One-glance verdict
Overvalued
$-13.27 our estimate vs market $112.19
Wall Street consensus: $123.00 (-1,027.0% lower than our fair-value estimate)
946% below our estimate, beyond the bull case
Fundamentals snapshot
Marriott Vacations Worldwide Corporation
VAC · NYQ · Consumer Cyclical · Resorts & Casinos
Current price
$112.19
52-week range
$44.58 - $131.34
Market cap
$3.86B
Balance sheet
Distressed
3.28x Stretched
Net debt $5.31B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 2.6% last year.
- Reward Free cash flow was positive in 9/10 years.
- Risk Net debt grew 17.1% over 3 years.
- Risk Return on equity was -14.7% last year — the company lost money on shareholders' equity.
What this company does
Marriott Vacations Worldwide Corporation
Marriott Vacations Worldwide Corporation sells vacation ownership, which is like buying a share of a vacation property, plus services like exchanging vacation weeks and managing resorts. The money mainly comes from selling these vacation packages and fees for managing properties, which shows how well they are running their business and keeping customers happy. This business model matters because it can provide steady income even when people aren't buying new vacation packages.
How the company got here
Marriott Vacations Worldwide (VAC) started in 1984 as Marriott's first foray into the timeshare industry, then known as Marriott Ownership Resorts, Inc.. Over the years, it grew and evolved, eventually partnering with Interval International in 1990 to offer owners more flexibility in exchanging their vacation weeks. A significant turning point came in 2011 when Marriott Vacations Worldwide was spun off from Marriott International to become its own publicly traded company. This move allowed the company to focus solely on its vacation ownership, exchange, and management businesses. Further expansion occurred with the acquisitions of ILG, Inc. in 2018 and Welk Resorts in 2021, which broadened its portfolio of brands and resorts.
What it actually does
Marriott Vacations Worldwide operates in the leisure travel industry, primarily focusing on vacation ownership, also known as timeshares. Instead of owning hotels, the company sells the right to use vacation properties for a certain period, often through a points-based system. They also offer services like vacation exchange, where owners can swap their time at one resort for time at another, and manage resorts for other properties. Essentially, they provide a way for people to plan and enjoy repeat vacations through a variety of branded offerings and services.
Vacation Ownership
This is the core of Marriott Vacations Worldwide's business. They develop, market, and sell vacation ownership interests, which are essentially pre-paid vacation packages that give buyers the right to use specific resorts or a flexible points system for a set number of years or weeks. These are sold under well-known brands like Marriott Vacation Club, Sheraton Vacation Club, and Westin Vacation Club. The company also provides financing to customers who purchase these vacation ownership interests, acting in a way like a consumer finance company for vacations. This segment is the largest contributor to the company's overall profitability, making up about 90% of its adjusted EBITDA.
Exchange & Third-Party Management
This segment includes businesses like Interval International, a major vacation exchange network. Through Interval International, owners can exchange their vacation ownership weeks or points for stays at thousands of affiliated resorts worldwide. Marriott Vacations Worldwide also provides management services to other resorts and lodging properties, earning fees for these services. This part of the business is important because its revenue is less dependent on new vacation ownership sales, offering a more consistent income stream.
What management is betting on now
Marriott Vacations Worldwide is focused on several key strategies to drive future growth and profitability. They are working to improve the efficiency of their sales processes and increase sales to existing owners, while also trying to attract new customers. The company is also investing in technology and modernization to achieve cost savings and improve operational efficiency. Additionally, they are enhancing the owner experience by offering exclusive events and loyalty programs, aiming to increase the lifetime value of each member. Management is also prioritizing reducing the company's debt levels to strengthen its financial position.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$58.00M
FY2024 Q4
$86.00M
FY2025 Q1
$-6.00M
FY2025 Q2
$-68.00M
FY2025 Q3
$51.00M
FY2025 Q4
$-6.00M
FY2026 Q1
$-12.00M
FY2026 Q2
$66.00M
Revenue
$1.32B
Net income
$77.00M
Diluted EPS
2.12
Operating cash flow
$80.00M
Free cash flow
$66.00M
Fetching…
Sources
Revenue
$1.26B
Net income
$22.00M
Diluted EPS
0.64
Operating cash flow
$-4.00M
Free cash flow
$-12.00M
Fetching…
Sources
Revenue
$1.32B
Net income
$-431.00M
Diluted EPS
-12.00
Operating cash flow
$6.00M
Free cash flow
$-6.00M
Fetching…
Sources
Revenue
$1.26B
Net income
$-2.00M
Diluted EPS
-0.07
Operating cash flow
$62.00M
Free cash flow
$51.00M
Fetching…
Sources
Revenue
$1.25B
Net income
$69.00M
Diluted EPS
1.77
Operating cash flow
$-48.00M
Free cash flow
$-68.00M
Fetching…
Sources
Revenue
$1.20B
Net income
$56.00M
Diluted EPS
1.46
Operating cash flow
$8.00M
Free cash flow
$-6.00M
Fetching…
Sources
Revenue
$1.33B
Net income
$50.00M
Diluted EPS
1.29
Operating cash flow
$100.00M
Free cash flow
$86.00M
Fetching…
Sources
Revenue
$1.30B
Net income
$84.00M
Diluted EPS
2.12
Operating cash flow
$72.00M
Free cash flow
$58.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $-13.27 vs current price $112.19
Wall Street consensus is the average analyst price target: $123.00 (-1,027.0% lower than our fair-value estimate).
Our most-likely fair value is $-13.27 a share — about 111.8% below today's price of $112.19, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $5.3B. Interest coverage 3.3x.
Net debt
$5.31B
Interest coverage
3.28x
Marriott Vacations Worldwide Corporation's profit covers its interest bill about 3.3 times over. which is stronger than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
VAC
BASELINE
Marriott Vacations Worldwide Corporation
Total debt $5.52B Interest coverage 3.28x This is the baseline the peer rows are being compared against.
Total debt $7.85B Interest coverage 2.10x -36% vs VAC Carries about 1.6x less debt cushion than VAC.
Total debt $6.07B Interest coverage 2.51x -23% vs VAC Carries about 1.3x less debt cushion than VAC.
Total debt $17.77B Interest coverage 5.12x +56% vs VAC Carries about 1.6x more debt cushion than VAC.
Total debt $12.34B Interest coverage 1.93x -41% vs VAC Carries about 1.7x less debt cushion than VAC.
Total debt $15.46B Interest coverage 4.14x +26% vs VAC Carries about 1.3x more debt cushion than VAC.
What you should know
The case for and against VAC
3 Rewards
2 Risks
Rewards
-
Revenue grew 2.6% last year.
-
Free cash flow was positive in 9/10 years.
-
Dividend yield is 2.9% with 13-year payout history.
Risks
-
Net debt grew 17.1% over 3 years.
-
Return on equity was -14.7% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
11.66x
P/B
1.88x
P/S
1.13x
EV/EBITDA
15.78x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
53.1%
Operating margin
18.5%
Net margin
-9.8%
ROE
-14.7%
ROA
2.8%
Health
Liquidity and balance-sheet strength
Debt / equity
2.69x
Current ratio
4.55x
Quick ratio
0.65x
Total debt
$5.52B
Total cash
$211.00M
Growth
How the business has been compounding
Revenue TTM
$5.16B
Revenue 5Y CAGR
6.6%
EPS TTM
-9.57
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$144.00M
Free CF TTM
$-29.00M
FCF margin
-0.6%
Dividend
Shareholder payout
Yield
2.9%
Payout ratio
69.2%
Last ex-div date
2026-09-16