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 8.28% per year

Risk Analysis

Dividend of 3.02% is not well covered by earnings or forecast to be in the next 3 years

Has a high level of debt



Snowflake Analysis

Mediocre balance sheet with questionable track record.


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

-4.1%

MTN

0.3%

US Hospitality

0.03%

US Market


1 Year Return

4.3%

MTN

13.4%

US Hospitality

18.6%

US Market

Return vs Industry: MTN underperformed the US Hospitality industry which returned 13.4% over the past year.

Return vs Market: MTN underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

MTNIndustryMarket
7 Day-4.1%0.3%0.03%
30 Day-1.7%2.4%1.7%
90 Day-3.9%3.1%5.7%
1 Year7.6%4.3%16.4%13.4%21.1%18.6%
3 Year49.3%38.6%33.3%24.2%45.6%36.2%
5 Year194.1%161.1%48.8%33.1%71.1%52.3%

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?

31.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MTN ($232.81) is trading above our estimate of fair value ($215.79)

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 (31.2x) compared to the Hospitality industry average (22.3x).

PE vs Market: MTN is poor value based on its PE Ratio (31.2x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: MTN is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: MTN is overvalued based on its PB Ratio (6.3x) compared to the US Hospitality industry average (2.4x).


Next Steps

Future Growth

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

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTN's forecast earnings growth (8.3% per year) is above the savings rate (1.7%).

Earnings vs Market: MTN's earnings (8.3% 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 (5.2% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: MTN's revenue (5.2% 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 (16.2%).


Next Steps

Past Performance

How has Vail Resorts performed over the past 5 years?

31.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTN has high quality earnings.

Growing Profit Margin: MTN's current net profit margins (13.3%) are lower than last year (18.9%).


Past Earnings Growth Analysis

Earnings Trend: MTN's earnings have grown significantly by 31.8% per year over the past 5 years.

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

Earnings vs Industry: MTN had negative earnings growth (-20.7%) over the past year, making it difficult to compare to the Hospitality industry average (-16.7%).


Return on Equity

High ROE: MTN's Return on Equity (18.7%) is considered low.


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 ($527.9M) do not cover its short term liabilities ($719.1M).

Long Term Liabilities: MTN's short term assets ($527.9M) do not cover its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: MTN's debt to equity ratio (71.8%) is considered high.

Reducing Debt: MTN's debt to equity ratio has reduced from 75.4% to 71.8% over the past 5 years.

Debt Coverage: MTN's debt is well covered by operating cash flow (51.1%).

Interest Coverage: MTN's interest payments on its debt are well covered by EBIT (6.4x 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 0.4x debt).


Next Steps

Dividend

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

3.02%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: MTN's dividend (3.02%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: MTN's dividend (3.02%) 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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (90.4%), 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 (102.4% payout ratio).


Next Steps

Management

What is the CEO of Vail Resorts's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Rob Katz (52yo)

13.8yrs

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 ($USD3.62M) is below average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

4.4yrs

Average Tenure

51yo

Average Age

Experienced Management: MTN's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

8.1yrs

Average Tenure

57yo

Average Age

Experienced Board: MTN's board of directors are considered experienced (8.1 years average tenure).


Insider Trading

Insider Buying: MTN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$225,36010 Oct 19
Peter Vaughn
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$226.63
SellUS$188,79301 Oct 19
Ryan Siurek
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares800
Max PriceUS$236.98
SellUS$3,139,92412 Jun 19
Patricia Campbell
EntityIndividual
Role
Senior Key Executive
President of Mountain Division
Shares13,556
Max PriceUS$232.97
SellUS$216,47020 Mar 19
Peter Vaughn
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$216.47
SellUS$1,134,17118 Mar 19
David Shapiro
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares5,312
Max PriceUS$214.83
SellUS$512,20313 Dec 18
John Sorte
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,134
Max PriceUS$240.35

Ownership Breakdown

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


Management Team

  • Rob Katz (52yo)

    Chairman & CEO

    • Tenure: 13.8yrs
    • Compensation: US$3.62m
  • Chris Jarnot (52yo)

    Executive Vice President of Mountain Division

    • Tenure: 13.8yrs
  • Pat Campbell (56yo)

    President of Mountain Division

    • Tenure: 4.3yrs
    • Compensation: US$2.32m
  • Michael Barkin (41yo)

    Executive VP & CFO

    • Tenure: 6.7yrs
    • Compensation: US$2.32m
  • David Shapiro (49yo)

    Executive VP

    • Tenure: 4.4yrs
    • Compensation: US$1.71m
  • Ryan Siurek (47yo)

    Chief Accounting Officer

    • Tenure: 3.7yrs
  • Lynanne Kunkel

    Chief Human Resources Officer & Executive VP

    • Tenure: 2.6yrs
  • Pete Sonntag

    Senior Vice President of Mountain Division - Whistler Blackcomb

    • Tenure: 0.3yrs
  • Kirsten Lynch (51yo)

    Executive VP & Chief Marketing Officer

    • Tenure: 8.4yrs
    • Compensation: US$2.32m
  • Timothy April

    Senior VP & Chief Information Officer

    • Tenure: 1.2yrs

Board Members

  • Sue Decker (56yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$297.14k
  • John Redmond (60yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$305.63k
  • Hilary Schneider (58yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$290.07k
  • Rob Katz (52yo)

    Chairman & CEO

    • Tenure: 13.8yrs
    • Compensation: US$3.62m
  • John Sorte (72yo)

    Independent Director

    • Tenure: 26.9yrs
    • Compensation: US$335.07k
  • D. Sewell (61yo)

    Lead Independent Director

    • Tenure: 0.5yrs
    • Compensation: US$321.98k
  • Peter Vaughn (55yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$294.07k
  • Michele Romanow (34yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$317.35k

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$9.582b
  • Shares outstanding: 40.40m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 23:44
End of Day Share Price2019/12/06 00:00
Earnings2019/07/31
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.