VAC Intrinsic Value – Marriott Vacations Worldwide Receives Positive Ratings from Brokerages
April 21, 2023
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Marriott Vacations Worldwide ($NYSE:VAC) Corporation (MVW) is an American timeshare and vacation ownership company. It is the parent company of various world-renowned timeshare brands, including Marriott Vacation Club, The Ritz-Carlton Destination Club, and Grand Residences by Marriott. Recently, eight brokerages that are tracking the company’s shares have given Marriott Vacations Worldwide Co. an average rating of “Moderate Buy”. These brokerages include Suntrust Banks Inc., Bank of America Corp., and JPMorgan Chase & Co. Analysts have noted that the company’s strengths lie in its robust revenue growth, extensive product offerings, and solid stock price performance.
In addition, analysts believe that the company’s robust dividend policy, along with its commitment to expanding its global presence, will create value for shareholders in the long run. Overall, the positive ratings from brokerages suggest that Marriott Vacations Worldwide Co. has great potential for future growth, and is well-positioned to capitalize on that potential. Investors should consider this company for their portfolios, as it could be a great source of returns if managed properly.
Share Price
On Thursday, MARRIOTT VACATIONS WORLDWIDE Corporation (NYSE: VAC) stock opened and closed at $138.6 and $139.0, respectively. Compared to its closing price of $139.1 on the prior day, the stock decreased slightly by 0.1%. The company has recently been receiving positive ratings from brokerages, including an “overweight” rating from Morgan Stanley and an “outperform” rating from Credit Suisse. This is a positive indication of investor sentiment, as it signals increasing confidence in the company’s future performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for VAC. More…
| Total Revenues | Net Income | Net Margin |
| 4.66k | 391 | 10.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for VAC. More…
| Operations | Investing | Financing |
| 522 | 16 | -486 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for VAC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.64k | 7.14k | 66.59 |
Key Ratios Snapshot
Some of the financial key ratios for VAC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.3% | 12.2% | 15.0% |
| FCF Margin | ROE | ROA |
| 9.8% | 17.1% | 4.5% |
Analysis – VAC Intrinsic Value
As a financial analyst team at GoodWhale, we recently conducted an analysis of MARRIOTT VACATIONS WORLDWIDE’s financials. After taking into account various factors such as cash flows, earnings, and growth opportunities, we have determined that the intrinsic value of MARRIOTT VACATIONS WORLDWIDE shares is around $193.6. This amount was arrived at using our proprietary Valuation Line methodology. At the current market price of $139.0, MARRIOTT VACATIONS WORLDWIDE stock is currently undervalued by 28.2%. This may present an opportunity for investors to buy the stock and benefit from the potential upside as the share price returns to its intrinsic value. More…
Peers
In the vacation ownership and timeshare industry, Marriott Vacations Worldwide Corp is one of the largest and most well-known companies.
However, it faces stiff competition from a number of other large companies, including iGrandiViaggi SpA, Archon Corp, and Resorttrust Inc. While each of these companies has its own strengths and weaknesses, Marriott has been able to stay ahead of the competition by offering a wide variety of vacation ownership products and experiences that appeal to a broad range of customers.
– iGrandiViaggi SpA ($LTS:0R8E)
Hai Grandi Viaggi SpA is a company that provides travel services. It has a market capitalization of 36.65 million as of 2022 and a return on equity of 0.08%. The company offers a variety of travel-related services, including air travel, hotel accommodations, car rentals, and cruises.
– Archon Corp ($OTCPK:ARHN)
Archon Corporation is a holding company that operates through its subsidiaries. The Company, through its subsidiaries, is engaged in the business of real estate investment, development, management, construction, and brokerage.
– Resorttrust Inc ($TSE:4681)
Resorttrust Inc is a Japanese company that operates resorts and hotels. As of 2022, the company had a market capitalization of 248.83 billion yen and a return on equity of 11.02%. The company operates a total of 74 hotels and resorts, including 57 in Japan and 17 overseas. In addition to hotel and resort operations, the company also provides a range of services such as golf course management, real estate development, and food and beverage operations.
Summary
Marriott Vacations Worldwide is a popular resort and vacation ownership company. Investing analysis of the stock show that it has received an average rating of “Moderate Buy” from eight brokers. This suggests that the stock may be a good choice for investors looking for a solid return on their investments. The company has recently seen strong financial performance and has posted several consecutive quarters of growth.
Additionally, the stock is trading at a reasonable price-to-earnings ratio and has a favorable dividend yield. With all of this in mind, Marriott Vacations Worldwide may be a solid investment for those looking for a long-term return.
