MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
USA - NYSE:VAC - US57164Y1073 - Common Stock
66.18 USD
+0.2 (+0.3%)
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 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.
Each year in the past 5 years VAC had a positive operating cash flow.
1.2 Ratios
VAC has a Return On Assets (2.62%) which is in line with its industry peers.
VAC has a better Return On Equity (10.43%) than 67.42% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.33%, VAC is in line with its industry, outperforming 44.70% of the companies in the same 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 10.72%.
| 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 54.55% of its industry peers.
VAC's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 11.60%, VAC is doing good in the industry, outperforming 62.12% of the companies in the same industry.
VAC's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 50.24%, VAC perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
VAC's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, VAC has less shares outstanding
Compared to 5 years ago, VAC has less shares outstanding
The debt/assets ratio for VAC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.09, we must say that VAC is in the distress zone and has some risk of bankruptcy.
VAC's Altman-Z score of 1.09 is on the low side compared to the rest of the industry. VAC is outperformed by 63.64% of its industry peers.
The Debt to FCF ratio of VAC is 78.04, which is on the high side as it means it would take VAC, 78.04 years of fcf income to pay off 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.
VAC has a Debt/Equity ratio of 2.17. This is a high value indicating a heavy dependency on external 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 | 1.09 |
ROIC/WACC0.68
WACC6.39%
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.
Looking at the Current ratio, with a value of 1.71, VAC is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.74, VAC is in line with its industry, outperforming 42.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
VAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.74%, which is quite impressive.
VAC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.50% yearly.
Looking at the last year, VAC shows a small growth in Revenue. The Revenue has grown by 7.70% in the last year.
The Revenue has been growing slightly by 3.12% on average over the past years.
EPS 1Y (TTM)21.74%
EPS 3Y14.76%
EPS 5Y-3.5%
EPS Q2Q%78.18%
Revenue 1Y (TTM)7.7%
Revenue growth 3Y8.49%
Revenue growth 5Y3.12%
Sales Q2Q%9.3%
3.2 Future
VAC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.72% yearly.
Based on estimates for the next years, VAC will show a small growth in Revenue. The Revenue will grow by 3.88% on average per year.
EPS Next Y4.25%
EPS Next 2Y11.26%
EPS Next 3Y12.72%
EPS Next 5YN/A
Revenue Next Year4.01%
Revenue Next 2Y3.77%
Revenue Next 3Y3.88%
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
VAC is valuated reasonably with a Price/Earnings ratio of 9.09.
VAC's Price/Earnings ratio is rather cheap when compared to the industry. VAC is cheaper than 93.18% of the companies in the same industry.
VAC is valuated cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.15, the valuation of VAC can be described as reasonable.
Based on the Price/Forward Earnings ratio, VAC is valued cheaply inside the industry as 92.42% of the companies are valued more expensively.
VAC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.09 | ||
| Fwd PE | 8.15 |
4.2 Price Multiples
VAC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VAC is cheaper than 64.39% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as VAC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.19 | ||
| EV/EBITDA | 10.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VAC's earnings are expected to grow with 12.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.14
PEG (5Y)N/A
EPS Next 2Y11.26%
EPS Next 3Y12.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.83%, VAC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.12, VAC pays a better dividend. On top of this VAC pays more dividend than 93.18% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, VAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
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
VAC pays out 42.08% of its income as dividend. This is a bit on the high side, but may be sustainable.
VAC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP42.08%
EPS Next 2Y11.26%
EPS Next 3Y12.72%
NYSE:VAC (11/3/2025, 12:55:42 PM)
66.18
+0.2 (+0.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners95.61%
Inst Owner Change0.14%
Ins Owners1.58%
Ins Owner Change2.44%
Market Cap2.29B
Revenue(TTM)5.08B
Net Income(TTM)259.00M
Analysts72.86
Price Target93.13 (40.72%)
Short Float %6.69%
Short Ratio5.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
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)1.22%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-4.43%
EPS NY rev (1m)0.67%
EPS NY rev (3m)2.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.09 | ||
| Fwd PE | 8.15 | ||
| P/S | 0.45 | ||
| P/FCF | 33.19 | ||
| P/OCF | 17.35 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.11 |
EPS(TTM)7.28
EY11%
EPS(NY)8.12
Fwd EY12.27%
FCF(TTM)1.99
FCFY3.01%
OCF(TTM)3.82
OCFY5.76%
SpS146.76
BVpS71.79
TBVpS-40.32
PEG (NY)2.14
PEG (5Y)N/A
Graham Number108.44
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 | 1.09 |
F-Score8
WACC6.39%
ROIC/WACC0.68
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)21.74%
EPS 3Y14.76%
EPS 5Y-3.5%
EPS Q2Q%78.18%
EPS Next Y4.25%
EPS Next 2Y11.26%
EPS Next 3Y12.72%
EPS Next 5YN/A
Revenue 1Y (TTM)7.7%
Revenue growth 3Y8.49%
Revenue growth 5Y3.12%
Sales Q2Q%9.3%
Revenue Next Year4.01%
Revenue Next 2Y3.77%
Revenue Next 3Y3.88%
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 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 2 / 10.
How sustainable is the dividend of MARRIOTT VACATIONS WORLD (VAC) stock?
The dividend rating of MARRIOTT VACATIONS WORLD (VAC) is 8 / 10 and the dividend payout ratio is 42.08%.