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Travel + Leisure Co (TNL)
NYSE:TNL
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Travel + Leisure Co (TNL) AI Stock Analysis

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TNL

Travel + Leisure Co

(NYSE:TNL)

Rating:69Neutral
Price Target:
$68.00
▲(9.91%Upside)
Travel + Leisure Co's overall score is driven by strong financial performance and attractive valuation. Despite positive earnings and strategic growth, the negative equity and overbought technical indicators suggest caution. Strong corporate events and earnings call insights bolster confidence in long-term growth.
Positive Factors
Sales Performance
TNL's gross VOI sales exceeded expectations by 3%, reflecting strong sales performance.
Strategic Partnerships
New partnerships are expected to drive growth by expanding the new owner portion to 35% of the business.
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. SPDR S&P 500 ETF (SPY)

Travel + Leisure Co Business Overview & Revenue Model

Company DescriptionTravel + Leisure Co (TNL) is a leading global provider in the leisure travel industry, focusing on vacation ownership and exchange programs. The company operates through various segments, including Vacation Ownership, which offers vacation ownership interests (VOIs) to individuals, and Vacation Exchange, which provides access to a network of over 4,200 affiliated resorts in over 110 countries. Through its brands, such as Wyndham Destinations, Travel + Leisure Co provides a broad range of travel-related products and services designed to offer memorable vacation experiences.
How the Company Makes MoneyTravel + 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 Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: 6.95%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call presented mostly positive highlights with strong growth in revenue, EBITDA, and the Vacation Ownership business. Technological advancements and strategic partnerships further support future growth. However, challenges in the Travel and Membership segment and earlier delinquency trends were notable lowlights.
Q2-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Travel + Leisure reported over $1 billion in revenue, $250 million in adjusted EBITDA, and $1.65 in adjusted earnings per share, all up year-over-year.
Vacation Ownership Business Performance
The Vacation Ownership business showed healthy growth with a 3% increase in tours, a 6% revenue increase to $853 million, and a VPG of $3,251, up 7% from the previous year.
Technological Advancements and Partnerships
Recent investments in technology, such as the Club Wyndham app with 162,000 downloads, accounted for 19% of bookings. A partnership with Hornblower was announced to enhance owner experiences.
Strong Free Cash Flow and Shareholder Returns
The company returned $107 million to shareholders through dividends and share repurchases, and raised $300 million through a second ABS transaction of the year.
Expansion and New Brands
Travel + Leisure expanded its Margaritaville footprint and launched the Accor Vacation Club, with the first resort in Indonesia. A new Sports Illustrated Resorts location in Nashville was announced.
Negative Updates
Challenges in Travel and Membership Segment
The Travel and Membership segment faced a 6% revenue decline and an 11% drop in adjusted EBITDA due to industry consolidation and unanticipated M&A disruptions.
Delinquency Trends and Loan Loss Provisions
Earlier in the year, there was an uptick in delinquencies, although they moderated later. The full-year provision is expected to be 21%, with potential to trend below 20% over time.
Company Guidance
During the Travel + Leisure Second Quarter 2025 Earnings Conference Call, the company reported solid financial performance, achieving over $1 billion in revenue, $250 million in adjusted EBITDA, and $1.65 in adjusted earnings per share, all showing growth year-over-year. The company returned $107 million of capital to shareholders, driven by strong adjusted EBITDA and free cash flow. The Vacation Ownership segment led the growth with VOI sales increasing, supported by a volume per guest of $3,251, exceeding guidance. The adjusted EBITDA margin remained consistent at 25%. The company serves over 800,000 owner families, with an average household income of $118,000 and an average FICO score above 720. The Travel and Membership segment faced challenges, with revenue declining 6% to $166 million. The company maintained a resilient balance sheet, ending the quarter with over $800 million in liquidity and a leverage ratio of 3.4x. Looking ahead, Travel + Leisure expects full-year adjusted EBITDA between $955 million and $985 million, with gross VOI sales projected between $2.4 billion to $2.5 billion.

Travel + Leisure Co Financial Statement Overview

Summary
Travel + Leisure Co shows strong revenue and cash flow growth, reflecting operational success. However, negative equity on the balance sheet presents a significant risk. While profitability metrics are robust, the financial leverage and equity position need attention for long-term stability.
Income Statement
75
Positive
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
40
Negative
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.86B3.75B3.57B3.13B2.16B
Gross Profit2.12B1.82B1.73B1.54B927.00M
EBITDA910.00M860.00M878.00M751.00M42.00M
Net Income411.00M396.00M357.00M308.00M-253.00M
Balance Sheet
Total Assets6.74B6.74B6.76B6.59B7.61B
Cash, Cash Equivalents and Short-Term Investments184.00M306.00M562.00M396.00M1.23B
Total Debt5.67B5.73B5.75B5.45B6.58B
Total Liabilities7.62B7.66B7.66B7.38B8.58B
Stockholders Equity-881.00M-918.00M-913.00M-801.00M-975.00M
Cash Flow
Free Cash Flow383.00M276.00M390.00M511.00M305.00M
Operating Cash Flow464.00M350.00M442.00M568.00M374.00M
Investing Cash Flow-124.00M-80.00M-50.00M-93.00M-65.00M
Financing Cash Flow-458.00M-500.00M-196.00M-1.29B502.00M

Travel + Leisure Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price61.87
Price Trends
50DMA
51.72
Positive
100DMA
48.70
Positive
200DMA
49.69
Positive
Market Momentum
MACD
2.25
Negative
RSI
80.73
Negative
STOCH
70.49
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 61.87 is above the 20-day moving average (MA) of 55.80, above the 50-day MA of 51.72, and above the 200-day MA of 49.69, indicating a bullish trend. The MACD of 2.25 indicates Negative momentum. The RSI at 80.73 is Negative, neither overbought nor oversold. The STOCH value of 70.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$24.08B22.32119.16%0.42%5.57%61.19%
69
Neutral
$9.55B113.9022.38%18.13%-55.21%
69
Neutral
$4.11B10.70-46.70%3.43%2.88%4.73%
68
Neutral
$2.33B48.795.91%1.43%121.44%
63
Neutral
$17.32B10.90-7.25%3.10%1.66%-25.40%
59
Neutral
$1.24B20.22%2.56%69.08%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TNL
Travel + Leisure Co
61.87
19.27
45.23%
EXPE
Expedia
192.19
64.27
50.24%
MMYT
Makemytrip
101.90
11.03
12.14%
TRIP
TripAdvisor
18.24
0.81
4.65%
SABR
Sabre
3.27
0.12
3.81%

Travel + Leisure Co Corporate Events

Private Placements and FinancingStock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Travel + Leisure Co Reports Strong Q2 2025 Results
Positive
Jul 23, 2025

On July 23, 2025, Travel + Leisure Co. reported its financial results for the second quarter of 2025, highlighting a net income of $108 million and a 6% year-over-year increase in vacation ownership revenue. The company announced strong growth in volume per guest and tour flow, and it returned $107 million to shareholders through dividends and share repurchases. Additionally, the company extended its credit facilities and completed a $300 million securitization transaction, indicating a robust financial position. The company reaffirmed its full-year guidance and highlighted new projects in Orlando, Nashville, and Indonesia, showcasing its strategic growth and diversification efforts.

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.

Private Placements and FinancingBusiness Operations and Strategy
Travel + Leisure Co Announces New $1 Billion Credit Facility
Positive
Jun 25, 2025

On June 25, 2025, Travel + Leisure Co. announced the closing of the Seventh Amendment to its Credit Agreement, which established a new $1 billion revolving credit facility set to mature in June 2030. This amendment refinances the previous facility scheduled to mature in October 2026, offering improved terms such as reduced pricing spreads, elimination of the Term SOFR credit spread adjustment, and reduced minimum interest coverage ratio. These changes enhance the company’s financial flexibility, supporting its growth strategy and reflecting the stability of its business and strong banking relationships.

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.

Executive/Board ChangesShareholder Meetings
Travel + Leisure Co Holds 2025 Annual Meeting
Neutral
May 22, 2025

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.

Business Operations and Strategy
Travel + Leisure Co Releases New Investor Materials
Neutral
May 8, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Travel + Leisure Co Appoints New CFO Erik Hoag
Positive
May 1, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 24, 2025