NYSE:MTN

Stock Analysis Report

Executive Summary

Vail Resorts, Inc., through its subsidiaries, operates mountain resorts and urban ski areas in the United States.

Rewards

Earnings are forecast to grow 7.23% per year

Earnings grew by 0.7% over the past year

Risk Analysis

Dividend of 2.84% is not well covered by earnings or forecast to be in the next 3 years

Has a high level of debt



Snowflake Analysis

Acceptable track record with imperfect balance sheet.


Similar Companies

Share Price & News

How has Vail Resorts's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MTN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.0%

MTN

-1.2%

US Hospitality

0.06%

US Market


1 Year Return

18.3%

MTN

6.0%

US Hospitality

19.4%

US Market

Return vs Industry: MTN exceeded the US Hospitality industry which returned 6% over the past year.

Return vs Market: MTN underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

MTNIndustryMarket
7 Day-1.0%-1.2%0.06%
30 Day-1.8%-5.0%1.1%
90 Day3.8%7.0%8.9%
1 Year22.0%18.3%8.7%6.0%21.9%19.4%
3 Year47.1%36.3%35.7%26.8%48.9%39.3%
5 Year217.8%181.4%47.7%32.2%71.9%53.1%

Price Volatility Vs. Market

How volatile is Vail Resorts's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vail Resorts undervalued compared to its fair value and its price relative to the market?

32.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MTN ($248.2) is trading above our estimate of fair value ($206.36)

Significantly Below Fair Value: MTN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MTN is poor value based on its PE Ratio (33.1x) compared to the Hospitality industry average (24x).

PE vs Market: MTN is poor value based on its PE Ratio (33.1x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: MTN is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: MTN is overvalued based on its PB Ratio (7.7x) compared to the US Hospitality industry average (2.2x).


Next Steps

Future Growth

How is Vail Resorts forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTN's forecast earnings growth (7.2% per year) is above the savings rate (1.7%).

Earnings vs Market: MTN's earnings (7.2% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: MTN's earnings are forecast to grow, but not significantly.

Revenue vs Market: MTN's revenue (3.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MTN's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTN's Return on Equity is forecast to be low in 3 years time (18.3%).


Next Steps

Past Performance

How has Vail Resorts performed over the past 5 years?

27.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTN has high quality earnings.

Growing Profit Margin: MTN's current net profit margins (13%) are lower than last year (14.9%).


Past Earnings Growth Analysis

Earnings Trend: MTN's earnings have grown significantly by 27.8% per year over the past 5 years.

Accelerating Growth: MTN's earnings growth over the past year (0.7%) is below its 5-year average (27.8% per year).

Earnings vs Industry: MTN earnings growth over the past year (0.7%) exceeded the Hospitality industry -9.8%.


Return on Equity

High ROE: Whilst MTN's Return on Equity (21.31%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vail Resorts's financial position?


Financial Position Analysis

Short Term Liabilities: MTN's short term assets ($428.3M) do not cover its short term liabilities ($971.5M).

Long Term Liabilities: MTN's short term assets ($428.3M) do not cover its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: MTN's debt to equity ratio (113.4%) is considered high.

Reducing Debt: MTN's debt to equity ratio has increased from 107.7% to 113.4% over the past 5 years.

Debt Coverage: MTN's debt is well covered by operating cash flow (38.6%).

Interest Coverage: MTN's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet

Inventory Level: MTN has a high level of physical assets or inventory.

Debt Coverage by Assets: MTN's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Vail Resorts's current dividend yield, its reliability and sustainability?

2.87%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: MTN's dividend (2.84%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: MTN's dividend (2.84%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MTN has been paying a dividend for less than 10 years.

Growing Dividend: MTN's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (93.8%), MTN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MTN's dividends in 3 years are not forecast to be well covered by earnings (95.1% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Rob Katz (52yo)

14yrs

Tenure

US$3,624,696

Compensation

Mr. Robert A. Katz, also known as Rob, has been the Chief Executive Officer at Vail Resorts Inc., since February 28, 2006. Mr. Katz has been the Chairman of the Board of Rockresorts International LLC and V ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD3.62M) is below average for companies of similar size in the US market ($USD10.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Katz
Chairman & CEO14yrsUS$3.62m0.71% $69.8m
Michael Barkin
Executive VP & CFO6.8yrsUS$2.32m0.038% $3.8m
David Shapiro
Executive VP4.6yrsUS$1.71m0.0032% $316.7k
Kirsten Lynch
Executive VP & Chief Marketing Officer 8.6yrsUS$2.32m0.043% $4.3m
Patricia Campbell
President of Mountain Division4.5yrsUS$2.32m0.037% $3.6m
Ryan Siurek
Chief Accounting Officer3.8yrsno data0.00060% $59.4k
Timothy April
Senior VP & Chief Information Officer1.3yrsno datano data
Lynanne Kunkel
Chief Human Resources Officer & Executive VP2.8yrsno datano data
Pete Sonntag
Senior Vice President of Mountain Division - Whistler Blackcomb0.4yrsno datano data
Bill Rock
Senior Vice President of Mountain Division - Colorado & Utah0.4yrsno datano data

4.2yrs

Average Tenure

50yo

Average Age

Experienced Management: MTN's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Katz
Chairman & CEO14yrsUS$3.62m0.71% $69.8m
Susan Decker
Independent Director4.4yrsUS$297.14k0.012% $1.1m
John Redmond
Independent Director11.9yrsUS$305.63k0.045% $4.4m
Hilary Schneider
Independent Director9.9yrsUS$290.07k0.047% $4.6m
John Sorte
Independent Director27.1yrsUS$335.07k0.12% $11.5m
D. Sewell
Lead Independent Director0.7yrsUS$321.98k0.041% $4.0m
Peter Vaughn
Independent Director6.7yrsUS$294.07k0.020% $2.0m
Michele Romanow
Independent Director3.3yrsUS$317.35k0.0076% $757.1k
Nadia Rawlinson
Director0.2yrsno datano data

6.7yrs

Average Tenure

57yo

Average Age

Experienced Board: MTN's board of directors are considered experienced (6.7 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

Vail Resorts, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vail Resorts, Inc.
  • Ticker: MTN
  • Exchange: NYSE
  • Founded: 1997
  • Industry: Leisure Facilities
  • Sector: Consumer Services
  • Market Cap: US$9.897b
  • Shares outstanding: 40.31m
  • Website: https://www.vailresorts.com

Number of Employees


Location

  • Vail Resorts, Inc.
  • 390 Interlocken Crescent
  • Broomfield
  • Colorado
  • 80021
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTNNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1997
VAIDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1997
0LK3LSE (London Stock Exchange)YesCommon StockGBUSDFeb 1997
MTN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNFeb 1997

Biography

Vail Resorts, Inc., through its subsidiaries, operates mountain resorts and urban ski areas in the United States. Its Mountain segment operates Vail Mountain, Breckenridge Ski, Keystone, Beaver Creek, and Crested Butte Mountain resorts in Colorado; Heavenly Mountain, Northstar, and Kirkwood Mountain resorts in the Lake Tahoe area of California and Nevada; Mount Sunapee Resort in New Hampshire; Park City resort in Utah; Stowe and Okemo Mountain Resort in Vermont; and Stevens Pass Mountain Resort in Washington. This segment also operates Whistler Blackcomb in Canada; and Perisher Ski Resort, and Falls Creek and Hotham Alpine Resort in Australia, as well as 3 urban ski areas, such as Afton Alps in Minnesota, Mount Brighton in Michigan, and Wilmot Mountain in Wisconsin. Its resorts offer various winter and summer recreational activities, including skiing, snowboarding, snowshoeing, snowtubing, sightseeing, mountain biking, guided hiking, zip lines, challenge ropes courses, alpine slides and mountain coasters, children's activities, and other recreational activities; and ski and snowboard lessons, equipment rental and retail merchandise services, dining venues, private club operations, and other winter and summer recreational activities. This segment also leases its owned and leased commercial space to third party operators; and provides real estate brokerage services. The company’s Lodging segment owns and/or manages various luxury hotels and condominiums under the RockResorts brand, and other lodging properties; various condominiums located in proximity to the company’s mountain resorts; destination resorts; and golf courses, as well as offers resort ground transportation services. This segment operates approximately 5,500 owned and managed hotel and condominium units. Its Real Estate segment owns, develops, and sells real estate properties in and around the company’s resort communities. The company was founded in 1997 and is based in Broomfield, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:43
End of Day Share Price2020/02/19 00:00
Earnings2019/10/31
Annual Earnings2019/07/31


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.