MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VAC - US57164Y1073 - Common Stock
55.08 USD
+0.34 (+0.62%)
55.08 USD
0 (0%)
Taking everything into account, VAC scores 5 out of 10 in our fundamental rating. VAC was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. VAC has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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
VAC had positive earnings in the past year.
In the past year VAC had a positive cash flow from operations.
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
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.
With a decent Return On Equity value of 7.02%, VAC is doing good in the industry, outperforming 63.64% of the companies in the same industry.
VAC has a Return On Invested Capital of 4.02%. This is comparable to the rest of the industry: VAC outperforms 43.18% 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 10.42%.
| 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
The Profit Margin of VAC (3.44%) is comparable to the rest of the industry.
VAC's Profit Margin has improved in the last couple of years.
VAC's Operating Margin of 11.10% is fine compared to the rest of the industry. VAC outperforms 61.36% of its industry peers.
In the last couple of years the Operating Margin of VAC has declined.
With a Gross Margin value of 50.38%, VAC perfoms like the industry average, outperforming 59.09% 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
VAC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, VAC has less shares outstanding
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
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.
The Altman-Z score of VAC (1.04) is worse than 64.39% 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.
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.
VAC has a Debt/Equity ratio of 2.29. This is a high value indicating a heavy dependency on external financing.
VAC has a Debt to Equity ratio (2.29) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 89.52 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.62
WACC6.5%
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.
Looking at the Current ratio, with a value of 1.91, VAC belongs to the top of the industry, outperforming 84.09% of the companies in the same industry.
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
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.
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 10.19% on average over the next years. This is quite good.
Based on estimates for the next years, VAC will show a small growth in Revenue. The Revenue will grow by 3.96% on average per year.
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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.68, the valuation of VAC can be described as very cheap.
Based on the Price/Earnings ratio, VAC is valued cheaper than 96.21% of the companies in the same industry.
VAC is valuated cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.92, the valuation of VAC can be described as very cheap.
Based on the Price/Forward Earnings ratio, VAC is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VAC to the average of the S&P500 Index (36.10), we can say VAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 6.92 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VAC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.26 | ||
| EV/EBITDA | 9.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VAC does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.84
PEG (5Y)N/A
EPS Next 2Y10.15%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.77%, VAC is a good candidate for dividend investing.
In the last 3 months the price of VAC has falen by -30.30%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
VAC's Dividend Yield is rather good when compared to the industry average which is at 6.01. VAC pays more dividend than 95.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, VAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
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.
The dividend of VAC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP78.61%
EPS Next 2Y10.15%
EPS Next 3Y10.19%
55.08
+0.34 (+0.62%)
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 Change7.49%
Market Cap1.91B
Revenue(TTM)5.04B
Net Income(TTM)173.00M
Analysts69.33
Price Target65.28 (18.52%)
Short Float %6.44%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.77% |
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)-26.01%
PT rev (3m)-26.09%
EPS NQ rev (1m)-2.47%
EPS NQ rev (3m)-4.61%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)-2.62%
Revenue NQ rev (3m)-2.54%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 6.92 | ||
| P/S | 0.38 | ||
| P/FCF | 30.26 | ||
| P/OCF | 15.63 | ||
| P/B | 0.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.94 |
EPS(TTM)7.17
EY13.02%
EPS(NY)7.96
Fwd EY14.45%
FCF(TTM)1.82
FCFY3.3%
OCF(TTM)3.52
OCFY6.4%
SpS145.51
BVpS71.22
TBVpS-40.42
PEG (NY)1.84
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 | 1.04 |
F-Score5
WACC6.5%
ROIC/WACC0.62
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 1Y1.64%
EBIT growth 3Y5.71%
EBIT growth 5Y-0.61%
EBIT Next Year45.77%
EBIT Next 3Y19.3%
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%.