Travel + Leisure Co (TNL) AI Stock Analysis

• Market Cap: $3.96B
• Dividend Yield: 3.57%
• Average Volume (3M): 589.88K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.24
• Revenue Growth: 2.88%
• EPS Growth: 4.73%
• Country: US
• Employees: 19,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): 1.65
• Shares Outstanding: 64,920,380
• 10 Day Avg. Volume: 558,536
• 30 Day Avg. Volume: 589,880
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.20
• Enterprise Value/Revenue: 2.22
• Enterprise Value/Gross Profit: 4.16
• Enterprise Value/Ebitda: 9.71
• 1Y Price Target: $66.00
• Price Target Upside: 8.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: $67.00 ▲(9.76% Upside)

Travel + Leisure Co's strong financial performance, attractive valuation, and positive technical indicators contribute to a favorable stock outlook. The earnings call reinforced confidence with robust growth in key areas, despite some challenges. The stock's undervaluation and solid dividend yield further enhance its investment appeal.

Positive Factors

Revenue Growth

Consistent revenue and EBITDA growth indicate strong demand and effective business strategies, supporting long-term financial health.

Cash Flow Generation

Strong cash flow supports operational needs and shareholder returns, enhancing financial stability and growth potential.

Strategic Partnerships

Strategic investments in technology and partnerships enhance customer experience, driving long-term engagement and competitive advantage.

Negative Factors

Negative Equity Position

Negative equity indicates financial instability, potentially limiting future growth and increasing vulnerability to economic downturns.

High Leverage

High leverage can strain cash flow and limit financial flexibility, posing risks to long-term sustainability and growth.

Challenges in Travel Segment

Declining revenue in key segments can hinder overall growth, requiring strategic adjustments to maintain competitiveness.

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 strong revenue and profit growth with excellent operational margins. However, the negative equity position and high leverage pose significant risks to financial stability, which lowers the overall score.

Income Statement

Travel + Leisure Co has demonstrated strong revenue growth over recent years, with a notable increase from $3.13 billion in 2021 to $3.92 billion in TTM. The gross profit margin stands at 64.49% in TTM, showcasing efficient cost management. Net profit margin is stable at 10.14% in TTM, indicating consistent profitability. EBIT and EBITDA margins are robust, reflecting strong operational performance.

Balance Sheet

The company faces a significant challenge with negative stockholders' equity, which is a risk factor. The debt-to-equity ratio is not viable due to negative equity, indicating high leverage. Total liabilities exceed total assets, but the company manages its debt well with consistent cash flow levels.

Cash Flow

Cash flow performance is strong, with operating cash flow consistently positive and an impressive free cash flow growth rate of 29.24% from 2024 to TTM. The operating cash flow to net income ratio is healthy, indicating effective cash generation relative to earnings. However, high capital expenditure impacts free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.92B	3.86B	3.75B	3.57B	3.13B	2.16B
Gross Profit	2.10B	2.12B	1.82B	1.73B	1.54B	927.00M
EBITDA	897.00M	877.00M	848.00M	800.00M	751.00M	42.00M
Net Income	397.00M	411.00M	396.00M	357.00M	308.00M	-253.00M
Balance Sheet
Total Assets	6.81B	6.74B	6.74B	6.76B	6.59B	7.61B
Cash, Cash Equivalents and Short-Term Investments	212.00M	184.00M	306.00M	562.00M	396.00M	1.23B
Total Debt	5.59B	5.67B	5.73B	5.75B	5.45B	6.58B
Total Liabilities	7.66B	7.62B	7.66B	7.66B	7.38B	8.58B
Stockholders Equity	-852.00M	-881.00M	-918.00M	-913.00M	-801.00M	-975.00M
Cash Flow
Free Cash Flow	495.00M	383.00M	276.00M	390.00M	511.00M	305.00M
Operating Cash Flow	596.00M	464.00M	350.00M	442.00M	568.00M	374.00M
Investing Cash Flow	-91.00M	-124.00M	-80.00M	-50.00M	-93.00M	-65.00M
Financing Cash Flow	-452.00M	-458.00M	-500.00M	-196.00M	-1.29B	502.00M

Travel + Leisure Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 61.04
• 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 Neutral. The current price of 61.04 is below the 20-day moving average (MA) of 61.81, above the 50-day MA of 60.08, and above the 200-day MA of 51.87, indicating a neutral trend. The MACD of 0.49 indicates Positive momentum. The RSI at 50.41 is Neutral, neither overbought nor oversold. The STOCH value of 21.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TNL.

Travel + Leisure Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TNL	73 Outperform	$3.96B	10.64	-46.70%	3.57%	2.88%	4.73%
EXPE	72 Outperform	27.52B	27.16	133.13%	0.54%	5.69%	47.33%
TRIP	66 Neutral	2.19B	39.58	10.37%	―	3.03%	187.03%
MMYT	65 Neutral	9.69B	115.53	7.91%	―	18.13%	-55.21%
SABR	47 Neutral	741.69M	-2.03	17.22%	―	-1.16%	25.63%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Travel + Leisure Co Corporate Events

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.

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.

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.

Travel + Leisure Co Reports Strong Q2 2025 Results

On July 23, 2025, Travel + Leisure Co. reported its financial results for the second quarter of 2025, highlighting a net income of $108 million and a 6% year-over-year increase in vacation ownership revenue. The company announced strong growth in volume per guest and tour flow, and it returned $107 million to shareholders through dividends and share repurchases. Additionally, the company extended its credit facilities and completed a $300 million securitization transaction, indicating a robust financial position. The company reaffirmed its full-year guidance and highlighted new projects in Orlando, Nashville, and Indonesia, showcasing its strategic growth and diversification efforts.

Travel + Leisure Co Announces New $1 Billion Credit Facility

On June 25, 2025, Travel + Leisure Co. announced the closing of the Seventh Amendment to its Credit Agreement, which established a new $1 billion revolving credit facility set to mature in June 2030. This amendment refinances the previous facility scheduled to mature in October 2026, offering improved terms such as reduced pricing spreads, elimination of the Term SOFR credit spread adjustment, and reduced minimum interest coverage ratio. These changes enhance the company’s financial flexibility, supporting its growth strategy and reflecting the stability of its business and strong banking relationships.