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Travel + Leisure Co
(NYSE:TNL)
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Rating:63Neutral
Price Target:
$78.00
▲(5.33% Upside)
Action:Reiterated
Date:07/22/26
The score is primarily held back by weak balance-sheet quality (negative equity and leverage risk) despite solid profitability and cash flow. Guidance upgrades and continued capital returns support the outlook, while technicals and valuation are broadly neutral-to-slightly supportive rather than strong.
Positive Factors
Cash generation
Consistent positive operating and free cash flow (TTM OCF $898M; FCF $737M) demonstrates durable internal funding. Strong FCF conversion supports ongoing dividends, share repurchases and accretive M&A without sole reliance on external markets, improving strategic optionality over months.
Negative Factors
Weak balance sheet
Negative equity and historically large unsecured debt levels materially constrain financial flexibility. This increases refinancing and covenant risk, limits capacity to absorb macro shocks or fund growth without issuing debt or equity, and is a persistent structural vulnerability for the company.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent positive operating and free cash flow (TTM OCF $898M; FCF $737M) demonstrates durable internal funding. Strong FCF conversion supports ongoing dividends, share repurchases and accretive M&A without sole reliance on external markets, improving strategic optionality over months.
Read all positive factors
Travel + Leisure Co (TNL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.65B
Dividend Yield3.05%
Average Volume (3M)740.14K
Price to Earnings (P/E)20.4
Beta (1Y)1.21
Revenue Growth4.12%
EPS Growth-35.73%
CountryUS
Employees19,300
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)3.73
Shares Outstanding61,204,230
10 Day Avg. Volume953,704
30 Day Avg. Volume740,140
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$87.71Price Target Upside18.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)7.56
Revenue Forecast (FY)$4.16B
Travel + Leisure Co Business Overview & Revenue Model
Company Description
Travel + Leisure Co. functions as a global hospitality enterprise, delivering a diverse range of services and products through its two primary divisions: Vacation Ownership and Travel & Membership. The Vacation Ownership segment focuses on the dev...
How the Company Makes Money
TNL generates revenue primarily from its Vacation Ownership segment and, to a lesser extent, its Travel and Membership segment.
1) Vacation ownership (timeshare) sales and related financing
- VOI (vacation ownership interest) sales: The company e...
Travel + Leisure Co Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call communicated steady top-line and margin improvement, strong cash returns to shareholders, tangible strategic progress on multi-brand expansion and two accretive acquisitions that expand owners and resort quality. Management raised full-year guidance and highlighted balance sheet strength. Offsetting risks include near-term tour impacts from resort optimization, a still-elevated consolidated loan loss provision in 2026 driven partly by acquired portfolios, and continued weakness in the Travel & Membership segment. Overall the positives (growth, accretion from acquisitions, buybacks/dividends, liquidity) outweigh the present lowlights, which are manageable and largely tied to integration and seasonal credit dynamics.Positive Updates
Revenue and EBITDA Growth
Quarter revenue of $1.06B and EBITDA of $269M; enterprise revenue grew 4% and EBITDA grew 8% year-over-year (quarter); first-half EBITDA grew 9% with EPS up 21% year-over-year (first half, per CEO).
Negative Updates
Travel & Membership Segment Weakness
Travel & Membership revenue declined 5% to $157M and segment EBITDA declined 11% to $49M in the quarter as the exchange business evolves and faces margin pressure.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and EBITDA Growth
Quarter revenue of $1.06B and EBITDA of $269M; enterprise revenue grew 4% and EBITDA grew 8% year-over-year (quarter); first-half EBITDA grew 9% with EPS up 21% year-over-year (first half, per CEO).
Read all positive updates
Company Guidance
Travel + Leisure raised its full‑year outlook, now expecting consolidated gross VOI sales of $2.60B–$2.675B and consolidated EBITDA of $1.065B–$1.085B (core EBITDA ex‑acquisitions $1.05B–$1.065B), with the Yes& and Spinnaker transactions contributing $15M–$20M of incremental 2026 EBITDA and targeting about $50M of synergized EBITDA on a full‑year basis; the deal math implies net capital deployed of roughly $260M after securitizing ~$80M of receivables (≈5x net investment multiple), adds ~0.2x leverage and leaves year‑end leverage around 3.2x. Management expects a consolidated loan loss provision of ~21%, an adjusted tax rate of ~29%, free cash flow conversion of roughly 50% of EBITDA, and about 20% EPS growth year‑over‑year; near‑term (Q3) guidance is gross VOI sales of $700M–$740M, EBITDA $275M–$285M and VPG $3,300–$3,350. The company reiterated its capital return priorities—continued dividends and buybacks at a similar run rate to 2025 (Q2 buybacks ≈$88M, first‑half returns $253M, shares outstanding down ~4%)—and noted liquidity of >$1.2B and a recent $300M ABS at a 98% advance and 5.52% coupon.Travel + Leisure Co Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
18
Very Negative
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.09B | 4.02B | 3.86B | 3.75B | 3.57B | 3.13B |
| Gross Profit | 1.85B | 1.09B | 1.89B | 1.82B | 1.73B | 1.57B |
| EBITDA | 701.00M | 828.00M | 877.00M | 848.00M | 800.00M | 751.00M |
| Net Income | 238.00M | 230.00M | 411.00M | 396.00M | 357.00M | 308.00M |
Balance Sheet | ||||||
| Total Assets | 6.90B | 6.76B | 6.74B | 6.74B | 6.76B | 6.59B |
| Cash, Cash Equivalents and Short-Term Investments | 282.00M | 253.00M | 184.00M | 296.00M | 562.00M | 396.00M |
| Total Debt | 5.71B | 4.91B | 5.67B | 5.73B | 5.75B | 5.45B |
| Total Liabilities | 7.92B | 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 | 682.00M | 523.00M | 383.00M | 276.00M | 390.00M | 511.00M |
| Operating Cash Flow | 843.00M | 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 | -680.00M | -443.00M | -458.00M | -500.00M | -196.00M | -1.29B |
Travel + Leisure Co Technical Analysis
Positive
74.05
Price Trends
73.92
Positive
71.02
Positive
69.66
Positive
Market Momentum
1.03
Negative
58.28
Neutral
77.62
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 74.05 is below the 20-day moving average (MA) of 75.19, above the 50-day MA of 73.92, and above the 200-day MA of 69.66, indicating a bullish trend. The MACD of 1.03 indicates Negative momentum. The RSI at 58.28 is Neutral, neither overbought nor oversold. The STOCH value of 77.62 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 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $91.32B | 36.78 | 31.24% | ― | 13.18% | 2.35% | |
77 Outperform | $35.38B | 24.58 | 184.84% | 0.68% | 10.01% | 33.63% | |
73 Outperform | $30.35B | 6.56 | 19.31% | ― | 19.28% | 87.04% | |
63 Neutral | $4.65B | 20.38 | -24.76% | 3.13% | 4.12% | -35.73% | |
62 Neutral | $5.36B | 114.61 | -14.56% | ― | 6.71% | -41.74% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $1.65B | 101.18 | 2.86% | ― | 2.03% | -64.68% |
* Consumer Cyclical Sector Average
TNL
Travel + Leisure Co
77.33
20.19
35.32%
TCOM
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EXPE
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MMYT
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TRIP
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ABNB
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26.34%
Travel + Leisure Co Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
Travel + Leisure raises outlook on strong Q2 results
Positive
Jul 22, 2026
On July 22, 2026, Travel + Leisure Co. reported second-quarter 2026 results showing net revenue of $1.06 billion, net income of $109 million, and adjusted EBITDA of $269 million, driven largely by a strong Vacation Ownership segment. Gross VOI sal...
Executive/Board ChangesShareholder Meetings
Travel + Leisure Shareholders Approve Board, Pay and Auditor
Positive
May 22, 2026
Travel + Leisure Co. held its 2026 Annual Meeting on May 20, 2026, where shareholders voted on director elections, executive compensation, and the appointment of the independent auditor. All nominated directors, including Louise F. Brady, Michael ...
Business Operations and StrategyPrivate Placements and Financing
Travel + Leisure Issues New 2031 Senior Secured Notes
Positive
May 20, 2026
On May 20, 2026, Travel + Leisure Co. entered into a fifth supplemental indenture with U.S. Bank Trust Company to issue $900 million of 6.250% senior secured notes due 2031, with interest payable semi-annually beginning December 1, 2026. The compa...
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...
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.