​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]

Core Points - Rasmussen University has formed a corporate alliance with Hilton Grand Vacations (HGV) to provide educational benefits to HGV team members, including up to 100% tuition coverage for select online programs [1][3] - The alliance aims to enhance career growth opportunities for HGV employees by reducing financial barriers to education [3][4] - Eligible HGV team members can also receive up to a 20% tuition reduction for other qualified programs at Rasmussen University [2] Company Overview - Rasmussen University is an accredited institution committed to providing innovative, career-ready higher education and healthcare education, with a history of 125 years in transforming lives and strengthening communities [7][9] - The university offers a range of undergraduate and graduate programs both online and in-person across 20 campuses in the U.S. [7] Educational Programs - The programs offered by Rasmussen University are designed to help working adults advance their skills and careers through flexible, career-focused education [3][6] - The curriculum is developed with input from industry professionals, ensuring relevance to current job market needs [6] Employee Development - HGV emphasizes the importance of personal and professional growth for its team members, and the partnership with Rasmussen University is seen as a way to enhance employee development and retention [3][4] - The alliance is expected to attract significant interest from HGV employees, indicating a strong demand for educational opportunities [3]

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]

Company Performance - Marriott Vacations reported a revenue decline of 3.2% year-over-year to $1.26 billion, missing analyst estimates of $1.32 billion [2] - Adjusted EBITDA was $170 million, nearly 8% below consensus expectations, raising concerns about profitability [2] - The company’s adjusted earnings per share of $1.69 exceeded expectations by 5.6%, but the market focused on revenue weakness and a decline in conducted tours [2] Market Reaction - Shares of Marriott Vacations fell 20.8% in the morning session following the mixed third-quarter results [1] - The stock has shown volatility, with 14 moves greater than 5% over the past year, indicating significant market impact from this news [4] - The previous notable stock movement occurred 27 days prior, when shares dropped 3.2% due to concerns over trade relations with China [4] Industry Context - The leisure industry, which includes travel, entertainment, and hospitality, is sensitive to economic sentiment and discretionary spending [5] - Recent comments from President Trump regarding China have increased market volatility, particularly affecting leisure stocks [5] - China's new export controls on rare earth materials, essential for high-tech goods, have raised concerns about economic headwinds and potential impacts on consumer spending [5]

Business Overview - The company operates with iconic brands, approximately 120 resorts, and serves around 700,000 owner families[9] - The company's business model includes timeshare and exchange products, multiple brands, perpetual sales centers, and a capital-efficient development model[10] - Approximately 40% of the company's Adjusted EBITDA comes from recurring sources[12, 75] Financial Performance and Guidance - In 2024, the Segment Adjusted EBITDA for Exchange and Third-Party Management was $102 million, with a 46% margin[20] - The company anticipates $150 million to $200 million in annualized Adjusted EBITDA benefits by 2026 through strategic modernization[27, 75] - The company's full year 2025 guidance includes contract sales of $1,760 million to $1,780 million, Adjusted EBITDA of $740 million to $755 million, and Adjusted Free Cash Flow of $235 million to $270 million[70] Growth Strategies - The company aims to drive vacation ownership growth by leveraging strong license relationships[45] - The company is investing in digital capabilities to drive sales and efficiency, with 49% of 2024 tour packages sold digitally and 14% of 2024 contract sales sold non-traditionally[48, 49] - The company is focused on adding first-time buyers, with approximately 95,000 first-time buyers added in the last 5 years[57]

Core Insights - The travel and leisure sector has seen a surge of over 15% due to better-than-expected earnings and an increase in vacation ownership and spending in Q3, with the stock up approximately 38% year-to-date [1] Company Performance - The company is focused entirely on leisure travel and vacation ownership, with strong brands such as Windom, Accore, Sports Illustrated, and Margaritaville, indicating a robust demand from leisure consumers to continue traveling [2] - Approximately 800,000 members are part of the ownership base, with nearly 80% having already paid for their ownership, which supports ongoing travel demand [3] - The company anticipates strong demand for Q4, supported by a 90-day booking window, reflecting confidence in continued leisure travel [3] Market Trends - Leisure travel has proven to be resilient, as it is one of the last activities consumers give up during economic downturns and one of the first to rebound [4] - High inflation has led consumers to appreciate the value of their ownership, allowing them to enjoy vacations at a fraction of hotel prices [5] - Demand remains consistent across regions, with notable popularity in destinations like the Smoky Mountains, Las Vegas, and Southeast Beach locations [6][7][8] Future Outlook - The company expects 2026 to be a significant year for cruises, indicating a positive outlook for the broader travel industry [8] - Overall, demand remains steady with a preference for drive-to destinations over long-haul flights, reflecting consumer behavior trends [9]

Financial Data and Key Metrics Changes - Total company revenue in Q3 2025 was $1,044 million, up 5% year over year [11] - Adjusted EBITDA was $266 million, up 10% year over year, with an adjusted EBITDA margin expanding 100 basis points to 25% [11][12] - Adjusted EPS increased by 15%, reflecting earnings expansion and the impact of share repurchases [11] - Adjusted free cash flow grew 23% year over year, with an expectation to generate approximately $500 million for the full year [15] Business Line Data and Key Metrics Changes - Vacation Ownership segment revenue grew 6% to $876 million, with adjusted EBITDA increasing 14% to $231 million [12] - Gross VOI sales accelerated to $682 million, supported by a 2% tour flow growth and a VPG of $3,304, up 10% [12] - Travel and Membership segment revenue was $169 million, up 1% year over year, while adjusted EBITDA was $58 million, down 6% [14] Market Data and Key Metrics Changes - Tour flow remained healthy at 200,000 tours, indicating strong consumer appetite for travel [5] - The company reported that almost 70% of new buyers come from Gen X, Millennial, and Gen Z households, reflecting a shift in demographics [8] Company Strategy and Development Direction - The company is focused on expanding its brand portfolio, enhancing owner and guest experiences, and driving operational discipline [6][8] - New brand developments include Sports Illustrated Resorts and Eddie Bauer Adventure Club, targeting distinct traveler profiles [6][7] - The company aims to deepen engagement with younger and more diverse travelers while maintaining a disciplined approach to capital allocation [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of leisure travel demand and the resilience of the customer base [4][8] - The company raised its adjusted EBITDA guidance midpoint to $975 million for the full year, reflecting strong Q3 performance [17] - Management noted that booking pace remains consistent with the prior year, indicating stable consumer behavior [8] Other Important Information - The company returned $106 million to shareholders during the quarter, including $36 million in dividends and $70 million in share repurchases [15] - The liquidity position remains strong, nearing $1.1 billion, with net leverage expected to be below 3.3 times by year-end [16] Q&A Session Summary Question: What is driving the strong performance in the VOI business? - Management attributed the strong performance to investments in digital tools and improved customer experiences, leading to higher satisfaction scores and increased household income among customers [21][23] Question: Are there additional opportunities for Sports Illustrated Resorts? - Management indicated that urban locations, particularly in sports towns, present significant opportunities for conversions rather than new developments [25][27] Question: What changes contributed to the 30% increase in travel club transactions? - Management highlighted refined strategies and a focus on profit-producing clubs as key factors driving transaction growth [30][31] Question: How does the company view the loan loss provision moving forward? - Management expects the long-term provision rate to settle back in the upper teens, with no signs of deterioration in delinquencies or defaults [85][86] Question: What is the outlook for new owner sales and margins? - Management anticipates that new owner sales will fluctuate but remain disciplined to keep margins in the 22% to 25% range [50][51]

Core Insights - Travel + Leisure Co. has successfully completed a term securitization transaction, issuing $300 million in asset-backed notes with a weighted average coupon of 4.78% [1] - The advance rate for this transaction was 98.00%, indicating strong investor confidence in the company's vacation ownership business [1] Company Summary - The transaction marks the third term securitization completed by Travel + Leisure Co. in 2025, showcasing the company's ability to attract investment [1] - The successful completion of this securitization reflects the quality and reliability of the company's vacation ownership offerings [1]