Travel + Leisure Co (TNL) AI Stock Analysis

• Market Cap: $3.99B
• Dividend Yield: 3.45%
• Average Volume (3M): 715.52K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.27
• 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: 698,318
• 30 Day Avg. Volume: 715,518
• 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: 2.31
• Enterprise Value/Revenue: 2.69
• Enterprise Value/Gross Profit: 4.78
• Enterprise Value/Ebitda: 10.75
• 1Y Price Target: $70.31
• Price Target Upside: 10.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 6.35
• Revenue Forecast (FY): $4.00B

• Rating: 70 Outperform
• Price Target: $72.00 ▲(13.62% Upside)

Travel + Leisure Co's stock score is driven by strong earnings call results and positive technical indicators. Despite financial leverage concerns, the company's robust cash flow and strategic growth initiatives provide a solid foundation. Valuation metrics are favorable, supporting a positive outlook.

Positive Factors

Strong Cash Flow Generation

The significant growth in free cash flow indicates robust cash generation capabilities, enhancing the company's liquidity and ability to invest in future growth opportunities.

Vacation Ownership Segment Growth

The strong performance in the Vacation Ownership segment demonstrates sustained demand and effective operational management, contributing to long-term revenue stability.

Brand Expansion Initiatives

Expanding the brand portfolio with new partnerships targets diverse traveler profiles, potentially increasing market reach and customer engagement over time.

Negative Factors

High Leverage Concerns

The high leverage and negative equity pose risks to financial stability, potentially limiting the company's ability to finance growth and manage economic downturns.

Declining Revenue

The decline in revenue growth indicates potential challenges in maintaining sales momentum, which could impact long-term profitability if not addressed.

Exchange Business Underperformance

The structural decline in the exchange business due to industry consolidation could weaken the Travel and Membership segment, affecting overall performance.

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 primarily through its vacation ownership segment, which includes the sale of timeshare interests, fees from resort management, and maintenance fees collected from timeshare owners. Additionally, the company earns revenue from its exchange services, allowing members to swap their timeshare weeks for stays at other properties. Other significant revenue streams include travel services, which encompass booking fees from vacation rentals and travel planning, as well as advertising revenue from the Travel + Leisure magazine and its associated digital platforms. Strategic partnerships with various travel-related businesses, such as airlines and hospitality providers, also contribute to TNL's earnings by enhancing service offerings and customer engagement.

Travel + Leisure Co Financial Statement Overview

Summary

Travel + Leisure Co shows mixed financial performance. Strong profitability and cash flow management are overshadowed by significant leverage and negative equity concerns on the balance sheet. The income statement reflects strong margins despite declining revenue, while cash flow generation is robust.

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	3.43B	3.86B	3.75B	3.57B	3.13B	2.16B
Gross Profit	1.93B	1.89B	1.82B	1.73B	1.57B	932.00M
EBITDA	859.00M	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	3.55B	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: 63.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 63.37 is above the 20-day moving average (MA) of 62.80, above the 50-day MA of 61.80, and above the 200-day MA of 53.86, indicating a bullish trend. The MACD of 0.52 indicates Positive momentum. The RSI at 53.06 is Neutral, neither overbought nor oversold. The STOCH value of 29.84 is Neutral, 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	76 Outperform	$27.18B	21.00	104.40%	0.46%	7.29%	36.51%
TCOM	73 Outperform	$46.51B	19.37	12.94%	0.40%	17.73%	27.95%
ABNB	71 Outperform	$76.13B	29.08	33.26%	―	10.23%	-44.56%
TNL	70 Outperform	$3.99B	10.22	―	3.45%	3.17%	12.57%
MMYT	65 Neutral	$10.36B	118.14	16.66%	―	14.55%	-68.46%
TRIP	63 Neutral	$1.79B	32.41	9.57%	―	4.24%	159.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Travel + Leisure Co Corporate Events

Travel + Leisure Co. Earnings Call Highlights Growth and Challenges

Travel + Leisure Co. recently held its earnings call, revealing a generally positive sentiment driven by strong financial performance and strategic growth in its Vacation Ownership segment. Despite some challenges in the Travel and Membership segment, the company’s significant growth and strategic advancements were the focal points, leaving investors optimistic about its future trajectory.

Travel + Leisure Co. Reports Strong Q3 2025 Results

Travel + Leisure Co., a prominent leisure travel company, offers a diverse range of vacation ownership, travel club, and lifestyle travel brands, catering to modern travelers worldwide. The company reported its third-quarter 2025 financial results, showcasing strong performance and strategic advancements.

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.

The most recent analyst rating on (TNL) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on Travel + Leisure Co stock, see the TNL Stock Forecast page.

Travel + Leisure Co Releases New Investor Materials

On August 25, 2025, Travel + Leisure Co. released new investor presentation materials on its website, intending to use them in meetings with the investment community and for marketing purposes. The company plans to utilize its website and LinkedIn for disclosing operational and financial information, advising investors to monitor these platforms for updates.

The most recent analyst rating on (TNL) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on Travel + Leisure Co stock, see the TNL Stock Forecast page.

Travel + Leisure Co Issues $500M in Senior Notes

On August 19, 2025, Travel + Leisure Co. entered into a fourth supplemental indenture with U.S. Bank Trust Company to issue $500 million in senior secured notes due 2033. The proceeds from this issuance are intended to redeem existing 6.60% secured notes due October 2025, repay borrowings under a secured revolving credit facility, and cover related fees, with any remaining funds used for general corporate purposes. This strategic financial move is expected to optimize the company’s debt structure and potentially improve its financial flexibility.

The most recent analyst rating on (TNL) stock is a Buy with a $71.00 price target. To see the full list of analyst forecasts on Travel + Leisure Co stock, see the TNL Stock Forecast page.

Travel + Leisure Co Announces $500M Note Offering

On August 5, 2025, Travel + Leisure Co. announced a private offering of $500 million in senior secured notes due 2033, aimed at qualified institutional buyers and certain non-U.S. persons. The proceeds from this offering are intended to redeem the company’s outstanding 6.60% secured notes due October 2025, repay borrowings under its revolving credit facility, cover fees and expenses related to the offering, and potentially fund general corporate purposes. This strategic financial maneuver is expected to close on August 19, 2025, and is part of the company’s broader efforts to manage its debt and enhance financial flexibility.

The most recent analyst rating on (TNL) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Travel + Leisure Co stock, see the TNL Stock Forecast page.