VAC is now undervalued and could go up 117%
Marriott Vacations Worldwide, headquartered in Orlando, Florida, specializes in vacation ownership and management, employing 22,000 people. Its segments include Vacation Ownership and Exchange & Third-Party Management, featuring various licensed brands.
Based on our analysis, Marriott Vacations Worldwide has received an undervalued rating of 4 out of 5 stars from Cashu, primarily due to its strong financial ratios compared to industry averages.
The company's Price-to-Earnings (PE) Ratio stands at 10.26, significantly lower than the sector average of 15.61. A lower PE ratio may indicate that the stock is undervalued, suggesting that investors are paying less for each dollar of earnings compared to peers. Similarly, the Price-to-Book (PB) Ratio for Marriott Vacations is 1.28, while the sector average is 1.97. This ratio implies that the company is trading at a lower premium over its book value, indicating potential undervaluation.
Marriott Vacations Worldwide also boasts a robust Net Profit Margin of 4.39, far exceeding the sector average of 0.09. A higher net profit margin indicates effective cost management and profitability, which strengthens the company's financial health. The Return on Equity (ROE) ratio of 8.93, compared to the sector's 1.09, reflects the company’s ability to generate profit from shareholders' equity, showcasing its operational efficiency.
Additionally, a Dividend Yield of 4.60, significantly higher than the sector's 2.56, offers investors consistent income, further enhancing the appeal of this stock. The Return on Assets (ROA) ratio of 2.22, as opposed to the sector's -0.10, indicates that the company effectively utilizes its assets to generate profits.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Consumer Discretionary