Develops and markets vacation ownership properties. Sells vacation ownership interests to customers. Now — the numbers.
Revenue is spread across several lines; no single product carries the company.
The company closed last year at a loss: costs ran above sales. The picture changes only if spending is reined in.
Before the clock runs out, either sales must climb sharply or new money must come in. This is the most critical line in the whole picture.
This company is not turning a profit, so the market is pricing its sales instead: 0.7× for every dollar of annual revenue.
Against companies in its own sector, it looks cheaper than 20% of them.
Analysts' average target sits 10% above today's price.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly below the class average.
Clearly below the class average.
Clearly below the class average.
Clearly below the class average.
The stock has been running stronger than the market lately.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
Business Quality: Profit power and business quality trail similar companies in the sector.
The stock trades 41% below its peak. The market has trimmed its expectations for the company.
The company sells $5.0B a year; the problem isn’t sales — it’s costs running above that number.
It met or beat analyst expectations in 7 of the last 8 quarters — consistency is a promise kept.
Over the last 12 months, company executives reported 101 buys and 18 sells. Management buying with its own money is usually read as a good sign.
A loss of $308M against $5.0B in annual sales.
At the current pace of spending, the cash lasts about 2.4 years. After that, the company needs to find new money.
On our five-subject report card, VAC sits behind the class. A low grade doesn’t mean “doomed” — it means “big claim, small proof.”
The takeaway: VAC has solid sales but closed last year at a loss. The road back to profit runs through spending discipline.