Travel + Leisure Co (TNL) AI Stock Analysis

• Market Cap: $3.35B
• Dividend Yield: 4.43%
• Average Volume (3M): 600.13K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.19
• Revenue Growth: 2.98%
• EPS Growth: 3.46%
• Country: US
• Employees: 19,000
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Travel Services
• EPS (TTM): 1.11
• Shares Outstanding: 66,415,596
• 10 Day Avg. Volume: 582,471
• 30 Day Avg. Volume: 600,129
• PEG Ratio: 2.65
• Price to Book (P/B): -3.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.00
• Enterprise Value/Market Cap: 2.58
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 3.73
• Enterprise Value/Ebitda: 2.50
• 1Y Price Target: $53.75
• Price Target Upside: 7.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 70 Neutral
• Price Target: $53.00 ▲(6.06%Upside)

The stock demonstrates strong valuation and technical indicators, supporting a stable outlook. However, financial risks due to negative equity and segment-specific challenges temper the overall score. Positive corporate events and earnings call further enhance the stock's potential.

Positive Factors

Consumer Spending

TNL is well-positioned to benefit from strong consumer travel spending trends driven by its diversified product and brand portfolio.

Earnings

Travel + Leisure reported 1Q25 EBITDA of $202M, ahead of expectations, driven by strong performance in the core vacation ownership segment.

Revenue Growth

TNL's ongoing property development and new marketing partnerships, along with its ability to leverage technology to improve customer experience, will continue to drive increasing revenue and cash flow 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 Business Overview & Revenue Model

Company Description

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. The Travel and Membership segment operates various businesses, including three vacation exchange brands, a home exchange network, travel technology platforms, travel memberships, and direct-to-consumer rentals. As of January 26, 2022, it had approximately 245 vacation ownership resorts. It also offers private-label travel booking technology solutions. The company was formerly known as Wyndham Destinations, Inc. and changed its name to Travel + Leisure Co. in February 2021. Travel + Leisure Co. was founded in 1990 and is headquartered in Orlando, Florida.

How the Company Makes Money

Travel + Leisure Co generates revenue primarily through the sale of vacation ownership interests (VOIs) and the provision of related financing. The company also earns income from its Vacation Exchange segment by charging membership fees and transaction fees for facilitating exchanges between members. Additionally, TNL derives revenue from property management fees and sales of ancillary travel products and services. Strategic partnerships with hospitality businesses and a strong global network of affiliated resorts further bolster its revenue streams, while enhancing customer engagement and expanding market reach.

Travel + Leisure Co Financial Statement Overview

Summary

Travel + Leisure Co is experiencing strong revenue and cash flow growth, indicative of operational success. While profitability metrics are robust, the negative equity on the balance sheet presents a considerable risk. Overall, the company shows promising growth potential but needs to address its financial leverage and equity position to ensure long-term financial 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.

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.

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.

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	910.00M	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
5.47B	5.50B	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	-881.00M	-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

• Technical Analysis Sentiment: Positive
• Last Price: 49.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNL, the sentiment is Positive. The current price of 49.97 is above the 20-day moving average (MA) of 49.39, above the 50-day MA of 46.26, and above the 200-day MA of 48.60, indicating a bullish trend. The MACD of 0.74 indicates Positive momentum. The RSI at 58.49 is Neutral, neither overbought nor oversold. The STOCH value of 78.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TNL.

Travel + Leisure Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPE	77 Outperform	$22.13B	20.51	119.16%	0.92%	5.57%	61.19%
MMYT	75 Outperform	$10.84B	117.03	8.33%	―	28.51%	367.34%
TRIP	73 Outperform	$1.87B	39.14	5.91%	―	1.43%	121.44%
DESP	72 Outperform	$1.63B	102,695.56	96.85%	―	9.63%	-113.00%
TNL	70 Neutral	$3.35B	9.14	-46.70%	4.43%	2.98%	3.46%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
SABR	57 Neutral	$1.15B	―	20.22%	―	2.56%	69.08%

Travel + Leisure Co Corporate Events

Travel + Leisure Co Holds 2025 Annual Meeting

On May 21, 2025, Travel + Leisure Co. held its 2025 Annual Meeting where shareholders voted on three proposals. The shareholders elected directors to serve until the 2026 annual meeting, approved the compensation of named executive officers on a non-binding basis, and ratified Deloitte & Touche LLP as the independent public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (TNL) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Travel + Leisure Co stock, see the TNL Stock Forecast page.

Travel + Leisure Co Releases New Investor Materials

On May 8, 2025, Travel + Leisure Co. released new investor presentation materials on its website, which will be used in meetings with the investment community and for general marketing. This move indicates the company’s strategy to enhance transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations.

Travel + Leisure Co Appoints New CFO Erik Hoag

Travel + Leisure Co. announced the appointment of Erik Hoag as the new Chief Financial Officer effective May 1, 2025, amid a period of strategic growth and brand expansion. Hoag, who brings over 25 years of financial leadership experience, will oversee the company’s global finance operations and contribute to its multi-brand strategy, which includes recent acquisitions like Accor Vacation Club and Sports Illustrated Resorts, positioning the company for continued market leadership.

Travel + Leisure Co Reports Strong Q1 2025 Results

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.