Does Travel & Leisure Co. have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores Travel & Leisure Co. (TNL) 55.3 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 100, returns on capital 57, balance-sheet safety 1, capital discipline 40.

Is TNL stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $75.50 per share versus a recent price of $73.27 — 3% below value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has TNL's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 55.3 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

Travel & Leisure Co.

TNL · Consumer Discretionary · $4.6B mkt cap · FY2025 filings · Shallow moat ·

Doesn't clear the bar

Shallow moat

The four filters

Pricing power100

Median gross margin 95.6% over 9y, very stable.

Returns on capital57

Median ROIC 11.9%, above the 9% hurdle in 78% of years.

Balance-sheet safety1

Net debt/EBITDA 7.9x, interest coverage 2x.

Capital discipline40

Owner earnings -10.8%/yr, share count shrinking (buybacks).

Margin of safety

Above valueOn sale

3% below value

Owner earnings (normalized): $424.0M
Est. intrinsic value / share: $75.50
Recent price: $73.27
Discount to value: 3% below value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

19 years of fundamentals

The business, in plain English

Travel & Leisure Co. booked $4.0B of revenue in FY2025 in the Consumer Discretionary sector and kept 93.2% of it as gross profit — a high-margin business by that measure. After every other cost, 5.7% of each revenue dollar reached the bottom line.

Across the filed record, revenue shrank from $4.3B (FY2008) to $4.0B (FY2025) — about −0.4% a year compounded over 17 years.

It earned 8.6% on invested capital in FY2025, with a median of 12.5% across 17 filed years. The Returns on Capital filter above scores it 57/100.

The balance sheet carried $5.6B of total debt in FY2025 against $237.0M of owner earnings — roughly 23.6 years of owner earnings to retire it all. Balance-Sheet Safety scores it 1/100.

The share count fell 64.0% between FY2010 and FY2025 — management has been retiring shares, which concentrates each remaining owner's claim. Capital Discipline scores it 40/100.

Put together: Pricing Power is the strongest of the four filters (100/100) and Balance-Sheet Safety the weakest (1/100), which is how TNL lands at 55/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$4.0B FY2025

Gross marginRevenue kept after cost of goods93.2% FY2025

Return on invested capitalOperating profit on the capital employed8.6% FY2025

Owner earningsCash an owner could take out$237.0M FY2025

Gaps in a line mean that item isn’t in TNL’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale55.3 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — TNL has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Consumer Discretionary context

#132 of 340 scored Consumer Discretionary companies, ranked by Moat Score.

Nearest peers by Moat Score

#130SAH SONIC AUTOMOTIVE, INC.55.7 out of 100, Shallow moatShallow moat
#131LMT LOCKHEED MARTIN CORPORATION55.6 out of 100, Shallow moatShallow moat
#133HEI HEICO Corporation54.7 out of 100, Shallow moatShallow moat
#134MHH MASTECH DIGITAL, INC.54.6 out of 100, Shallow moatShallow moat

Compare TNL with its nearest peers →All Consumer Discretionary companies on the Index →

Common questions about TNL

Does Travel & Leisure Co. have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores Travel & Leisure Co. (TNL) 55.3 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 100, returns on capital 57, balance-sheet safety 1, capital discipline 40.
Is TNL stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $75.50 per share versus a recent price of $73.27 — 3% below value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has TNL's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 55.3 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell TNL. See the disclaimer.