Marriott Vacations Worldwide Corporation

VAC

$99.21

-0.81%

N/A-$0.81

Consumer Cyclical

Gambling, Resorts & Casinos

NYSE

Active Trading

Marriott Vacations Worldwide Corporation is a prominent global leisure company specializing in the development, marketing, sale, and management of vacation ownership products ...

Fundamental Analysis of VAC

Key Strengths

Strong brand portfolio with globally recognized names (Marriott, Westin, Sheraton, Hyatt) that drive customer loyalty and premium pricing.

Diverse revenue streams including vacation ownership sales, resort management, and exchange services, providing stability.

Risk Factors

High leverage with debt-to-equity ratio of 2.65 and net debt to EBITDA of -79.4, increasing financial risk.

Negative profitability metrics (net margin -7.1%, ROE -15.7%) indicate recent losses and operational challenges.

Profitability

Net Margin-7.09%

Operating Margin11.08%

Valuation

P/E Ratio-10.37x

Current Ratio3.42

Efficiency

ROE-15.70%

ROA-3.52%

Fundamental Analysis of VAC

Marriott Vacations Worldwide Corporation (VAC) is a global leader in the vacation ownership and timeshare industry, operating a diverse portfolio of brands including Marriott Vacation Club, Sheraton Vacation Club, Westin Vacation Club, and Hyatt Residence Club. The company also owns Interval International, a major vacation exchange network. VAC's business model generates recurring revenue through maintenance fees and management services, providing a stable income stream. However, the company has faced significant financial challenges, as indicated by its negative net profit margin (-7.1%), negative return on equity (-15.7%), and negative earnings per share. The TTM P/E ratio is also negative due to net losses. Despite these headwinds, VAC has demonstrated resilience with a market cap of ~$4.1 billion, a beta of 1.24, and a dividend yield of 2.7%. The company's strong brand equity and diversified portfolio remain key competitive advantages. Recent strategic focus on profitability and cost discipline may improve future performance. Analysts have a cautious outlook, with a 'hold' consensus and a price target around $126. The stock trades at a significant discount to its historical valuation, but the high debt levels (debt-to-equity ratio of 2.65) and interest coverage of only 2.95 are concerning. Overall, VAC offers potential for long-term recovery if it can successfully reduce debt and improve cash flow.

Key Strengths of VAC

Strong brand portfolio with globally recognized names (Marriott, Westin, Sheraton, Hyatt) that drive customer loyalty and premium pricing.
Diverse revenue streams including vacation ownership sales, resort management, and exchange services, providing stability.
Recurring revenue from maintenance fees and membership programs, reducing volatility.
Large scale with 120+ properties in 14 countries, offering competitive advantages in development and marketing.
Proprietary exchange network (Interval International) with a large member base.
Experienced management team with a clear focus on profitability and cost discipline.
Strategic initiatives to reduce inventory and improve cash flow.

Risk Factors of VAC

High leverage with debt-to-equity ratio of 2.65 and net debt to EBITDA of -79.4, increasing financial risk.
Negative profitability metrics (net margin -7.1%, ROE -15.7%) indicate recent losses and operational challenges.
Economic sensitivity: demand for vacation ownership is cyclical and vulnerable to downturns.
Dependence on consumer discretionary spending, affected by inflation and interest rates.
Concentration in destination travel markets exposes to event risk (terrorism, natural disasters, pandemics).
Regulatory and legal challenges in timeshare industry, including consumer protection laws.
Intense competition from alternative lodging and travel models (e.g., Airbnb, cruises).
High customer acquisition costs and sales expenses (SG&A to revenue 26.3%).
Negative tangible book value and significant intangibles may signal overpayment for acquisitions.
Integration risks from previous acquisitions (e.g., ILG).

Market Cap vs Revenue & Earnings

Earnings

n/a

Revenue

n/a

Market cap

$3.41B

-10.4x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Last Reportedn/a

Earnings per share (EPS)n/a

Gross Margin20.93%

Net Profit Margin-7.09%

Debt/Equity Ratio2.65

Profitability Bridge (Current vs YoY)

How gross, operating and net margins shifted versus last year.

Revenue / Net Income / FCF History (USD B)

Growth Signals of VAC

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Revenue	—	—	—	—	Flat
Diluted EPS	—	—	—	—	Flat
Free Cash Flow	—	—	—	—	Flat

Profitability of VAC

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Net Margin	—	5.83%	—	—	Flat
Operating Margin	—	12.88%	—	—	Flat
ROE	—	—	—	—	Flat

Financial Health of VAC

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Current Ratio	—	3.415	—	—	Flat
Quick Ratio	—	2.868	—	—	Flat
Debt / Equity	—	2.651	—	—	Flat

Valuation of VAC

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
P/E	—	11.52x	—	—	Flat
P/B	—	1.72x	—	—	Flat

Supply Chain of VAC

RELATIONS

Upstream

Marriott International, Inc.NASDAQ:MAR Hyatt Hotels CorporationNYSE:H Aramark (via Avendra International)NYSE:ARMK JPMorgan Chase Bank, N.A.NYSE:JPM Bank of America, N.A.NYSE:BAC Deutsche Bank AGNYSE:DB Wells Fargo & CompanyNYSE:WFC Truist BankNYSE:TFCIllumio, Inc.Expedia Group, Inc.NASDAQ:EXPE Jones Lang LaSalle, Inc. (JLL)NYSE:JLLDPR ConstructionFinfrock Construction, LLCHuntonBrady ArchitectsQualtrics (SAP SE)NYSE:SAP DocuSign, Inc.NASDAQ:DOCU

Downstream

Timeshare Owners (~700,000 families)Interval International Exchange MembersMarriott International, Inc.NASDAQ:MAR Expedia Group, Inc.NASDAQ:EXPEThird-Party Homeowners' Associations (HOAs) & Resort OwnersTravel Agents & Online Travel AgenciesHyatt Hotels CorporationNYSE:H

Proxies

Hilton Grand Vacations Inc.NYSE:HGV Travel + Leisure Co.NYSE:TNL Marriott International, Inc.NASDAQ:MAR Bluegreen Vacations Holding CorporationNYSE:BXG

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Plutux is not an investment adviser. Market data and AI-generated analysis are for information and education only, not investment advice. Disclaimer