MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VAC - US57164Y1073 - Common Stock
56.61 USD
-0.84 (-1.46%)
56.61 USD
0 (0%)
Overall VAC gets a fundamental rating of 5 out of 10. We evaluated VAC against 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 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.
- In the past year VAC had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of 1.70%, VAC is in line with its industry, outperforming 48.48% of the companies in the same industry.
- VAC has a Return On Equity of 7.02%. This is in the better half of the industry: VAC outperforms 64.39% of its industry peers.
- VAC's Return On Invested Capital of 4.02% is in line compared to the rest of the industry. VAC outperforms 44.70% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for VAC is significantly below the industry average of 10.36%.
| 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 55.30% of its industry peers.
- VAC's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 11.10%, VAC is in the better half of the industry, outperforming 61.36% of the companies in the same industry.
- VAC's Operating Margin has declined in the last couple of years.
- VAC has a Gross Margin (50.38%) which is in line with its industry peers.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VAC is destroying value.
- VAC has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for VAC has been reduced compared to 5 years ago.
- The debt/assets ratio for VAC is higher compared to a year ago.
2.2 Solvency
- VAC has an Altman-Z score of 1.05. This is a bad value and indicates that VAC is not financially healthy and even 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 62.12% of its industry peers.
- 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.
- VAC has a Debt to FCF ratio (89.52) which is in line with its industry peers.
- VAC has a Debt/Equity ratio of 2.29. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 2.29, VAC is in line with its industry, outperforming 47.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 89.52 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.63
WACC6.34%
2.3 Liquidity
- A Current Ratio of 1.91 indicates that VAC should not have too much problems paying its short term obligations.
- The Current ratio of VAC (1.91) is better than 82.58% of its industry peers.
- A Quick Ratio of 1.04 indicates that VAC should not have too much problems paying its short term obligations.
- The Quick ratio of VAC (1.04) 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
- The Earnings Per Share has grown by an nice 8.97% over the past year.
- The Earnings Per Share has been decreasing by -3.50% on average over the past years.
- Looking at the last year, VAC shows a small growth in Revenue. The Revenue has grown by 4.18% in the last year.
- 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
- The Earnings Per Share is expected to grow by 2.84% on average over the next years.
- 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
- 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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 7.90, the valuation of VAC can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of VAC indicates a rather cheap valuation: VAC is cheaper than 96.97% of the companies listed in the same industry.
- VAC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 8.41, the valuation of VAC can be described as very reasonable.
- VAC's Price/Forward Earnings ratio is rather cheap when compared to the industry. VAC is cheaper than 93.18% of the companies in the same industry.
- VAC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.9 | ||
| Fwd PE | 8.41 |
4.2 Price Multiples
- VAC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VAC is cheaper than 66.67% of the companies in the same industry.
- VAC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.1 | ||
| EV/EBITDA | 10.08 |
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)1.27
PEG (5Y)N/A
EPS Next 2Y1.32%
EPS Next 3Y2.84%
5. Dividend
5.1 Amount
- VAC has a Yearly Dividend Yield of 5.42%, 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.
- Compared to an average S&P500 Dividend Yield of 1.81, VAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
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
- 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 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%.