MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VAC - US57164Y1073 - Common Stock
54.37 USD
-0.85 (-1.54%)
54.4 USD
+0.03 (+0.06%)
Overall VAC gets a fundamental rating of 5 out of 10. We evaluated VAC against 132 industry peers in the Hotels, Restaurants & Leisure industry. While VAC is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on VAC. VAC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- VAC had positive earnings in the past year.
- In the past year VAC had a positive cash flow from operations.
- Of the past 5 years VAC 4 years were profitable.
- In the past 5 years VAC always reported a positive cash flow from operatings.
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's Return On Equity of 7.02% is fine compared to the rest of the industry. VAC outperforms 65.15% of its industry peers.
- VAC has a Return On Invested Capital (4.02%) which is in line with its industry peers.
- VAC had an Average Return On Invested Capital over the past 3 years of 4.94%. This is significantly below the industry average of 10.37%.
| 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 in line with its industry peers.
- VAC's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 11.10%, VAC is doing good in 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's Gross Margin of 50.38% is in line compared to the rest of the industry. VAC outperforms 58.33% of 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VAC is destroying value.
- VAC has less shares outstanding than it did 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 1.04. This is a bad value and indicates that VAC is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of VAC (1.04) is worse than 61.36% of its industry peers.
- 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.
- VAC has a Debt to FCF ratio of 89.52. This is comparable to the rest of the industry: VAC outperforms 40.91% of its industry peers.
- VAC has a Debt/Equity ratio of 2.29. This is a high value indicating a heavy dependency on external financing.
- VAC's Debt to Equity ratio of 2.29 is in line compared to the rest of the industry. VAC outperforms 47.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 89.52 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.64
WACC6.3%
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.
- A Quick Ratio of 1.04 indicates that VAC should not have too much problems paying its short term obligations.
- VAC's Quick ratio of 1.04 is in line compared 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
- 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.
- 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
- VAC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.84% yearly.
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- Based on the Price/Earnings ratio of 7.58, the valuation of VAC can be described as very cheap.
- 96.97% of the companies in the same industry are more expensive than VAC, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, VAC is valued rather cheaply.
- A Price/Forward Earnings ratio of 8.07 indicates a reasonable valuation of VAC.
- 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 (25.83), we can say VAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.58 | ||
| Fwd PE | 8.07 |
4.2 Price Multiples
- 65.15% of the companies in the same industry are more expensive than VAC, based on the Enterprise Value to EBITDA ratio.
- 60.61% of the companies in the same industry are more expensive than VAC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.87 | ||
| EV/EBITDA | 9.93 |
4.3 Compensation for Growth
- VAC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.22
PEG (5Y)N/A
EPS Next 2Y1.32%
EPS Next 3Y2.84%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.42%, VAC is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.21, VAC pays a better dividend. On top of this VAC pays more dividend than 94.70% 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
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.
- The dividend of VAC is growing, but the earnings are growing slower. 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%.