Is TNL a high-quality business?

AlphaMadera's AlphaQuality grade scores Travel + Leisure Co. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how TNL compares to a Buffett-style quality bar.

What is Travel + Leisure Co.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to TNL based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes TNL a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

TNL - Travel + Leisure Co.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $86.38 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C 54.7 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

C+ 61.0

5yr Avg ROIC 12.2% 71/100
Operating Margin Trend -0.31 pp/yr 38/100

Capital Efficiency

Weight: 15%

D+ 41.5

5yr Avg ROE 0.0% 10/100
5yr Share-Count CAGR -6.2% 100/100

Growth Quality

Weight: 15%

C 56.3

5yr Revenue CAGR 6.4% 67/100
5yr EPS CAGR -1.3% 17/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

A- 82.9

5yr FCF Margin 11.5% 74/100
5yr FCF/NI Conversion 1.33x 94/100

Balance Sheet

Weight: 20%

F 21.0

Net Debt / EBITDA 5.62x 10/100
Interest Coverage (EBIT/Int) 1.92x 27/100
Altman Z-Score 1.72 33/100

Stability

Weight: 15%

B+ 75.3

EPS Volatility (σ/μ) 0.28 60/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 0/5 100/100

4 of 4 gurus held; 2 new buys; 1 added; 1 trimmed.

Holders: 4 +2
Avg Δ position: -16.4%
New buys: 2
Full exits: 0

Cooperman new
Wood new
Dalio decreased -41%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.