MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:VAC • US57164Y1073
54.31 USD
-0.96 (-1.74%)
At close: Jan 30, 2026
54.31 USD
0 (0%)
After Hours: 1/30/2026, 7:24:48 PM
VAC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 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
- VAC has a Return On Assets (1.70%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 7.02%, VAC is in the better half of the industry, outperforming 65.15% of the companies in the same industry.
- VAC has a Return On Invested Capital of 4.02%. This is comparable to the rest of the industry: VAC outperforms 44.70% 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 10.37%.
| 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
- With a Profit Margin value of 3.44%, VAC perfoms like the industry average, outperforming 55.30% of the companies in the same industry.
- VAC's Profit Margin has improved in the last couple of years.
- VAC's Operating Margin of 11.10% is fine compared to the rest of the industry. VAC outperforms 61.36% of its industry peers.
- In the last couple of years the Operating Margin of VAC has declined.
- VAC has a Gross Margin (50.38%) 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 | 11.1% | ||
| 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.
- Compared to 1 year ago, VAC has a worse debt to assets ratio.
2.2 Solvency
- VAC has an Altman-Z score of 1.04. This is a bad value and indicates that VAC is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.04, VAC is not doing good in the industry: 61.36% 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.
- The Debt to FCF ratio of VAC (89.52) is comparable to the rest of the industry.
- A Debt/Equity ratio of 2.29 is on the high side and indicates that VAC has dependencies on debt financing.
- VAC has a Debt to Equity ratio (2.29) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 89.52 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.64
WACC6.29%
2.3 Liquidity
- VAC has a Current Ratio of 1.91. This is a normal value and indicates that VAC is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.91, VAC belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- 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 of 1.04. This is comparable to the rest of the industry: VAC outperforms 59.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.97% 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.
- VAC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.18%.
- 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
- Based on estimates for the next years, VAC will show a small growth in Earnings Per Share. The EPS will grow by 2.84% on average per year.
- VAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.12% yearly.
EPS Next Y6.2%
EPS Next 2Y1.32%
EPS Next 3Y2.84%
EPS Next 5YN/A
Revenue Next Year2.37%
Revenue Next 2Y2.18%
Revenue Next 3Y2.12%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 7.57, the valuation of VAC can be described as very cheap.
- Based on the Price/Earnings ratio, VAC is valued cheaper than 96.97% of the companies in the same industry.
- When comparing the Price/Earnings ratio of VAC to the average of the S&P500 Index (28.30), we can say VAC is valued rather cheaply.
- VAC is valuated reasonably with a Price/Forward Earnings ratio of 8.07.
- VAC's Price/Forward Earnings ratio is rather cheap when compared to the industry. VAC is cheaper than 93.94% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, VAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.57 | ||
| Fwd PE | 8.07 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VAC is valued a bit cheaper than 65.15% 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 | 29.84 | ||
| EV/EBITDA | 9.97 |
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)1.22
PEG (5Y)N/A
EPS Next 2Y1.32%
EPS Next 3Y2.84%
5. Dividend
5.1 Amount
- VAC has a Yearly Dividend Yield of 5.79%, which is a nice return.
- VAC's Dividend Yield is rather good when compared to the industry average which is at 1.21. VAC pays more dividend than 94.70% of the companies in the same industry.
- VAC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.79% |
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 2Y1.32%
EPS Next 3Y2.84%
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 6 / 10 to MARRIOTT VACATIONS WORLD (VAC). This can be considered as Fairly Valued.
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 6.2% 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%.