Travel Leisure Co. Common Stock (TNL)

FairStock Score: 62/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Travel + Leisure as a cyclical travel-services business, not a toll bridge. It sells vacation-ownership interests and travel/membership products, with 19,000 employees. The filed record is mixed. Revenue rose from $3.8B in FY2023 to $3.9B in FY2024 and $4.0B in FY2025, but net income fell from $396M to $411M and then to $230M; diluted EPS went from $5.28 to $5.82 to $3.44. That is not the steady earning power Graham prized. The latest quarter was better: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.1B, net income $109M, and diluted EPS $1.72, versus $1.0B, $108M, and $1.62 in fiscal Q2 2025. Still, FairStock's Lynch category is SLOW GROWER — Shrinking, with profit down 7.0% a year over four years and revenue up 6.4%. At the 2026-10-13 close of $62.99, FairStock calculates a P/E of 17.21, EV/EBITDA of 13.13, PEG of 18.51, and FCF yield of 11.5% on $442M trailing free cash flow. The cash flow and 3.81% dividend yield are real supports, and a Piotroski F-Score of 8/9 is constructive. But Altman Z-Score of 1.61 and ROCE of 7.36% suggest balance-sheet and return-on-capital caution. The market price is not demanding if profits stabilize, but the decline in FY2025 profits means I would demand a clearer sign of durable earning power before calling it a bargain. The moat, if any, lies in its vacation-ownership network and membership base, yet the numbers show cyclicality outweighing that advantage lately.

In plain English: Travel + Leisure Co. sells vacation-ownership interests and travel/membership services. Its revenue has grown slowly, but full-year profit fell sharply in fiscal 2025, so the business looks mixed rather than clearly strong. At the 2026-10-13 close of $62.99, the price looks roughly fair to slightly expensive against earnings, though strong cash flow and a 3.81% dividend are supports.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer