Travel + Leisure Co (TNL) AI Stock Analysis

• Market Cap: $4.64B
• Dividend Yield: 3.07%
• Average Volume (3M): 562.65K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.23
• Revenue Growth: 3.17%
• EPS Growth: 12.57%
• Country: US
• Employees: 19,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): 1.80
• Shares Outstanding: 64,325,190
• 10 Day Avg. Volume: 625,469
• 30 Day Avg. Volume: 562,647
• PEG Ratio: 6.54
• Price to Book (P/B): -4.01
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 9.23
• Enterprise Value/Market Cap: 1.99
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 4.59
• Enterprise Value/Ebitda: 10.01
• 1Y Price Target: $71.57
• Price Target Upside: -1.77% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 6.34
• Revenue Forecast (FY): $4.00B

• Rating: 73 Outperform
• Price Target: $76.00 ▲(4.31% Upside)

Travel + Leisure Co's overall stock score is driven by strong technical indicators and attractive valuation, supported by positive earnings call sentiment. However, the financial performance is mixed, with significant leverage concerns on the balance sheet. Recent corporate events positively impact the score by enhancing financial flexibility.

Positive Factors

Cash Generation

Strong cash generation supports financial flexibility and shareholder returns, indicating efficient operations and sustainable business practices.

Vacation Ownership Growth

Growth in the Vacation Ownership segment reflects robust demand and strategic expansion, strengthening the company's core business model.

Credit Agreement Amendment

The amendment to the credit agreement reduces financing costs, improving financial health and enabling future investments and growth.

Negative Factors

High Leverage

High leverage and negative equity pose risks to financial stability, potentially limiting the company's ability to invest and grow.

Exchange Business Decline

Structural decline in the exchange business could weaken revenue streams and profitability, necessitating strategic adjustments.

Travel and Membership Segment Challenges

Challenges in the Travel and Membership segment indicate potential profitability issues, requiring strategic focus to address market shifts.

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 through several key streams. The primary source is the sale of vacation ownership interests, which allows customers to purchase time in a vacation property. TNL also earns revenue from the management of these properties, including maintenance fees and other associated costs. Additionally, the company generates income through its exchange services, allowing owners to trade their timeshares for stays at other properties worldwide. Advertising revenue from its travel publications and digital platforms further contributes to its earnings. Significant partnerships with hotels, resorts, and travel service providers also play a crucial role in enhancing its offerings and driving revenue growth.

Travel + Leisure Co Financial Statement Overview

Summary

Travel + Leisure Co shows a mixed financial performance. The income statement reflects strong profitability with commendable margins despite a decline in revenue. However, the balance sheet presents significant challenges with high leverage and negative equity. The cash flow statement is a strong point, indicating improved cash generation capabilities.

Income Statement

Travel + Leisure Co shows a mixed performance in its income statement. The TTM data reveals a decline in revenue growth rate, indicating a contraction in sales. However, the company maintains a strong gross profit margin of 56.26% and a net profit margin of 11.97%, which are commendable. The EBIT and EBITDA margins are also healthy, suggesting efficient operational management. Despite the revenue decline, the company has managed to sustain profitability, which is a positive indicator.

Balance Sheet

The balance sheet presents significant challenges for Travel + Leisure Co. The company has a negative stockholders' equity, leading to a concerning debt-to-equity ratio of -4.33 in the TTM period. This high leverage poses a risk to financial stability. Additionally, the return on equity is negative, reflecting the impact of the negative equity. While the company has substantial total assets, the high debt levels and negative equity are critical issues that need addressing.

Cash Flow

The cash flow statement is a strong point for Travel + Leisure Co. The TTM data shows a significant growth in free cash flow by 61.82%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.70, and the free cash flow to net income ratio is 0.83, both of which are healthy and suggest efficient cash management. Despite the revenue decline, the company has enhanced its cash flow position, which is a positive sign for future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.97B	3.86B	3.75B	3.57B	3.13B	2.16B
Gross Profit	2.01B	1.89B	1.82B	1.73B	1.57B	932.00M
EBITDA	923.00M	877.00M	848.00M	800.00M	751.00M	42.00M
Net Income	411.00M	411.00M	396.00M	357.00M	308.00M	-253.00M
Balance Sheet
Total Assets	6.89B	6.74B	6.74B	6.76B	6.59B	7.61B
Cash, Cash Equivalents and Short-Term Investments	240.00M	184.00M	296.00M	562.00M	396.00M	1.21B
Total Debt	5.58B	5.67B	5.73B	5.75B	5.45B	6.58B
Total Liabilities	7.71B	7.62B	7.66B	7.66B	7.38B	8.58B
Stockholders Equity	-821.00M	-881.00M	-918.00M	-913.00M	-801.00M	-975.00M
Cash Flow
Free Cash Flow	801.00M	383.00M	276.00M	390.00M	511.00M	305.00M
Operating Cash Flow	967.00M	464.00M	350.00M	442.00M	568.00M	374.00M
Investing Cash Flow	-101.00M	-124.00M	-80.00M	-50.00M	-93.00M	-65.00M
Financing Cash Flow	-699.00M	-458.00M	-500.00M	-196.00M	-1.29B	502.00M

Travel + Leisure Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 72.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 72.86 is above the 20-day moving average (MA) of 69.22, above the 50-day MA of 65.14, and above the 200-day MA of 55.51, indicating a bullish trend. The MACD of 2.15 indicates Negative momentum. The RSI at 73.88 is Negative, neither overbought nor oversold. The STOCH value of 88.43 is Negative, 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	80 Outperform	$35.44B	27.67	104.40%	0.55%	7.29%	36.51%
TNL	73 Outperform	$4.64B	11.85	―	3.07%	3.17%	12.57%
ABNB	71 Outperform	$83.27B	32.40	30.78%	―	10.56%	47.16%
TCOM	71 Outperform	$47.47B	11.60	19.96%	0.38%	17.34%	91.51%
TRIP	67 Neutral	$1.62B	22.38	9.57%	―	4.24%	159.81%
MMYT	65 Neutral	$8.22B	129.74	16.66%	―	14.55%	-68.46%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Travel + Leisure Co Corporate Events

Travel + Leisure Co Amends Credit Agreement for Growth

On December 10, 2025, Travel + Leisure Co. announced the closing of the Eighth Amendment to its Credit Agreement, which involved repricing $869 million of outstanding borrowings under the 2024 Term Loan B Facility. This repricing reduced the interest rate by 50 basis points, reflecting the company’s strong business model and improved credit profile, thus enhancing financial flexibility and supporting its growth and value creation strategies.

Travel + Leisure Co Releases New Investor Presentation

On November 12, 2025, Travel + Leisure Co. released new investor presentation materials on its website for use in meetings with investors and for marketing purposes. The company emphasizes the importance of monitoring its website and LinkedIn for updates on operations and prospects, indicating a strategic approach to investor relations and transparency.

Travel + Leisure Co Reports Strong Q3 2025 Results

On October 22, 2025, Travel + Leisure Co. announced its financial results for the third quarter of 2025, reporting a net income of $111 million on a revenue of $1.04 billion. The company achieved a 6% increase in Vacation Ownership revenue and a 10% increase in volume per guest year-over-year. The company also returned $106 million to shareholders through dividends and share repurchases. Travel + Leisure Co. exceeded its Adjusted EBITDA guidance and continued to execute its strategy, marking progress with new partnerships and expanding its brand portfolio. The company also updated its full-year guidance, raising the mid-point of its Adjusted EBITDA outlook.