Travel & Leisure Co. (TNL) stock analysis
Close on Nov 12, 2026Market cap $4.71BP/E 20.8Yield 2.86%
StockData Score
Prices as of Nov 11, 2026How the score works
Weak6 of 30 checks passed
Travel & Leisure passes 6 of the 30 checks behind our score; 9 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 2/6
- Growth
- 1/6
- Past performance
- 0/6
- Financial health
- 0/6
- Dividend
- 3/6
What stands out
P/E below the industry
Travel & Leisure's P/E of 21.3 is below the Hotels and Motels median of 25.6.
Covered by free cash flow
Dividends take 35.7% of free cash flow.
Covered by earnings
Dividends take 63.4% of net income.
P/S below the industry
Travel & Leisure's price-to-sales of 1.16 is below the Hotels and Motels median of 1.60 (book value is negative, so we use sales).
What to watch
Margin of safety under 20%
The price is 12.6% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $80.05 is above our fair value estimate of $71.07.
Revenue growing under 10% a year
Revenue grew 4.1% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -6.7% a year over the last three fiscal years.
Valuation2/6
P/E above its 5-year median
Travel & Leisure's P/E of 21.3 is above its own 5-year median of 9.4.
P/E below the industry
Travel & Leisure's P/E of 21.3 is below the Hotels and Motels median of 25.6.
EV/EBITDA above its 5-year median
Travel & Leisure's EV/EBITDA of 6.7 is above its 5-year median of 4.1.
P/S below the industry
Travel & Leisure's price-to-sales of 1.16 is below the Hotels and Motels median of 1.60 (book value is negative, so we use sales).
Trading above fair value
The share price of $80.05 is above our fair value estimate of $71.07.
Margin of safety under 20%
The price is 12.6% above fair value, so there is no margin of safety.
Growth1/6
Revenue growing under 10% a year
Revenue grew 4.1% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -6.7% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 4.6% over the last twelve months; the Hotels and Motels median is 3.9%.
Guidance lowered
Travel & Leisure lowered its 2026 full year VPG outlook on Oct 27, 2026.
Gross margin slipping
Gross margin was 92.7% over the last twelve months, against 98.3% a year earlier.
Past performance0/6
Return on equity
Needs positive equity and five years of results.
Return on invested capital
Needs operating income and invested capital.
Return on equity against the industry
Needs positive equity.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin below its 5-year average
Net margin was 5.7% over the last twelve months, against a 5-year average of 9.4%.
Net margin below the industry
Travel & Leisure's net margin of 5.7% is below the Hotels and Motels median of 5.7%.
Financial health0/6
Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt coverage
Needs operating cash flow.
Interest not well covered
Operating income covers interest expense 2.4 times; we look for at least 5.
Short-term liquidity
The balance sheet is not split into current and non-current items.
Elevated bankruptcy risk
The Altman Z-score is 1.66; above 3 is the safe zone and below 1.8 the distress zone.
Dividend3/6
Pays a dividend
Travel & Leisure paid dividends worth 2.9% of the share price over the last twelve months.
Yield below Treasuries
The 2.9% yield is below the 4.4% on a 1-year Treasury.
Yield below the top quarter
The top quarter of US dividend payers yield 3.8% or more; Travel & Leisure yields 2.9%.
Dividend was cut
The dividend per share fell by more than 10% at least once in the last 10 fiscal years.
Covered by earnings
Dividends take 63.4% of net income.
Covered by free cash flow
Dividends take 35.7% of free cash flow.
Fair value
How we estimate itOur estimate per share
$71.07
The share price is 13% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 17.4× | 9.4× | 25.6× | $65.55 | 44% |
| EV/EBITDA | 6.9× | 4.1× | 9.7× | $81.92 | 39% |
| Earnings power | 10.8% cost of equity | – | – | $60.47 | 17% |
| Fair value | $71.07 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 9.4
- Hotels and Motels median 25.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $59.41M
- Value traded per 1% price move
- $33.82M
Downside
Medium risk
- Typical loss in a bad month
- 17.2%
- Volatility (annualized)
- 33%
- Sharpe ratio, 1 year
- 0.59
- Beta to the S&P 500 (5Y)
- 1.19
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +4.1% | +4.1% | +13.2% | -1.9% | |
| Gross profit | -0.6% | +3.2% | +11.7% | – | |
| Operating income | -24.6% | -5.4% | – | -5.1% | |
| Net income | -44.0% | -13.6% | – | -9.3% | |
| EPS, diluted | -40.9% | -6.7% | – | -3.9% | |
| Free cash flow | +36.6% | +10.3% | +11.4% | -4.2% | |
| Dividend per share | +12.0% | +11.9% | +7.0% | +2.9% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 73.4% | 33.9% | -24.7% | |
| Return on assets | 6.3% | -3.4% | 3.4% | |
| Current ratio | 0.89 | – | – | |
| Interest coverage | 4.9× | -0.5× | 2.4× | |
| Inventory turnover | – | 0.0× | 0.2× | |
| Capex to revenue | 3.2% | 3.2% | 2.9% | |
| Diluted shares | 111M | 86M | 67M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Travel & Leisure generated $2.46B from operations and spent $2.27B on capital expenditure, dividends and share buybacks. 17% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 5.7% | 0.60× | -7.25× | -24.7% |
| FY2024 | 10.6% | 0.57× | -7.49× | -45.7% |
| FY2023 | 10.6% | 0.56× | -7.37× | -43.3% |
| FY2022 | 10.0% | 0.53× | -7.79× | -41.7% |
| FY2021 | 9.8% | 0.44× | -8.00× | -34.7% |
| FY2020 | -11.8% | 0.29× | -10.01× | 33.9% |
| FY2019 | 12.5% | 0.55× | -13.23× | -91.8% |
| FY2018 | 17.1% | 0.45× | 90.30× | 689.2% |
| FY2017 | 22.4% | 0.38× | 13.67× | 115.2% |
| FY2016 | 16.5% | 0.38× | 11.66× | 73.4% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$230.00M
- Cash generatingOperating cash flow above zero$640.00M
- Return on assets improvedROA up on the prior year6.1% → 3.4%
- Earnings backed by cashOperating cash flow above net income$640.00M vs $230.00M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose– → –
- No dilutionShare count did not rise71M → 67M
- Gross margin improvedGross margin up on the prior year97.62% → 93.21%
- More efficientAsset turnover rose0.57 → 0.60
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