MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
USA - NYSE:VAC - US57164Y1073 - Common Stock
73.84 USD
-2.48 (-3.25%)
73.84 USD
0 (0%)
Overall VAC gets a fundamental rating of 4 out of 10. We evaluated VAC against 134 industry peers in the Hotels, Restaurants & Leisure industry. While VAC is still in line with the averages on profitability rating, there are concerns on its financial health. VAC is not valued too expensively and it also shows a decent growth rate. VAC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year VAC was profitable.
VAC had a positive operating cash flow in the past year.
Of the past 5 years VAC 4 years were profitable.
Each year in the past 5 years VAC had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.62%, VAC perfoms like the industry average, outperforming 49.25% of the companies in the same industry.
The Return On Equity of VAC (10.43%) is better than 67.91% of its industry peers.
The Return On Invested Capital of VAC (4.33%) is comparable to the rest of the industry.
VAC had an Average Return On Invested Capital over the past 3 years of 4.94%. This is significantly below the industry average of 15.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 10.43% | ||
| ROIC | 4.33% |
ROA(3y)2.97%
ROA(5y)1.26%
ROE(3y)11.75%
ROE(5y)5.31%
ROIC(3y)4.94%
ROIC(5y)3.74%
1.3 Margins
VAC has a Profit Margin (5.10%) which is comparable to the rest of the industry.
VAC's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 11.60%, VAC is doing good in the industry, outperforming 61.94% of the companies in the same industry.
VAC's Operating Margin has declined in the last couple of years.
VAC has a Gross Margin of 50.24%. This is comparable to the rest of the industry: VAC outperforms 57.46% of its industry peers.
VAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.6% | ||
| PM (TTM) | 5.1% | ||
| GM | 50.24% |
OM growth 3Y-2.56%
OM growth 5Y-3.62%
PM growth 3Y51.6%
PM growth 5Y6.26%
GM growth 3Y0.28%
GM growth 5Y-0.59%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VAC is destroying value.
VAC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VAC has been reduced compared to 5 years ago.
Compared to 1 year ago, VAC has a worse debt to assets ratio.
2.2 Solvency
VAC has an Altman-Z score of 1.11. This is a bad value and indicates that VAC is not financially healthy and even has some risk of bankruptcy.
VAC has a Altman-Z score of 1.11. This is in the lower half of the industry: VAC underperforms 64.18% of its industry peers.
VAC has a debt to FCF ratio of 78.04. This is a negative value and a sign of low solvency as VAC would need 78.04 years to pay back of all of its debts.
With a Debt to FCF ratio value of 78.04, VAC is not doing good in the industry: 61.94% of the companies in the same industry are doing better.
VAC has a Debt/Equity ratio of 2.17. This is a high value indicating a heavy dependency on external financing.
VAC's Debt to Equity ratio of 2.17 is in line compared to the rest of the industry. VAC outperforms 49.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 78.04 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.6
WACC7.17%
2.3 Liquidity
VAC has a Current Ratio of 1.71. This is a normal value and indicates that VAC is financially healthy and should not expect problems in meeting its short term obligations.
VAC has a better Current ratio (1.71) than 79.85% of its industry peers.
VAC has a Quick Ratio of 1.71. This is a bad value and indicates that VAC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.74, VAC perfoms like the industry average, outperforming 44.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
VAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.74%, which is quite impressive.
The Earnings Per Share has been decreasing by -3.50% on average over the past years.
VAC shows a small growth in Revenue. In the last year, the Revenue has grown by 7.70%.
The Revenue has been growing slightly by 3.12% on average over the past years.
EPS 1Y (TTM)21.74%
EPS 3Y14.76%
EPS 5Y-3.5%
EPS Q2Q%78.18%
Revenue 1Y (TTM)7.7%
Revenue growth 3Y8.49%
Revenue growth 5Y3.12%
Sales Q2Q%9.3%
3.2 Future
Based on estimates for the next years, VAC will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.51% on average per year.
The Revenue is expected to grow by 3.89% on average over the next years.
EPS Next Y3.69%
EPS Next 2Y10.9%
EPS Next 3Y11.51%
EPS Next 5YN/A
Revenue Next Year3.99%
Revenue Next 2Y3.76%
Revenue Next 3Y3.89%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.14, the valuation of VAC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of VAC indicates a rather cheap valuation: VAC is cheaper than 92.54% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VAC to the average of the S&P500 Index (27.41), we can say VAC is valued rather cheaply.
A Price/Forward Earnings ratio of 9.15 indicates a reasonable valuation of VAC.
Based on the Price/Forward Earnings ratio, VAC is valued cheaper than 92.54% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VAC to the average of the S&P500 Index (22.87), we can say VAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
64.18% of the companies in the same industry are more expensive than VAC, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as VAC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.03 | ||
| EV/EBITDA | 10.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.75
PEG (5Y)N/A
EPS Next 2Y10.9%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.08%, VAC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.79, VAC pays a better dividend. On top of this VAC pays more dividend than 91.79% of the companies listed in the same industry.
VAC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
5.2 History
On average, the dividend of VAC grows each year by 10.51%, which is quite nice.
VAC has been paying a dividend for at least 10 years, so it has a reliable track record.
VAC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.51%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
42.08% of the earnings are spent on dividend by VAC. This is a bit on the high side, but may be sustainable.
The dividend of VAC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP42.08%
EPS Next 2Y10.9%
EPS Next 3Y11.51%
73.84
-2.48 (-3.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners89.47%
Inst Owner Change11.66%
Ins Owners1.58%
Ins Owner Change2.39%
Market Cap2.55B
Analysts72.86
Price Target93.74 (26.95%)
Short Float %8.96%
Short Ratio6.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
Yearly Dividend3.05
Dividend Growth(5Y)10.51%
DP42.08%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.14%
Min EPS beat(2)9.73%
Max EPS beat(2)10.55%
EPS beat(4)4
Avg EPS beat(4)13.72%
Min EPS beat(4)9.73%
Max EPS beat(4)21.17%
EPS beat(8)6
Avg EPS beat(8)-2.95%
EPS beat(12)8
Avg EPS beat(12)-0.05%
EPS beat(16)12
Avg EPS beat(16)3.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)0.73%
Revenue beat(4)3
Avg Revenue beat(4)1.76%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)5.82%
Revenue beat(8)4
Avg Revenue beat(8)-3.75%
Revenue beat(12)6
Avg Revenue beat(12)-2.15%
Revenue beat(16)8
Avg Revenue beat(16)-1.84%
PT rev (1m)2.11%
PT rev (3m)2.91%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-3.58%
EPS NY rev (1m)0%
EPS NY rev (3m)1.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 9.15 | ||
| P/S | 0.5 | ||
| P/FCF | 37.03 | ||
| P/OCF | 19.36 | ||
| P/B | 1.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.48 |
EPS(TTM)7.28
EY9.86%
EPS(NY)8.07
Fwd EY10.93%
FCF(TTM)1.99
FCFY2.7%
OCF(TTM)3.82
OCFY5.17%
SpS146.76
BVpS71.79
TBVpS-40.32
PEG (NY)2.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 10.43% | ||
| ROCE | 6.46% | ||
| ROIC | 4.33% | ||
| ROICexc | 4.43% | ||
| ROICexgc | 9% | ||
| OM | 11.6% | ||
| PM (TTM) | 5.1% | ||
| GM | 50.24% | ||
| FCFM | 1.36% |
ROA(3y)2.97%
ROA(5y)1.26%
ROE(3y)11.75%
ROE(5y)5.31%
ROIC(3y)4.94%
ROIC(5y)3.74%
ROICexc(3y)5.14%
ROICexc(5y)3.89%
ROICexgc(3y)10.87%
ROICexgc(5y)8.31%
ROCE(3y)7.36%
ROCE(5y)5.57%
ROICexcg growth 3Y2.01%
ROICexcg growth 5Y-3.23%
ROICexc growth 3Y4.21%
ROICexc growth 5Y-2.5%
OM growth 3Y-2.56%
OM growth 5Y-3.62%
PM growth 3Y51.6%
PM growth 5Y6.26%
GM growth 3Y0.28%
GM growth 5Y-0.59%
F-Score8
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 78.04 | ||
| Debt/EBITDA | 7.3 | ||
| Cap/Depr | 42.28% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | 2.4 | ||
| Cash Conversion | 17.89% | ||
| Profit Quality | 26.64% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.11 |
F-Score8
WACC7.17%
ROIC/WACC0.6
Cap/Depr(3y)69.98%
Cap/Depr(5y)55.09%
Cap/Sales(3y)2.02%
Cap/Sales(5y)1.74%
Profit Quality(3y)68.91%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.74%
EPS 3Y14.76%
EPS 5Y-3.5%
EPS Q2Q%78.18%
EPS Next Y3.69%
EPS Next 2Y10.9%
EPS Next 3Y11.51%
EPS Next 5YN/A
Revenue 1Y (TTM)7.7%
Revenue growth 3Y8.49%
Revenue growth 5Y3.12%
Sales Q2Q%9.3%
Revenue Next Year3.99%
Revenue Next 2Y3.76%
Revenue Next 3Y3.89%
Revenue Next 5YN/A
EBIT growth 1Y16.4%
EBIT growth 3Y5.71%
EBIT growth 5Y-0.61%
EBIT Next Year45.31%
EBIT Next 3Y18.3%
EBIT Next 5YN/A
FCF growth 1Y-69.47%
FCF growth 3Y-30.82%
FCF growth 5Y-21.84%
OCF growth 1Y-60.12%
OCF growth 3Y-15.77%
OCF growth 5Y-11.7%