Marriott Vacations Worldwide Corporation (VAC) AI Stock Analysis

• Market Cap: $2.62B
• Dividend Yield: 4.08%
• Average Volume (3M): 347.80K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.33
• Revenue Growth: 7.70%
• EPS Growth: 63.61%
• Country: US
• Employees: 22,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 1.96
• Shares Outstanding: 34,602,497
• 10 Day Avg. Volume: 391,563
• 30 Day Avg. Volume: 347,796
• PEG Ratio: -1.27
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 21.48
• Enterprise Value/Market Cap: 3.06
• Enterprise Value/Revenue: 1.58
• Enterprise Value/Gross Profit: 3.35
• Enterprise Value/Ebitda: 11.49
• 1Y Price Target: $90.80
• Price Target Upside: 17.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: $87.00 ▲(12.46% Upside)

Marriott Vacations Worldwide Corporation's stock is rated positively due to its strong valuation and positive earnings call sentiment. The company's financial performance shows solid profitability but is tempered by high leverage and declining cash flow. Technical indicators suggest a stable upward trend, supporting the overall positive outlook.

Positive Factors

Modernization Initiatives

The company's ongoing modernization initiatives are expected to deliver significant cost efficiencies and revenue enhancements, strengthening its competitive position and operational efficiency over the long term.

High Resort Occupancy Rates

High occupancy rates indicate strong demand for the company's offerings, supporting stable revenue streams and showcasing the appeal of its resort locations, which is crucial for sustained growth.

First-Time Buyer Sales Growth

Growth in first-time buyer sales suggests successful market penetration and customer acquisition strategies, which are vital for expanding the customer base and ensuring future revenue growth.

Negative Factors

High Leverage

High leverage can pose financial risks, limiting flexibility and increasing vulnerability to economic downturns, which could impact long-term financial health and stability.

Decline in Free Cash Flow

A decline in free cash flow may constrain the company's ability to invest in growth opportunities and manage debt, affecting its long-term financial sustainability and operational capacity.

Increased Loan Loss Provision

An increase in loan loss provisions indicates higher expected defaults, which could pressure profitability and signal potential credit risk issues, impacting financial performance.

Marriott Vacations Worldwide Corporation Business Overview & Revenue Model

Company Description

Marriott Vacations Worldwide Corporation, a vacation company, develops, markets, sells, and manages vacation ownership and related products. It operates through two segments, Vacation Ownership and Exchange & Third-Party Management. The company manages vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, Sheraton Vacation Club, Westin Vacation Club, Hyatt Residence Club, and Marriott Vacation Club Pulse brands. It also develops, markets, and sells vacation ownership and related products under The Ritz-Carlton Destination Club brand; and holds right to develop, market, and sell ownership residential products under The Ritz-Carlton Residences brand. In addition, the company offers exchange networks and membership programs, as well as provision of management services to other resorts and lodging properties through various brands, including Interval International, Trading Places International, Vacation Resorts International, and Aqua-Aston. As of December 31, 2021, the company operated approximately 120 properties in the United States and thirteen other countries and territories. The company sells its upscale tier vacation ownership products primarily through a network of resort-based sales centers and off-site sales locations. Marriott Vacations Worldwide Corporation was founded in 1984 and is headquartered in Orlando, Florida.

How the Company Makes Money

Marriott Vacations Worldwide generates revenue primarily through its vacation ownership sales, which includes the sale of timeshare intervals and associated fees. The company earns significant income from the leasing of vacation properties and from management fees charged to homeowners' associations. Additional revenue streams include transaction fees from vacation rentals and exchanges facilitated through its platforms. Strategic partnerships with hospitality and travel companies further enhance its market reach and revenue potential. The company's strong brand presence and loyalty programs also drive customer retention and repeat sales, contributing to its overall financial performance.

Marriott Vacations Worldwide Corporation Financial Statement Overview

Summary

Marriott Vacations Worldwide Corporation shows strong revenue growth but faces profitability challenges. The elimination of debt improves leverage, yet the lack of stockholders' equity raises financial stability concerns. Cash flow management is resilient, with positive free cash flow growth, suggesting effective cash utilization.

Income Statement

The company shows a steady increase in revenue from $2.89 billion in 2020 to $4.97 billion in 2024. Gross profit margin has improved significantly with a notable jump in 2024, indicating efficiency in controlling costs. However, net income has declined from a peak in 2022, suggesting challenges in maintaining profitability. EBIT and EBITDA margins have also fluctuated, with recent declines potentially impacting overall financial health.

Balance Sheet

The debt-to-equity ratio improved in 2024 due to the elimination of total debt, but the absence of stockholders' equity presents a significant risk, as it indicates potential financial instability. The company has maintained strong cash reserves, but weak equity ratios in recent years highlight potential vulnerabilities in financial structure.

Cash Flow

Operating cash flow has decreased from $522 million in 2022 to $205 million in 2024, impacting the overall cash flow health. However, free cash flow remains positive and grew significantly in 2024, reflecting strong operational cash generation despite reduced operating cash flow. The free cash flow to net income ratio is robust, indicating efficient cash management despite volatility in net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.08B	4.97B	4.73B	4.66B	3.89B	2.89B
Gross Profit	2.40B	1.85B	1.82B	1.97B	1.45B	696.00M
EBITDA	698.00M	614.00M	722.00M	832.00M	609.00M	156.00M
Net Income	259.00M	218.00M	254.00M	391.00M	49.00M	-275.00M
Balance Sheet
Total Assets	9.89B	9.81B	9.68B	9.64B	9.61B	8.90B
Cash, Cash Equivalents and Short-Term Investments	205.00M	197.00M	248.00M	524.00M	342.00M	524.00M
Total Debt	5.38B	5.22B	5.14B	5.03B	4.49B	4.27B
Total Liabilities	7.40B	7.37B	7.30B	7.14B	6.63B	6.22B
Stockholders Equity	2.48B	2.44B	2.38B	2.50B	2.98B	2.65B
Cash Flow
Free Cash Flow	82.00M	148.00M	114.00M	457.00M	296.00M	258.00M
Operating Cash Flow	27.00M	205.00M	232.00M	522.00M	343.00M	299.00M
Investing Cash Flow	-70.00M	-115.00M	-112.00M	16.00M	-213.00M	-32.00M
Financing Cash Flow	-54.00M	-132.00M	-401.00M	-486.00M	-317.00M	23.00M

Marriott Vacations Worldwide Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 77.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VAC, the sentiment is Positive. The current price of 77.36 is above the 20-day moving average (MA) of 76.97, above the 50-day MA of 76.97, and above the 200-day MA of 73.89, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 52.78 is Neutral, neither overbought nor oversold. The STOCH value of 29.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VAC.

Marriott Vacations Worldwide Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VAC	73 Outperform	$2.62B	11.72	10.67%	4.08%	7.70%	63.61%
MTN	70 Outperform	5.54B	19.08	0.00%	5.89%	2.38%	6.01%
HGV	70 Outperform	3.98B	77.53	2.68%	―	13.01%	-59.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Marriott Vacations Worldwide Corporation Corporate Events

Marriott Vacations Prices $575 Million Senior Notes

On September 4, 2025, Marriott Vacations Worldwide Corporation announced that its subsidiary, Marriott Ownership Resorts, Inc., priced a $575 million offering of 6.500% senior unsecured notes due 2033. The proceeds will be used to repay the 2026 Convertible Notes and cover transaction expenses. This financial maneuver is expected to impact the company’s operations by managing debt obligations and supporting financial stability.

Marriott Vacations Offers $575M in Senior Notes

On September 4, 2025, Marriott Vacations Worldwide Corporation announced that its subsidiary, Marriott Ownership Resorts, Inc., plans to offer $575 million in senior unsecured notes due 2033, subject to market conditions. The proceeds will be used to pay off the 2026 Convertible Notes and cover transaction expenses. This move is part of the company’s financial strategy to manage its debt and optimize its capital structure, potentially impacting its financial stability and market position.

Marriott Vacations Reports Q2 2025 Financial Results

On August 4, 2025, Marriott Vacations Worldwide Corporation reported its financial results for the second quarter of 2025, highlighting consolidated contract sales of $445 million and a net income of $69 million. Despite a slight decline in contract sales, the company experienced a 28% increase in adjusted EBITDA, attributed to a previous year’s sales reserve adjustment. The company remains optimistic about its full-year outlook, emphasizing the resilience of its business model and the continued prioritization of travel by leisure consumers.