| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 80 | 18.2x | 17.8x | Top tier | |
Growth | 34 | 4.5% | 7.1% | Bottom tier | |
Quality | 94 | 9.5% | 4.5% | Top tier | |
Safety | 44 | 7.9x | 2.6x | Around median | |
Capital Return | 72 | 3.47% | 2.12% | Top tier | |
Momentum | 48 | 29.4% | 2.9% | Around median | |
Sentiment | 39 | 8 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Travel + Leisure Co. operates in two main businesses: Vacation Ownership, and Travel and Membership. The primary revenue engine relies on selling vacation ownership interests, or VOI, to new and existing members, then generating recurring streams from management fees, financing, and upgrades; in fiscal Q2 2026, gross VOI sales reached $693 million, up 6%, and Vacation Ownership segment revenue rose 6% to $907 million, while segment EBITDA increased 13% to $247 million. The Travel and Membership segment, which includes exchange businesses and travel clubs, recorded revenue of $157 million, down 5%, and EBITDA of $49 million, down 11%.
In fiscal Q2 2026, EDGAR data showed revenue of $1.1 billion, gross profit of $1.0 billion, net income of $109 million, and earnings per share of $1.72. According to the adjusted metrics reported in the July 22, 2026 earnings call, revenue reached $1.06 billion, up 4%, EBITDA was approximately $269 million, up 8%, the EBITDA margin improved by 70 basis points, and adjusted earnings per share rose 14%. The segment mix confirms that Vacation Ownership is the dominant source of revenue and earnings, while Travel and Membership remained a drag on growth.
On a trailing twelve-month basis ending in fiscal 2026, the company recorded revenue of approximately $4.1 billion, gross profit of approximately $3.8 billion, net income of $238 million, and earnings per share of approximately $3.75. By comparison, fiscal 2025 revenue was approximately $4.0 billion, net income was $230 million, and earnings per share were $3.44. During the first half of fiscal 2026, revenue rose 4%, EBITDA increased 9%, and earnings per share increased 21%, while the company returned $253 million to shareholders through dividends and share repurchases, reducing the number of common shares outstanding by 4%.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $83.5, within a range of $77 to $87, and the consensus recommendation is "Buy." The average target is only $2.5 above the 52-week high of $81, while the highest target exceeds that peak by $6; therefore, the valuation reflects optimism that fiscal 2026 guidance will be achieved, but it remains clearly sensitive to any setback in the Travel and Membership segment or the integration of the acquisitions.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
The Vacation Ownership segment is the company's primary driver through VOI sales and management, financing, and upgrade fees from owners. In fiscal Q2 2026, segment revenue reached $907 million, up 6%, and EBITDA was approximately $247 million, up 13%. Gross VOI sales reached $693 million, while volume per guest rose 2% to $3,318. By comparison, the Travel and Membership segment generated revenue of $157 million and EBITDA of $49 million.
The two transactions add 23 resorts and more than 100,000 owners, increasing the owner base by more than 10%. The assets include six resorts in Hilton Head and seven in Maui, two markets that management described as having strong demand and being difficult for new development. The company expects an additional EBITDA contribution of between $15 million and $20 million during fiscal 2026, and approximately $50 million on a first twelve-month basis after synergies. The investment is valued at approximately $340 million, declining to approximately $260 million after securitizing approximately $80 million of financing receivables, equivalent to approximately five times expected EBITDA.
The company expects gross VOI sales of between $2.6 billion and $2.675 billion in fiscal 2026. It also raised its EBITDA range to between $1.065 billion and $1.085 billion, including the contribution from the acquisitions. Management expects earnings per share growth of approximately 20% and conversion of approximately half of EBITDA into free cash flow. For fiscal Q3 2026, the company set a VOI sales range of between $700 million and $740 million and an EBITDA range of between $275 million and $285 million.
Management stated in the July 22, 2026 call that the average FICO score at loan origination remained above 740, with improved down payments compared with the prior year. After early delinquencies rose by approximately 20 basis points in fiscal Q1 2026, they improved by approximately 80 basis points in fiscal Q2 2026. The company expects the organic loan provision for fiscal 2026 to be lower than in fiscal 2025. However, adding the acquired portfolios raises the expected consolidated provision rate to approximately 21% during fiscal 2026.
Margaritaville is on track to exceed $150 million in annual VOI sales, while Accor Vacation Club sales are on track to nearly double in fiscal 2026. Management also said that Eddie Bauer Adventure Club sales are exceeding its expectations and that the new brands collectively could approach 10% of the VOI sales mix during fiscal 2026. The company opened a Sports Illustrated Resorts resort in Nashville during fiscal Q3 2026, with sales beginning at its new center. Digitally, Club Wyndham app bookings represent more than 30% of total club bookings, and the company also launched the Margaritaville app.
The clearest operational pressure comes from the Travel and Membership segment, whose revenue declined 5% and EBITDA declined 11% in fiscal Q2 2026. Tour growth also slowed to 1%, and continued VOI sales growth relied on higher volume per guest to offset the impact of some resort and sales center closures. The acquisitions add credit and execution risks, as the company expects a consolidated loan provision of approximately 21%, while converting more than 100,000 owners to the points system and realizing upgrade opportunities may take several years. This is compounded by insider net selling of $15.2 million during the three months through August 26, 2026, which should be treated as a weak signal because these sales may be prearranged.
