MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VAC - US57164Y1073 - Common Stock
57.92 USD
+0.25 (+0.43%)
57.92 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 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
Looking at the Return On Assets, with a value of 1.70%, VAC is in line with its industry, outperforming 45.45% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.02%, VAC is in the better half of the industry, outperforming 62.88% of the companies in the same industry.
The Return On Invested Capital of VAC (4.02%) is comparable to the rest of the industry.
VAC had an Average Return On Invested Capital over the past 3 years of 4.94%. This is significantly below the industry average of 10.42%.
| 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 (3.44%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of VAC has grown nicely.
The Operating Margin of VAC (11.10%) is better than 61.36% of its industry peers.
In the last couple of years the Operating Margin of VAC has declined.
Looking at the Gross Margin, with a value of 50.38%, VAC is in line with its industry, outperforming 57.58% of the companies in the same 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 | 11.1% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VAC is destroying value.
Compared to 1 year ago, VAC has less shares outstanding
VAC has less shares outstanding than it did 5 years ago.
VAC has a worse debt/assets ratio than last year.
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's Altman-Z score of 1.05 is on the low side compared to the rest of the industry. VAC is outperformed by 63.64% 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.
With a Debt to FCF ratio value of 89.52, VAC perfoms like the industry average, outperforming 40.15% 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.
With a Debt to Equity ratio value of 2.29, VAC perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 89.52 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.6
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.
The Current ratio of VAC (1.91) is better than 83.33% 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 of 1.04. This is comparable to the rest of the industry: VAC outperforms 59.09% of its industry peers.
| 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.
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
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.
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
Based on the Price/Earnings ratio of 8.08, the valuation of VAC can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of VAC indicates a rather cheap valuation: VAC is cheaper than 96.21% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.56, VAC is valued rather cheaply.
VAC is valuated reasonably with a Price/Forward Earnings ratio of 8.38.
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.
When comparing the Price/Forward Earnings ratio of VAC to the average of the S&P500 Index (23.79), we can say VAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
65.91% 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 | 31.82 | ||
| EV/EBITDA | 10.1 |
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)1.31
PEG (5Y)N/A
EPS Next 2Y2.62%
EPS Next 3Y3.92%
5. Dividend
5.1 Amount
VAC has a Yearly Dividend Yield of 5.48%, which is a nice return.
In the last 3 months the price of VAC has falen by -24.85%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.48, VAC pays a better dividend. On top of this VAC pays more dividend than 96.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, VAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
5.2 History
The dividend of VAC is nicely growing with an annual growth rate of 10.51%!
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
78.61% of the earnings are spent on dividend by VAC. 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%
57.92
+0.25 (+0.43%)
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 Change7.47%
Market Cap2.00B
Revenue(TTM)5.04B
Net Income(TTM)173.00M
Analysts69.33
Price Target65.28 (12.71%)
Short Float %6.44%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
Yearly Dividend3.05
Dividend Growth(5Y)10.51%
DP78.61%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)-29.9%
PT rev (3m)-30.36%
EPS NQ rev (1m)-0.87%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)1.9%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)-1.58%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)-1.32%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 8.38 | ||
| P/S | 0.4 | ||
| P/FCF | 31.82 | ||
| P/OCF | 16.43 | ||
| P/B | 0.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.1 |
EPS(TTM)7.17
EY12.38%
EPS(NY)6.91
Fwd EY11.93%
FCF(TTM)1.82
FCFY3.14%
OCF(TTM)3.52
OCFY6.09%
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
WACC6.7%
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 for VAC stock?
ChartMill assigns a valuation rating of 6 / 10 to MARRIOTT VACATIONS WORLD (VAC). This can be considered as Fairly Valued.
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 3 / 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 78.61%.