Marriott Vacations WorldwideVAC +0.97%84 Gross Margin % is 35.96% as of Mar. 2026, which is 4% below its 10-year median of 37.35. GuruFocus rates VAC with a GF Score™ of 84/100 and a GF Value™ of $102.20 (Fairly Valued). The stock has 7 warning signs investors should review. Among 793 Travel & Leisure companies, Marriott Vacations Worldwide ranks worse than 62.3% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Marriott Vacations Worldwide had a gross margin of 35.96% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Marriott Vacations Worldwide Gross Margin % Related Terms
Marriott Vacations Worldwide Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Resorts & Casinos subindustry, Marriott Vacations Worldwide's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Marriott Vacations Worldwide Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Marriott Vacations Worldwide's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Marriott Vacations Worldwide's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Marriott Vacations Worldwide (VAC) has a Gross Margin % of 35.96% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Marriott Vacations Worldwide and its competitors. This is near median its historical median of 37.35. Over the past decade, Marriott Vacations Worldwide's Gross Margin % has ranged from 24.12 to 42.63. According to the industry distribution chart, Marriott Vacations Worldwide ranks #494 out of 793 companies in the Travel & Leisure industry, placing it in the top 62.3%.
Is Marriott Vacations Worldwide's Gross Margin % too high?
Marriott Vacations Worldwide's current Gross Margin % of 35.96% is near median its 10-year median of 37.35. Over the past 10 years, this metric has ranged from a low of 24.12 to a high of 42.63. The Travel & Leisure industry median Gross Margin % is 44.02. Marriott Vacations Worldwide's value of 35.96% is 18.3% below this industry median. Based on the distribution chart, Marriott Vacations Worldwide ranks #494 out of 793 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Marriott Vacations Worldwide has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Marriott Vacations Worldwide's Gross Margin % compare to PENN and RRR?
According to the Travel & Leisure industry distribution chart, Marriott Vacations Worldwide ranks #494 out of 793 companies for Gross Margin %. This places Marriott Vacations Worldwide in the lower half of its industry. The industry median Gross Margin % is 44.02. Marriott Vacations Worldwide's value of 35.96% is 18.3% below this benchmark. Historically, Marriott Vacations Worldwide's own Gross Margin % has ranged from 24.12 to 42.63 over the past decade. While the company's 10-year median is 37.35 vs. the industry median of 44.02, Marriott Vacations Worldwide has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 44.02, based on 793 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Marriott Vacations Worldwide's current Gross Margin % of 35.96% is 18.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Marriott Vacations Worldwide and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 44.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Marriott Vacations Worldwide's current Gross Margin % is 35.96%, which is near median its own 10-year median of 37.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Marriott Vacations Worldwide stock overvalued right now?
Based on GuruFocus' analysis, Marriott Vacations Worldwide (VAC) is currently considered Fairly Valued. The stock's GF Value™ is $102.20, compared to a current price of $100.11 — trading 2% below its estimated fair value. The current Gross Margin % is 35.96%, which is near median its 10-year median of 37.35 and 18.3% below the Travel & Leisure industry median of 44.02. Marriott Vacations Worldwide's overall GF Score™ is 84/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Marriott Vacations Worldwide (VAC), the current Gross Margin % is 35.96% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Marriott Vacations Worldwide (VAC) Overvalued in 2026?
Based on GuruFocus' analysis, Marriott Vacations Worldwide stock appears to be undervalued.
The current stock price of $100.11 is trading 2% below its estimated GF Value™ of $102.20.
GuruFocus considers Marriott Vacations Worldwide to be Fairly Valued.
Key valuation signals for VAC:
Gross Margin %: 35.96% (near median its 10-year median of 37.35)
GF Value™: $102.20 vs. price of $100.11 (2% below fair value)
Industry Position: 18.3% below the Travel & Leisure median (#494 of 793)
No single metric tells the full story. See the VAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Marriott Vacations Worldwide Corp functions in the United States leisure industry. It owns and manages a cluster of resorts and accommodation facilities under trademarks like Marriott Vacation Club, Grand Residencies, and The Ritz-Carlton Destination Club predominantly in the United States. Some of its properties are also spread across Europe and Asia Pacific. Marriott's majority revenue components include the sale of vacation ownership products such as luxurious vacation packages. In addition, it offers purchase money financing to the end users of its core services. The company operates in two reportable segments: Vacation Ownership and Exchange & Third-Party Management. The majority of revenue is derived from the Vacation Ownership segment.
84GF Score
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