MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
USA - NYSE:VAC - US57164Y1073 - Common Stock
77.36 USD
+1.62 (+2.14%)
77.36 USD
0 (0%)
Taking everything into account, VAC scores 4 out of 10 in our fundamental rating. VAC was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. VAC has a medium profitability rating, but doesn't score so well on its financial health evaluation. VAC has a decent growth rate and is not valued too expensively. 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.
Each year in the past 5 years VAC had a positive operating cash flow.
1.2 Ratios
VAC has a Return On Assets (2.62%) which is comparable to the rest of the industry.
VAC has a Return On Equity of 10.43%. This is in the better half of the industry: VAC outperforms 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.
The Average Return On Invested Capital over the past 3 years for VAC is significantly below the industry average of 15.68%.
| 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 has a Profit Margin (5.10%) which is comparable to the rest of the industry.
VAC's Profit Margin has improved in the last couple of years.
VAC has a better Operating Margin (11.60%) than 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 comparable to the rest of the industry.
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.
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.
The debt/assets ratio for VAC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.12, we must say that VAC is in the distress zone and has some risk of bankruptcy.
VAC has a worse Altman-Z score (1.12) than 65.41% of its industry peers.
The Debt to FCF ratio of VAC is 78.04, which is on the high side as it means it would take VAC, 78.04 years of fcf income to pay off 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 61.65% 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 of 2.17. This is comparable to the rest of the industry: VAC outperforms 49.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 78.04 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.6
WACC7.25%
2.3 Liquidity
VAC has a Current Ratio of 1.71. 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 1.71, 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.
With a Quick ratio value of 0.74, VAC perfoms like the industry average, outperforming 44.36% of the companies in the same 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.
The Earnings Per Share has been decreasing by -3.50% on average over the past years.
The Revenue has been growing slightly by 7.70% in the past year.
VAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.12% yearly.
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
VAC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.51% yearly.
VAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.89% yearly.
EPS Next Y3.69%
EPS Next 2Y10.9%
EPS Next 3Y11.51%
EPS Next 5YN/A
Revenue Next Year3.99%
Revenue Next 2Y3.76%
Revenue Next 3Y3.89%
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
A Price/Earnings ratio of 10.63 indicates a reasonable 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 92.48% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VAC to the average of the S&P500 Index (27.20), we can say VAC is valued rather cheaply.
The Price/Forward Earnings ratio is 9.59, which indicates a very decent valuation of VAC.
Based on the Price/Forward Earnings ratio, VAC is valued cheaper than 90.98% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, VAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 9.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VAC indicates a somewhat cheap valuation: VAC is cheaper than 62.41% of the companies listed 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 | 38.79 | ||
| EV/EBITDA | 10.57 |
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)2.88
PEG (5Y)N/A
EPS Next 2Y10.9%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.98%, 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 3.93. VAC pays more dividend than 89.47% of the companies in the same industry.
VAC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
On average, the dividend of VAC grows each year by 10.51%, which is quite nice.
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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP42.08%
EPS Next 2Y10.9%
EPS Next 3Y11.51%
77.36
+1.62 (+2.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners89.47%
Inst Owner Change11.66%
Ins Owners1.58%
Ins Owner Change2.37%
Market Cap2.68B
Analysts72.86
Price Target93.74 (21.17%)
Short Float %8.96%
Short Ratio6.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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)2.11%
PT rev (3m)3.84%
EPS NQ rev (1m)-1.26%
EPS NQ rev (3m)-3.58%
EPS NY rev (1m)1.67%
EPS NY rev (3m)3.01%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 9.59 | ||
| P/S | 0.53 | ||
| P/FCF | 38.79 | ||
| P/OCF | 20.28 | ||
| P/B | 1.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.57 |
EPS(TTM)7.28
EY9.41%
EPS(NY)8.07
Fwd EY10.43%
FCF(TTM)1.99
FCFY2.58%
OCF(TTM)3.82
OCFY4.93%
SpS146.76
BVpS71.79
TBVpS-40.32
PEG (NY)2.88
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
WACC7.25%
ROIC/WACC0.6
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 Y3.69%
EPS Next 2Y10.9%
EPS Next 3Y11.51%
EPS Next 5YN/A
Revenue 1Y (TTM)7.7%
Revenue growth 3Y8.49%
Revenue growth 5Y3.12%
Sales Q2Q%9.3%
Revenue Next Year3.99%
Revenue Next 2Y3.76%
Revenue Next 3Y3.89%
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%