Travel + Leisure Co. (TNL) AI Stock Analysis

Travel + Leisure Co. provides hospitality services and products worldwide through two primary operating segments: Vacation Ownership and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, while offering consumer financing and property management services at resorts. The Travel and Membership segment operates three vacation exchange brands, a home exchange network, travel technology platforms, travel memberships, and direct-to-consumer rentals. Formerly known as Wyndham Destinations, Inc., the company provides private-label travel booking technology solutions and maintains a global vacation ownership and travel presence.

Revenue expanded from $3.13B in FY2021 to $4.02B in FY2025, recording a five-year revenue CAGR of 13.2% from FY2020 to FY2025. Annual net income reached $411.0M in FY2024 before decreasing to $230.0M in FY2025, reflecting a net margin of 5.7% and a gross margin of 27.2%. Despite lower net income in FY2025, diluted EPS rose to $6.39. For the trailing twelve months ending June 30, 2026, revenue stood at $4.09B with an operating margin of 19.8% and net profit margin of 5.8%. In the latest quarter ending June 30, 2026, quarterly revenue grew 4.4% year-over-year and quarterly earnings rose 6.2%.

As of June 30, 2026, Travel + Leisure Co. held $282.0M in cash and short-term investments against $5.71B in total debt, resulting in net debt of $5.43B. Shareholders' equity was -$1.02B, alongside total assets of $6.90B and a current ratio of 3.15. In FY2025, the company generated $640.0M in operating cash flow and invested $117.0M in capital expenditures, leaving $523.0M in free cash flow. It deployed this cash by spending $301.0M on share buybacks and $149.0M on dividends paid.

Travel + Leisure Co. trades at a trailing P/E of 17.6x and a forward P/E of 7.6x, compared to medians of 18.0x and 14.1x for its US-listed Consumer Cyclical peers. Its EV/EBITDA of 13.2x sits above the peer median of 11.1x, while its price-to-sales of 1.0x compares to the peer median of 0.7x. Over the past year, the stock returned 11.4%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, its 44.1% return lagged the 83.0% return of SPY.

The company pays a quarterly dividend with an annual forward payout of $2.40 per share, delivering a dividend yield of 3.72% and a payout ratio of 33.9%. Travel + Leisure Co. has paid dividends for 20 consecutive years, achieving a five-year annualized dividend growth rate of 7.0%. Its last ex-dividend date occurred on September 16, 2026.

Wall Street coverage includes 9 Strong Buy, 2 Buy, and 2 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target of $87.31 sits 35.2% above the last close of $64.59. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $4.18B and EPS of $7.57, representing 19.4% EPS growth. Over the last four quarters, the company beat EPS estimates 2 times. The next earnings date is October 27, 2026.

This page is an AI-written research summary of Travel + Leisure Co. (TNL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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