Travel + Leisure Co. (TNL)
NYSE:TNL
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Travel + Leisure Co
(NYSE:TNL)
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Rating:60Neutral
Price Target:
$69.00
▼(-11.91% Downside)
Action:Reiterated
Date:05/12/26
Overall score reflects solid cash generation and constructive earnings-call guidance/capital return actions, offset by a high-risk capital structure (negative equity and high debt) and weak current technical momentum; valuation (moderate P/E and ~3.47% yield) is supportive but secondary.
Positive Factors
Strong cash generation
Trailing‑twelve‑month operating cash flow (~$0.91B) and free cash flow (~$0.74B) demonstrate durable cash conversion from core operations. That recurring cash generation supports reinvestment, shareholder returns and debt service, providing structural financial flexibility over the medium term.
Negative Factors
Weak balance sheet / negative equity
Persistent negative shareholders’ equity and very high absolute debt elevate leverage and refinancing risk for a cyclical travel business. This structural weakness limits capital allocation flexibility, increases vulnerability to credit market shifts and constrains downside protection in downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Trailing‑twelve‑month operating cash flow (~$0.91B) and free cash flow (~$0.74B) demonstrate durable cash conversion from core operations. That recurring cash generation supports reinvestment, shareholder returns and debt service, providing structural financial flexibility over the medium term.
Read all positive factors
Travel + Leisure Co (TNL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.90B
Dividend Yield3.1%
Average Volume (3M)965.96K
Price to Earnings (P/E)13.8
Beta (1Y)1.24
Revenue Growth3.85%
EPS Growth-34.76%
CountryUS
Employees19,000
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)3.61
Shares Outstanding62,421,616
10 Day Avg. Volume845,882
30 Day Avg. Volume965,958
Financial Highlights & Ratios
PEG Ratio-0.58
Price to Book (P/B)-4.71
Price to Sales (P/S)1.15
P/FCF Ratio8.85
Enterprise Value/Market Cap2.41
Enterprise Value/Revenue2.32
Enterprise Value/Gross Profit5.38
Enterprise Value/Ebitda13.52
Forecast
1Y Price Target
$85.00Price Target Upside8.52% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)7.4
Revenue Forecast (FY)$4.10B
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 ...
How the Company Makes Money
Travel + Leisure Co. primarily makes money through a combination of (1) selling vacation ownership products, (2) earning ongoing fees tied to those ownership products, (3) earning interest income from financing those purchases, and (4) collecting ...
Travel + Leisure Co Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The earnings call presented a largely positive operational and financial performance: revenue, EBITDA, EPS, margin expansion, Vacation Ownership strength, multi-brand momentum, and strong liquidity and capital returns. Challenges remain in the Travel & Membership segment (secular decline in exchange activity), early-stage delinquencies in recent loan vintages, slightly weaker new-owner conversion, and a backloaded free cash flow profile due to inventory investments. Management reiterated full-year guidance and emphasized confidence in execution while noting macro uncertainty. On balance, the positive results and traction on strategic initiatives outweigh the headwinds described.Positive Updates
Revenue, EBITDA and EPS Outperformance
Reported Q1 revenue of $961 million (up 3% YoY), adjusted EBITDA of $225 million (up 11% YoY) and adjusted EPS of $1.45 (EPS growth 31% YoY). EBITDA exceeded guidance and management reiterated full-year guidance.
Negative Updates
Travel & Membership Revenue and EBITDA Decline
Travel & Membership segment revenue was $165 million, down 8% YoY, and segment EBITDA was $59 million, down 13% YoY, driven by continued secular mix shift away from the higher-margin exchange business toward lower-margin travel clubs. Exchange subscribers ~3.3 million, down ~2% YoY.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue, EBITDA and EPS Outperformance
Reported Q1 revenue of $961 million (up 3% YoY), adjusted EBITDA of $225 million (up 11% YoY) and adjusted EPS of $1.45 (EPS growth 31% YoY). EBITDA exceeded guidance and management reiterated full-year guidance.
Read all positive updates
Company Guidance
They reiterated full‑year 2026 guidance, forecasting gross VOI sales of $2.5–$2.6 billion, adjusted EBITDA of $1.03–$1.055 billion, and VPG of $3,175–$3,275, with roughly half of full‑year EBITDA converting to free cash flow, an adjusted tax rate of ~29% and year‑over‑year EPS growth “in the teens.” For Q2 they guided gross VOI sales of $660–$690 million, EBITDA of $260–$270 million and VPG of $3,200–$3,250. They noted Q1 inventory drawdowns reduced near‑term free cash flow but do not change the full‑year ~50% conversion expectation, and balance‑sheet metrics remain healthy (leverage just below 3.2x and >$1 billion liquidity).Travel + Leisure Co Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
28
Negative
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.05B | 4.02B | 3.86B | 3.75B | 3.57B | 3.13B |
| Gross Profit | 1.75B | 1.09B | 1.89B | 1.82B | 1.73B | 1.57B |
| EBITDA | 696.00M | 828.00M | 877.00M | 848.00M | 800.00M | 751.00M |
| Net Income | 237.00M | 230.00M | 411.00M | 396.00M | 357.00M | 308.00M |
Balance Sheet | ||||||
| Total Assets | 6.84B | 6.76B | 6.74B | 6.74B | 6.76B | 6.59B |
| Cash, Cash Equivalents and Short-Term Investments | 254.00M | 253.00M | 184.00M | 296.00M | 562.00M | 396.00M |
| Total Debt | 5.75B | 4.91B | 5.67B | 5.73B | 5.75B | 5.45B |
| Total Liabilities | 7.86B | 7.74B | 7.62B | 7.66B | 7.66B | 7.38B |
| Stockholders Equity | -1.02B | -982.00M | -881.00M | -918.00M | -913.00M | -801.00M |
Cash Flow | ||||||
| Free Cash Flow | 737.00M | 523.00M | 383.00M | 276.00M | 390.00M | 511.00M |
| Operating Cash Flow | 910.00M | 640.00M | 464.00M | 350.00M | 442.00M | 568.00M |
| Investing Cash Flow | -103.00M | -107.00M | -124.00M | -80.00M | -50.00M | -93.00M |
| Financing Cash Flow | -628.00M | -443.00M | -458.00M | -500.00M | -196.00M | -1.29B |
Travel + Leisure Co Technical Analysis
Negative
78.33
Price Trends
68.98
Negative
70.60
Negative
66.41
Negative
Market Momentum
-2.12
Positive
38.23
Neutral
9.71
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNL, the sentiment is Negative. The current price of 78.33 is above the 20-day moving average (MA) of 64.17, above the 50-day MA of 68.98, and above the 200-day MA of 66.41, indicating a bearish trend. The MACD of -2.12 indicates Positive momentum. The RSI at 38.23 is Neutral, neither overbought nor oversold. The STOCH value of 9.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TNL.
Travel + Leisure Co Risk Analysis
Travel + Leisure Co disclosed 25 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $80.94B | 117.99 | 31.24% | ― | 13.18% | 2.35% | |
71 Outperform | $32.33B | 19.53 | 20.98% | 0.39% | 17.27% | 94.65% | |
67 Neutral | $26.34B | 113.42 | 154.33% | 0.56% | 10.01% | 33.63% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $3.90B | 13.84 | -25.77% | 3.10% | 3.85% | -34.76% | |
54 Neutral | $4.26B | 276.78 | 31.18% | ― | 6.71% | -41.74% | |
52 Neutral | $1.11B | -9.49 | 2.86% | ― | 2.03% | -64.68% |
* Consumer Cyclical Sector Average
TNL
Travel + Leisure Co
62.69
14.81
30.93%
TCOM
Trip.com Group Sponsored ADR
48.95
-14.43
-22.77%
EXPE
Expedia
215.00
53.79
33.37%
MMYT
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41.46
-62.29
-60.04%
TRIP
TripAdvisor
9.30
-5.31
-36.34%
ABNB
Airbnb
131.16
-0.97
-0.73%
Travel + Leisure Co Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Travel + Leisure Announces New Senior Secured Notes Offering
Positive
May 11, 2026
On May 11, 2026, Travel + Leisure Co. entered into a purchase agreement with Deutsche Bank Securities Inc. and other initial purchasers for a private offering of $900 million in 6.250% senior secured notes due 2031, targeting qualified institution...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
Travel + Leisure Posts Solid Q1, Reaffirms 2026 Outlook
Positive
Apr 22, 2026
On April 22, 2026, Travel + Leisure Co. reported first-quarter 2026 results showing net revenue of $961 million, net income of $79 million and Adjusted EBITDA of $225 million, with gross vacation ownership interest sales up 7% and volume per guest...
Business Operations and StrategyRegulatory Filings and Compliance
Travel + Leisure Updates Investor Presentation and Disclosure Materials
Neutral
Mar 10, 2026
On March 9, 2026, Travel + Leisure Co. posted new written investor presentation materials on its investor relations website, signaling an updated communication package for use in meetings with the investment community and broader marketing efforts...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Travel + Leisure posts 2025 results, boosts 2026 outlook
Positive
Feb 18, 2026
Travel + Leisure Co. reported its fourth quarter and full-year 2025 results on February 18, 2026, posting 2025 net revenue of $4.02 billion and net income of $230 million, despite $216 million in inventory write-downs tied to a Resort Optimization...
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.