MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VAC - US57164Y1073 - Common Stock
65.37 USD
+1.93 (+3.04%)
65.37 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. There are concerns on the financial health of VAC while its profitability can be described as average. VAC has a correct valuation and a medium growth rate. Finally 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.
Of the past 5 years VAC 4 years were profitable.
VAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VAC has a Return On Assets (1.70%) which is comparable to the rest of the industry.
The Return On Equity of VAC (7.02%) is better than 64.66% of its industry peers.
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 10.34%.
| 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
VAC has a Profit Margin of 3.44%. This is comparable to the rest of the industry: VAC outperforms 55.64% of its industry peers.
VAC's Profit Margin has improved in the last couple of years.
VAC has a better Operating Margin (11.10%) than 61.65% of its industry peers.
In the last couple of years the Operating Margin of VAC has declined.
VAC has a Gross Margin of 50.38%. This is comparable to the rest of the industry: VAC outperforms 57.89% of 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VAC is destroying value.
The number of shares outstanding for VAC has been reduced compared to 1 year ago.
Compared to 5 years ago, VAC has less shares outstanding
Compared to 1 year ago, VAC has a worse debt to assets ratio.
2.2 Solvency
VAC has an Altman-Z score of 1.07. 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 1.07, VAC is doing worse than 61.65% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 89.52, VAC is in line with its industry, outperforming 41.35% of the companies in the same industry.
VAC has a Debt/Equity ratio of 2.29. This is a high value indicating a heavy dependency on external 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 | 1.07 |
ROIC/WACC0.6
WACC6.7%
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.
VAC has a Current ratio of 1.91. This is amongst the best in the industry. VAC outperforms 82.71% of its industry peers.
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 (1.04) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
VAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.97%, which is quite good.
Measured over the past years, VAC shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.50% on average per year.
The Revenue has been growing slightly by 4.18% 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)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 3.92% on average per year.
VAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.31% yearly.
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
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
With a Price/Earnings ratio of 9.12, the valuation of VAC can be described as very reasonable.
Based on the Price/Earnings ratio, VAC is valued cheaply inside the industry as 94.74% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.19. VAC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.46, the valuation of VAC can be described as reasonable.
Based on the Price/Forward Earnings ratio, VAC is valued cheaply inside the industry as 90.98% 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 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.12 | ||
| Fwd PE | 9.46 |
4.2 Price Multiples
64.66% of the companies in the same industry are more expensive than VAC, based on the Enterprise Value to EBITDA ratio.
VAC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.91 | ||
| EV/EBITDA | 10.46 |
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)1.48
PEG (5Y)N/A
EPS Next 2Y2.62%
EPS Next 3Y3.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.04%, VAC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.32, VAC pays a better dividend. On top of this VAC pays more dividend than 94.74% 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
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.
The dividend of VAC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP78.61%
EPS Next 2Y2.62%
EPS Next 3Y3.92%
65.37
+1.93 (+3.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners92.33%
Inst Owner Change-0.02%
Ins Owners1.46%
Ins Owner Change7.42%
Market Cap2.26B
Revenue(TTM)5.04B
Net Income(TTM)173.00M
Analysts69.33
Price Target65.28 (-0.14%)
Short Float %8.56%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
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)0%
PT rev (3m)-30.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)0%
EPS NY rev (3m)2.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.12 | ||
| Fwd PE | 9.46 | ||
| P/S | 0.45 | ||
| P/FCF | 35.91 | ||
| P/OCF | 18.54 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.46 |
EPS(TTM)7.17
EY10.97%
EPS(NY)6.91
Fwd EY10.57%
FCF(TTM)1.82
FCFY2.78%
OCF(TTM)3.52
OCFY5.39%
SpS145.51
BVpS71.22
TBVpS-40.42
PEG (NY)1.48
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 | 1.07 |
F-Score5
WACC6.7%
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)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%.