MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
NYSE:VAC - New York Stock Exchange, Inc. - US57164Y1073 - Common Stock - Currency: USD
VAC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 133 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 has a decent growth rate and is not valued too expensively. VAC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
VAC had positive earnings in the past year.
VAC had a positive operating cash flow in the past year.
Of the past 5 years VAC 4 years were profitable.
In the past 5 years VAC always reported a positive cash flow from operatings.
1.2 Ratios
VAC has a Return On Assets of 2.30%. This is comparable to the rest of the industry: VAC outperforms 51.13% of its industry peers.
The Return On Equity of VAC (9.32%) is better than 69.17% of its industry peers.
With a Return On Invested Capital value of 4.13%, VAC perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VAC is significantly below the industry average of 14.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 9.32% | ||
| ROIC | 4.13% |
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's Profit Margin of 4.57% is in line compared to the rest of the industry. VAC outperforms 57.14% of its industry peers.
VAC's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 11.12%, VAC perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
VAC's Operating Margin has declined in the last couple of years.
VAC has a Gross Margin (49.90%) which is in line with its industry peers.
In the last couple of years the Gross Margin of VAC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.12% | ||
| PM (TTM) | 4.57% | ||
| GM | 49.9% |
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
VAC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, VAC has less shares outstanding
Compared to 5 years ago, VAC has less shares outstanding
VAC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.07, we must say that VAC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.07, VAC is doing worse than 64.66% of the companies in the same industry.
The Debt to FCF ratio of VAC is 34.40, which is on the high side as it means it would take VAC, 34.40 years of fcf income to pay off all of its debts.
VAC has a Debt to FCF ratio (34.40) which is in line with its industry peers.
A Debt/Equity ratio of 2.18 is on the high side and indicates that VAC has dependencies on debt financing.
VAC's Debt to Equity ratio of 2.18 is in line compared to the rest of the industry. VAC outperforms 51.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 34.4 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.68
WACC6.07%
2.3 Liquidity
VAC has a Current Ratio of 1.47. 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 (1.47) than 73.68% of its industry peers.
A Quick Ratio of 0.64 indicates that VAC may have some problems paying its short term obligations.
VAC has a worse Quick ratio (0.64) than 60.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The earnings per share for VAC have decreased by -9.19% in the last year.
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 4.61%.
The Revenue has been growing slightly by 3.12% on average over the past years.
EPS 1Y (TTM)-9.19%
EPS 3Y14.76%
EPS 5Y-3.5%
EPS Q2Q%-7.78%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y8.49%
Revenue growth 5Y3.12%
Sales Q2Q%49.25%
3.2 Future
VAC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.81% yearly.
The Revenue is expected to grow by 3.75% on average over the next years.
EPS Next Y1.99%
EPS Next 2Y8.8%
EPS Next 3Y8.81%
EPS Next 5YN/A
Revenue Next Year3.57%
Revenue Next 2Y3.56%
Revenue Next 3Y3.75%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 11.43, which indicates a very decent valuation of VAC.
Based on the Price/Earnings ratio, VAC is valued cheaply inside the industry as 92.48% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.86, VAC is valued rather cheaply.
The Price/Forward Earnings ratio is 9.45, which indicates a very decent valuation of VAC.
Based on the Price/Forward Earnings ratio, VAC is valued cheaply inside the industry as 87.97% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.43. VAC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 9.45 |
4.2 Price Multiples
60.90% of the companies in the same industry are more expensive than VAC, based on the Enterprise Value to EBITDA ratio.
81.20% of the companies in the same industry are more expensive than VAC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.46 | ||
| EV/EBITDA | 10.92 |
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)5.75
PEG (5Y)N/A
EPS Next 2Y8.8%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
VAC has a Yearly Dividend Yield of 4.65%, which is a nice return.
VAC's Dividend Yield is rather good when compared to the industry average which is at 3.70. VAC pays more dividend than 92.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, VAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
5.2 History
The dividend of VAC is nicely growing with an annual growth rate of 10.51%!
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
47.58% of the earnings are spent on dividend by VAC. This is a bit on the high side, but may be sustainable.
VAC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP47.58%
EPS Next 2Y8.8%
EPS Next 3Y8.81%
NYSE:VAC (6/27/2025, 2:32:56 PM)
73.37
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners87.31%
Inst Owner Change0.49%
Ins Owners1.58%
Ins Owner Change7.84%
Market Cap2.53B
Analysts72.86
Price Target91.09 (24.15%)
Short Float %6.31%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
Yearly Dividend3.05
Dividend Growth(5Y)10.51%
DP47.58%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.86%
Min EPS beat(2)10.55%
Max EPS beat(2)21.17%
EPS beat(4)3
Avg EPS beat(4)-0.05%
Min EPS beat(4)-45.35%
Max EPS beat(4)21.17%
EPS beat(8)5
Avg EPS beat(8)-6.86%
EPS beat(12)8
Avg EPS beat(12)1.25%
EPS beat(16)11
Avg EPS beat(16)2.53%
Revenue beat(2)1
Avg Revenue beat(2)2.17%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)5.82%
Revenue beat(4)2
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-6.79%
Max Revenue beat(4)5.82%
Revenue beat(8)3
Avg Revenue beat(8)-4.52%
Revenue beat(12)6
Avg Revenue beat(12)-2.16%
Revenue beat(16)8
Avg Revenue beat(16)-1.56%
PT rev (1m)0%
PT rev (3m)-12.28%
EPS NQ rev (1m)1.91%
EPS NQ rev (3m)-2.4%
EPS NY rev (1m)1.32%
EPS NY rev (3m)-12.38%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)-2.75%
Revenue NY rev (1m)-1.5%
Revenue NY rev (3m)-2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 9.45 | ||
| P/S | 0.51 | ||
| P/FCF | 16.46 | ||
| P/OCF | 12.07 | ||
| P/B | 1.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.92 |
EPS(TTM)6.42
EY8.75%
EPS(NY)7.77
Fwd EY10.58%
FCF(TTM)4.46
FCFY6.08%
OCF(TTM)6.08
OCFY8.29%
SpS143.95
BVpS70.5
TBVpS-42.18
PEG (NY)5.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 9.32% | ||
| ROCE | 6.15% | ||
| ROIC | 4.13% | ||
| ROICexc | 4.22% | ||
| ROICexgc | 8.96% | ||
| OM | 11.12% | ||
| PM (TTM) | 4.57% | ||
| GM | 49.9% | ||
| FCFM | 3.1% |
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-Score5
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 34.4 | ||
| Debt/EBITDA | 7.58 | ||
| Cap/Depr | 38.36% | ||
| Cap/Sales | 1.13% | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | 30.04% | ||
| Profit Quality | 67.84% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 1.07 |
F-Score5
WACC6.07%
ROIC/WACC0.68
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)-9.19%
EPS 3Y14.76%
EPS 5Y-3.5%
EPS Q2Q%-7.78%
EPS Next Y1.99%
EPS Next 2Y8.8%
EPS Next 3Y8.81%
EPS Next 5YN/A
Revenue 1Y (TTM)4.61%
Revenue growth 3Y8.49%
Revenue growth 5Y3.12%
Sales Q2Q%49.25%
Revenue Next Year3.57%
Revenue Next 2Y3.56%
Revenue Next 3Y3.75%
Revenue Next 5YN/A
EBIT growth 1Y-2.64%
EBIT growth 3Y5.71%
EBIT growth 5Y-0.61%
EBIT Next Year47.24%
EBIT Next 3Y19.11%
EBIT Next 5YN/A
FCF growth 1Y-38.4%
FCF growth 3Y-30.82%
FCF growth 5Y-21.84%
OCF growth 1Y-38.78%
OCF growth 3Y-15.77%
OCF growth 5Y-11.7%