Marriott Vacations Worldwide Corporation (VAC) AI Stock Analysis

• Market Cap: $2.44B
• Dividend Yield: 4.62%
• Average Volume (3M): 458.50K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.42
• 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: 365,985
• 30 Day Avg. Volume: 458,502
• 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: 3.29
• Enterprise Value/Revenue: 1.58
• Enterprise Value/Gross Profit: 3.35
• Enterprise Value/Ebitda: 11.49
• 1Y Price Target: $86.66
• Price Target Upside: 26.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 67 Neutral
• Price Target: $74.00 ▲(8.19% Upside)

Marriott Vacations Worldwide Corporation's stock score is driven by solid financial performance and reasonable valuation, despite high leverage and cash flow concerns. The technical analysis indicates a bearish trend, while the earnings call provides a mixed outlook with strong operational metrics but some financial challenges.

Positive Factors

High Resort Occupancy Rates

High occupancy rates indicate strong demand for leisure travel, showcasing the company's ability to attract and retain customers, which supports long-term revenue stability.

Modernization Initiatives

The modernization initiatives focus on revenue growth and cost efficiencies, which can enhance competitive positioning and operational effectiveness over the long term.

Increase in First-Time Buyer Sales

Growth in first-time buyer sales suggests expanding market reach and customer base, which can drive sustained revenue growth and brand loyalty.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities and weather economic downturns.

Decline in Free Cash Flow

A decline in free cash flow can constrain liquidity and limit the company's ability to fund operations, pay down debt, or invest in strategic initiatives, affecting long-term growth.

Increased Loan Loss Provision

Rising loan loss provisions indicate potential credit risk, which can affect profitability and require more conservative financial management, impacting future earnings.

Marriott Vacations Worldwide Corporation Business Overview & Revenue Model

Company Description

Marriott Vacations Worldwide Corporation (VAC) is a leading global provider of vacation and leisure experiences, primarily focusing on vacation ownership. The company operates a diverse portfolio of resorts under well-known brands such as Marriott Vacation Club, The Ritz-Carlton Destination Club, and Grand Residences by Marriott. Marriott Vacations Worldwide specializes in creating memorable travel experiences through its timeshare offerings, providing members with access to a network of properties in prime locations around the world. In addition to vacation ownership, the company also offers rental and exchange services, enhancing its appeal to a wide range of travelers.

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: Negative
• Last Price: 68.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VAC, the sentiment is Negative. The current price of 68.4 is above the 20-day moving average (MA) of 67.40, below the 50-day MA of 72.12, and below the 200-day MA of 71.08, indicating a neutral trend. The MACD of -0.46 indicates Negative momentum. The RSI at 47.05 is Neutral, neither overbought nor oversold. The STOCH value of 58.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VAC.

Marriott Vacations Worldwide Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HGV	―	$4.03B	78.80	3.35%	―	13.01%	-59.35%
MTN	―	$5.47B	20.27	48.78%	5.82%	2.74%	22.37%
VAC	―	$2.44B	10.61	10.67%	4.62%	7.70%	63.61%
MCRI	―	$1.68B	16.61	19.40%	1.29%	4.61%	22.90%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GDEN	―	$576.53M	40.78	3.11%	4.48%	-21.68%	-94.08%
PENN	―	$2.59B	―	-2.50%	―	7.34%	93.83%

Marriott Vacations Worldwide Corporation Corporate Events

Marriott Vacations Issues $575M Senior Notes for Debt

On September 18, 2025, Marriott Ownership Resorts, Inc., a subsidiary of Marriott Vacations Worldwide Corporation, issued $575 million in 6.500% Senior Notes due 2033. The proceeds will be used to repay existing debt and cover transaction expenses. This move is part of a strategic financial restructuring aimed at optimizing the company’s debt profile, which may impact its financial stability and market positioning. The issuance of these notes includes various covenants and redemption options, providing flexibility in financial management while maintaining a senior unsecured status.

The most recent analyst rating on (VAC) stock is a Buy with a $87.00 price target. To see the full list of analyst forecasts on Marriott Vacations Worldwide Corporation stock, see the VAC Stock Forecast page.

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.

The most recent analyst rating on (VAC) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Marriott Vacations Worldwide Corporation stock, see the VAC Stock Forecast page.

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.

The most recent analyst rating on (VAC) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Marriott Vacations Worldwide Corporation stock, see the VAC Stock Forecast page.

Marriott Vacations Worldwide Reports Strong Q2 2025 Results

Marriott Vacations Worldwide Corporation, a leader in the global vacation industry, specializes in vacation ownership, exchange, rental, and resort management services, maintaining exclusive partnerships with renowned hotel brands.

Marriott Vacations Worldwide’s Balanced Earnings Call

Marriott Vacations Worldwide’s recent earnings call presented a balanced sentiment, highlighting strong performance in adjusted EBITDA, resort occupancy, and first-time buyer sales. Despite these positive aspects, challenges such as declining contract sales, rental profits, and increased loan loss provisions tempered the overall sentiment. The company’s modernization initiatives and optimistic outlook for the second half of the year provide a hopeful perspective, though current financial hurdles remain a concern.

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.

The most recent analyst rating on (VAC) stock is a Buy with a $102.00 price target. To see the full list of analyst forecasts on Marriott Vacations Worldwide Corporation stock, see the VAC Stock Forecast page.

Marriott Vacations Faces Financial Uncertainty Amid Global Economic Shifts

Marriott Vacations Worldwide Corporation faces significant risks due to the rapidly changing global macroeconomic environment, driven by swift governmental policy and regulatory shifts. These changes have introduced uncertainty and volatility into financial markets, potentially affecting the company’s supply chain, cost structure, and market access. Additionally, consumer sentiment and willingness to travel may decline, impacting the company’s financial performance and strategic planning. The unpredictable nature of these developments poses challenges for Marriott Vacations Worldwide Corporation in mitigating potential adverse effects on their financial condition and operations.