE Ratio||24.4x|
Price-To-Earnings vs Fair Ratio: TNL is good value based on its Price-To-Earnings Ratio (7.9x) compared to the estimated Fair Price-To-Earnings Ratio (24.4x).
Share Price vs Fair Value
What is the Fair Price of TNL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: TNL ($34.12) is trading below our estimate of fair value ($76.95)
Significantly Below Fair Value: TNL is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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How is Travel + Leisure forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TNL's forecast earnings growth (15.7% per year) is above the savings rate (1.9%).
Earnings vs Market: TNL's earnings (15.7% per year) are forecast to grow faster than the US market (14.8% per year).
High Growth Earnings: TNL's earnings are forecast to grow, but not significantly.
Revenue vs Market: TNL's revenue (8.6% per year) is forecast to grow faster than the US market (7.7% per year).
High Growth Revenue: TNL's revenue (8.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if TNL's Return on Equity is forecast to be high in 3 years time
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How has Travel + Leisure performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TNL has high quality earnings.
Growing Profit Margin: TNL's current net profit margins (10.5%) are higher than last year (5.5%).
Past Earnings Growth Analysis
Earnings Trend: TNL's earnings have declined by 24.1% per year over the past 5 years.
Accelerating Growth: TNL's earnings growth over the past year (146.3%) exceeds its 5-year average (-24.1% per year).
Earnings vs Industry: TNL earnings growth over the past year (146.3%) exceeded the Hospitality industry 36.2%.
Return on Equity
High ROE: TNL's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
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How is Travel + Leisure's financial position?
Financial Health Score1/6
Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: TNL has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: TNL has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: TNL has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: TNL's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: TNL's debt is not well covered by operating cash flow (9.7%).
Interest Coverage: TNL's interest payments on its debt are well covered by EBIT (3.9x coverage).
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What is Travel + Leisure current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Travel + Leisure Dividend Yield vs Market|
|Company (Travel + Leisure)||4.7%|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (Hospitality)||2.0%|
|Analyst forecast in 3 Years (Travel + Leisure)||4.7%|
Notable Dividend: TNL's dividend (4.69%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: TNL's dividend (4.69%) is low compared to the top 25% of dividend payers in the US market (4.73%).
Stability and Growth of Payments
Stable Dividend: TNL's dividend payments have been volatile in the past 10 years.
Growing Dividend: TNL's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (34.5%), TNL's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (29.7%), TNL's dividend payments are well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mike Brown (51 yo)
Mr. Michael D. Brown, also known as Mike, has been Director, President and Chief Executive Officer at Travel + Leisure Co. (formerly, Wyndham Destinations,Inc). since May 2018. Mr. Brown was the Chief Exec...
CEO Compensation Analysis
|Mike Brown's Compensation vs Travel + Leisure Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$11m||US$1m|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$13m||US$906k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$8m||US$1m|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$8m||US$868k|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$4m||US$485k|
Compensation vs Market: Mike's total compensation ($USD10.62M) is above average for companies of similar size in the US market ($USD6.89M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Experienced Management: TNL's management team is considered experienced (4.3 years average tenure).
Experienced Board: TNL's board of directors are considered experienced (5.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TNL insiders have only sold shares in the past 3 months.
Recent Insider Transactions
|11 Aug 22||SellUS$97,604||George Herrera||Individual||2,135||US$45.72|
|29 Jul 22||SellUS$178,934||Olivier Chavy||Individual||4,195||US$42.65|
|18 Mar 22||SellUS$128,057||George Herrera||Individual||2,189||US$58.50|
|17 Dec 21||SellUS$29,853||George Herrera||Individual||611||US$48.86|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||51,540||0.06%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Travel + Leisure Co.'s employee growth, exchange listings and data sources
- Name: Travel + Leisure Co.
- Ticker: TNL
- Exchange: NYSE
- Founded: 1990
- Industry: Hotels, Resorts and Cruise Lines
- Sector: Consumer Services
- Implied Market Cap: US$2.862b
- Shares outstanding: 83.88m
- Website: https://www.travelandleisureco.com
Number of Employees
- Travel + Leisure Co.
- 6277 Sea Harbor Drive
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|TNL||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jul 2006|
|WD5A||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jul 2006|
|TNL *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jul 2006|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/02 00:00|
|End of Day Share Price||2022/09/30 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.