CluenexTravel + Leisure Co. TNL
Travel + Leisure Co. scores average on business quality (5.0 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Travel + Leisure Co. does
Travel + Leisure sells vacation ownership interests and manages membership clubs, generating revenue from point-based vacation packages and maintenance fees paid by consumers. The company is leaning into lifestyle brand partnerships like the Eddie Bauer Adventure Club to expand its experiential offerings and drive member engagement.
- What it does best
Travel + Leisure excels at generating high return on equity, sitting at 121.8%, outperforming peers like NCLH at 32.3% and WH at 42.1%. This reflects heavy capital efficiency built on recurring membership fees rather than just physical asset ownership.
- The main risk
Debt load remains a structural vulnerability with total debt reaching $5.6 billion against just $253 million in cash, leaving interest coverage thin at 2.7x. If macroeconomic pressures squeeze consumer discretionary spending, servicing this fixed obligation will constrain cash flow.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 14.9% with a free cash flow margin of 10.8%, producing a balanced but unspectacular profitability picture. Margins remain stable supported by fee-based revenues, but scale does not yield dramatic margin expansion.
Membership lock-in creates a modest moat, backed by a gross margin of 45.8% that sits in the 64th sector percentile. Because vacation club members buy into point systems tied to specific properties and exchange networks, leaving is friction-heavy.
Revenue growth ticks along at 4.1%, reaching $4.1 billion, placing it right in the middle of the pack at the 45th sector percentile. Growth has slowed compared to historical post-pandemic bounces, settling into a low-single-digit rhythm.
Net debt sits high at $5.3 billion alongside an interest coverage ratio of 2.7x, meaning debt service eats a meaningful chunk of operating income. Free cash flow of $442 million shows decent generation, but the heavy debt load keeps the financial profile soft.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
5 sold $13.2M outside pre-planned sales.
Our sealed record on TNL
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Travel + Leisure Co. scores average on the Cluenex quality check (5.0 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: 5 sold $13.2M outside pre-planned sales.
Oct 27, 2026.
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Cite this page: Cluenex, “Travel + Leisure Co. (TNL)”, https://cluenex.com/stocks/tnl/, data as of Oct 10, 2026.