Marriott Vacations Worldwide Stock Discussion

Marriott Vacations' Q4 results surpassed analysts' expectations despite the impact of Maui wildfires. The company managed to increase contract sales by 4% year-over-year. The stock rose 3.9% after the report.

Marriott Vacations Worldwide's low P/E ratio is due to declining earnings and expectations of this trend continuing. Without earnings improvement, the current P/E ratio may continue to hinder the share price.

The market's overconfidence a year ago is evident in the less favorable current P/E ratio of 10.24. Despite the sell-off, long term shareholders have gained 4% annually over half a decade, indicating the sell-off might be an opportunity given signs of a long term growth trend.

The article voices concern over Marriott Vacations Worldwide's high debt considering the ROE is below industry average. The company's use of debt to drive returns could potentially put a strain on future operations, making it a somewhat risky investment.

Marriott Vacations Worldwide's rising ROCE, despite constant capital injection, indicates improved efficiencies, signaling long-term growth prospects. These strong basics may still be overlooked by investors, suggesting it could be an undervalued stock worth considering.

Core Point:
1. With the strength in leisure travel, Marriott averaged nearly 90% occupancy for the year, with Hawaii running over 95%, while Asia Pacific occupancies doubled compared to the prior year, illustrating the continued high demand for leisure accommodations. The company also generated over $1.8 billion of contract sales and delivered $744 million of adjusted free cash flow in 2022. Marriott...