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%)
VAC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 has a correct valuation and a medium growth rate. Finally VAC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
VAC had positive earnings in the past year.
VAC had a positive operating cash flow in the past year.
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
With a Return On Assets value of 1.70%, VAC perfoms like the industry average, outperforming 46.21% of the companies in the same industry.
The Return On Equity of VAC (7.02%) is better than 63.64% of its industry peers.
With a Return On Invested Capital value of 4.02%, VAC perfoms like the industry average, outperforming 43.94% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VAC 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
VAC's Profit Margin of 3.44% is in line compared to the rest of the industry. VAC outperforms 52.27% of its industry peers.
In the last couple of years the Profit Margin of VAC has grown nicely.
VAC has a Operating Margin of 11.10%. This is in the better half of the industry: VAC outperforms 61.36% of its industry peers.
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 57.58% 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.
Compared to 5 years ago, VAC has less shares outstanding
VAC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that VAC is in the distress zone and has some risk of bankruptcy.
VAC's Altman-Z score of 1.05 is on the low side compared to the rest of the industry. VAC is outperformed by 62.88% 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 40.15% of its industry peers.
A Debt/Equity ratio of 2.29 is on the high side and indicates that VAC has dependencies on debt financing.
VAC has a Debt to Equity ratio of 2.29. This is comparable to the rest of the industry: VAC outperforms 48.48% of 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
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 83.33% of the companies in the same industry.
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.
VAC has a Quick ratio (1.04) which is in line with 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.
VAC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.50% yearly.
VAC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.18%.
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
Based on estimates for the next years, VAC will show a small growth in Earnings Per Share. The EPS will grow by 3.92% on average per year.
VAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.31% yearly.
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.
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
A Price/Earnings ratio of 8.06 indicates a reasonable valuation of VAC.
Based on the Price/Earnings ratio, VAC is valued cheaper than 95.45% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.38. VAC is valued rather cheaply when compared to this.
VAC is valuated reasonably with a Price/Forward Earnings ratio of 8.36.
VAC's Price/Forward Earnings ratio is rather cheap when compared to the industry. VAC is cheaper than 92.42% of the companies in the same industry.
VAC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| 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 the industry average as 65.91% of the companies are valued more expensively.
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 | 31.73 | ||
| EV/EBITDA | 10.09 |
4.3 Compensation for Growth
The 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.
Compared to an average industry Dividend Yield of 1.48, VAC pays a better dividend. On top of this VAC pays more dividend than 96.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, VAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
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 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 Change7.47%
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)-0.87%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)1.9%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)-1.58%
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%.