MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
NYSE:VAC - New York Stock Exchange, Inc. - US57164Y1073 - Common Stock - Currency: USD
Overall VAC gets a fundamental rating of 5 out of 10. We evaluated VAC against 131 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.
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's Return On Assets of 2.62% is in line compared to the rest of the industry. VAC outperforms 50.38% of its industry peers.
With a decent Return On Equity value of 10.43%, VAC is doing good in the industry, outperforming 68.70% of the companies in the same industry.
VAC has a Return On Invested Capital (4.33%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VAC is significantly below the industry average of 15.80%.
| 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's Profit Margin of 5.10% is in line compared to the rest of the industry. VAC outperforms 56.49% of its industry peers.
VAC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.60%, VAC is in the better half of the industry, outperforming 62.60% of the companies in the same industry.
In the last couple of years the Operating Margin of VAC has declined.
VAC has a Gross Margin (50.24%) which is in line with 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.
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
VAC has an Altman-Z score of 1.12. This is a bad value and indicates that VAC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VAC (1.12) is worse than 64.89% 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.
VAC's Debt to FCF ratio of 78.04 is on the low side compared to the rest of the industry. VAC is outperformed by 61.07% of its industry peers.
A Debt/Equity ratio of 2.17 is on the high side and indicates that VAC has dependencies on debt financing.
VAC has a Debt to Equity ratio (2.17) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 78.04 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.59
WACC7.29%
2.3 Liquidity
A Current Ratio of 1.71 indicates that VAC should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.71, VAC belongs to the best of the industry, outperforming 80.15% of the companies in the same industry.
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.
The Quick ratio of VAC (0.74) is comparable to the rest of the 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%.
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)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%-26.4%
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.
Based on estimates for the next years, VAC will show a small growth in Revenue. The Revenue will grow by 3.81% on average per year.
EPS Next Y1.99%
EPS Next 2Y8.8%
EPS Next 3Y8.81%
EPS Next 5YN/A
Revenue Next Year3.59%
Revenue Next 2Y3.58%
Revenue Next 3Y3.81%
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
VAC is valuated reasonably with a Price/Earnings ratio of 10.10.
93.89% of the companies in the same industry are more expensive than VAC, based on the Price/Earnings ratio.
VAC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.84.
With a Price/Forward Earnings ratio of 9.46, the valuation of VAC can be described as very reasonable.
VAC's Price/Forward Earnings ratio is rather cheap when compared to the industry. VAC is cheaper than 90.84% of the companies 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 34.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 9.46 |
4.2 Price Multiples
VAC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VAC is cheaper than 64.12% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as VAC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.79 | ||
| EV/EBITDA | 10.54 |
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)5.08
PEG (5Y)N/A
EPS Next 2Y8.8%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
VAC has a Yearly Dividend Yield of 4.19%, which is a nice return.
Compared to an average industry Dividend Yield of 7.18, VAC pays a better dividend. On top of this VAC pays more dividend than 91.60% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, VAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
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
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, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.08%
EPS Next 2Y8.8%
EPS Next 3Y8.81%
73.5
-1.79 (-2.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners89.47%
Inst Owner Change11.69%
Ins Owners1.58%
Ins Owner Change7.81%
Market Cap2.54B
Analysts72.86
Price Target91.8 (24.9%)
Short Float %7.1%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
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)0
Avg Revenue beat(2)-16.83%
Min Revenue beat(2)-32.17%
Max Revenue beat(2)-1.48%
Revenue beat(4)2
Avg Revenue beat(4)-6.47%
Min Revenue beat(4)-32.17%
Max Revenue beat(4)5.82%
Revenue beat(8)3
Avg Revenue beat(8)-7.86%
Revenue beat(12)5
Avg Revenue beat(12)-4.9%
Revenue beat(16)7
Avg Revenue beat(16)-3.9%
PT rev (1m)0.78%
PT rev (3m)0.78%
EPS NQ rev (1m)-2.35%
EPS NQ rev (3m)-15.53%
EPS NY rev (1m)0%
EPS NY rev (3m)1.32%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-2.94%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 9.46 | ||
| P/S | 0.5 | ||
| P/FCF | 36.79 | ||
| P/OCF | 19.23 | ||
| P/B | 1.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.54 |
EPS(TTM)7.28
EY9.9%
EPS(NY)7.77
Fwd EY10.57%
FCF(TTM)2
FCFY2.72%
OCF(TTM)3.82
OCFY5.2%
SpS147.02
BVpS71.92
TBVpS-40.39
PEG (NY)5.08
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 | 1.12 |
F-Score8
WACC7.29%
ROIC/WACC0.59
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 Y1.99%
EPS Next 2Y8.8%
EPS Next 3Y8.81%
EPS Next 5YN/A
Revenue 1Y (TTM)7.7%
Revenue growth 3Y8.49%
Revenue growth 5Y3.12%
Sales Q2Q%-26.4%
Revenue Next Year3.59%
Revenue Next 2Y3.58%
Revenue Next 3Y3.81%
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%