DB:M8V

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Marriott Vacations Worldwide

Executive Summary

Marriott Vacations Worldwide Corporation develops, markets, sells, and manages vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, Sheraton, Westin, Hyatt Residence Club, and Marriott Vacation Club Pulse brands.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Marriott Vacations Worldwide's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: M8V's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.5%

M8V

8.4%

DE Hospitality

4.2%

DE Market


1 Year Return

-1.4%

M8V

-44.1%

DE Hospitality

-4.6%

DE Market

Return vs Industry: M8V exceeded the German Hospitality industry which returned -44.1% over the past year.

Return vs Market: M8V exceeded the German Market which returned -4.6% over the past year.


Shareholder returns

M8VIndustryMarket
7 Day11.5%8.4%4.2%
30 Day17.0%6.9%6.6%
90 Day-19.9%-47.0%-12.1%
1 Year-0.08%-1.4%-42.0%-44.1%-3.0%-4.6%
3 Year-16.8%-20.4%-57.7%-63.4%-8.6%-15.7%
5 Year11.1%2.4%-58.3%-67.1%-1.5%-14.1%

Price Volatility Vs. Market

How volatile is Marriott Vacations Worldwide's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Marriott Vacations Worldwide undervalued compared to its fair value and its price relative to the market?

21.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: M8V (€82.5) is trading below our estimate of fair value (€104.41)

Significantly Below Fair Value: M8V is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: M8V is poor value based on its PE Ratio (482.3x) compared to the Hospitality industry average (21.5x).

PE vs Market: M8V is poor value based on its PE Ratio (482.3x) compared to the German market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: M8V is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: M8V is good value based on its PB Ratio (1.3x) compared to the DE Hospitality industry average (1.7x).


Next Steps

Future Growth

How is Marriott Vacations Worldwide forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

103.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: M8V's forecast earnings growth (103.2% per year) is above the savings rate (0.2%).

Earnings vs Market: M8V's earnings (103.2% per year) are forecast to grow faster than the German market (21.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: M8V's revenue (12% per year) is forecast to grow faster than the German market (5.7% per year).

High Growth Revenue: M8V's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: M8V's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has Marriott Vacations Worldwide performed over the past 5 years?

-3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: M8V has a large one-off loss of $264.0M impacting its March 31 2020 financial results.

Growing Profit Margin: M8V's current net profit margins (0.3%) are lower than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: M8V's earnings have declined by -3.2% per year over the past 5 years.

Accelerating Growth: M8V's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: M8V had negative earnings growth (-81.6%) over the past year, making it difficult to compare to the Hospitality industry average (-36.2%).


Return on Equity

High ROE: M8V's Return on Equity (0.5%) is considered low.


Next Steps

Financial Health

How is Marriott Vacations Worldwide's financial position?


Financial Position Analysis

Short Term Liabilities: M8V's short term assets ($4.2B) exceed its short term liabilities ($638.0M).

Long Term Liabilities: M8V's short term assets ($4.2B) do not cover its long term liabilities ($6.0B).


Debt to Equity History and Analysis

Debt Level: M8V's debt to equity ratio (171%) is considered high.

Reducing Debt: M8V's debt to equity ratio has increased from 62.6% to 171% over the past 5 years.

Debt Coverage: M8V's debt is not well covered by operating cash flow (4.9%).

Interest Coverage: M8V's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Marriott Vacations Worldwide's current dividend yield, its reliability and sustainability?

1.50%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate M8V's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate M8V's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if M8V's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if M8V's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: M8V is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of M8V's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.8yrs

Average management tenure


CEO

Steve Weisz (68yo)

9.33yrs

Tenure

US$8,657,276

Compensation

Mr. Stephen P. Weisz, also known as Steve, has been President and Chief Executive Officer of ILG, Inc. since September 1, 2018. He has been Member of Board of Managers of ILG, Inc. since September 1, 2018. ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD8.66M) is above average for companies of similar size in the German market ($USD2.68M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Weisz
President9.33yrsUS$8.66m0.57% $19.5m
John Geller
Executive VP & Chief Financial and Administrative Officer11.33yrsUS$3.33m0.27% $9.2m
Brian Miller
Executive VP & Chief Marketing8.5yrsUS$2.51m0.038% $1.3m
Ralph Cunningham
Executive VP & COO of Vacation Ownership13.33yrsUS$2.38m0.022% $748.9k
Lizabeth Kane-Hanan
Executive VP & Chief Development and Product Officer8.5yrsUS$1.97m0.081% $2.8m
Laurie Sullivan
Senior VPno datano data0.015% $517.2k
Dwight Smith
Executive VP & Chief Information Officer14.33yrsno data0.025% $833.3k
Neal Goldner
Vice President of Investor Relationsno datano datano data
James Hunter
Executive VP14.33yrsUS$2.40m0.12% $4.0m
Michael Yonker
Executive VP & Chief Human Resources Officer10.33yrsno data0.029% $987.3k

10.8yrs

Average Tenure

57yo

Average Age

Experienced Management: M8V's management team is seasoned and experienced (10.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Weisz
President9.33yrsUS$8.66m0.57% $19.5m
William Shaw
Independent Chairman8.5yrsUS$357.15k0.34% $11.5m
Stephen Quazzo
Independent Director1.67yrsUS$251.40k0.036% $1.2m
William McCarten
Independent Director8.5yrsUS$262.65k0.0060% $203.8k
Raymond Gellein
Independent Director8.5yrsUS$258.90k0.055% $1.9m
Charles Andrews
Independent Director7.08yrsUS$267.65k0.050% $1.7m
Dianna Morgan
Independent Director7.08yrsUS$266.22k0.035% $1.2m
Thomas Hutchison
Independent Director8.5yrsUS$261.22k0.057% $1.9m
Lizanne Galbreath
Independent Director1.67yrsUS$251.40k0.024% $811.6k
Melquiades Martinez
Lead Independent Directorno dataUS$266.22k0.044% $1.5m

8.5yrs

Average Tenure

69yo

Average Age

Experienced Board: M8V's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Marriott Vacations Worldwide Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Marriott Vacations Worldwide Corporation
  • Ticker: M8V
  • Exchange: DB
  • Founded: 1984
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$3.695b
  • Listing Market Cap: US$3.392b
  • Shares outstanding: 41.05m
  • Website: https://www.marriottvacationsworldwide.com

Number of Employees


Location

  • Marriott Vacations Worldwide Corporation
  • 6649 Westwood Boulevard
  • Suite 500
  • Orlando
  • Florida
  • 32821
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VACNYSE (New York Stock Exchange)YesCommon SharesUSUSDNov 2011
M8VDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2011

Biography

Marriott Vacations Worldwide Corporation develops, markets, sells, and manages vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, Sheraton, Westin, Hyatt Residence Club, and Marriott Vacation Club Pulse brands. The company operates through two segments, Vacation Ownership and Exchange & Third-Party Management. It also develops, markets, and sells vacation ownership and related products under The Ritz-Carlton Destination Club brand; and holds right to develop, market, and sell ownership residential products under The Ritz-Carlton Residences brand. In addition, the company sells points-based vacation ownership products through Marriott Vacation Club, Sheraton Flex, Westin Flex, Westin Aventuras, and Hyatt Residence Club points-based ownership programs focused in Europe, North America, and the Asia Pacific; and weeks-based vacation ownership products. Further, it is involved in financing consumer purchases of vacation ownership products; and renting vacation ownership inventory. Additionally, the company provides on-site management and services, such as daily housekeeping services, valet, in-residence dining, and access to fitness facilities, as well as spa and sports facilities for Ritz-Carlton branded properties. It also offers exchange networks and membership programs consisting of approximately 3,200 resorts in over 80 nations, as well as manages approximately 170 other resorts and lodging properties under the Interval International, Trading Places International, Vacation Resorts International, and Aqua-Aston. As of December 31, 2019, the company operated approximately 100 properties in the United States and 12 other countries and territories. The company sells its upscale tier vacation ownership products primarily through a network of resort-based sales centers and off-site sales locations. Marriott Vacations Worldwide Corporation was founded in 1984 and is headquartered in Orlando, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 07:47
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.