Company Overview
Travel + Leisure Co. functions as a comprehensive provider of hospitality services and travel products, serving markets across the United States and internationally through two primary operational segments: Vacation Ownership and Travel and Membership. The company operates within the Consumer Cyclical sector, specifically the Travel Services industry, which characterizes its business model as sensitive to discretionary consumer spending and economic cycles. The entity commands a substantial market capitalization of $4.22B and generates annual revenue reaching $4.02B, supported by a workforce of 19,300 employees. These financial dimensions indicate that the company holds a significant position within the leisure travel landscape, possessing the scale to invest in infrastructure while maintaining a substantial operational footprint. The combination of a multi-billion dollar market cap and robust revenue stream suggests the business has established a durable presence in a competitive global market.
Financial Health
The company reported revenue of $4.02B and net income of $230.00M for the trailing twelve months, while EBITDA reached $927.00M. The substantial gap between the $4.02B revenue and $230.00M net income reveals a cost structure where expenses, including cost of goods sold and operating costs, consume approximately 94.3% of total revenue before interest and taxes. Free cash flow stands at $512.88M, which indicates a high degree of financial flexibility allowing the company to fund capital expenditures, reduce debt, or pursue strategic acquisitions without immediate external financing. The gross margin is 50.0%, suggesting efficient pricing power or cost management in sourcing vacation properties and travel packages. Operating margins sit at 21.4%, reflecting the efficiency of core business operations after covering selling, general, and administrative expenses. Profit margins are recorded at 5.7%, which is typical for capital-intensive industries and indicates the final return to shareholders after all obligations. Regarding liquidity and leverage, the company holds $288.00M in cash against total debt of $5.76B, indicating a leveraged balance sheet where debt obligations significantly exceed liquid assets. The debt-to-equity ratio is not available for this reporting period, limiting direct comparison of leverage intensity against equity financing. The current ratio is 3.08, which signals strong short-term liquidity and the ability to cover current liabilities with current assets more than three times over. Return on Equity is not available, while Return on Assets stands at 7.4%, providing a measure of how effectively management utilizes the company's total asset base to generate earnings.
Valuation Assessment
The trailing twelve-month P/E ratio is 19.68, whereas the forward P/E is 7.96. This significant divergence implies that the market expects earnings to grow substantially in the future, as the forward multiple is less than half of the trailing multiple. The price-to-book ratio is -4.35, a negative figure that suggests the market values the company at a discount to its book value, potentially reflecting intangible assets or specific accounting adjustments that do not align with traditional book value metrics. The price-to-sales ratio is 1.05, indicating that the market values the company at roughly one dollar of revenue, while the EV/EBITDA stands at 10.46, providing an alternative perspective on valuation relative to operating cash flows. The stock has traded between a 52-week low of $37.77 and a 52-week high of $81.00. Without a specific current price provided in the available facts, the relative position cannot be calculated, but the range itself demonstrates a volatility of over 100% from the low to the high. The beta is 1.35, which means the stock price is expected to be 35% more volatile than the broader market, indicating higher sensitivity to market movements.
Growth & Income
Revenue growth year over year is 5.6%, while earnings growth is not available for this reporting period. Without comparative earnings growth data, it is difficult to determine if profitability is expanding faster than revenue, though the margins suggest a stable cost structure. The company offers a dividend yield of 3.5% and maintains a payout ratio of 65.1%, indicating that a significant portion of earnings is returned to shareholders. The payout ratio of 65.1% suggests the dividend is sustainable given the current earnings, provided that future earnings growth keeps pace with the payout obligations. The overall growth and income profile combines moderate revenue expansion of 5.6% with a notable dividend yield, offering a mix of capital appreciation potential and income distribution.