​Marriott Vacations Worldwide Corp. (NYSE:VAC) is one of the Best Small Cap Value Stocks to Buy. Wall Street maintains a positive outlook on Marriott Vacations Worldwide Corp. (NYSE:VAC) despite a 13% loss in share price since fiscal Q3 2025, announced on November 4. Recently, on December 5, Simon Yarmak from Stifel Nicolaus reiterated a Buy rating on the stock but lowered the firm’s price target from $83 to $70. On the same day, Brandt Montour from Barclays reiterated a Buy rating on the stock with a pri ...

About Marriott Vacations Worldwide Corporation Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products, and services. The Company has 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates an exchange network and membership programs c ...

Core Points - Marriott Vacations Worldwide Corporation announced an increase in its quarterly dividend to $0.80 per share, payable on or around January 7, 2026, to stockholders of record as of December 24, 2025 [1] - The Board of Directors extended the Company's share repurchase authorization through December 31, 2026 [1] Share Repurchase Program - Share repurchases may occur through various methods including open-market purchases and privately negotiated transactions, with the timing and amount depending on market conditions and other factors [2] - The Company is authorized to adopt plans under Rule 10b5-1 of the Securities Exchange Act of 1934 for the share repurchase program, which can be modified by the Board at any time [2] Company Overview - Marriott Vacations Worldwide Corporation is a leading global vacation company with 120 vacation ownership resorts and approximately 700,000 owner families [3] - The Company operates an exchange network and membership programs with over 3,200 affiliated resorts in more than 90 countries and territories [3] - It maintains exclusive relationships with Marriott International, Inc. and an affiliate of Hyatt Hotels Corporation for the development and marketing of vacation ownership products [3]

Financial Data and Key Metrics Changes - The company is currently focused on executing its business to its maximum potential, with an emphasis on improving operational efficiency and sales execution [9][12] - The management team is committed to delivering immediate shareholder value and is open to all strategic options, including potential stock sales [12][13] Business Line Data and Key Metrics Changes - The sales division is not in a "code red" state, but there are opportunities for improvement in sales success and retention of key talent [16][17] - The company is reviewing its sales processes and the effectiveness of its product offerings, particularly in relation to repeat sales and customer engagement [24][25] Market Data and Key Metrics Changes - The company is observing trends in the timeshare market, particularly regarding repeat sales and the impact of macroeconomic conditions on customer behavior [22][24] - There is a focus on managing inventory effectively and addressing the challenges posed by higher unsold maintenance fees [38][39] Company Strategy and Development Direction - The company is prioritizing clarity of mission, resource allocation, and urgency in decision-making to enhance operational performance [7][8] - There is a strong emphasis on leveraging existing assets and brands, with a focus on internal improvements rather than seeking external solutions [35][36] Management's Comments on Operating Environment and Future Outlook - The management team believes that the current economic environment is generally positive, and they are confident in the resilience of their customer base [54][56] - The company is committed to addressing headwinds and is focused on maximizing cash flow and operational efficiency [41][62] Other Important Information - The company has recently completed a securitization at a favorable rate, indicating confidence in the quality of its financial products [58] - The management team has expressed a commitment to share buybacks as part of their capital allocation strategy, particularly given the current valuation of the stock [59] Q&A Session Summary Question: What is the current state of the sales division? - The sales division is not in a "code red" state, but there are opportunities for improvement in sales success and retention of key talent [16][17] Question: How significant is the issue of commercial rental? - The issue of commercial rental is relevant but not the dominant concern; the company is focused on internal improvements [20][21] Question: Is the Abound product performing well? - The Abound product has largely overcome initial challenges and is expected to provide a tailwind as it matures [26][30] Question: What are the challenges in Maui's recovery? - Maui's recovery has been uneven, with ongoing social issues and a slow rebuilding process affecting customer confidence [43][44] Question: How does the company view its reserve levels? - The company feels appropriately reserved, with positive trends in delinquencies and a focus on maintaining low maintenance fees [48][50]

Financial Data and Key Metrics Changes - The company is currently focused on executing its business to its maximum potential, indicating a need for improvement in operational efficiency [10][11] - The management highlighted a significant increase in maintenance fees over the past two years, with a 25% increase impacting the loan portfolio [51][52] Business Line Data and Key Metrics Changes - The sales division is not in a "code red" state, but there are opportunities for improvement in sales execution and retention of key talent [19][20] - The Abound product, which integrates various vacation ownership products, has seen improvements and is expected to drive sales growth as it matures [29][32] Market Data and Key Metrics Changes - The company is experiencing challenges in the rental side due to higher inventory and unsold maintenance fees, which are being addressed [40][41] - The recovery in Maui is uneven, with ongoing social issues and a slow rebuilding process affecting market conditions [45][46] Company Strategy and Development Direction - The management is committed to creating immediate shareholder value and is open to all strategic options, including potential sales of shares [13][14] - The focus is on maximizing cash flow and addressing operational challenges to enhance profitability and shareholder returns [62][63] Management's Comments on Operating Environment and Future Outlook - The management believes the current economic environment is generally positive, with a strong affinity for travel among consumers [56][58] - There is a recognition of the need to improve service levels and operational execution to meet customer expectations [58][63] Other Important Information - The company has a strong balance sheet, with a leverage ratio of about four times, and is considering share buybacks due to attractive stock valuations [60][61] - The management has expressed confidence in the resilience of the vacation ownership industry, citing historical performance during economic downturns [55][56] Q&A Session Summary Question: What is the current state of the sales division? - The sales division is not in a "code red" state, but there are opportunities for improvement in sales execution and retention of key talent [19][20] Question: How significant is the issue of commercial rental? - The issue is relevant but not the dominant concern; the focus remains on internal improvements [22][23] Question: What are the challenges in the Maui market? - The recovery in Maui is uneven, with ongoing social issues and a slow rebuilding process affecting market conditions [45][46] Question: How is the company addressing delinquencies and reserves? - The company feels appropriately reserved, with positive trends in delinquencies and a focus on maintaining low maintenance fees [50][51] Question: What is the company's approach to share buybacks? - The company is considering share buybacks as part of its capital allocation strategy, given the current stock valuation [60][61]

Financial Data and Key Metrics Changes - The company is currently focused on improving execution and maximizing business potential, which is seen as low-hanging fruit for immediate improvement [8][11] - The management team emphasizes the importance of delivering results to enhance shareholder value, indicating that the stock is considered undervalued [49][50] Business Line Data and Key Metrics Changes - The sales division is viewed as having opportunities for improvement, but it is not considered to be in a critical state [13][14] - The company is reviewing its sales processes and the performance of its sales executives to enhance sales success [19] Market Data and Key Metrics Changes - The company acknowledges challenges in the rental market due to higher inventory and unsold maintenance fees, which are seen as headwinds [30] - The management is optimistic about new sales centers in Khao Lak and Waikiki, which are expected to drive new sales and engagement with the ownership base [30] Company Strategy and Development Direction - The interim CEO is focused on establishing clarity of mission, prioritizing resources, and making urgent decisions to improve operations [6][11] - The company is committed to exploring all strategic options, including potential changes to its business initiatives [11][12] Management's Comments on Operating Environment and Future Outlook - The management believes that the current economic environment is generally positive, which supports the resilience of the timeshare industry [44] - There is a focus on understanding the dynamics of owner sales and maximizing opportunities for repeat sales [18][19] Other Important Information - The company has a $3 billion loan book and is confident in its reserve levels, which have been adjusted based on portfolio performance [40][41] - The management team is actively engaged in addressing challenges and is committed to delivering value to shareholders [32][50] Q&A Session Summary Question: What are the key opportunities for improvement? - The management highlighted the need for better execution in sales and marketing as immediate opportunities [8][11] Question: How is the current state of the sales division? - The sales division is not in a critical state but has room for improvement [13][14] Question: What are the challenges in the rental market? - The management noted higher inventory and unsold maintenance fees as significant challenges [30] Question: How does the company view its stock valuation? - The management believes the stock is undervalued and is focused on delivering results to enhance shareholder value [49][50] Question: What is the outlook for the Maui market? - The recovery in Maui is described as uneven, with ongoing challenges, but the management remains optimistic about future growth [34][35]

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential and diversification opportunities [1] - The popularity of insurance companies in the Philippines since 2014 indicates a shift in investment strategies among local investors, moving towards a more diversified portfolio [1] - The entry into the US market has provided additional avenues for investment, particularly in sectors such as banking, hotels, and logistics, reflecting a broader trend of globalization in investment strategies [1] Investment Strategies - Initial investments were focused on blue-chip companies, but there has been a diversification into various industries and market capitalizations over time [1] - The approach includes holding stocks for retirement as well as for trading profits, showcasing a dual strategy in investment [1] - The use of platforms like Seeking Alpha has facilitated knowledge sharing and comparative analysis between different markets, enhancing investment decision-making [1] Market Trends - The logistics and shipping sectors are highlighted as key areas of investment interest, particularly in the context of the US market [1] - The engagement in both ASEAN and NYSE/NASDAQ stocks indicates a trend towards cross-border investment opportunities [1] - The increasing awareness and participation in the stock market among investors in the Philippines reflects a growing trend towards financial literacy and investment diversification [1]

Core Points - Marriott Vacations Worldwide Corporation has completed a $470 million securitization of vacation ownership loans [1] - The securitization was offered to qualified institutional buyers in the United States under Rule 144A and outside the United States in accordance with Regulation S [1] - The issued notes have a blended interest rate of 4.62% [1]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Financial Performance - Total revenues for Q3 2025 were $1,263 million, a decrease of 3.2% compared to $1,305 million in Q3 2024[184]. - The net loss attributable to common stockholders for Q3 2025 was $2 million, compared to a net income of $84 million in Q3 2024[184]. - Total revenues for the nine months ended September 30, 2025, increased by $69 million (2%) to $3,709 million compared to $3,640 million for the same period in 2024[186]. - The company reported a net loss attributable to common stockholders of $(155) million in Q3 2025, compared to $(136) million in Q3 2024[240]. - The company reported net income attributable to common stockholders of $123 million for the nine months ended September 30, 2025[280]. Vacation Ownership Sales - Vacation ownership product sales decreased to $358 million in Q3 2025 from $387 million in Q3 2024, reflecting a decline of 7.5%[184]. - Total contract sales for Vacation Ownership decreased by $21 million (4%) to $442 million in Q3 2025 compared to $463 million in Q3 2024[185]. - Sale of vacation ownership products decreased to $358 million in Q3 2025, down 8% from $387 million in Q3 2024[204]. - Contract sales for the third quarter of 2025 were $439 million, a decrease of 4% compared to $459 million in Q3 2024[204]. - Sale of vacation ownership products for the first three quarters of 2025 increased by 3% to $1,083 million compared to $1,048 million in the same period of 2024[209]. Operational Efficiency and Cost Management - The company expects to achieve annualized benefits of $150 million to $200 million from its Strategic Business Operations initiatives by the end of 2026[178]. - Annual cost savings of approximately $20 million are expected from the reorganization of corporate overhead in human resources and finance[179]. - The company is focused on modernizing processes and systems to drive operational efficiencies and revenue growth[178]. - Modernization expenses amounted to $51 million in Q3 2025, with a total of $94 million for the first three quarters, reflecting significant investment in operational efficiencies[243][244]. Revenue and Profit Margins - Adjusted EBITDA for Q3 2025 was $170 million, a decrease of $30 million (15%) compared to $200 million in Q3 2024[194]. - The Adjusted EBITDA margin for Q3 2025 was 20.9%, down 3.2 percentage points from 24.1% in Q3 2024[194]. - The segment adjusted EBITDA margin for Vacation Ownership was 26.1% for Q3 2025, down from 30.2% in Q3 2024, a decline of 4.1 percentage points[203]. - The average revenue per member declined by $1.02 (3%) to $37.91 in Q3 2025 from $38.93 in Q3 2024[185]. Financing and Debt Management - Financing revenue increased to $90 million in Q3 2025, up from $87 million in Q3 2024, representing a growth of 3.4%[184]. - The company had a corporate debt to Adjusted EBITDA ratio of 4.1 as of September 30, 2025, exceeding the targeted range of 2.5 to 3.0[258]. - The company issued $575 million in senior unsecured notes during the third quarter of 2025, receiving net proceeds of $567 million[266]. - Total material cash requirements amount to $8,038 million, with $4,085 million attributed to debt obligations[277]. Member Engagement and Active Membership - The average revenue per member for the Interval Network is a key metric for measuring member engagement[183]. - Total active members at the end of the period decreased by 46, or 3%, to 1,499,000 in Q3 2025 from 1,545,000 in Q3 2024[185]. Tax and Valuation Adjustments - The effective tax rate for Q3 2025 was impacted by a $25 million increase in valuation allowances, with a provision for income taxes of $(3) million compared to $(34) million in Q3 2024[249][250]. - For the nine months ended September 30, 2025, there was a $25 million increase in tax adjustments due to changes in valuation allowances, partially offset by $13 million in tax benefits from restructuring activities[253]. Other Financial Metrics - The company recorded litigation charges of $3 million in Q3 2025, up from $2 million in Q3 2024[201]. - The company recorded a non-cash impairment charge of $31 million in the third quarter of 2025 related to completed vacation ownership units and land[226]. - The company recorded a $2 million impairment related to an operating lease during the first three quarters of 2025[238]. - The company recorded $2 million of foreign currency translation gains in Q3 2025, while the first three quarters saw $23 million in such gains[247][248].