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TNL

Travel + Leisure NYSE:TNL Stock Report

Last Price

US$34.12

Market Cap

US$2.9b

7D

-4.3%

1Y

-40.3%

Updated

02 Oct, 2022

Data

Company Financials +
TNL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance4/6
Financial Health1/6
Dividends4/6

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

Summary of all time highs, changes and price drops for Travel + Leisure
Historical stock prices
Current Share PriceUS$34.12
52 Week HighUS$63.19
52 Week LowUS$34.08
Beta1.71
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 IPO4.98%

Recent News & Updates

Sep 09
Is Now An Opportune Moment To Examine Travel + Leisure Co. (NYSE:TNL)?

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...

Aug 20

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.

Aug 19
Is Travel + Leisure Co. (NYSE:TNL) Trading At A 44% Discount?

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...

Shareholder Returns

TNLUS HospitalityUS Market
7D-4.3%-0.2%-2.5%
1Y-40.3%-34.1%-23.2%

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.

Price Volatility

Is TNL's price volatile compared to industry and market?
TNL volatility
TNL Average Weekly Movement5.5%
Hospitality Industry Average Movement7.3%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

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

FoundedEmployeesCEOWebsite
199016,800Mike Brownhttps://www.travelandleisureco.com

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

How do Travel + Leisure's earnings and revenue compare to its market cap?
TNL fundamental statistics
Market CapUS$2.86b
Earnings (TTM)US$362.00m
Revenue (TTM)US$3.44b

7.9x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TNL income statement (TTM)
RevenueUS$3.44b
Cost of RevenueUS$1.64b
Gross ProfitUS$1.73b
Other ExpensesUS$1.37b
EarningsUS$362.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 27, 2022

Earnings per share (EPS)4.32
Gross Margin50.20%
Net Profit Margin10.52%
Debt/Equity Ratio-616.2%

How did TNL perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

34%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is TNL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

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

  • Analyst Forecast

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.

TNL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.3x
Enterprise Value/EBITDA9.3x
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

How does TNL's PE Ratio compare to its peers?

TNL PE Ratio vs Peers
The above table shows the PE ratio for TNL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16x
VAC Marriott Vacations Worldwide
18.1x18.6%US$4.8b
WH Wyndham Hotels & Resorts
15.9x-0.9%US$5.5b
HGV Hilton Grand Vacations
13x26.6%US$3.9b
CHH Choice Hotels International
17.2x-1.8%US$6.1b
TNL Travel + Leisure
7.9x15.7%US$2.9b

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.

TNL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.9x
Fair PE Ratio24.4x

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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Future Growth

How is Travel + Leisure forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.7%

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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Past Performance

How has Travel + Leisure performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-24.1%

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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Financial Health

How is Travel + Leisure's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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).


Balance Sheet


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Dividend

What is Travel + Leisure current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.69%

Current Dividend Yield

Dividend Yield vs Market

Travel + Leisure Dividend Yield vs Market
How does Travel + Leisure dividend yield compare to the market?
SegmentDividend Yield
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.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Mike Brown (51 yo)

4.42yrs

Tenure

US$10,620,565

Compensation

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
How has Mike Brown's remuneration changed compared to Travel + Leisure's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$362m

Mar 31 2022n/an/a

US$335m

Dec 31 2021US$11mUS$1m

US$313m

Sep 30 2021n/an/a

US$208m

Jun 30 2021n/an/a

US$147m

Mar 31 2021n/an/a

-US$90m

Dec 31 2020US$13mUS$906k

-US$253m

Sep 30 2020n/an/a

-US$103m

Jun 30 2020n/an/a

-US$8m

Mar 31 2020n/an/a

US$274m

Dec 31 2019US$8mUS$1m

US$489m

Sep 30 2019n/an/a

US$440m

Jun 30 2019n/an/a

US$436m

Mar 31 2019n/an/a

US$306m

Dec 31 2018US$8mUS$868k

US$266m

Sep 30 2018n/an/a

US$604m

Jun 30 2018n/an/a

US$574m

Mar 31 2018n/an/a

US$600m

Dec 31 2017US$4mUS$485k

US$645m

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.


Leadership Team

Experienced Management: TNL's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: TNL's board of directors are considered experienced (5.9 years average tenure).


Ownership

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

NYSE:TNL Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
11 Aug 22SellUS$97,604George HerreraIndividual2,135US$45.72
29 Jul 22SellUS$178,934Olivier ChavyIndividual4,195US$42.65
18 Mar 22SellUS$128,057George HerreraIndividual2,189US$58.50
17 Dec 21SellUS$29,853George HerreraIndividual611US$48.86

Ownership Breakdown

What is the ownership structure of TNL?
Owner TypeNumber of SharesOwnership Percentage
State or Government51,5400.06%
Individual Insiders944,2011.1%
General Public3,915,6084.7%
Institutions78,967,97994.1%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 62.98% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
13.96%
BlackRock, Inc.
11,709,286$399.5m19.4%0.01%
10.38%
The Vanguard Group, Inc.
8,709,789$297.2m-0.69%0.01%
4.88%
Invesco Ltd.
4,089,724$139.5m-31.84%0.05%
4.08%
Principal Global Investors, LLC
3,420,744$116.7m0.5%0.09%
3%
State Street Global Advisors, Inc.
2,515,891$85.8m3.04%0.01%
2.06%
GMT Capital Corp.
1,728,800$59.0m0%2.65%
2.04%
Minot Capital, LP
1,708,105$58.3m0%13.23%
1.51%
Iridian Asset Management LLC
1,267,456$43.2m4.58%3.83%
1.5%
AQR Capital Management, LLC
1,261,767$43.1m82.94%0.1%
1.46%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
1,227,824$41.9m0.49%0.02%
1.39%
Dimensional Fund Advisors LP
1,166,384$39.8m4.99%0.01%
1.33%
D. E. Shaw & Co., L.P.
1,116,537$38.1m-5.1%0.08%
1.31%
Boston Partners Global Investors, Inc.
1,102,794$37.6m-73.17%0.03%
1.3%
BNY Mellon Asset Management
1,088,350$37.1m-18.64%0.01%
1.28%
Geode Capital Management, LLC
1,071,392$36.6m-2.05%0.01%
1.26%
Swedbank Robur Fonder AB
1,059,409$36.1m0%0.06%
1.25%
Northern Trust Global Investments
1,052,660$35.9m31.74%0.01%
1.25%
Capital@Work International S.A.
1,048,000$35.8m2.95%1.91%
1.22%
Macquarie Investment Management Business Trust
1,020,679$34.8m17.06%0.04%
1.2%
Copeland Capital Management, LLC
1,006,481$34.3m198.07%1.19%
1.16%
Nantahala Capital Management, LLC
975,281$33.3m12.43%3.13%
1.1%
Zimmer Partners, LP
924,800$31.6m-40.34%0.73%
1.1%
Commerce Investment Advisors, Inc.
922,704$31.5m2.14%0.28%
0.98%
Norges Bank Investment Management
818,583$27.9m0%no data
0.97%
Goldman Sachs Asset Management, L.P.
813,631$27.8m-22.5%0.01%

Company Information

Travel + Leisure Co.'s employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Travel + Leisure Co.
  • 6277 Sea Harbor Drive
  • Orlando
  • Florida
  • 32821
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TNLNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2006
WD5ADB (Deutsche Boerse AG)YesCommon StockDEEURJul 2006
TNL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2006

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/02 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.