Travel + Leisure Co. (TNL) - Stock Analysis

Last updated: Mar 14, 2026

Consumer CyclicalClosed

Research Idea

Research content for general circulation. Not individualized advice. Methodology & Disclosures

Travel + Leisure shows solid Q3 earnings with improving revenue and EBITDA, positive forward bookings, strategic brand partnerships, and moderate technical momentum (+5.3% in 21 days). Financial flexibility via loan repricing and dividend supports steady near-term growth, validating a near-term buy stance.

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Idea window: 12/19/2025 – 12/26/2025Sector: Consumer Cyclical

AI Analyst Overview

Last Price
$68.53
Market Cap
$4.28B
1D Return
-1.86%
YTD Return
-2.84%

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Valuation Metrics

P/E
19.0
P/B
-4.5
P/S
1.1
EV/EBITDA
13.1
Div Yield
3.27%

Fundamental Analysis

7.0

Key Financial Insights: • High leverage • Strong FCF • Quarterly volatility TNL generates strong EBITDA and free cash flow but faces critical solvency risk from very high leverage and negative equity, alongside quarterly earnings volatility and short-term coverage/working-capital pressures.

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Price Behavior

6.0

Key Price Behavior Insights: • Short-term weakness • RSI near-30 • Support at low Support Level: $68.50 Resistance Level: $75–$77 Over the last month the stock has weakened ~5.2% to $68.53 with RSI ≈30 near oversold, immediate support around $68.50 and resistance at $75–$77, so a break below $68.5 would be bearish while a move above $75–$77 would signal recovery.

bearish
oversold

Sentiment & News

6.0

Key News Insights: • VOI sales up • Large buyback • Inventory write-down Travel + Leisure Co. reported stronger VOI sales and raised EBITDA guidance while approving a $750M buyback and a 7% dividend increase, even as a $61M net loss reflected $210M in inventory write-downs.

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WriteDown
AI

AI Summary

6.0
Neutral

TNL should be revalued as a cash-returning, highly leveraged owner/operator where upside is conditional—monitor net-debt reduction, quarterly EBITDA-to-interest coverage, and working-capital impairments closely because continued repurchases with negative equity amplify solvency and downside risk. If management proves durable deleveraging and steady quarterly cash conversion (VOI/VPG stability), the buyback/dividend program becomes accretive; if not, further write-downs or coverage shortfalls will rapidly de-rate the stock.

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AI summary updated today

Description

Travel + Leisure Co. is a hospitality company organized into two reporting segments: Vacation Ownership, which develops, markets and sells vacation ownership interests, provides related consumer financing and manages resort properties; and Travel and Membership, which operates vacation exchange networks, travel memberships, consumer rental platforms and travel booking technology. As of January 26, 2022 the company operated roughly 245 vacation ownership resorts. Founded in 1990 and headquartered in Orlando, Florida, it rebranded from Wyndham Destinations in February 2021.

Idea History

DateCloseTickerCompanySummaryStatusP/L
Dec 19Dec 26TNLTravel + Leisure Co.
Travel + Leisure shows solid Q3 earnings with improving revenue and EBITDA, positive forward bookings, strategic brand partnerships, and moderate technical momentum (+5.3% in 21 days). Financial flexibility via loan repricing and dividend supports steady near-term growth, validating a near-term buy stance.
Closed+0.7%
Research content for educational purposes only. Not investment advice. All decisions are your responsibility.