MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
NYSE:VAC - New York Stock Exchange, Inc. - US57164Y1073 - Common Stock - Currency: USD
Overall VAC gets a fundamental rating of 4 out of 10. We evaluated VAC against 133 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. VAC has a correct valuation and a medium growth rate.
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.
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 2.30%, VAC is in line with its industry, outperforming 51.13% of the companies in the same industry.
VAC has a Return On Equity of 9.32%. This is in the better half of the industry: VAC outperforms 69.17% of its industry peers.
The Return On Invested Capital of VAC (4.13%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for VAC is significantly below the industry average of 13.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 9.32% | ||
| ROIC | 4.13% |
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 4.57% is in line compared to the rest of the industry. VAC outperforms 57.89% of its industry peers.
VAC's Profit Margin has improved in the last couple of years.
VAC has a Operating Margin of 11.12%. This is comparable to the rest of the industry: VAC outperforms 58.65% of its industry peers.
VAC's Operating Margin has declined in the last couple of years.
The Gross Margin of VAC (49.90%) is comparable to the rest of the 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 | 11.12% | ||
| PM (TTM) | 4.57% | ||
| GM | 49.9% |
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.
The number of shares outstanding for VAC has been reduced compared to 1 year ago.
VAC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, VAC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that VAC is in the distress zone and has some risk of bankruptcy.
VAC's Altman-Z score of 1.10 is on the low side compared to the rest of the industry. VAC is outperformed by 63.91% of its industry peers.
The Debt to FCF ratio of VAC is 34.40, which is on the high side as it means it would take VAC, 34.40 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 34.40, VAC perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
VAC has a Debt/Equity ratio of 2.18. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.18, VAC is in line with its industry, outperforming 51.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 34.4 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.56
WACC7.32%
2.3 Liquidity
VAC has a Current Ratio of 1.47. This is a normal value and indicates that VAC is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.47, VAC is doing good in the industry, outperforming 73.68% of the companies in the same industry.
A Quick Ratio of 0.64 indicates that VAC may have some problems paying its short term obligations.
VAC's Quick ratio of 0.64 is on the low side compared to the rest of the industry. VAC is outperformed by 60.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
VAC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.19%.
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.
VAC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.61%.
VAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.12% yearly.
EPS 1Y (TTM)-9.19%
EPS 3Y14.76%
EPS 5Y-3.5%
EPS Q2Q%-7.78%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y8.49%
Revenue growth 5Y3.12%
Sales Q2Q%49.25%
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 8.81% yearly.
The Revenue is expected to grow by 3.75% on average over the next years.
EPS Next Y1.99%
EPS Next 2Y8.8%
EPS Next 3Y8.81%
EPS Next 5YN/A
Revenue Next Year3.57%
Revenue Next 2Y3.56%
Revenue Next 3Y3.75%
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 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 correctly with a Price/Earnings ratio of 13.01.
88.72% of the companies in the same industry are more expensive than VAC, based on the Price/Earnings ratio.
VAC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 10.75 indicates a reasonable valuation of VAC.
Based on the Price/Forward Earnings ratio, VAC is valued cheaper than 87.22% of the companies in the same industry.
VAC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 10.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VAC indicates a somewhat cheap valuation: VAC is cheaper than 62.41% of the companies listed in the same industry.
VAC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VAC is cheaper than 79.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.73 | ||
| EV/EBITDA | 11.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)6.55
PEG (5Y)N/A
EPS Next 2Y8.8%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.94%, VAC has a reasonable but not impressive dividend return.
VAC's Dividend Yield is rather good when compared to the industry average which is at 3.53. VAC pays more dividend than 90.98% of the companies 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 | 3.94% |
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
47.58% of the earnings are spent on dividend by VAC. This is a bit on the high side, but may be sustainable.
The dividend of VAC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP47.58%
EPS Next 2Y8.8%
EPS Next 3Y8.81%
83.52
+0.16 (+0.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners87.31%
Inst Owner Change0.01%
Ins Owners1.58%
Ins Owner Change7.81%
Market Cap2.88B
Analysts72.86
Price Target91.09 (9.06%)
Short Float %7.07%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
Yearly Dividend3.05
Dividend Growth(5Y)10.51%
DP47.58%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.86%
Min EPS beat(2)10.55%
Max EPS beat(2)21.17%
EPS beat(4)3
Avg EPS beat(4)-0.05%
Min EPS beat(4)-45.35%
Max EPS beat(4)21.17%
EPS beat(8)5
Avg EPS beat(8)-6.86%
EPS beat(12)8
Avg EPS beat(12)1.25%
EPS beat(16)11
Avg EPS beat(16)2.53%
Revenue beat(2)1
Avg Revenue beat(2)2.17%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)5.82%
Revenue beat(4)2
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-6.79%
Max Revenue beat(4)5.82%
Revenue beat(8)3
Avg Revenue beat(8)-4.52%
Revenue beat(12)6
Avg Revenue beat(12)-2.16%
Revenue beat(16)8
Avg Revenue beat(16)-1.56%
PT rev (1m)0%
PT rev (3m)-9.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.64%
EPS NY rev (1m)1.32%
EPS NY rev (3m)-1.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 10.75 | ||
| P/S | 0.58 | ||
| P/FCF | 18.73 | ||
| P/OCF | 13.74 | ||
| P/B | 1.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.42 |
EPS(TTM)6.42
EY7.69%
EPS(NY)7.77
Fwd EY9.3%
FCF(TTM)4.46
FCFY5.34%
OCF(TTM)6.08
OCFY7.28%
SpS143.95
BVpS70.5
TBVpS-42.18
PEG (NY)6.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 9.32% | ||
| ROCE | 6.15% | ||
| ROIC | 4.13% | ||
| ROICexc | 4.22% | ||
| ROICexgc | 8.96% | ||
| OM | 11.12% | ||
| PM (TTM) | 4.57% | ||
| GM | 49.9% | ||
| FCFM | 3.1% |
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%
ROICexcg growth 3Y2.01%
ROICexcg 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 | 2.18 | ||
| Debt/FCF | 34.4 | ||
| Debt/EBITDA | 7.58 | ||
| Cap/Depr | 38.36% | ||
| Cap/Sales | 1.13% | ||
| Interest Coverage | 2.22 | ||
| Cash Conversion | 30.04% | ||
| Profit Quality | 67.84% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 1.1 |
F-Score5
WACC7.32%
ROIC/WACC0.56
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)-9.19%
EPS 3Y14.76%
EPS 5Y-3.5%
EPS Q2Q%-7.78%
EPS Next Y1.99%
EPS Next 2Y8.8%
EPS Next 3Y8.81%
EPS Next 5YN/A
Revenue 1Y (TTM)4.61%
Revenue growth 3Y8.49%
Revenue growth 5Y3.12%
Sales Q2Q%49.25%
Revenue Next Year3.57%
Revenue Next 2Y3.56%
Revenue Next 3Y3.75%
Revenue Next 5YN/A
EBIT growth 1Y-2.64%
EBIT growth 3Y5.71%
EBIT growth 5Y-0.61%
EBIT Next Year47.24%
EBIT Next 3Y19.11%
EBIT Next 5YN/A
FCF growth 1Y-38.4%
FCF growth 3Y-30.82%
FCF growth 5Y-21.84%
OCF growth 1Y-38.78%
OCF growth 3Y-15.77%
OCF growth 5Y-11.7%