MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VAC - US57164Y1073 - Common Stock
52.055 USD
+1.27 (+2.49%)
Overall VAC gets a fundamental rating of 5 out of 10. We evaluated VAC 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
VAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.70%, VAC is in line with its industry, outperforming 45.45% of the companies in the same industry.
The Return On Equity of VAC (7.02%) is better than 63.64% of its industry peers.
VAC's Return On Invested Capital of 4.02% is in line compared to the rest of the industry. VAC outperforms 43.18% 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 10.41%.
| 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.
The Operating Margin of VAC (11.10%) is better than 61.36% of its industry peers.
VAC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 50.38%, VAC is in line with its industry, outperforming 59.09% of the companies in the same 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.
VAC has a worse debt/assets ratio than last year.
2.2 Solvency
VAC has an Altman-Z score of 1.03. This is a bad value and indicates that VAC is not financially healthy and even has some risk of bankruptcy.
VAC has a worse Altman-Z score (1.03) than 64.39% of its industry peers.
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.
The Debt to FCF ratio of VAC (89.52) is worse than 60.61% of its industry peers.
VAC has a Debt/Equity ratio of 2.29. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.29, VAC is in line with its industry, outperforming 49.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 89.52 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.63
WACC6.35%
2.3 Liquidity
A Current Ratio of 1.91 indicates that VAC should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.91, VAC belongs to the best of the industry, outperforming 84.09% of the companies in the same industry.
A Quick Ratio of 1.04 indicates that VAC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.04, VAC perfoms like the industry average, outperforming 59.09% of the companies in the same 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.
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.
Looking at the last year, VAC shows a small growth in Revenue. The Revenue has grown by 4.18% in the last year.
Measured over the past years, VAC shows a small growth in Revenue. The Revenue has been growing by 3.12% on average per year.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.19% yearly.
VAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
EPS Next Y4.16%
EPS Next 2Y10.15%
EPS Next 3Y10.19%
EPS Next 5YN/A
Revenue Next Year4.08%
Revenue Next 2Y3.78%
Revenue Next 3Y3.96%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.26, which indicates a rather cheap valuation of VAC.
Based on the Price/Earnings ratio, VAC is valued cheaper than 96.97% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.47, VAC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.54, the valuation of VAC can be described as very cheap.
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.
VAC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 6.54 |
4.2 Price Multiples
63.64% of the companies in the same industry are more expensive than VAC, based on the Enterprise Value to EBITDA ratio.
60.61% 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 | 28.59 | ||
| EV/EBITDA | 9.75 |
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)1.74
PEG (5Y)N/A
EPS Next 2Y10.15%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
VAC has a Yearly Dividend Yield of 6.75%, which is a nice return.
The stock price of VAC dropped by -35.98% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
VAC's Dividend Yield is rather good when compared to the industry average which is at 6.40. VAC pays more dividend than 96.97% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, VAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
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
VAC pays out 78.61% of its income as dividend. 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 2Y10.15%
EPS Next 3Y10.19%
NYSE:VAC (11/24/2025, 12:20:36 PM)
52.055
+1.27 (+2.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners95.61%
Inst Owner Change-3.76%
Ins Owners1.58%
Ins Owner Change7.38%
Market Cap1.80B
Revenue(TTM)5.04B
Net Income(TTM)173.00M
Analysts72.86
Price Target69.36 (33.24%)
Short Float %5.95%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
Yearly Dividend3.05
Dividend Growth(5Y)10.51%
DP78.61%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)-26.01%
PT rev (3m)-26.09%
EPS NQ rev (1m)-5.37%
EPS NQ rev (3m)-6.08%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)-1.65%
Revenue NQ rev (3m)-1.57%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 6.54 | ||
| P/S | 0.36 | ||
| P/FCF | 28.59 | ||
| P/OCF | 14.76 | ||
| P/B | 0.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.75 |
EPS(TTM)7.17
EY13.77%
EPS(NY)7.96
Fwd EY15.29%
FCF(TTM)1.82
FCFY3.5%
OCF(TTM)3.53
OCFY6.77%
SpS145.55
BVpS71.24
TBVpS-40.43
PEG (NY)1.74
PEG (5Y)N/A
Graham Number107.21
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 | 1.03 |
F-Score5
WACC6.35%
ROIC/WACC0.63
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 Y4.16%
EPS Next 2Y10.15%
EPS Next 3Y10.19%
EPS Next 5YN/A
Revenue 1Y (TTM)4.18%
Revenue growth 3Y8.49%
Revenue growth 5Y3.12%
Sales Q2Q%-3.22%
Revenue Next Year4.08%
Revenue Next 2Y3.78%
Revenue Next 3Y3.96%
Revenue Next 5YN/A
EBIT growth 1Y1.64%
EBIT growth 3Y5.71%
EBIT growth 5Y-0.61%
EBIT Next Year45.77%
EBIT Next 3Y19.3%
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 for VAC stock?
ChartMill assigns a valuation rating of 7 / 10 to MARRIOTT VACATIONS WORLD (VAC). This can be considered as Undervalued.
What is the profitability of VAC stock?
MARRIOTT VACATIONS WORLD (VAC) has a profitability rating of 5 / 10.
How financially healthy is MARRIOTT VACATIONS WORLD?
The financial health rating of MARRIOTT VACATIONS WORLD (VAC) is 3 / 10.
How sustainable is the dividend of MARRIOTT VACATIONS WORLD (VAC) stock?
The dividend rating of MARRIOTT VACATIONS WORLD (VAC) is 7 / 10 and the dividend payout ratio is 78.61%.