MARRIOTT VACATIONS WORLD (VAC)
US57164Y1073 - Common Stock
Overall VAC gets a fundamental rating of 4 out of 10. We evaluated VAC against 135 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.
1. Profitability
1.1 Basic Checks
VAC had positive earnings in the past year.
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
With a Return On Assets value of 2.62%, VAC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.66%, VAC is in the better half of the industry, outperforming 65.67% of the companies in the same industry.
VAC has a Return On Invested Capital (4.37%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for VAC is significantly below the industry average of 10.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 10.66% | ||
| ROIC | 4.37% |
ROA(3y)2.4%
ROA(5y)1.12%
ROE(3y)9.32%
ROE(5y)4.43%
ROIC(3y)4.62%
ROIC(5y)3.73%
1.3 Margins
The Profit Margin of VAC (5.37%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of VAC has grown nicely.
VAC has a better Operating Margin (12.42%) than 62.69% of its industry peers.
VAC's Operating Margin has improved in the last couple of years.
VAC has a Gross Margin (50.50%) 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 | 12.42% | ||
| PM (TTM) | 5.37% | ||
| GM | 50.5% |
OM growth 3Y121.45%
OM growth 5Y3.32%
PM growth 3YN/A
PM growth 5Y23.73%
GM growth 3Y8.37%
GM growth 5Y0.54%
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
The number of shares outstanding for VAC has been reduced compared to 5 years ago.
VAC has a worse debt/assets ratio than last year.
2.2 Solvency
VAC has an Altman-Z score of 1.13. This is a bad value and indicates that VAC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.13, VAC is doing worse than 61.19% of the companies in the same industry.
VAC has a debt to FCF ratio of 45.13. This is a negative value and a sign of low solvency as VAC would need 45.13 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 45.13, VAC is doing worse than 60.45% of the companies in the same industry.
VAC has a Debt/Equity ratio of 2.16. This is a high value indicating a heavy dependency on external financing.
VAC has a Debt to Equity ratio of 2.16. This is comparable to the rest of the industry: VAC outperforms 50.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | 45.13 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.64
WACC6.82%
2.3 Liquidity
A Current Ratio of 1.37 indicates that VAC should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.37, VAC is doing good in the industry, outperforming 66.42% of the companies in the same industry.
A Quick Ratio of 0.68 indicates that VAC may have some problems paying its short term obligations.
With a Quick ratio value of 0.68, VAC is not doing good in the industry: 66.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The earnings per share for VAC have decreased strongly by -24.39% in the last year.
VAC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.38% yearly.
Looking at the last year, VAC shows a small growth in Revenue. The Revenue has grown by 1.52% in the last year.
Measured over the past years, VAC shows a quite strong growth in Revenue. The Revenue has been growing by 9.76% on average per year.
EPS 1Y (TTM)-24.39%
EPS 3YN/A
EPS 5Y5.38%
EPS growth Q2Q-31.39%
Revenue 1Y (TTM)1.52%
Revenue growth 3Y17.88%
Revenue growth 5Y9.76%
Revenue growth Q2Q0.51%
3.2 Future
VAC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.61% yearly.
Based on estimates for the next years, VAC will show a small growth in Revenue. The Revenue will grow by 3.50% on average per year.
EPS Next Y0.75%
EPS Next 2Y6.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.73%
Revenue Next 2Y3.5%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
VAC is valuated correctly with a Price/Earnings ratio of 12.64.
Based on the Price/Earnings ratio, VAC is valued cheaper than 84.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.84, VAC is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.55 indicates a correct valuation of VAC.
Based on the Price/Forward Earnings ratio, VAC is valued cheaper than 80.60% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.35. VAC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 12.55 |
4.2 Price Multiples
VAC's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as VAC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.46 | ||
| EV/EBITDA | 11.7 |
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)16.95
PEG (5Y)2.35
EPS Next 2Y6.61%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.01%, VAC has a reasonable but not impressive dividend return.
VAC's Dividend Yield is rather good when compared to the industry average which is at 2.56. VAC pays more dividend than 86.57% of the companies in the same industry.
VAC's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
5.2 History
On average, the dividend of VAC grows each year by 15.66%, 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)15.66%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
41.73% 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.
DP41.73%
EPS Next 2Y6.61%
EPS Next 3YN/A
MARRIOTT VACATIONS WORLD
NYSE:VAC (4/29/2024, 11:20:46 AM)
98.72
-2.15 (-2.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 12.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)16.95
PEG (5Y)2.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.62% | ||
| ROE | 10.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.42% | ||
| PM (TTM) | 5.37% | ||
| GM | 50.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-24.39%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y0.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.52%
Revenue growth 3Y17.88%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y