Vail Resorts Reports 12.5% Increase in Skier Visits Despite Slight Trading Drop
January 19, 2023
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Vail Resorts Intrinsic Value – Vail Resorts ($NYSE:MTN) is a leading provider of ski experiences in North America and beyond. The company operates a variety of resorts and regional ski areas, including Vail, Beaver Creek, Breckenridge, Keystone and several others. On Wednesday, Vail Resorts released their metrics report for their North American ski resorts and regional ski areas, including Seven Springs, Hidden Valley and Laurel Mountain. The report revealed that season-to-date skier visits had increased by 12.5% compared to the previous year. This was despite a slight drop in trading for Vail Resorts’ stock following the release of the report.
The increase in visits was attributed to an increase in snowfall and improved winter weather conditions throughout North America. The company has been investing in its resorts over the past few years, with significant upgrades to its infrastructure, amenities, and services. This investment has led to an improved skiing experience for guests, and it seems to have paid off with the reported increase in skier visits. This indicates that their investment in their resorts has been successful and that the company is well-positioned to continue seeing growth in future seasons.
Stock Price
Despite this growth, the company’s stock opened at $252.9 and closed at $246.9, a decrease of 2.3% from its previous closing price of $252.6. Despite this dip, the company remains optimistic about its future prospects and believes it will be able to continue to increase its skier visits and overall revenue. Many factors contribute to the company’s success, including its consistently excellent snow quality, diverse terrain and world-renowned mountain resorts. Additionally, Vail Resorts works hard to create unique experiences for its guests and provides the highest level of customer service.
In addition, the company provides ski lessons, equipment rentals, lift tickets, and other services that appeal to both beginner and experienced skiers. The company is also committed to sustainability and works towards reducing its environmental footprint by implementing responsible environmental practices. This includes reducing energy use, waste disposal, and water usage in order to protect the environment and ensure that the company is doing its part to preserve the natural beauty of its resorts. Vail Resorts is committed to providing an unforgettable experience for its guests and continues to invest in its resorts in order to remain competitive in the ski industry. Although the stock dropped on Wednesday, the company remains confident in its ability to continue to grow and provide an exceptional experience for its customers. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Vail Resorts. More…
| Total Revenues | Net Income | Net Margin |
| 2.63k | 350.28 | 12.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Vail Resorts. More…
| Operations | Investing | Financing |
| 694.47 | -442.59 | -513.03 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Vail Resorts. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.28k | 4.73k | 31.37 |
Key Ratios Snapshot
Some of the financial key ratios for Vail Resorts are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.3% | 7.6% | 22.9% |
| FCF Margin | ROE | ROA |
| 16.3% | 26.1% | 6.0% |
VI Analysis – Vail Resorts Intrinsic Value
VAIL RESORTS‘ fundamentals have been analyzed and evaluated simply by the VI app. The app has determined that the fair value of a VAIL RESORTS share is around $329.4. Currently, the stock is trading at $246.9, which is undervalued by 25%. This indicates that investors may have an opportunity to purchase the stock at a discounted price compared to its true value. The company’s overall financial performance has been strong, with steady growth in both revenue and profitability in recent years. Their balance sheet is solid, with minimal debt and a healthy amount of cash and liquid assets on hand. Additionally, their return on equity is impressive, indicating that management is making sound decisions with regards to their capital allocation. The firm has been able to maintain its competitive advantage by staying ahead of industry trends and adapting to changes in the market. Their product offerings are diverse and they have a well-developed distribution system. They also have a strong corporate culture that values innovation and a commitment to customer satisfaction. Overall, VAIL RESORTS appears to be an attractive investment option for investors who are looking for undervalued opportunities in the market. With their solid fundamentals and growth potential, investors may be able to capitalize on their current undervaluation and realize a significant return in the long-term. More…
VI Peers
The competition between Vail Resorts Inc and its competitors, Genting Malaysia Bhd, Hilton Grand Vacations Inc, and PT Bukit Uluwatu Villa Tbk, is fierce. Each company is vying for a larger share of the lucrative ski resort market, offering customers an array of services and amenities to attract them to their resorts. As the industry continues to grow, the competition between these companies is expected to increase even more.
– Genting Malaysia Bhd ($KLSE:4715)
Genting Malaysia Bhd is a leading integrated leisure, entertainment and hospitality group in Malaysia. The company is engaged in the development and operation of casinos, resorts, hotels, restaurants and other related businesses. As of 2022, Genting Malaysia Bhd has a market capitalization of 14.96 billion and a Return on Equity of 3.26%. Market capitalization is a measure of the company’s total value, determined by multiplying its total number of shares outstanding by its stock price. Meanwhile, Return on Equity (ROE) is a measure of a company’s profitability that indicates how well it uses the funds it has available to generate profits.
– Hilton Grand Vacations Inc ($NYSE:HGV)
Hilton Grand Vacations Inc is a leading global timeshare company that specializes in the development, marketing, and management of vacation ownership resorts. As of 2022, the company has a market capitalization of 4.74 billion dollars, indicating its strong financial performance and impressive market position. Additionally, it boasts an impressive Return on Equity of 19.1%, demonstrating the company’s successful management of its equity investments. In addition to its size and financial performance, Hilton Grand Vacations Inc is renowned for its excellent customer service and quality products.
– PT Bukit Uluwatu Villa Tbk ($IDX:BUVA)
PT Bukit Uluwatu Villa Tbk is a hospitality company that operates a chain of luxury villas and resorts in Indonesia. The company has a market cap of 408.68B as of 2022, making it one of the largest hospitality companies in the country. Its Return on Equity (ROE) of -2.47% indicates that its current profitability is below the industry average and could be improved upon. The company has been focusing on expanding its presence and improving its services to strengthen its presence in the market, which could help improve its ROE and market cap in the future.
Summary
Vail Resorts, a leading ski resort and hospitality company, recently reported a 12.5% increase in skier visits despite a slight trading drop. The company’s investments in initiatives such as mountain co-branding, new lift openings, and increased terrain have been strong drivers of the overall growth. In addition, recent acquisitions of Park City Mountain Resort and Whistler Blackcomb have allowed Vail to expand its offerings and increase its market share. Despite the positive developments, investors remain cautious due to the company’s high debt levels and uncertain economic conditions.
