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We are a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products and services. As the first major hospitality-branded vacation ownership company, Marriott Vacations Worldwide helped establish the industry and was the first major pure-play independent, public company in the field.
The business is unprofitable at the operating level (-8.30% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue growth slowed to 2.6%, essentially flat. Margins also contracted 12.8pp. This is a business that needs a catalyst.
Free cash flow declined 120% versus the prior year, cash generation momentum has weakened. ROIC dropped from 2.53% to -6.79%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$4.87B
▲ +2.6% YoY
Net Income (TTM)
-$343M
▼ -241.3% YoY
Op. Margin
-9.04%
▼ -12.8pp YoY
ROIC
-7.50%
▼ -9.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$35M
▼ -119.6% YoY
Op. Cash Flow (TTM)
$16M
▼ -86.3% YoY
Net Debt
$2.23B
Cash & Equiv.
$268M
5Y CAGR: +10.8%
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