Marriott Vacations Worldwide Corporation (VAC) AI Stock Analysis

• Market Cap: $2.00B
• Dividend Yield: 5.46%
• Average Volume (3M): 765.92K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.63
• 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: 676,655
• 30 Day Avg. Volume: 765,921
• 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: 3.66
• Enterprise Value/Revenue: 1.60
• Enterprise Value/Gross Profit: 3.98
• Enterprise Value/Ebitda: 13.50
• 1Y Price Target: $58.13
• Price Target Upside: 0.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 6.79
• Revenue Forecast (FY): $5.03B

• Rating: 58 Neutral
• Price Target: $54.00 ▼(-6.77% Downside)

Marriott Vacations Worldwide Corporation faces significant challenges, including declining revenue growth, high leverage, and leadership changes. While the stock offers a high dividend yield and reasonable valuation, bearish technical indicators and negative sentiment from recent corporate events and earnings call weigh heavily on the overall score.

Positive Factors

Modernization Program

The modernization program aims to enhance operational efficiency, potentially boosting EBITDA significantly by 2026, strengthening long-term profitability.

Expansion in Asia Pacific

Expanding in Asia Pacific diversifies revenue streams and taps into growing markets, supporting long-term growth and market presence.

Cash Flow Management

Strong cash flow management ensures liquidity and supports strategic investments, enhancing financial stability and operational flexibility.

Negative Factors

Leadership Uncertainty

Leadership changes can disrupt strategic direction and execution, potentially affecting long-term stability and investor confidence.

High Leverage

High leverage can strain financial resources, limiting flexibility and increasing vulnerability to economic downturns.

Declining Revenue Growth

A slowdown in revenue growth indicates challenges in market expansion and sales effectiveness, potentially impacting future profitability.

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: 57.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 57.92 is above the 20-day moving average (MA) of 52.56, below the 50-day MA of 59.03, and below the 200-day MA of 66.49, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 57.11 is Neutral, neither overbought nor oversold. The STOCH value of 80.84 is Negative, 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	78 Outperform	$1.75B	17.32	19.40%	1.21%	4.61%	22.90%
MTN	72 Outperform	$5.54B	22.70	88.61%	6.27%	3.06%	12.82%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HGV	60 Neutral	$3.76B	76.91	3.28%	―	5.98%	-34.77%
VAC	58 Neutral	$2.00B	12.94	7.08%	5.46%	4.18%	-13.89%
GDEN	57 Neutral	$738.47M	151.10	1.15%	3.54%	-12.25%	-84.89%
PENN	45 Neutral	$1.90B	―	-35.97%	―	8.24%	-77.54%

Marriott Vacations Worldwide Corporation Corporate Events

Marriott Vacations Announces Leadership Change with Miller’s Retirement

On November 11, 2025, Marriott Vacations Worldwide Corporation announced the retirement of Brian E. Miller, President of Vacation Ownership, effective December 31, 2025. Mr. Miller, who has been instrumental in the company’s growth and industry leadership, will continue as an advisor until March 27, 2026. His departure will lead to organizational changes, with Stephanie Sobeck Butera and John Fitzgerald reporting directly to the President and CEO starting January 1, 2026.

Marriott Vacations CEO Resigns, Interim Leader Appointed

On November 9, 2025, John E. Geller, Jr. resigned as President and CEO of Marriott Vacations Worldwide Corporation at the Board’s request, effective November 10, 2025. Matthew E. Avril was appointed as Interim President and CEO, bringing over 30 years of experience in the hospitality and vacation ownership industry. The Board has commenced a search for a permanent successor. The company plans to repurchase shares under its $347 million Share Repurchase Program and has postponed its planned Investor Day.

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.

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.