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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on TNL

Travel + Leisure Co.'s recent performance was negatively impacted by a net loss of $61 million in Q4 2025, primarily due to $210 million in inventory write-downs. Despite a 7% increase in gross VOI sales, the company's earnings per share met estimates, but investor sentiment was affected by insider sales, including a $2.2 million share sale by General Counsel James Savina. Conversely, the company's 7% dividend increase and $325 million term securitization may bolster investor confidence. (Source: MarketBeat, Business Wire)

1.c. Company Highlights

2. Travel + Leisure Co. Delivers Strong Q4 Results, Guides for Continued Growth in 2026

The company's fourth quarter revenue was $1.026 billion, EBITDA was $272 million, and EPS was $1.83, with EBITDA growing 8% year over year and margin expansion reflecting operating leverage and inventory efficiency improvement. The actual EPS came in line with estimates. The revenue growth combined with EBITDA margin improvement fueled compounding growth across the P&L. The company's P/E Ratio is 21.01, indicating that the stock is trading at a premium; however, its EV/EBITDA ratio is 6.63, suggesting a relatively reasonable valuation.

Publication Date: Feb -19

📋 Highlights
  • Q4 Adjusted EBITDA Surpassed Guidance: EBITDA reached $272 million, up 8% YoY, exceeding the raised full-year outlook.
  • 2025 Revenue & EBITDA Growth: Delivered 4% revenue growth ($1.026B Q4) and 7% EBITDA growth, with $449 million returned to shareholders.
  • 2026 EPS Guidance: EPS growth expected in the teens, driven by EBITDA expansion, lower interest, and $449M+ share repurchases.
  • New Brand Sales Contribution: Sports Illustrated, Accor, and Eddie Bauer to account for high single-digit to teens of total sales by 2026.

Capital Allocation and Growth Strategy

The company's capital allocation priorities remain unchanged, focusing on investing in the core business to drive organic growth while returning meaningful capital to shareholders through dividends and share repurchases. In 2025, the company returned $449 million to shareholders through dividends and share repurchases. The company also pursues opportunistic M&A when returns are compelling. Michael Brown expects the company's operations to return to normal cadence in the coming years, with the resort management and VOI growth resuming their usual pace.

Guidance for 2026

The company expects gross VOI sales to increase 1% to 5% year over year to a range of $2.5 billion to $2.6 billion. EBITDA is expected to be in the range of $1.03 billion to $1.055 billion, representing mid-single-digit growth year over year. The company expects year-over-year EPS growth to be in the teens, supported by EBITDA growth, lower interest expense, and share repurchases. Analysts estimate next year's revenue growth at 3.1%, slightly higher than the company's guidance.

Operational Highlights and Outlook

The company's vacation ownership business has momentum, and it has a clear line of sight to another year of growth and shareholder value creation. The value proposition of the company's resorts continues to resonate with customers, with higher household incomes and better credit scores. The company has completed a strategic review of 17 assets, deciding to exit those with low occupancies and significant unsold inventory, which will reduce the burden on HOAs as the assets age.

New Partnerships and Long-term Vision

The company has started to leverage new partnerships, including with Live Nation and Authentic Brands, to enhance the marketing approach and create new opportunities for the business. The company aims to see new brands, including Accor, Sports Illustrated, and Eddie Bauer, account for a growing percentage of overall sales, with the goal of augmenting or maintaining the 6-8% growth rate of the core brands.

3. NewsRoom

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TNL Mediagene Announces Leadership Realignment and 2026 Strategic Initiatives to Strengthen Execution, Expand Digital Studio, Content Commerce and AI-Powered Products, and Drive Long-Term Value Creation

Apr -02

Source: newsfilecorp.com

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Comparing Carnival (NYSE:CCL) & Travel + Leisure (NYSE:TNL)

Apr -01

Source: defenseworld.net

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Travel + Leisure Co. Completes $325 Million Term Securitization

Mar -26

Source: businesswire.com

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A Travel + Leisure Co. Insider Dumped Shares Worth $2.2 Million. Is the Stock a Buy or Sell?

Mar -21

Source: fool.com

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Travel + Leisure Co. Increases Cash Dividend 7%

Mar -12

Source: businesswire.com

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Travel + Leisure Co. Named to Newsweek's Inaugural “America's Most Charitable Companies” List

Mar -11

Source: businesswire.com

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Travel + Leisure Co. Recognized by Gallup as an Exceptional Workplace for Fourth Consecutive Year

Mar -05

Source: businesswire.com

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TNL Mediagene Leverages AWS's Kiro to Accelerate AI-Enabled Operational Advancements

Feb -24

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.56%)

6. Segments

Vacation Ownership

Expected Growth: 4.5%

Travel + Leisure Co.'s Vacation Ownership segment growth of 4.5% is driven by increasing demand for luxury vacation experiences, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, loyalty programs, and personalized services has enhanced customer engagement, leading to increased sales and revenue growth.

Travel and Membership

Expected Growth: 4.8%

Travel + Leisure Co.'s 4.8% growth in Travel and Membership is driven by increasing consumer spending on experiences, rising demand for luxury travel, and strategic partnerships expanding offerings. Additionally, the company's subscription-based model and loyalty programs foster retention and upselling, while investments in digital platforms enhance user experience and drive engagement.

Corporate and Other

Expected Growth: 3.2%

The 3.2% growth in Corporate and Other segment of Travel + Leisure Co. is driven by increased demand for travel services, expansion of loyalty programs, and strategic partnerships. Additionally, the company's focus on digital transformation and cost savings initiatives have contributed to the growth.

7. Detailed Products

Wyndham Destinations

A network of resorts and vacation clubs offering a range of accommodation options

RCI (Resort Condominiums International)

A timeshare exchange program allowing members to swap vacation time

Panorama

A travel technology platform providing booking and management solutions

Travel + Leisure Group Subscription Box

A curated box of travel-inspired products and experiences

Travel + Leisure GO

A travel booking platform offering exclusive deals and discounts

Wyndham Vacation Clubs

A points-based vacation ownership program

WorldMark by Wyndham

A vacation ownership program offering access to a network of resorts

8. Travel + Leisure Co.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Travel + Leisure Co. faces moderate threat from substitutes, as customers have alternative options for travel and leisure activities, but the company's strong brand recognition and loyalty programs help to mitigate this threat.

Bargaining Power Of Customers

Travel + Leisure Co. faces high bargaining power from customers, as they have many options for travel and leisure activities, and can easily switch to competitors if they are not satisfied with the company's offerings.

Bargaining Power Of Suppliers

Travel + Leisure Co. has a low bargaining power from suppliers, as it has a strong negotiating position due to its large scale and diversified business model.

Threat Of New Entrants

Travel + Leisure Co. faces a moderate threat from new entrants, as the industry has high barriers to entry, but new technologies and business models can still disrupt the market.

Intensity Of Rivalry

Travel + Leisure Co. operates in a highly competitive industry, with many established players and new entrants vying for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 120.99%
Debt Cost 5.43%
Equity Weight -20.99%
Equity Cost 12.14%
WACC 4.02%
Leverage -576.36%

11. Quality Control: Travel + Leisure Co. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Dillard's

A-Score: 6.9/10

Value: 5.2

Growth: 6.9

Quality: 7.1

Yield: 9.0

Momentum: 8.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Travel + Leisure

A-Score: 6.5/10

Value: 7.6

Growth: 4.7

Quality: 6.0

Yield: 7.0

Momentum: 7.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
H&R Block

A-Score: 6.3/10

Value: 7.8

Growth: 6.0

Quality: 6.7

Yield: 7.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

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Expedia

A-Score: 5.3/10

Value: 3.8

Growth: 6.6

Quality: 7.1

Yield: 1.0

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
KB Home

A-Score: 4.9/10

Value: 7.8

Growth: 4.6

Quality: 5.3

Yield: 3.0

Momentum: 2.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Tripadvisor

A-Score: 4.7/10

Value: 7.1

Growth: 4.1

Quality: 6.4

Yield: 0.0

Momentum: 7.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

71.25$

Current Price

71.25$

Potential

-0.00%

Expected Cash-Flows