Marriott Vacations Worldwide Corporation (VAC) AI Stock Analysis

• Market Cap: $1.64B
• Dividend Yield: 6.75%
• Average Volume (3M): 607.08K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.70
• Revenue Growth: 4.18%
• EPS Growth: -13.89%
• Country: US
• Employees: 22,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 1.69
• Shares Outstanding: 34,613,990
• 10 Day Avg. Volume: 1,026,668
• 30 Day Avg. Volume: 607,083
• 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: 4.47
• Enterprise Value/Revenue: 1.60
• Enterprise Value/Gross Profit: 3.98
• Enterprise Value/Ebitda: 13.50
• 1Y Price Target: $59.75
• Price Target Upside: 27.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 6.78
• Revenue Forecast (FY): $5.03B

• Rating: 59 Neutral
• Price Target: $52.00 ▲(11.09% Upside)

The overall stock score reflects a challenging environment for Marriott Vacations Worldwide Corporation. The most significant factors are the mixed financial performance with high leverage and declining revenue growth, combined with bearish technical indicators. However, the stock's valuation is attractive with a reasonable P/E ratio and high dividend yield, providing some support. The earnings call further underscores the need for strategic improvements amid current market 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 company in the hospitality industry, specializing in vacation ownership and resort management. The firm operates through various segments, including the development, sales, and management of vacation ownership properties primarily under the Marriott, Westin, Sheraton, and Ritz-Carlton brands. With a portfolio of resorts and vacation clubs, the company provides flexible vacation options to its customers, catering to families and individuals seeking memorable travel experiences.

How the Company Makes Money

Marriott Vacations Worldwide generates revenue through multiple key streams, primarily from the sale of vacation ownership interests (VOIs) and related financing. The company sells timeshare properties, which involves upfront payments from customers for the right to use a property for a specified period. Additionally, it earns income from the ongoing management of these properties, including maintenance fees paid by owners. Another significant revenue stream comes from financing options offered to customers, where the company provides loans for purchasing VOIs. Moreover, Marriott Vacations benefits from partnerships with other hospitality brands and travel companies, enhancing its market reach and driving additional sales through collaborative marketing efforts. Overall, the company's diversified revenue model and strategic alliances contribute significantly to its financial performance.

Marriott Vacations Worldwide Corporation Financial Statement Overview

Summary

Marriott Vacations Worldwide Corporation shows mixed financial performance. While operational efficiency is evident through positive EBIT and EBITDA margins, declining revenue growth and high leverage pose challenges. The company demonstrates strong cash flow management, but the high debt levels require careful monitoring to ensure long-term financial health.

Income Statement

The income statement shows a decline in revenue growth rate for the TTM period, indicating a potential slowdown in sales. Gross profit margin and net profit margin have decreased over the years, reflecting pressure on profitability. However, the company maintains positive EBIT and EBITDA margins, suggesting operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, which poses a risk in terms of financial leverage. Return on equity has been declining, indicating reduced profitability for shareholders. The equity ratio remains stable, suggesting a balanced asset structure, but the high leverage could impact financial stability.

Cash Flow

Cash flow analysis shows positive free cash flow growth in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is low, suggesting potential issues in converting income to cash. However, the free cash flow to net income ratio is strong, highlighting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.58B	4.97B	4.73B	4.66B	3.89B	2.89B
Gross Profit	1.84B	1.85B	1.82B	1.99B	1.45B	696.00M
EBITDA	543.00M	614.00M	678.00M	832.00M	437.00M	-67.00M
Net Income	173.00M	218.00M	254.00M	391.00M	49.00M	-275.00M
Balance Sheet
Total Assets	10.15B	9.81B	9.68B	9.64B	9.61B	8.90B
Cash, Cash Equivalents and Short-Term Investments	474.00M	197.00M	248.00M	524.00M	342.00M	524.00M
Total Debt	5.74B	5.22B	5.14B	5.03B	4.49B	4.41B
Total Liabilities	7.68B	7.37B	7.30B	7.14B	6.63B	6.22B
Stockholders Equity	2.46B	2.44B	2.38B	2.50B	2.98B	2.65B
Cash Flow
Free Cash Flow	63.00M	148.00M	114.00M	457.00M	296.00M	258.00M
Operating Cash Flow	122.00M	205.00M	232.00M	522.00M	343.00M	299.00M
Investing Cash Flow	-66.00M	-115.00M	-112.00M	16.00M	-213.00M	-32.00M
Financing Cash Flow	130.00M	-132.00M	-401.00M	-486.00M	-317.00M	23.00M

Marriott Vacations Worldwide Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 46.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 46.81 is below the 20-day moving average (MA) of 56.40, below the 50-day MA of 64.41, and below the 200-day MA of 68.60, indicating a bearish trend. The MACD of -5.98 indicates Positive momentum. The RSI at 28.91 is Positive, neither overbought nor oversold. The STOCH value of 33.21 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
MCRI	67 Neutral	$1.73B	17.13	19.40%	1.29%	4.61%	22.90%
MTN	62 Neutral	$5.02B	18.60	48.78%	6.47%	2.74%	22.37%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HGV	60 Neutral	$3.20B	64.67	3.28%	―	5.98%	-34.77%
VAC	59 Neutral	$1.64B	10.58	7.08%	6.75%	4.18%	-13.89%
GDEN	54 Neutral	$762.71M	156.08	1.15%	3.42%	-12.25%	-84.89%
PENN	45 Neutral	$1.85B	―	-35.97%	―	8.24%	-77.54%

Marriott Vacations Worldwide Corporation Corporate Events

Marriott Vacations Worldwide Q3 2025 Financial Overview

Marriott Vacations Worldwide Corporation is a prominent global vacation company specializing in vacation ownership, exchange, rental, and resort management services, with a diverse portfolio of iconic brands and a strong presence in over 90 countries.

Marriott Vacations Reports Q3 Loss Amid Sales Decline

On November 5, 2025, Marriott Vacations Worldwide Corporation reported its third-quarter financial results, revealing a 4% decline in consolidated contract sales compared to the previous year, attributed to a decrease in tours and volume per guest. The company reported a net loss of $2 million, but adjusted net income was $66 million. The company is taking steps to improve performance, including realigning sales incentives and implementing FICO-based screening. Despite challenges, the company maintains a strong liquidity position with $1,428 million, including $474 million in cash and cash equivalents.

The most recent analyst rating on (VAC) stock is a Hold with a $74.00 price target. To see the full list of analyst forecasts on Marriott Vacations Worldwide Corporation stock, see the VAC Stock Forecast page.

Marriott Vacations 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.