MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
NYSE:VAC • US57164Y1073
53.95 USD
+0.64 (+1.2%)
At close: Feb 13, 2026
53.95 USD
0 (0%)
After Hours: 2/13/2026, 8:04:00 PM
Taking everything into account, VAC scores 5 out of 10 in our fundamental rating. VAC was compared to 126 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. 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.
- VAC had positive earnings in 4 of the past 5 years.
- VAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 1.70%, VAC perfoms like the industry average, outperforming 48.85% of the companies in the same industry.
- VAC's Return On Equity of 7.02% is fine compared to the rest of the industry. VAC outperforms 65.65% of its industry peers.
- VAC has a Return On Invested Capital of 4.02%. This is comparable to the rest of the industry: VAC outperforms 44.27% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for VAC is significantly below the industry average of 10.53%.
| 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 of 3.44%. This is comparable to the rest of the industry: VAC outperforms 54.96% of its industry peers.
- In the last couple of years the Profit Margin of VAC has grown nicely.
- With a decent Operating Margin value of 11.10%, VAC is doing good in the industry, outperforming 60.31% of the companies in the same industry.
- VAC's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 50.38%, VAC perfoms like the industry average, outperforming 58.02% of the companies in the same industry.
- VAC's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VAC 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.
- VAC has a worse debt/assets ratio than last year.
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.
- With a Altman-Z score value of 1.04, VAC is not doing good in the industry: 60.31% of the companies in the same industry are doing better.
- 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.
- With a Debt to FCF ratio value of 89.52, VAC perfoms like the industry average, outperforming 40.46% of the companies in the same industry.
- VAC has a Debt/Equity ratio of 2.29. This is a high value indicating a heavy dependency on external financing.
- VAC has a Debt to Equity ratio (2.29) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 89.52 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.64
WACC6.28%
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 82.44% 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 (1.04) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
- VAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.97%, which is quite good.
- The Earnings Per Share has been decreasing by -3.50% on average over the past years.
- The Revenue has been growing slightly by 4.18% in the past year.
- The Revenue has been growing slightly by 3.12% on average over the past years.
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
- VAC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.14% yearly.
- The Revenue is expected to grow by 2.11% on average over the next years.
EPS Next Y6.63%
EPS Next 2Y1.54%
EPS Next 3Y4.14%
EPS Next 5YN/A
Revenue Next Year2.35%
Revenue Next 2Y2.18%
Revenue Next 3Y2.11%
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
- The Price/Earnings ratio is 7.52, which indicates a rather cheap valuation of VAC.
- Compared to the rest of the industry, the Price/Earnings ratio of VAC indicates a rather cheap valuation: VAC is cheaper than 95.42% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.68, VAC is valued rather cheaply.
- VAC is valuated cheaply with a Price/Forward Earnings ratio of 7.98.
- Based on the Price/Forward Earnings ratio, VAC is valued cheaper than 94.66% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.06. VAC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 7.98 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VAC is valued a bit cheaper than 63.36% of the companies in the same industry.
- VAC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.64 | ||
| EV/EBITDA | 9.91 |
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)1.13
PEG (5Y)N/A
EPS Next 2Y1.54%
EPS Next 3Y4.14%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.76%, VAC is a good candidate for dividend investing.
- VAC's Dividend Yield is rather good when compared to the industry average which is at 1.10. VAC pays more dividend than 94.66% of the companies in the same industry.
- VAC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.76% |
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
- 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 2Y1.54%
EPS Next 3Y4.14%
53.95
+0.64 (+1.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-25 2026-02-25/amc
Inst Owners92.33%
Inst Owner Change0.2%
Ins Owners1.46%
Ins Owner Change9.14%
Market Cap1.87B
Revenue(TTM)5.04B
Net Income(TTM)173.00M
Analysts68
Price Target63.15 (17.05%)
Short Float %10.01%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.76% |
Yearly Dividend3.05
Dividend Growth(5Y)10.51%
DP78.61%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.55%
Min EPS beat(2)3.36%
Max EPS beat(2)9.73%
EPS beat(4)4
Avg EPS beat(4)11.2%
Min EPS beat(4)3.36%
Max EPS beat(4)21.17%
EPS beat(8)7
Avg EPS beat(8)3.08%
EPS beat(12)8
Avg EPS beat(12)-1.03%
EPS beat(16)12
Avg EPS beat(16)3.12%
Revenue beat(2)1
Avg Revenue beat(2)-1.9%
Min Revenue beat(2)-4.54%
Max Revenue beat(2)0.73%
Revenue beat(4)2
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-4.54%
Max Revenue beat(4)5.82%
Revenue beat(8)4
Avg Revenue beat(8)-4.14%
Revenue beat(12)5
Avg Revenue beat(12)-3.3%
Revenue beat(16)8
Avg Revenue beat(16)-1.97%
PT rev (1m)-3.27%
PT rev (3m)-32.19%
EPS NQ rev (1m)-2.56%
EPS NQ rev (3m)-3.41%
EPS NY rev (1m)0.46%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-1.88%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 7.98 | ||
| P/S | 0.37 | ||
| P/FCF | 29.64 | ||
| P/OCF | 15.31 | ||
| P/B | 0.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.91 |
EPS(TTM)7.17
EY13.29%
EPS(NY)6.76
Fwd EY12.54%
FCF(TTM)1.82
FCFY3.37%
OCF(TTM)3.52
OCFY6.53%
SpS145.51
BVpS71.22
TBVpS-40.42
PEG (NY)1.13
PEG (5Y)N/A
Graham Number107.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 7.02% | ||
| ROCE | 6% | ||
| ROIC | 4.02% | ||
| ROICexc | 4.24% | ||
| ROICexgc | 8.51% | ||
| OM | 11.1% | ||
| PM (TTM) | 3.44% | ||
| GM | 50.38% | ||
| FCFM | 1.25% |
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%
ROICexgc growth 3Y2.01%
ROICexgc 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 | 2.29 | ||
| Debt/FCF | 89.52 | ||
| Debt/EBITDA | 7.94 | ||
| Cap/Depr | 39.07% | ||
| Cap/Sales | 1.17% | ||
| Interest Coverage | 2.29 | ||
| Cash Conversion | 17.18% | ||
| Profit Quality | 36.42% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.04 |
F-Score5
WACC6.28%
ROIC/WACC0.64
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)8.97%
EPS 3Y14.76%
EPS 5Y-3.5%
EPS Q2Q%-6.11%
EPS Next Y6.63%
EPS Next 2Y1.54%
EPS Next 3Y4.14%
EPS Next 5YN/A
Revenue 1Y (TTM)4.18%
Revenue growth 3Y8.49%
Revenue growth 5Y3.12%
Sales Q2Q%-3.22%
Revenue Next Year2.35%
Revenue Next 2Y2.18%
Revenue Next 3Y2.11%
Revenue Next 5YN/A
EBIT growth 1Y1.64%
EBIT growth 3Y5.71%
EBIT growth 5Y-0.61%
EBIT Next Year42.61%
EBIT Next 3Y13.93%
EBIT Next 5YN/A
FCF growth 1Y-62.94%
FCF growth 3Y-30.82%
FCF growth 5Y-21.84%
OCF growth 1Y-58.08%
OCF growth 3Y-15.77%
OCF growth 5Y-11.7%
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 7 / 10 to MARRIOTT VACATIONS WORLD (VAC). This can be considered as Undervalued.
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 6.63% 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%.