MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VAC - US57164Y1073 - Common Stock
50.79 USD
+3.98 (+8.5%)
51 USD
+0.21 (+0.41%)
We assign a fundamental rating of 5 out of 10 to VAC. VAC was compared to 132 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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
With a Return On Assets value of 2.62%, VAC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
VAC's Return On Equity of 10.43% is fine compared to the rest of the industry. VAC outperforms 68.94% of its industry peers.
VAC's Return On Invested Capital of 4.33% is in line compared to the rest of the industry. VAC outperforms 45.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VAC is significantly below the industry average of 10.64%.
| 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's Profit Margin of 5.10% is in line compared to the rest of the industry. VAC outperforms 56.06% of its industry peers.
In the last couple of years the Profit Margin of VAC has grown nicely.
VAC has a better Operating Margin (11.60%) than 62.12% of its industry peers.
In the last couple of years the Operating Margin of VAC has declined.
VAC has a Gross Margin (50.24%) which is comparable to the rest of the industry.
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
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.
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
Based on the Altman-Z score of 1.04, we must say that VAC is in the distress zone and has some risk of bankruptcy.
VAC's Altman-Z score of 1.04 is on the low side compared to the rest of the industry. VAC is outperformed by 62.88% 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.
With a Debt to FCF ratio value of 78.04, VAC is not doing good in the industry: 61.36% of the companies in the same industry are doing better.
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 (2.17) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.17 | ||
| Debt/FCF | 78.04 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.69
WACC6.28%
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.
The Current ratio of VAC (1.71) is better than 79.55% of its industry peers.
VAC has a Quick Ratio of 1.71. This is a bad value and indicates that VAC is not financially healthy enough and could expect problems in meeting its short term obligations.
VAC has a Quick ratio (0.74) which is in line with its industry peers.
| 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 nice 8.97% over the past year.
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.
Looking at the last year, VAC shows a small growth in Revenue. The Revenue has grown by 4.18% in the last year.
Measured over the past years, VAC shows a small growth in Revenue. The Revenue has been growing by 3.12% on average per year.
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 quite strong growth in Earnings Per Share. The EPS will grow by 10.19% on average per year.
The Revenue is expected to grow by 3.96% on average over the next years.
EPS Next Y4.16%
EPS Next 2Y10.15%
EPS Next 3Y10.19%
EPS Next 5YN/A
Revenue Next Year4.08%
Revenue Next 2Y3.78%
Revenue Next 3Y3.96%
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.
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 7.08 indicates a rather cheap valuation of VAC.
Based on the Price/Earnings ratio, VAC is valued cheaply inside the industry as 96.21% of the companies are valued more expensively.
VAC is valuated cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.38, the valuation of VAC can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VAC indicates a rather cheap valuation: VAC is cheaper than 94.70% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. VAC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.08 | ||
| Fwd PE | 6.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VAC is valued a bit cheaper than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VAC is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.47 | ||
| EV/EBITDA | 9.21 |
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)1.7
PEG (5Y)N/A
EPS Next 2Y10.15%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.75%, VAC is a good candidate for dividend investing.
The stock price of VAC dropped by -35.98% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
VAC's Dividend Yield is rather good when compared to the industry average which is at 5.24. VAC pays more dividend than 96.97% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, VAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
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
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, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP42.08%
EPS Next 2Y10.15%
EPS Next 3Y10.19%
50.79
+3.98 (+8.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners95.61%
Inst Owner Change-3.76%
Ins Owners1.58%
Ins Owner Change7.26%
Market Cap1.76B
Revenue(TTM)5.04B
Net Income(TTM)259.00M
Analysts72.86
Price Target69.36 (36.56%)
Short Float %5.95%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
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)1.44%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-1.41%
EPS NY rev (1m)0.58%
EPS NY rev (3m)2.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.08 | ||
| Fwd PE | 6.38 | ||
| P/S | 0.35 | ||
| P/FCF | 25.47 | ||
| P/OCF | 13.31 | ||
| P/B | 0.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.21 |
EPS(TTM)7.17
EY14.12%
EPS(NY)7.96
Fwd EY15.67%
FCF(TTM)1.99
FCFY3.93%
OCF(TTM)3.82
OCFY7.51%
SpS146.76
BVpS71.79
TBVpS-40.32
PEG (NY)1.7
PEG (5Y)N/A
Graham Number107.62
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 | 1.04 |
F-Score8
WACC6.28%
ROIC/WACC0.69
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 Y4.16%
EPS Next 2Y10.15%
EPS Next 3Y10.19%
EPS Next 5YN/A
Revenue 1Y (TTM)4.18%
Revenue growth 3Y8.49%
Revenue growth 5Y3.12%
Sales Q2Q%-3.22%
Revenue Next Year4.08%
Revenue Next 2Y3.78%
Revenue Next 3Y3.96%
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 7 / 10 to MARRIOTT VACATIONS WORLD (VAC). This can be considered as Undervalued.
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 7 / 10 and the dividend payout ratio is 42.08%.