Evaluating Marriott Vacations: Insights From 9 Financial Analysts

In the preceding three months, 9 analysts have released ratings for Marriott Vacations VAC, presenting a wide array of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $117.44, a high estimate of $161.00, and a low estimate of $82.00. A 7.12% drop is evident in the current average compared to the previous average price target of $126.44.

Decoding Analyst Ratings: A Detailed Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Marriott Vacations. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Marriott Vacations. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Marriott Vacations compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Marriott Vacations's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Capture valuable insights into Marriott Vacations's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Marriott Vacations analyst ratings.

Delving into Marriott Vacations's Background

Marriott Vacations Worldwide Corp functions in the United States leisure industry. It owns and manages a cluster of resorts and accommodation facilities under trademarks like Marriott Vacation Club, Grand Residencies, and The Ritz-Carlton Destination Club predominantly in the United States. Some of its properties are also spread across Europe and Asia Pacific. Marriott's majority revenue components include the sale of vacation ownership products such as luxurious vacation packages. In addition, it offers purchase money financing to the end users of its core services. The company operates in two reportable segments: Vacation Ownership and Exchange & Third-Party Management. The majority of revenue is derived from the Vacation Ownership segment.

Key Indicators: Marriott Vacations's Financial Health

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: Marriott Vacations's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -3.23%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: Marriott Vacations's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 3.25%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Marriott Vacations's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.56%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Marriott Vacations's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.38%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Marriott Vacations's debt-to-equity ratio is below the industry average. With a ratio of 2.21, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.