MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
USA - NYSE:VAC - US57164Y1073 - Common Stock
65.98 USD
+0.53 (+0.81%)
65.98 USD
0 (0%)
Taking everything into account, VAC scores 5 out of 10 in our fundamental rating. VAC was compared to 133 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 is not valued too expensively and it also shows a decent 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
With a Return On Assets value of 2.62%, VAC perfoms like the industry average, outperforming 48.87% of the companies in the same industry.
The Return On Equity of VAC (10.43%) is better than 66.92% of its industry peers.
VAC has a Return On Invested Capital of 4.33%. This is comparable to the rest of the industry: VAC outperforms 43.61% of its industry peers.
VAC had an Average Return On Invested Capital over the past 3 years of 4.94%. This is significantly below the industry average of 10.67%.
| 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
The Profit Margin of VAC (5.10%) is comparable to the rest of the industry.
VAC's Profit Margin has improved in the last couple of years.
VAC has a Operating Margin of 11.60%. This is in the better half of the industry: VAC outperforms 61.65% of its industry peers.
VAC's Operating Margin has declined in the last couple of years.
VAC has a Gross Margin (50.24%) which is in line with its industry peers.
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 | 11.6% | ||
| 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.
The number of shares outstanding for VAC has been reduced compared to 5 years ago.
Compared to 1 year ago, VAC has a worse debt to assets ratio.
2.2 Solvency
VAC has an Altman-Z score of 1.09. 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 (1.09) than 63.91% 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 has a Debt to FCF ratio of 78.04. This is in the lower half of the industry: VAC underperforms 61.65% of its industry peers.
VAC has a Debt/Equity ratio of 2.17. This is a high value indicating a heavy dependency on external financing.
VAC has a Debt to Equity ratio of 2.17. This is comparable to the rest of the industry: VAC outperforms 48.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 78.04 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.67
WACC6.44%
2.3 Liquidity
A Current Ratio of 1.71 indicates that VAC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.71, VAC is in the better half of the industry, outperforming 79.70% of the companies in the same industry.
A Quick Ratio of 0.74 indicates that VAC may have some problems paying 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
The Earnings Per Share has grown by an impressive 21.74% over the past year.
VAC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.50% yearly.
The Revenue has been growing slightly by 7.70% in the past year.
The Revenue has been growing slightly by 3.12% on average over the past years.
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%9.3%
3.2 Future
The Earnings Per Share is expected to grow by 12.72% on average over the next years. This is quite good.
VAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.88% yearly.
EPS Next Y4.25%
EPS Next 2Y11.26%
EPS Next 3Y12.72%
EPS Next 5YN/A
Revenue Next Year4.01%
Revenue Next 2Y3.77%
Revenue Next 3Y3.88%
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.
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 9.06, which indicates a very decent 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 93.98% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VAC to the average of the S&P500 Index (26.10), we can say VAC is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.13, the valuation of VAC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, VAC is valued cheaper than 92.48% of the companies in the same industry.
VAC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 8.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VAC is valued a bit cheaper than the industry average as 64.66% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VAC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.09 | ||
| EV/EBITDA | 10.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as VAC's earnings are expected to grow with 12.72% in the coming years.
PEG (NY)2.13
PEG (5Y)N/A
EPS Next 2Y11.26%
EPS Next 3Y12.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.83%, VAC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.10, VAC pays a better dividend. On top of this VAC pays more dividend than 91.73% of the companies listed in the same industry.
VAC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
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 42.08% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of VAC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP42.08%
EPS Next 2Y11.26%
EPS Next 3Y12.72%
65.98
+0.53 (+0.81%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners95.61%
Inst Owner Change0.21%
Ins Owners1.58%
Ins Owner Change2.43%
Market Cap2.28B
Revenue(TTM)5.08B
Net Income(TTM)259.00M
Analysts72.86
Price Target93.13 (41.15%)
Short Float %6.69%
Short Ratio5.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
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)1
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)0.73%
Revenue beat(4)3
Avg Revenue beat(4)1.76%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)5.82%
Revenue beat(8)4
Avg Revenue beat(8)-3.75%
Revenue beat(12)6
Avg Revenue beat(12)-2.15%
Revenue beat(16)8
Avg Revenue beat(16)-1.84%
PT rev (1m)-0.65%
PT rev (3m)1.22%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-4.43%
EPS NY rev (1m)0.67%
EPS NY rev (3m)2.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 8.13 | ||
| P/S | 0.45 | ||
| P/FCF | 33.09 | ||
| P/OCF | 17.29 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.11 |
EPS(TTM)7.28
EY11.03%
EPS(NY)8.12
Fwd EY12.31%
FCF(TTM)1.99
FCFY3.02%
OCF(TTM)3.82
OCFY5.78%
SpS146.76
BVpS71.79
TBVpS-40.32
PEG (NY)2.13
PEG (5Y)N/A
Graham Number108.44
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%
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-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 | 1.09 |
F-Score8
WACC6.44%
ROIC/WACC0.67
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 Y4.25%
EPS Next 2Y11.26%
EPS Next 3Y12.72%
EPS Next 5YN/A
Revenue 1Y (TTM)7.7%
Revenue growth 3Y8.49%
Revenue growth 5Y3.12%
Sales Q2Q%9.3%
Revenue Next Year4.01%
Revenue Next 2Y3.77%
Revenue Next 3Y3.88%
Revenue Next 5YN/A
EBIT growth 1Y16.4%
EBIT growth 3Y5.71%
EBIT growth 5Y-0.61%
EBIT Next Year45.77%
EBIT Next 3Y19.3%
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%
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 6 / 10 to MARRIOTT VACATIONS WORLD (VAC). This can be considered as Fairly Valued.
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 2 / 10.
How sustainable is the dividend of MARRIOTT VACATIONS WORLD (VAC) stock?
The dividend rating of MARRIOTT VACATIONS WORLD (VAC) is 8 / 10 and the dividend payout ratio is 42.08%.