TNL Stock Forecast & Price Target

Travel+Leisure Co has demonstrated robust financial performance, with net VOI sales rising 11% to $456 million despite increased provisioning, and total net sales revenue reaching a record $3.88 billion for the 12 months ending December 2024, representing a year-over-year increase of 3.52%. The company’s Economic Operating Cash Flow (EBITDAR) also showed significant improvement, increasing by 4.38% to $1.02 billion, with expectations for further growth projected at 13.90% over the next 12 months. Additionally, the strong portfolio of 809,000 timeshare owners, over 80% of whom have no outstanding loans, along with the highest recorded average FICO score of 744 on new originations, signals a stable and creditworthy customer base, reinforcing the positive outlook for the company.

Travel+Leisure Co has experienced a negative financial trajectory, with Net Operating Profit After Tax (NOPAT) declining 3.96% year-over-year, falling from $679.0 million to $652.1 million. Additionally, Economic Profit saw a significant drop of 14.76% year-over-year, decreasing from $341.8 million to $291.6 million, indicating increased challenges in maintaining profitability. Compounding these issues, the Return on Capital (ROC) also declined from 11.99% to 11.66%, suggesting diminishing efficiency in generating returns relative to its capital employed.