MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VAC - US57164Y1073 - Common Stock
57.76 USD
+0.08 (+0.14%)
57.76 USD
0 (0%)
Taking everything into account, VAC scores 5 out of 10 in our fundamental rating. VAC was compared to 133 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. 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's Return On Assets of 1.70% is in line compared to the rest of the industry. VAC outperforms 46.62% of its industry peers.
VAC has a better Return On Equity (7.02%) than 63.91% of its industry peers.
With a Return On Invested Capital value of 4.02%, VAC perfoms like the industry average, outperforming 44.36% 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 10.40%.
| 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.
In the last couple of years the Profit Margin of VAC has grown nicely.
With a decent Operating Margin value of 11.10%, VAC is doing good in the industry, outperforming 61.65% of the companies in the same industry.
VAC's Operating Margin has declined in the last couple of years.
VAC has a Gross Margin of 50.38%. This is comparable to the rest of the industry: VAC outperforms 57.89% of its industry peers.
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.
VAC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VAC has been reduced compared to 5 years ago.
VAC has a worse debt/assets ratio than last year.
2.2 Solvency
VAC has an Altman-Z score of 1.05. This is a bad value and indicates that VAC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.05, VAC is not doing good in the industry: 62.41% of the companies in the same industry are doing better.
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's Debt to FCF ratio of 89.52 is in line compared to the rest of the industry. VAC outperforms 40.60% 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 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 | 1.05 |
ROIC/WACC0.6
WACC6.67%
2.3 Liquidity
A Current Ratio of 1.91 indicates that VAC should not have too much problems paying its short term obligations.
The Current ratio of VAC (1.91) is better than 83.46% 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.
The Quick ratio of VAC (1.04) is comparable to the rest of the industry.
| 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.
VAC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.50% yearly.
The Revenue has been growing slightly by 4.18% in the past year.
Measured over the past years, VAC shows a small growth in Revenue. The Revenue has been growing by 3.12% on average per year.
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 3.92% yearly.
The Revenue is expected to grow by 2.31% on average over the next years.
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
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.06, the valuation of VAC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of VAC indicates a rather cheap valuation: VAC is cheaper than 94.74% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.39, VAC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.36, the valuation of VAC can be described as reasonable.
Based on the Price/Forward Earnings ratio, VAC is valued cheaper than 93.23% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, VAC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.06 | ||
| Fwd PE | 8.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VAC is valued a bit cheaper than 66.92% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VAC indicates a somewhat cheap valuation: VAC is cheaper than 60.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.73 | ||
| EV/EBITDA | 10.09 |
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)1.31
PEG (5Y)N/A
EPS Next 2Y2.62%
EPS Next 3Y3.92%
5. Dividend
5.1 Amount
VAC has a Yearly Dividend Yield of 5.55%, which is a nice return.
The stock price of VAC dropped by -24.32% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
VAC's Dividend Yield is rather good when compared to the industry average which is at 1.54. VAC pays more dividend than 96.99% of the companies in the same industry.
VAC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
5.2 History
On average, the dividend of VAC grows each year by 10.51%, which is quite nice.
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 2Y2.62%
EPS Next 3Y3.92%
57.76
+0.08 (+0.14%)
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 Change7.46%
Market Cap2.00B
Revenue(TTM)5.04B
Net Income(TTM)173.00M
Analysts69.33
Price Target65.28 (13.02%)
Short Float %7.88%
Short Ratio4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
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)2.74%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)1.9%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)-1.32%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.06 | ||
| Fwd PE | 8.36 | ||
| P/S | 0.4 | ||
| P/FCF | 31.73 | ||
| P/OCF | 16.39 | ||
| P/B | 0.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.09 |
EPS(TTM)7.17
EY12.41%
EPS(NY)6.91
Fwd EY11.96%
FCF(TTM)1.82
FCFY3.15%
OCF(TTM)3.52
OCFY6.1%
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
WACC6.67%
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%.