# Travel + Leisure (TNL.US)

Canonical: https://gigainvestors.com/s/TNL

Analysis as of: 2026-10-16T07:32:27.008Z. Financial observations: FY2001–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $65.29 per share; close as of 2026-10-15.

Estimated value: low $87.77 per share, central $99.43 per share, high $114.94 per share. Buy at or below the central value $99.43 per share. Valuation as of 2026-10-16T07:32:27.008Z; scenarios are not confidence intervals.

Expected annual return: 14.0% at the stated quote. About 14.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.52×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.12×

- FY2017: 0.09×

- FY2018: 0.13×

- FY2019: 0.20×

- FY2020: -0.05×

- FY2021: 0.20×

- FY2022: 0.18×

- FY2023: 0.19×

- FY2024: 0.19×

- FY2025: 0.18×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 21.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: 12.5%

- ROIC, second-lowest year: 7.2%

- Typical minus recent gross margin: 21.3 pp

- Typical gross margin (annual median): 48.5%

- Recent gross margin (lower of latest and 3-year median): 27.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.6%

- ROIC including acquisitions, ten-year median: 9.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 8.9%

- FY2017: 7.2%

- FY2018: 9.7%

- FY2019: 13.8%

- FY2020: -2.2%

- FY2021: 12.6%

- FY2022: 12.5%

- FY2023: 16.4%

- FY2024: 14.8%

- FY2025: 18.1%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.13×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.9B

- Net income, five-year total: $1.7B

- Return on incremental invested capital: -72.0%

- Working capital / revenue, annual change: 2.0 pp

- Working capital / revenue, change between three-year averages: 17.4 pp

- Working capital / revenue, final three-year average: 80.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.22×

- FY2022: 1.19×

- FY2023: 1.10×

- FY2024: 1.08×

- FY2025: 1.03×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 8.9% vs 16.4%

- Per-share earnings: 5.52 to 5.28 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -5.6%

- Ordinary dilution, 5-year annual growth: -4.9%

- Market cap gain: $906M

- Cumulative retained earnings: $435M

- Diluted shares, 10-year annual growth: -5.6%

- Diluted shares, 5-year annual growth: -4.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -0.6%

- Per-share value change: -$0.24

- Per-share value, starting three-year median: $5.52

- Per-share value, ending three-year median: $5.28

- Buybacks concentrated in cheaper years (correlation): 0.79

- Average buyback yield: 8.2%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $215M

- Cumulative net income, 10 years: $4.1B

- ROIC, first three-year median: 8.9%

- ROIC, last three-year median: 16.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: $5.52

- FY2017: $8.24

- FY2018: $6.77

- FY2019: $5.49

- FY2020: -$2.94

- FY2021: $3.53

- FY2022: $4.24

- FY2023: $5.28

- FY2024: $5.81

- FY2025: $3.44

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -6.1%

- Receivables to sales index (DSRI): 0.05×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 8.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.78×

- Accounting red flags: 1

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.7%

- FY2017: -1.3%

- FY2018: 3.2%

- FY2019: 0.7%

- FY2020: -8.2%

- FY2021: -3.9%

- FY2022: -1.3%

- FY2023: 0.7%

- FY2024: -0.8%

- FY2025: -6.1%

## Holders

## Price story

Price needs cash profits to shrink 4.6% a year for ten years · sales +4.1%

Story as of 2026-10-16T09:59:42.525Z; price observation 2026-10-15.

Price needs cash profits to shrink 4.6% a year for ten years

- 2026-02-19: TNL Q4 Deep Dive: Vacation Ownership Growth and Resort Optimization Drive Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/tnl-q4-deep-dive-vacation-053056678.html))

### Sales · FY2024–2025

sales +4.1%; source https://www.sec.gov/Archives/edgar/data/1361658/000136165826000009/tnl-20251231.htm; observed 2026-02-18.

- FY2016: $5.6B 

- FY2017: $5.1B 

- FY2018: $3.9B 

- FY2019: $4.0B 

- FY2020: $2.2B 

- FY2021: $3.1B 

- FY2022: $3.6B 

- FY2023: $3.8B 

- FY2024: $3.9B 

- FY2025: $4.0B 

### Gross margin · FY2025

gross margin 27.2%; source https://www.sec.gov/Archives/edgar/data/1361658/000136165826000009/tnl-20251231.htm; observed 2026-02-18.

- FY2016: 33.3% 

- FY2017: 38.3% 

- FY2018: 51.3% 

- FY2019: 52.0% 

- FY2020: 43.1% 

- FY2021: 50.1% 

- FY2022: 48.4% 

- FY2023: 48.6% 

- FY2024: 49.0% 

- FY2025: 27.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in travel services; annual sales are USD 4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1361658/000136165826000009/tnl-20251231.htm (filed 2026-02-18); FY2025: revenue 4021000000; grossProfit 1093000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TNL.US: Travel + Leisure Co., together with its subsidiaries, provides hospitality services and travel 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, as well as offers consumer financing in connection with the sale of VOIs; and property management services at resorts; and This segment also experiences under hospitality and leisure brands, including Club Wyndham, WorldMark, Margaritaville Vacation Club, Sports Illustrated Resorts, Eddie Bauer Adventure Club, And Accor Vacation Club. The Travel and Membership segment operates various travel businesses, including vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment also offers business-to-business private-label travel club solutions and facilitates bookings. Travel + Leisure Co. has a strategic alliance with Hornblower Group, Inc. 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.

### Why customers stay

Margins ranged from 27.2% to 49% during 2023–25; it earns 12.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2023: grossProfit / revenue = 48.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2024: grossProfit / revenue = 49%.

- Source: https://www.sec.gov/Archives/edgar/data/1361658/000136165826000009/tnl-20251231.htm (filed 2026-02-18); FY2025: grossProfit / revenue = 27.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); 10-year return on capital observations [[2016,0.089120033284793],[2017,0.07181416653034517],[2018,0.09715378340931438],[2019,0.1379781496719671],[2020,-0.022497965825874693],[2021,0.1257376198815128],[2022,0.12453247021791093],[2023,0.16401627811455854],[2024,0.1484213418955468],[2025,0.1811055444148416]]; median 0.12513504504971187. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 48% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1361658/000136165826000009/tnl-20251231.htm (filed 2026-02-18); Gross margin observations: [[2021,0.5009572431397575],[2022,0.48444070647603027],[2023,0.4856]]; range within 2 percentage points.

### Where the cash goes

Reinvests 0.4% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2016: growth capex 17280577.483996212; upkeep 173719422.5160038; cash acquisitions 21000000; owner earnings 564280577.4839962. Growth capex plus acquisitions / owner earnings = 0.06783961563001326.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2017: growth capex 0; upkeep 153000000; cash acquisitions 48000000; owner earnings 837000000. Growth capex plus acquisitions / owner earnings = 0.05734767025089606.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2018: growth capex 0; upkeep 99000000; cash acquisitions 5000000; owner earnings 711000000. Growth capex plus acquisitions / owner earnings = 0.007032348804500703.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2019: growth capex 0; upkeep 108000000; cash acquisitions 51000000; owner earnings 520000000. Growth capex plus acquisitions / owner earnings = 0.09807692307692308.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2021: growth capex 0; upkeep 57000000; cash acquisitions 37000000; owner earnings 375000000. Growth capex plus acquisitions / owner earnings = 0.09866666666666667.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2022: growth capex 0; upkeep 52000000; cash acquisitions 2000000; owner earnings 424000000. Growth capex plus acquisitions / owner earnings = 0.0047169811320754715.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2023: growth capex 0; upkeep 74000000; cash acquisitions 6000000; owner earnings 434000000. Growth capex plus acquisitions / owner earnings = 0.013824884792626729.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2024: growth capex 0; upkeep 81000000; cash acquisitions 44000000; owner earnings 445000000. Growth capex plus acquisitions / owner earnings = 0.09887640449438202.

- Source: https://www.sec.gov/Archives/edgar/data/1361658/000136165826000009/tnl-20251231.htm (filed 2026-02-18); FY2025: growth capex 0; upkeep 117000000; cash acquisitions 1000000; owner earnings 237000000. Growth capex plus acquisitions / owner earnings = 0.004219409282700422.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Dividend observations: [[2016,223000000],[2017,242000000],[2018,194000000],[2019,166000000],[2020,138000000],[2021,109000000],[2022,135000000],[2023,136000000],[2024,142000000],[2025,149000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1361658/000136165826000009/tnl-20251231.htm (filed 2026-02-18); FY2025: cash repurchases 301000000 USD.

### Are managers owners

Insiders own 4.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TNL.US SharesStats.PercentInsiders = 4.475 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 4.6% yearly over ten years; actual decline was 3.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Ten-year compound average after fade. Initial solved rate -0.07766022371150444. Price 65.29; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 5.142857142857143 → FY2025 3.542600896860986. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $29.71 per share

- 2016-11: $32.49 per share

- 2016-12: $34.47 per share

- 2017-01: $35.68 per share

- 2017-02: $37.57 per share

- 2017-03: $38.04 per share

- 2017-04: $43.01 per share

- 2017-05: $45.58 per share

- 2017-06: $45.32 per share

- 2017-07: $47.10 per share

- 2017-08: $44.99 per share

- 2017-09: $47.57 per share

- 2017-10: $48.22 per share

- 2017-11: $50.72 per share

- 2017-12: $52.29 per share

- 2018-01: $56.02 per share

- 2018-02: $52.25 per share

- 2018-03: $51.64 per share

- 2018-04: $51.54 per share

- 2018-05: $48.94 per share

- 2018-06: $44.27 per share

- 2018-07: $46.12 per share

- 2018-08: $44.20 per share

- 2018-09: $43.36 per share

- 2018-10: $35.88 per share

- 2018-11: $41.47 per share

- 2018-12: $35.84 per share

- 2019-01: $42.14 per share

- 2019-02: $45.03 per share

- 2019-03: $40.49 per share

- 2019-04: $43.56 per share

- 2019-05: $39.78 per share

- 2019-06: $43.90 per share

- 2019-07: $47.06 per share

- 2019-08: $44.34 per share

- 2019-09: $46.02 per share

- 2019-10: $46.41 per share

- 2019-11: $48.50 per share

- 2019-12: $51.69 per share

- 2020-01: $48.53 per share

- 2020-02: $39.90 per share

- 2020-03: $21.70 per share

- 2020-04: $25.57 per share

- 2020-05: $31.80 per share

- 2020-06: $28.18 per share

- 2020-07: $26.60 per share

- 2020-08: $28.99 per share

- 2020-09: $30.76 per share

- 2020-10: $32.63 per share

- 2020-11: $42.06 per share

- 2020-12: $44.86 per share

- 2021-01: $44.24 per share

- 2021-02: $60.43 per share

- 2021-03: $61.16 per share

- 2021-04: $64.53 per share

- 2021-05: $65.15 per share

- 2021-06: $59.45 per share

- 2021-07: $51.80 per share

- 2021-08: $54.76 per share

- 2021-09: $54.53 per share

- 2021-10: $54.34 per share

- 2021-11: $49.22 per share

- 2021-12: $55.27 per share

- 2022-01: $56.80 per share

- 2022-02: $56.05 per share

- 2022-03: $57.94 per share

- 2022-04: $55.48 per share

- 2022-05: $51.11 per share

- 2022-06: $38.82 per share

- 2022-07: $43.11 per share

- 2022-08: $42.40 per share

- 2022-09: $34.12 per share

- 2022-10: $37.98 per share

- 2022-11: $38.87 per share

- 2022-12: $36.40 per share

- 2023-01: $42.37 per share

- 2023-02: $41.95 per share

- 2023-03: $39.20 per share

- 2023-04: $38.27 per share

- 2023-05: $36.47 per share

- 2023-06: $40.34 per share

- 2023-07: $40.73 per share

- 2023-08: $40.20 per share

- 2023-09: $36.73 per share

- 2023-10: $34.03 per share

- 2023-11: $35.64 per share

- 2023-12: $39.09 per share

- 2024-01: $40.42 per share

- 2024-02: $44.69 per share

- 2024-03: $48.96 per share

- 2024-04: $43.54 per share

- 2024-05: $43.94 per share

- 2024-06: $44.98 per share

- 2024-07: $46.09 per share

- 2024-08: $44.26 per share

- 2024-09: $46.08 per share

- 2024-10: $47.81 per share

- 2024-11: $55.87 per share

- 2024-12: $50.45 per share

- 2025-01: $54.36 per share

- 2025-02: $55.82 per share

- 2025-03: $46.29 per share

- 2025-04: $43.93 per share

- 2025-05: $48.57 per share

- 2025-06: $51.61 per share

- 2025-07: $59.25 per share

- 2025-08: $63.21 per share

- 2025-09: $59.49 per share

- 2025-10: $62.78 per share

- 2025-11: $68.58 per share

- 2025-12: $70.53 per share

- 2026-01: $69.54 per share

- 2026-02: $73.70 per share

- 2026-03: $69.19 per share

- 2026-04: $64.66 per share

- 2026-05: $68.00 per share

- 2026-06: $76.43 per share

- 2026-07: $76.02 per share

- 2026-08: $68.76 per share

- 2026-09: $61.87 per share

- 2026-10: $65.29 per share

## Annual estimated value (USD per share)

- FY2016: low $57.63 per share, central $68.13 per share, high $79.26 per share

- FY2017: low $53.92 per share, central $61.36 per share, high $71.25 per share

- FY2018: low $49.54 per share, central $56.14 per share, high $64.93 per share

- FY2019: low $64.97 per share, central $73.45 per share, high $84.74 per share

- FY2020: low $49.07 per share, central $53.94 per share, high $60.41 per share

- FY2021: low $54.30 per share, central $61.26 per share, high $70.52 per share

- FY2022: low $61.23 per share, central $68.87 per share, high $79.04 per share

- FY2023: low $68.15 per share, central $77.11 per share, high $89.03 per share

- FY2024: low $70.65 per share, central $80.18 per share, high $92.87 per share

- FY2025: low $78.61 per share, central $89.09 per share, high $103.05 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1361658/000136165826000009/tnl-20251231.htm); period 2025-12-31, filed 2026-02-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.