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Travel + Leisure Co (TNL)
NYSE:TNL
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Travel + Leisure Co
(NYSE:TNL)
61Neutral
Positive Factors
Financial Performance
Travel + Leisure reported 1Q25 EBITDA of $202M, ahead of expectations, driven by strong performance in the core vacation ownership segment.
Market Positioning
TNL is well-positioned to benefit from strong consumer travel spending trends driven by its diversified product and brand portfolio.
Strategic Growth
TNL's acquisitions and business partnerships create significant opportunities for incremental property and customer acquisition and accelerating growth.
Negative Factors
Financial Pressure
There is concern around tour flow and an increase in provisions, indicating some financial pressure on the company.
Loan Portfolio
An increased level of delinquency in the loan portfolio was noted, particularly among lower FICO bands, leading to a raised loan loss provision.
Travel + Leisure Co (TNL) vs. S&P 500 (SPY)
Market Cap
$2.92B
Dividend Yield4.68%
Average Volume (3M)855.41K
Price to Earnings (P/E)7.9
Beta (1Y)1.16
Revenue Growth2.98%
EPS Growth3.46%
CountryUS
Employees19,000
SectorConsumer Cyclical
Sector Strength63
IndustryTravel Services
Share Statistics
EPS (TTM)5.52
Shares Outstanding66,415,596
10 Day Avg. Volume901,714
30 Day Avg. Volume855,407
Financial Highlights & Ratios
PEG Ratio2.29
Price to Book (P/B)N/A
Price to Sales (P/S)0.81
Price to Cash Flow (P/CF)8.00
P/FCF Ratio2.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$59.13Price Target Upside34.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Travel + Leisure Co Business Overview & Revenue Model
Company DescriptionTravel + Leisure Co (TNL) is a leading global provider of travel and leisure experiences, offering a broad range of products and services designed to cater to the diverse needs of travelers. The company operates in sectors such as vacation ownership, exchange, and travel-related services. Its core offerings include timeshare properties, membership-based travel clubs, and comprehensive travel planning and booking services. With a portfolio that spans renowned brands and destinations worldwide, Travel + Leisure Co aims to deliver memorable travel experiences and exceptional customer service.
How the Company Makes MoneyTravel + Leisure Co generates revenue through multiple channels. A significant portion of its income comes from its vacation ownership business, where customers purchase timeshare interests in properties, often financing these purchases through the company's credit facilities. Additionally, it earns fees from managing these vacation properties. The company's travel and membership services also contribute to its earnings, with revenue derived from annual membership fees, transaction fees for travel bookings, and commission from third-party travel service providers. Moreover, partnerships with hospitality companies and marketing agreements further enhance its revenue streams, allowing Travel + Leisure Co to offer a comprehensive suite of services to its clientele.
Travel + Leisure Co Financial Statement Overview
Summary
Travel + Leisure Co is demonstrating strong revenue growth and operational success, with solid cash flow generation. However, the negative equity on the balance sheet presents a significant risk that needs to be addressed for long-term stability.Income Statement
The company has demonstrated solid revenue growth, with a 9% increase in total revenue from 2022 to 2023 and continued growth into the TTM period. Gross profit margins are strong at around 59.6% in the TTM period. However, net profit margin slightly declined from 10.6% in 2024 to 9.9% in the TTM period, indicating some pressure on profitability. EBIT and EBITDA margins have remained stable, reflecting operational efficiency.75
Positive
Balance Sheet
The company has a negative stockholders' equity, which indicates potential financial instability. The total debt was eliminated in the TTM period, improving the debt-to-equity scenario, but the negative equity is concerning. There is no debt-to-equity ratio due to negative equity. The equity ratio is also negative due to negative equity, indicating high leverage and potential financial risk.40
Negative
Cash Flow
Free cash flow showed an impressive growth of 18.3% from 2023 to the TTM period, indicating strong cash generation. The operating cash flow to net income ratio is 1.39 in the TTM period, reflecting good earnings quality. However, despite positive cash flow metrics, the company faces challenges with financing cash flow and capital expenditures.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.88B | 3.86B | 3.75B | 3.57B | 3.13B | 2.16B | Gross Profit |
| 2.31B | 2.12B | 1.82B | 1.73B | 1.54B | 927.00M | EBIT |
| 741.00M | 733.00M | 720.00M | 653.00M | 618.00M | 95.00M | EBITDA |
| 873.00M | 877.00M | 860.00M | 878.00M | 751.00M | 42.00M | Net Income Common Stockholders |
| 386.00M | 411.00M | 396.00M | 357.00M | 308.00M | -253.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 188.00M | 184.00M | 306.00M | 562.00M | 396.00M | 1.23B | Total Assets |
| 6.76B | 6.74B | 6.74B | 6.76B | 6.59B | 7.61B | Total Debt |
| 5.66B | 5.67B | 5.73B | 5.75B | 5.45B | 6.58B | Net Debt |
| -188.00M | -167.00M | 5.45B | 5.20B | 5.08B | 5.38B | Total Liabilities |
| 7.67B | 7.62B | 7.66B | 7.66B | 7.38B | 8.58B | Stockholders Equity |
| -903.00M | -880.00M | -918.00M | -913.00M | -801.00M | -975.00M |
| Cash Flow | Free Cash Flow | ||||
| 453.00M | 383.00M | 276.00M | 390.00M | 511.00M | 305.00M | Operating Cash Flow |
| 538.00M | 464.00M | 350.00M | 442.00M | 568.00M | 374.00M | Investing Cash Flow |
| -89.00M | -124.00M | -80.00M | -50.00M | -93.00M | -65.00M | Financing Cash Flow |
| -724.00M | -458.00M | -500.00M | -196.00M | -1.29B | 502.00M |
Travel + Leisure Co Technical Analysis
Neutral
44.02
Price Trends
48.11
Negative
50.24
Negative
47.77
Negative
Market Momentum
-1.37
Negative
49.13
Neutral
56.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNL, the sentiment is Neutral. The current price of 44.02 is above the 20-day moving average (MA) of 42.80, below the 50-day MA of 48.11, and below the 200-day MA of 47.77, indicating a neutral trend. The MACD of -1.37 indicates Negative momentum. The RSI at 49.13 is Neutral, neither overbought nor oversold. The STOCH value of 56.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TNL.
Travel + Leisure Co Risk Analysis
Travel + Leisure Co disclosed 24 risk factors in its most recent earnings report. Travel + Leisure Co reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Travel + Leisure Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $10.75B | 45.97 | 23.09% | ― | 28.51% | 367.34% | |
71 Outperform | $20.63B | 17.83 | 79.84% | 0.25% | 6.64% | 69.85% | |
68 Neutral | $1.60B | 101,162.79 | ― | 16.73% | 3705.88% | ||
61 Neutral | $2.92B | 7.92 | -46.70% | 4.68% | 2.98% | 3.46% | |
60 Neutral | $1.79B | 771.52 | 0.55% | ― | 2.63% | -58.77% | |
60 Neutral | $6.86B | 11.61 | 3.16% | 4.15% | 2.41% | -21.45% | |
46 Neutral | $845.49M | ― | 20.22% | ― | 4.19% | 53.84% |
* Consumer Cyclical Sector Average
Performance Comparison
TNL
Travel + Leisure Co
44.02
0.60
1.38%
EXPE
Expedia
160.11
23.74
17.41%
MMYT
Makemytrip
107.64
39.87
58.83%
TRIP
TripAdvisor
12.73
-14.27
-52.85%
SABR
Sabre
2.19
-0.67
-23.43%
DESP
Despegar
19.14
6.46
50.95%
Travel + Leisure Co Earnings Call Summary
Earnings Call Date: Apr 23, 2025 | % Change Since: 3.24% | Next Earnings Date: Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a strong financial performance in Q1 2025, with significant adjusted EBITDA growth and successful capital returns to shareholders. However, challenges in the travel and membership segment and increased delinquencies in the loan portfolio present areas of concern. The positive highlights related to profitability and consumer demand indicators are countered by macroeconomic uncertainties and segment-specific issues.Highlights
Strong Adjusted EBITDA Growth
Travel + Leisure Co. delivered $202 million of adjusted EBITDA in Q1 2025, at the high end of the guidance range and a 6% increase from the previous year.
Increase in Dividend and Share Repurchases
The company increased its dividend by 12% to $0.56 per share and repurchased $70 million worth of shares, returning $111 million to shareholders in Q1.
High Volume Per Guest (VPG)
The VPG was reported at $3,212, significantly above $3,000, indicating strong consumer demand for vacation ownership.
Positive Consumer KPIs
Despite macroeconomic uncertainty, consumer KPIs remained strong with accelerated resort bookings and high search-to-book conversion rates via the Club Wyndham app.
Successful ABS Transaction
The company closed a $350 million ABS transaction with favorable terms, including a 98% advance rate and 5.2% interest rate.
Lowlights
Decline in Travel and Membership Segment
Revenue in the travel and membership segment was down 7%, with a 13% decline in exchange transactions, despite a 3% growth in travel club transactions.
Increased Delinquencies in Loan Portfolio
The improvement in portfolio delinquencies usually seen from December to March did not occur, leading to a higher provision rate of 21% in the full-year EBITDA guidance.
Uncertainty in Macro Outlook
Incremental uncertainty in the macroeconomic outlook and progressively falling consumer sentiment in 2025 were noted as concerns.
Company Guidance
During the Travel + Leisure Co. Q1 2025 earnings call, the company reported strong financial results, with adjusted EBITDA reaching $202 million, at the high end of their guidance range. Their vacation ownership business saw volume per guest (VPG) rise to $3,212, maintaining levels well above $3,000. Consolidated adjusted EBITDA margins increased from 21% to 22%, while the dividend was raised by 12% to $0.56 per share, and $70 million was spent on share repurchases. The company reiterated their full-year adjusted EBITDA guidance of $955 to $985 million, despite challenges in their travel and membership segment, which experienced a 13% decline in exchange transactions. The company also noted strong forward bookings and resilient consumer demand, supported by investments in technology such as the Club Wyndham app, which boasts a 71% search-to-book conversion rate. Looking ahead to Q2, adjusted EBITDA is expected to be between $245 million and $255 million, with continued emphasis on managing delinquencies and optimizing tour flow.Travel + Leisure Co Corporate Events
Stock BuybackDividendsFinancial Disclosures
Travel + Leisure Co Reports Strong Q1 2025 Results
Positive
Apr 23, 2025
On April 23, 2025, Travel + Leisure Co. reported its financial results for the first quarter of 2025, showing a net income of $73 million on a revenue of $934 million. The company demonstrated strong performance in its vacation ownership business, with a 6% increase in volume per guest and a significant rise in guest satisfaction. Despite a 7% decrease in travel and membership revenue, the company maintained a positive outlook, expecting a busy summer travel season and reaffirming its full-year adjusted EBITDA guidance. The company also returned $111 million to shareholders through dividends and share repurchases.
Spark’s Take on TNL Stock
According to Spark, TipRanks’ AI Analyst, TNL is a Neutral.
Travel + Leisure Co’s stock performance reflects a balance of strengths and risks. Strong financial performance and attractive valuation are offset by technical weakness and negative equity. Positive earnings call sentiment and strategic initiatives bolster growth prospects, but higher interest rates and structural challenges pose risks. Overall, the stock presents moderate potential with notable downside risks.
To see Spark’s full report on TNL stock, click here.
Business Operations and StrategyFinancial Disclosures
Travel + Leisure Co. Reports Strong 2024 Financial Results
Positive
Feb 19, 2025
On February 19, 2025, Travel + Leisure Co. reported robust financial results for the fourth quarter and full year of 2024, with significant achievements such as a net income of $411 million and net revenue of $3.9 billion for the year. The company highlighted a strong performance in vacation ownership sales, attributing its success to strategic acquisitions and effective cost management. Looking forward, the company projects continued profitable growth in 2025, focusing on expanding its vacation ownership business and enhancing shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.