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TNL

Travel + Leisure NYSE:TNL Stock Report

Last Price

US$40.64

Market Cap

US$3.5b

7D

-2.6%

1Y

-32.5%

Updated

01 Jul, 2022

Data

Company Financials +
TNL fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance2/6
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$40.64
52 Week HighUS$63.19
52 Week LowUS$37.67
Beta1.71
1 Month Change-19.45%
3 Month Change-27.47%
1 Year Change-32.50%
3 Year Change-10.86%
5 Year Change-59.70%
Change since IPO25.05%

Recent News & Updates

May 27

Travel + Leisure: Is This Timeshare Stock A Buy After This Dip?

Travel + Leisure has done an excellent job navigating and emerging from the pandemic. The company will likely be facing new headwinds as the Fed addresses inflation with tighter monetary policy. If there is depression, it will likely present advantageous opportunities for large operators like Travel + Leisure.

May 04

Travel + Leisure: Wyndham Integration Offers Opportunity

A few years ago, Wyndham Destinations merged with the travel mag, Travel + Leisure. This will allow for a reset of the unpopular (yet profitable) timeshare industry in a more modern and sustainable platform. Uncertainty about travel and recessions will lower the valuation over the next few quarters, but take advantage of this weakness.

Shareholder Returns

TNLUS HospitalityUS Market
7D-2.6%-3.5%-2.5%
1Y-32.5%-32.1%-21.2%

Return vs Industry: TNL exceeded the US Hospitality industry which returned -33.5% over the past year.

Return vs Market: TNL underperformed the US Market which returned -21.7% over the past year.

Price Volatility

Is TNL's price volatile compared to industry and market?
TNL volatility
TNL Average Weekly Movement7.5%
Hospitality Industry Average Movement9.4%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: TNL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: TNL's weekly volatility (8%) 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$3.47b
Earnings (TTM)US$335.00m
Revenue (TTM)US$3.32b

10.4x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TNL income statement (TTM)
RevenueUS$3.32b
Cost of RevenueUS$1.59b
Gross ProfitUS$1.65b
Other ExpensesUS$1.31b
EarningsUS$335.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.92
Gross Margin49.71%
Net Profit Margin10.11%
Debt/Equity Ratio-655.9%

How did TNL perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

35%

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

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

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/Revenue2.6x
Enterprise Value/EBITDA10.5x
PEG Ratio0.6x

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 Average23.3x
VAC Marriott Vacations Worldwide
36.9x52.6%US$5.0b
HGV Hilton Grand Vacations
18.7x30.1%US$4.4b
WH Wyndham Hotels & Resorts
19x3.7%US$6.2b
CHH Choice Hotels International
18.8x7.2%US$6.2b
TNL Travel + Leisure
10.4x18.0%US$3.5b

Price-To-Earnings vs Peers: TNL is good value based on its Price-To-Earnings Ratio (10.4x) compared to the peer average (23.3x).


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 (10.4x) compared to the US Hospitality industry average (18.3x)


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 Ratio10.4x
Fair PE Ratio26.2x

Price-To-Earnings vs Fair Ratio: TNL is good value based on its Price-To-Earnings Ratio (10.4x) compared to the estimated Fair Price-To-Earnings Ratio (26.2x).


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 ($40.64) is trading below our estimate of fair value ($112.84)

Significantly Below Fair Value: TNL is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: TNL is good value based on its PEG Ratio (0.6x)


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Future Growth

How is Travel + Leisure forecast to perform in the next 1 to 3 years based on estimates from 8 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


18.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TNL's forecast earnings growth (18% per year) is above the savings rate (1.9%).

Earnings vs Market: TNL's earnings (18% per year) are forecast to grow faster than the US market (13.6% per year).

High Growth Earnings: TNL's earnings are forecast to grow, but not significantly.

Revenue vs Market: TNL's revenue (11.1% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: TNL's revenue (11.1% 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

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-28.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TNL has high quality earnings.

Growing Profit Margin: TNL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TNL's earnings have declined by 28.1% per year over the past 5 years.

Accelerating Growth: TNL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TNL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (119.6%).


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 (11.9%).

Interest Coverage: TNL's interest payments on its debt are well covered by EBIT (3.6x 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

  • Future Dividend Coverage


3.94%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TNL's dividend (3.94%) is higher than the bottom 25% of dividend payers in the US market (1.61%).

High Dividend: TNL's dividend (3.94%) is low compared to the top 25% of dividend payers in the US market (4.3%).


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 (34.8%), TNL's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (23.7%), 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?

4.0yrs

Average management tenure


CEO

Mike Brown (51 yo)

4.08yrs

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

Compensation vs Market: Mike's total compensation ($USD10.62M) is above average for companies of similar size in the US market ($USD6.90M).

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 years average tenure).


Board Members

Experienced Board: TNL's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$3.470b
  • Shares outstanding: 85.39m
  • Website: https://www.travelandleisureco.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/01 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
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.