MARRIOTT VACATIONS WORLD (VAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VAC - US57164Y1073 - Common Stock
59.87 USD
-2.61 (-4.18%)
59.4774 USD
-0.39 (-0.66%)
We assign a fundamental rating of 5 out of 10 to VAC. VAC was compared to 133 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 has a decent growth rate and is not valued too expensively. 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.
- VAC had positive earnings in 4 of the past 5 years.
- VAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- VAC's Return On Assets of 1.70% is in line compared to the rest of the industry. VAC outperforms 48.12% of its industry peers.
- VAC has a Return On Equity of 7.02%. This is in the better half of the industry: VAC outperforms 64.66% of its industry peers.
- VAC has a Return On Invested Capital (4.02%) which is comparable to the rest of the 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 10.34%.
| 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 of 3.44%. This is comparable to the rest of the industry: VAC outperforms 55.64% of its industry peers.
- In the last couple of years the Profit Margin of VAC has grown nicely.
- Looking at the Operating Margin, with a value of 11.10%, VAC is in the better half of 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's Gross Margin of 50.38% is in line compared to the rest of the industry. VAC outperforms 57.89% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VAC 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.
- Compared to 1 year ago, VAC has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.06, we must say that VAC is in the distress zone and has some risk of bankruptcy.
- VAC's Altman-Z score of 1.06 is on the low side compared to the rest of the industry. VAC is outperformed by 63.16% of its industry peers.
- VAC has a debt to FCF ratio of 89.52. This is a negative value and a sign of low solvency as VAC would need 89.52 years to pay back of 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 41.35% 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.
- With a Debt to Equity ratio value of 2.29, VAC perfoms like the industry average, outperforming 48.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.29 | ||
| Debt/FCF | 89.52 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.62
WACC6.47%
2.3 Liquidity
- A Current Ratio of 1.91 indicates that VAC should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.91, VAC belongs to the top of the industry, outperforming 82.71% 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.
- Looking at the Quick ratio, with a value of 1.04, VAC is in line with its industry, outperforming 59.40% of the companies in the same 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.
- 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.
- The Revenue has been growing slightly by 4.18% in the past 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
- The Earnings Per Share is expected to grow by 3.92% on average over the next years.
- 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
- 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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- VAC is valuated reasonably with a Price/Earnings ratio of 8.35.
- Compared to the rest of the industry, the Price/Earnings ratio of VAC indicates a rather cheap valuation: VAC is cheaper than 95.49% of the companies listed in the same industry.
- VAC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.47.
- The Price/Forward Earnings ratio is 8.67, which indicates a very decent valuation of VAC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of VAC indicates a rather cheap valuation: VAC is cheaper than 93.23% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. VAC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 8.67 |
4.2 Price Multiples
- VAC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VAC is cheaper than 65.41% 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 | 32.89 | ||
| EV/EBITDA | 10.32 |
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)1.36
PEG (5Y)N/A
EPS Next 2Y2.62%
EPS Next 3Y3.92%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.04%, VAC is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 6.32, VAC pays a better dividend. On top of this VAC pays more dividend than 94.74% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, VAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
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
- 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%
59.87
-2.61 (-4.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners92.33%
Inst Owner Change-0.02%
Ins Owners1.46%
Ins Owner Change7.42%
Market Cap2.07B
Revenue(TTM)5.04B
Net Income(TTM)173.00M
Analysts69.33
Price Target65.28 (9.04%)
Short Float %8.56%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
Yearly Dividend3.05
Dividend Growth(5Y)10.51%
DP78.61%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)0%
PT rev (3m)-30.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)0%
EPS NY rev (3m)2.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 8.67 | ||
| P/S | 0.41 | ||
| P/FCF | 32.89 | ||
| P/OCF | 16.98 | ||
| P/B | 0.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.32 |
EPS(TTM)7.17
EY11.98%
EPS(NY)6.91
Fwd EY11.54%
FCF(TTM)1.82
FCFY3.04%
OCF(TTM)3.52
OCFY5.89%
SpS145.51
BVpS71.22
TBVpS-40.42
PEG (NY)1.36
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 | 1.06 |
F-Score5
WACC6.47%
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 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 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 6.15% 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%.