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TNL

Travel + Leisure NYSE:TNL Stock Report

Last Price

US$45.76

Market Cap

US$3.8b

7D

3.9%

1Y

-13.9%

Updated

11 Aug, 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$45.76
52 Week HighUS$63.19
52 Week LowUS$37.67
Beta1.74
1 Month Change14.54%
3 Month Change-7.93%
1 Year Change-13.86%
3 Year Change18.73%
5 Year Change-52.41%
Change since IPO40.80%

Recent News & Updates

Aug 10

Travel+Leisure declares $0.40 dividend

Travel+Leisure (NYSE:TNL) declares $0.40/share quarterly dividend, in line with previous. Forward yield 3.62% Payable Sept. 30; for shareholders of record Sept. 15; ex-div Sept. 14. See TNL Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

TNLUS HospitalityUS Market
7D3.9%2.8%1.3%
1Y-13.9%-17.2%-11.7%

Return vs Industry: TNL exceeded the US Hospitality industry which returned -17.9% over the past year.

Return vs Market: TNL underperformed the US Market which returned -11.6% over the past year.

Price Volatility

Is TNL's price volatile compared to industry and market?
TNL volatility
TNL Average Weekly Movement7.1%
Hospitality Industry Average Movement8.7%
Market Average Movement7.8%
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 +/- 7% a week.

Volatility Over Time: TNL's weekly volatility (7%) 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$3.84b
Earnings (TTM)US$362.00m
Revenue (TTM)US$3.44b

10.6x

P/E Ratio

1.1x

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

n/a

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

3.5%

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/Revenue2.6x
Enterprise Value/EBITDA10.5x
PEG Ratio0.7x

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 Average18.7x
VAC Marriott Vacations Worldwide
21.7x17.9%US$5.8b
HGV Hilton Grand Vacations
17.2x27.7%US$5.1b
WH Wyndham Hotels & Resorts
17.8x-0.9%US$6.2b
CHH Choice Hotels International
18.2x2.9%US$6.4b
TNL Travel + Leisure
10.6x15.7%US$3.8b

Price-To-Earnings vs Peers: TNL is good value based on its Price-To-Earnings Ratio (10.6x) compared to the peer average (18.7x).


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 (10.6x) compared to the US Hospitality industry average (17.7x)


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 Ratio10.6x
Fair PE Ratio25.9x

Price-To-Earnings vs Fair Ratio: TNL is good value based on its Price-To-Earnings Ratio (10.6x) compared to the estimated Fair Price-To-Earnings Ratio (25.9x).


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 ($45.76) is trading below our estimate of fair value ($83.81)

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 (14.5% 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 (8% 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 52.4%.


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


3.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TNL's dividend (3.5%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: TNL's dividend (3.5%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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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Management

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

4.2yrs

Average management tenure


CEO

Mike Brown (51 yo)

4.25yrs

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 ($USD10.62M) is above average for companies of similar size in the US market ($USD6.58M).

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 (4.2 years average tenure).


Board Members

Experienced Board: TNL's board of directors are considered experienced (5.8 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

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$3.838b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 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.