MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:VAC • US57164Y1073
54.31 USD
-0.96 (-1.74%)
At close: Jan 30, 2026
54.31 USD
0 (0%)
After Hours: 1/30/2026, 7:24:48 PM
VAC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 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 correct valuation and a medium growth rate. Finally VAC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year VAC was profitable.
- In the past year VAC had a positive cash flow from operations.
- VAC had positive earnings in 4 of the past 5 years.
- In the past 5 years VAC always reported a positive cash flow from operatings.
1.2 Ratios
- VAC's Return On Assets of 1.70% is in line compared to the rest of the industry. VAC outperforms 48.48% of its industry peers.
- With a decent Return On Equity value of 7.02%, VAC is doing good in the industry, outperforming 65.15% of the companies in the same industry.
- VAC has a Return On Invested Capital (4.02%) which 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 10.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 7.02% | ||
| ROIC | 4.02% |
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 (3.44%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of VAC has grown nicely.
- VAC has a Operating Margin of 11.10%. This is in the better half of the industry: VAC outperforms 61.36% of its industry peers.
- VAC's Operating Margin has declined in the last couple of years.
- VAC has a Gross Margin (50.38%) which is comparable to the rest of the industry.
- 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 | 11.1% | ||
| PM (TTM) | 3.44% | ||
| GM | 50.38% |
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.
- The number of shares outstanding for VAC has been reduced compared to 1 year ago.
- VAC has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for VAC is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.04, 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 1.04, VAC is doing worse than 61.36% of the companies in the same industry.
- VAC has a debt to FCF ratio of 89.52. This is a negative value and a sign of low solvency as VAC would need 89.52 years to pay back of all of its debts.
- VAC has a Debt to FCF ratio (89.52) which is in line with its industry peers.
- A Debt/Equity ratio of 2.29 is on the high side and indicates that VAC has dependencies on debt financing.
- VAC's Debt to Equity ratio of 2.29 is in line compared to the rest of the industry. VAC outperforms 47.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 89.52 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.63
WACC6.4%
2.3 Liquidity
- A Current Ratio of 1.91 indicates that VAC should not have too much problems paying its short term obligations.
- The Current ratio of VAC (1.91) is better than 83.33% of its industry peers.
- VAC has a Quick Ratio of 1.04. 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 Quick ratio of 1.04. This is comparable to the rest of the industry: VAC outperforms 59.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.97% over the past year.
- Measured over the past years, VAC shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.50% on average per year.
- VAC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.18%.
- VAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.12% yearly.
EPS 1Y (TTM)8.97%
EPS 3Y14.76%
EPS 5Y-3.5%
EPS Q2Q%-6.11%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y8.49%
Revenue growth 5Y3.12%
Sales Q2Q%-3.22%
3.2 Future
- The Earnings Per Share is expected to grow by 2.84% on average over the next years.
- The Revenue is expected to grow by 2.12% on average over the next years.
EPS Next Y6.2%
EPS Next 2Y1.32%
EPS Next 3Y2.84%
EPS Next 5YN/A
Revenue Next Year2.37%
Revenue Next 2Y2.18%
Revenue Next 3Y2.12%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 7.57, the valuation of VAC can be described as very cheap.
- Based on the Price/Earnings ratio, VAC is valued cheaper than 96.97% of the companies in the same industry.
- VAC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
- The Price/Forward Earnings ratio is 8.07, which indicates a very decent valuation of VAC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of VAC indicates a rather cheap valuation: VAC is cheaper than 93.94% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of VAC to the average of the S&P500 Index (25.57), we can say VAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.57 | ||
| Fwd PE | 8.07 |
4.2 Price Multiples
- VAC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VAC is cheaper than 64.39% of the companies in the same industry.
- VAC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.84 | ||
| EV/EBITDA | 9.92 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.22
PEG (5Y)N/A
EPS Next 2Y1.32%
EPS Next 3Y2.84%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.79%, VAC is a good candidate for dividend investing.
- VAC's Dividend Yield is rather good when compared to the industry average which is at 1.25. VAC pays more dividend than 94.70% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, VAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
5.2 History
- On average, the dividend of VAC grows each year by 10.51%, which is quite nice.
- VAC has paid a dividend for at least 10 years, which is 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
- 78.61% of the earnings are spent on dividend by VAC. This is not a sustainable payout ratio.
- The dividend of VAC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP78.61%
EPS Next 2Y1.32%
EPS Next 3Y2.84%
MARRIOTT VACATIONS WORLD / VAC FAQ
What is the fundamental rating for VAC stock?
ChartMill assigns a fundamental rating of 5 / 10 to VAC.
What is the valuation status of MARRIOTT VACATIONS WORLD (VAC) stock?
ChartMill assigns a valuation rating of 6 / 10 to MARRIOTT VACATIONS WORLD (VAC). This can be considered as Fairly Valued.
Can you provide the profitability details for MARRIOTT VACATIONS WORLD?
MARRIOTT VACATIONS WORLD (VAC) has a profitability rating of 5 / 10.
What is the earnings growth outlook for MARRIOTT VACATIONS WORLD?
The Earnings per Share (EPS) of MARRIOTT VACATIONS WORLD (VAC) is expected to grow by 6.2% in the next year.
Is the dividend of MARRIOTT VACATIONS WORLD sustainable?
The dividend rating of MARRIOTT VACATIONS WORLD (VAC) is 7 / 10 and the dividend payout ratio is 78.61%.