MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VAC - US57164Y1073 - Common Stock
57.69 USD
-0.72 (-1.23%)
57.69 USD
0 (0%)
VAC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of VAC while its profitability can be described as average. VAC is not valued too expensively and it also shows a decent growth rate. VAC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year VAC was profitable.
VAC had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 1.70%, VAC is in line with its industry, outperforming 48.12% of the companies in the same industry.
With a decent Return On Equity value of 7.02%, VAC is doing good in the industry, outperforming 63.91% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.02%, VAC is in line with its industry, outperforming 44.36% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VAC is significantly below the industry average of 10.39%.
| 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
Looking at the Profit Margin, with a value of 3.44%, VAC is in line with its industry, outperforming 54.89% of the companies in the same industry.
In the last couple of years the Profit Margin of VAC has grown nicely.
Looking at the Operating Margin, with a value of 11.10%, VAC is in the better half of the industry, outperforming 61.65% of the companies in the same industry.
VAC's Operating Margin has declined in the last couple of years.
The Gross Margin of VAC (50.38%) 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 | 11.1% | ||
| 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.
Compared to 1 year ago, VAC has less shares outstanding
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
Based on the Altman-Z score of 1.05, we must say that VAC is in the distress zone and has some risk of bankruptcy.
VAC has a Altman-Z score of 1.05. This is in the lower half of the industry: VAC underperforms 60.90% of its industry peers.
The Debt to FCF ratio of VAC is 89.52, which is on the high side as it means it would take VAC, 89.52 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 89.52, VAC perfoms like the industry average, outperforming 41.35% of the companies in the same 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 89.52 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.63
WACC6.42%
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.
With an excellent Current ratio value of 1.91, VAC belongs to the best of the industry, outperforming 82.71% of the companies in the same industry.
A Quick Ratio of 1.04 indicates that VAC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.04, VAC is in line with its industry, outperforming 59.40% of the companies in the same industry.
| 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%.
VAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.12% yearly.
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
The Earnings Per Share is expected to grow by 3.92% on average over the next years.
Based on estimates for the next years, VAC will show a small growth in Revenue. The Revenue will grow by 2.31% on average per year.
EPS Next Y6.15%
EPS Next 2Y2.62%
EPS Next 3Y3.92%
EPS Next 5YN/A
Revenue Next Year2.7%
Revenue Next 2Y2.64%
Revenue Next 3Y2.31%
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
The Price/Earnings ratio is 8.05, which indicates a very decent valuation of VAC.
Based on the Price/Earnings ratio, VAC is valued cheaply inside the industry as 96.99% of the companies are valued more expensively.
VAC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
Based on the Price/Forward Earnings ratio of 8.35, the valuation of VAC can be described as reasonable.
Based on the Price/Forward Earnings ratio, VAC is valued cheaply inside the industry as 93.98% of the companies are valued more expensively.
VAC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 8.35 |
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.
VAC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VAC is cheaper than 60.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.69 | ||
| EV/EBITDA | 10.09 |
4.3 Compensation for Growth
VAC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.31
PEG (5Y)N/A
EPS Next 2Y2.62%
EPS Next 3Y3.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.49%, VAC is a good candidate for dividend investing.
VAC's Dividend Yield is rather good when compared to the industry average which is at 1.66. VAC pays more dividend than 96.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, VAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
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
VAC pays out 78.61% of its income as dividend. This is not a sustainable payout ratio.
VAC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP78.61%
EPS Next 2Y2.62%
EPS Next 3Y3.92%
57.69
-0.72 (-1.23%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners91.91%
Inst Owner Change-3.75%
Ins Owners1.46%
Ins Owner Change7.46%
Market Cap2.00B
Revenue(TTM)5.04B
Net Income(TTM)173.00M
Analysts69.33
Price Target65.28 (13.16%)
Short Float %8.56%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
Yearly Dividend3.05
Dividend Growth(5Y)10.51%
DP78.61%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.55%
Min EPS beat(2)3.36%
Max EPS beat(2)9.73%
EPS beat(4)4
Avg EPS beat(4)11.2%
Min EPS beat(4)3.36%
Max EPS beat(4)21.17%
EPS beat(8)7
Avg EPS beat(8)3.08%
EPS beat(12)8
Avg EPS beat(12)-1.03%
EPS beat(16)12
Avg EPS beat(16)3.12%
Revenue beat(2)1
Avg Revenue beat(2)-1.9%
Min Revenue beat(2)-4.54%
Max Revenue beat(2)0.73%
Revenue beat(4)2
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-4.54%
Max Revenue beat(4)5.82%
Revenue beat(8)4
Avg Revenue beat(8)-4.14%
Revenue beat(12)5
Avg Revenue beat(12)-3.3%
Revenue beat(16)8
Avg Revenue beat(16)-1.97%
PT rev (1m)-5.88%
PT rev (3m)-30.36%
EPS NQ rev (1m)1.15%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)1.9%
EPS NY rev (3m)2.5%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)-1.32%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 8.35 | ||
| P/S | 0.4 | ||
| P/FCF | 31.69 | ||
| P/OCF | 16.37 | ||
| P/B | 0.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.09 |
EPS(TTM)7.17
EY12.43%
EPS(NY)6.91
Fwd EY11.98%
FCF(TTM)1.82
FCFY3.16%
OCF(TTM)3.52
OCFY6.11%
SpS145.51
BVpS71.22
TBVpS-40.42
PEG (NY)1.31
PEG (5Y)N/A
Graham Number107.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 7.02% | ||
| ROCE | 6% | ||
| ROIC | 4.02% | ||
| ROICexc | 4.24% | ||
| ROICexgc | 8.51% | ||
| OM | 11.1% | ||
| PM (TTM) | 3.44% | ||
| GM | 50.38% | ||
| FCFM | 1.25% |
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-Score5
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 89.52 | ||
| Debt/EBITDA | 7.94 | ||
| Cap/Depr | 39.07% | ||
| Cap/Sales | 1.17% | ||
| Interest Coverage | 2.29 | ||
| Cash Conversion | 17.18% | ||
| Profit Quality | 36.42% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.05 |
F-Score5
WACC6.42%
ROIC/WACC0.63
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)8.97%
EPS 3Y14.76%
EPS 5Y-3.5%
EPS Q2Q%-6.11%
EPS Next Y6.15%
EPS Next 2Y2.62%
EPS Next 3Y3.92%
EPS Next 5YN/A
Revenue 1Y (TTM)4.18%
Revenue growth 3Y8.49%
Revenue growth 5Y3.12%
Sales Q2Q%-3.22%
Revenue Next Year2.7%
Revenue Next 2Y2.64%
Revenue Next 3Y2.31%
Revenue Next 5YN/A
EBIT growth 1Y1.64%
EBIT growth 3Y5.71%
EBIT growth 5Y-0.61%
EBIT Next Year43.22%
EBIT Next 3Y14.73%
EBIT Next 5YN/A
FCF growth 1Y-62.94%
FCF growth 3Y-30.82%
FCF growth 5Y-21.84%
OCF growth 1Y-58.08%
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 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 6.15% 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%.