Travel + Leisure Co. Fundamental Analysis (NYSE: TNL)
Travel + Leisure Co. (NYSE: TNL) shows weak financial fundamentals with a PE ratio of 19.20, profit margin of 5.81%, and ROE of -24.76%. The company generates $4.0B in annual revenue with moderate year-over-year growth of 4.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 84.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze TNL's fundamental strength across five key dimensions:
Efficiency Score
WeakTNL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTNL trades at attractive valuation levels.
Growth Score
WeakTNL faces weak or negative growth trends.
Financial Health Score
ExcellentTNL maintains a strong and stable balance sheet.
Profitability Score
WeakTNL struggles to sustain strong margins.
Key Financial Metrics
Is TNL Expensive or Cheap?
P/E Ratio
TNL trades at 19.20 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TNL's PEG of -0.53 indicates potential undervaluation.
Price to Book
The market values Travel + Leisure Co. at -4.38 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.48 times EBITDA. This is generally considered low.
How Well Does TNL Make Money?
Net Profit Margin
For every $100 in sales, Travel + Leisure Co. keeps $5.81 as profit after all expenses.
Operating Margin
Core operations generate 15.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-24.76 in profit for every $100 of shareholder equity.
ROA
Travel + Leisure Co. generates $3.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Travel + Leisure Co. produces operating cash flow of $829.23M, showing steady but balanced cash generation.
Free Cash Flow
Travel + Leisure Co. generates strong free cash flow of $670.86M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.95 in free cash annually.
FCF Yield
TNL converts 15.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
-4.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-5.60
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.25
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How TNL Stacks Against Its Sector Peers
| Metric | TNL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.20 | 26.29 | Better (Cheaper) |
| ROE | -24.76% | 966.00% | Weak |
| Net Margin | 5.81% | -4927.00% (disorted) | Weak |
| Debt/Equity | -5.60 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 3.15 | 2.32 | Strong Liquidity |
| ROA | 3.45% | 295.00% | Weak |
TNL outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Travel + Leisure Co.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
144.33%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
219.32%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
124.60%
Industry Style: Cyclical, Growth, Discretionary
High Growth