Travel + Leisure Co (TNL)
NYSE:TNL
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Travel + Leisure Co
(NYSE:TNL)
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Rating:63Neutral
Price Target:
$80.00
▲(18.19% Upside)
Action:DowngradedDate:02/19/26
The score is held back mainly by balance-sheet risk (negative equity) and 2025 margin/net income compression, despite solid cash generation. Technicals are supportive with the stock trading above key moving averages, and the latest earnings call/guidance is broadly constructive with ongoing buybacks/dividend support. Valuation appears reasonable but not cheap at ~21x earnings.
Positive Factors
Strong cash generation and FCF conversion
Consistent operating cash flow and meaningful free cash flow show the business converts revenue into cash sustainably. This supports reinvestment, dividends and buybacks, and provides a durable buffer against cyclical softness while enabling strategic initiatives over the next 2–6 months.
Negative Factors
Persistent negative shareholders' equity
Negative equity is a structural balance-sheet weakness that distorts return metrics and limits flexibility for large capital actions. It raises refinancing and covenant sensitivity and can constrain strategic options if macro credit conditions tighten over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and FCF conversion
Consistent operating cash flow and meaningful free cash flow show the business converts revenue into cash sustainably. This supports reinvestment, dividends and buybacks, and provides a durable buffer against cyclical softness while enabling strategic initiatives over the next 2–6 months.
Read all positive factors
Travel + Leisure Co (TNL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.22B
Dividend Yield3.1%
Average Volume (3M)674.68K
Price to Earnings (P/E)20.1
Beta (1Y)1.27
Revenue Growth3.17%
EPS Growth12.57%
CountryUS
Employees19,000
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)1.83
Shares Outstanding62,397,736
10 Day Avg. Volume644,343
30 Day Avg. Volume674,684
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 Cap2.10
Enterprise Value/Revenue2.21
Enterprise Value/Gross Profit5.34
Enterprise Value/Ebitda12.81
Forecast
1Y Price Target
$87.10Price Target Upside28.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)7.28
Revenue Forecast (FY)$4.12B
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 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 ...
Travel + Leisure Co Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive momentum: solid 2025 financial results (revenue, EBITDA, EPS, and free cash flow growth), strong vacation ownership metrics (VOI sales, VPG, tour flow), continued shareholder returns (buybacks/dividends and a new $750M authorization), balance sheet strength (leverage <3.1x and ROIC >20%), and progress on brand expansion and digital initiatives. Management acknowledged discrete near-term challenges—most notably a $216M non-cash impairment tied to a resort optimization program, Travel & Membership segment pressure from exchange headwinds (Q4 revenue -6% and EBITDA -10%), and some 2026 modeling headwinds due to portfolio actions and a deliberate VPG mix shift. Overall, the positives (recurring cash generation, solid unit economics, high-quality originations, and disciplined capital allocation) outweigh the lowlights, while management provided transparent guidance and mitigation plans for the identified challenges.Positive Updates
Full-Year Financial Outperformance
2025 revenue $4.02B (+4% year-over-year), adjusted EBITDA $990M (+7% YoY), adjusted EPS $6.34 (+10% YoY), and free cash flow $516M (+16% YoY). EBITDA converted to free cash flow at ~52% for the full year.
Negative Updates
Travel & Membership Segment Pressure
Travel & Membership Q4 revenue $148M (down 6% YoY) and EBITDA $47M (down 10% YoY), driven by exchange rate headwinds. Management is taking targeted cost actions, but segment margins face structural pressure if exchange trends persist.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Financial Outperformance
2025 revenue $4.02B (+4% year-over-year), adjusted EBITDA $990M (+7% YoY), adjusted EPS $6.34 (+10% YoY), and free cash flow $516M (+16% YoY). EBITDA converted to free cash flow at ~52% for the full year.
Read all positive updates
Company Guidance
The company guided to 2026 EBITDA of $1.03 billion to $1.055 billion (about 4%–7% growth YoY) and mid-single‑digit EBITDA growth with EPS expected to grow in the teens; full‑year gross VOI sales of $2.50 billion to $2.60 billion (1%–5% YoY, or 5%–9% underlying absent sales office closures), full‑year VPG $3,175–$3,275 (Q1 VPG $3,200–$3,250), and Q1 gross VOI sales of $520 million–$540 million with Q1 EBITDA $210 million–$220 million. Management expects to convert roughly half of EBITDA into free cash flow, a modestly higher depreciation & amortization run‑rate, an adjusted tax rate broadly consistent with 2025, and a lower loan‑loss provision (guiding to ~20% vs. 2025’s 20.7%); the outlook includes a $15 million–$25 million net EBITDA benefit from the resort optimization initiative (netting ~$100M sales headwind, ~$35M and ~$15M EBITDA headwinds from sales closures and lost management fees offset by ~ $70M inventory/carry savings). The company ended 2025 with leverage under 3.1x, a new $750 million repurchase authorization, and plans to recommend a Q1 2026 dividend of $0.60 per share.Travel + Leisure Co Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
28
Negative
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.02B | 3.86B | 3.75B | 3.57B | 3.13B |
| Gross Profit | 1.09B | 1.89B | 1.82B | 1.73B | 1.57B |
| EBITDA | 828.00M | 877.00M | 848.00M | 800.00M | 751.00M |
| Net Income | 230.00M | 411.00M | 396.00M | 357.00M | 308.00M |
Balance Sheet | |||||
| Total Assets | 6.76B | 6.74B | 6.74B | 6.76B | 6.59B |
| Cash, Cash Equivalents and Short-Term Investments | 253.00M | 184.00M | 296.00M | 562.00M | 396.00M |
| Total Debt | 4.91B | 5.67B | 5.73B | 5.75B | 5.45B |
| Total Liabilities | 7.74B | 7.62B | 7.66B | 7.66B | 7.38B |
| Stockholders Equity | -982.00M | -881.00M | -918.00M | -913.00M | -801.00M |
Cash Flow | |||||
| Free Cash Flow | 523.00M | 383.00M | 276.00M | 390.00M | 511.00M |
| Operating Cash Flow | 640.00M | 464.00M | 350.00M | 442.00M | 568.00M |
| Investing Cash Flow | -107.00M | -124.00M | -80.00M | -50.00M | -93.00M |
| Financing Cash Flow | -443.00M | -458.00M | -500.00M | -196.00M | -1.29B |
Travel + Leisure Co Technical Analysis
Negative
67.69
Price Trends
71.42
Negative
69.62
Negative
63.74
Positive
Market Momentum
-0.69
Positive
39.97
Neutral
46.69
Neutral
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 67.69 is below the 20-day moving average (MA) of 70.76, below the 50-day MA of 71.42, and above the 200-day MA of 63.74, indicating a neutral trend. The MACD of -0.69 indicates Positive momentum. The RSI at 39.97 is Neutral, neither overbought nor oversold. The STOCH value of 46.69 is Neutral, 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 | $74.79B | 33.13 | 30.88% | ― | 10.84% | -2.16% | |
71 Outperform | $32.94B | 10.21 | 20.98% | 0.39% | 17.34% | 91.50% | |
63 Neutral | $4.22B | 20.12 | -25.97% | 3.10% | 3.17% | 12.57% | |
62 Neutral | $27.67B | 27.45 | 114.29% | 0.56% | 7.61% | 9.99% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $3.44B | 276.78 | 31.18% | ― | 11.07% | -76.51% | |
50 Neutral | $1.16B | 45.50 | 6.10% | ― | 3.05% | 890.32% |
* Consumer Cyclical Sector Average
TNL
Travel + Leisure Co
67.69
22.92
51.18%
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MMYT
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TRIP
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1.81%
Travel + Leisure Co Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
Travel + Leisure Co Amends Credit Agreement for Growth
Positive
Dec 10, 2025
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 inter...
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.